Hilton Worldwide Issues Guidance; Plans To Spin Off Real Estate, Timeshare Units

(RTTNews) - Hilton Worldwide Holdings Inc. (HLT), announced, for full year 2016, the company expects its system-wide RevPAR to increase between 3.0 percent and 5.0 percent on a comparable and currency neutral basis, with ownership segment RevPAR expected to increase between 3.0 percent and 5.0 percent on a comparable and currency neutral basis as compared to 2015. Adjusted EBITDA is projected to be between $3.02 billion and $3.10 billion. EPS, adjusted for special items, is projected to be between $0.92 and $0.98.

For the first quarter 2016, the company expects its system-wide RevPAR to increase between 2.0 percent and 4.0 percent on a comparable and currency neutral basis compared to the first quarter of 2015. Adjusted EBITDA is expected to be between $630 million and $650 million. EPS, adjusted for special items, is projected to be between $0.15 and $0.17.

Hilton Worldwide also announced plans to spin off the bulk of its real estate business into a publicly traded real estate investment trust (REIT) and to spin off its timeshare business, Hilton Grand Vacations, as a separate publicly traded company.

Hilton Worldwide said the company has received a private letter ruling from the Internal Revenue Service on certain issues relevant to the qualification of the spin-offs as tax-free. These transactions will be effected through a distribution of the new entities' stock to existing Hilton Worldwide shareholders.