Hilton Worldwide Outlines Plans For Spin-Off, Fee-Based Strategy

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Hilton Worldwide Thursday said the post-spin-off company would be a fee-based business with 90% of adjusted earnings before interest, taxes, depreciation and amortization from fees, along with low capital requirements, and significant free cash flow.

Hilton plans to spin-off Park Hotels & Resorts, and also Hilton Grand Vacations, into separate public companies to begin trading Jan. 4 under the ticker symbols PK and HGV.

Hilton also said it plans to expand capital return to shareholders through share buybacks and quarterly dividends, which could total $3.0 billion to $4.5 billion between 2017 and 2019.

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