Hilton to Detail a Simplified Fee-Based Business with Expanded Capital Return Potential at Investor Day
December 08 2016 - 6:00AM
Business Wire
- Executives to highlight the business
strategies for Hilton, Park Hotels & Resorts, and Hilton Grand
Vacations
- Presentations and webcast details
available at ir.hiltonworldwide.com
Hilton Worldwide Holdings (NYSE:HLT) (“Hilton”) will host an
Investor Day in New York today to discuss the company’s strategy
and financial outlook in conjunction with the planned spin-offs of
Park Hotels & Resorts and Hilton Grand Vacations.
The event will feature presentations by members of Hilton’s
senior leadership team including Christopher J. Nassetta, president
& chief executive officer, and Kevin Jacobs, executive vice
president & chief financial officer. Thomas J. Baltimore, Jr.,
chairman, president & chief executive officer of Park Hotels
& Resorts (“Park”), and Mark Wang, president & chief
executive officer of Hilton Grand Vacations (“HGV”), are also
scheduled to present.
“We look forward to sharing details of our financial outlook and
the strategic initiatives that we believe will fully activate all
three businesses and deliver long-term shareholder value,” said
Christopher J. Nassetta, president & chief executive officer,
Hilton. “We are also excited to share the potential of the new,
simplified Hilton, which we believe will generate meaningful
returns to shareholders through its resilient, fee-based business
with low capital requirements.”
During the Investor Day, Hilton will highlight:
- Its post-spin-off, simplified,
resilient fee-based business with 90% of adjusted EBITDA from fees,
low capital requirements, and significant free cash flow.
- Its portfolio of 13 industry-leading
brands and commercial service platforms, which should continue to
drive enhanced guest experiences and greater returns for owners, as
indicated by a 14 percent global RevPAR premium1.
- With global rooms under construction
approximately 4.5 times larger than its share of existing supply,
Hilton remains well-positioned to continue to deliver
market-leading organic net unit growth.
- Plans to expand capital return to
shareholders through share buybacks and quarterly dividends, which
could total $3.0 to $4.5 billion between 2017 and 2019.
A live webcast of the Investor Day will begin at 8:30 a.m.
Eastern Time. The webcast and corresponding presentations may be
accessed at ir.hiltonworldwide.com. A replay of the event will be
available following the completion of the meeting.
The spin-off transactions have been approved by the Hilton Board
of Directors and are expected to be completed on January 3, 2017.
Park and HGV will begin regular-way trading on the New York Stock
Exchange (NYSE) under the ticker symbols “PK” and “HGV,”
respectively, on January 4, 2017.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. You can identify these forward-looking statements by the
use of words such as "outlook," "believes," "expects," "potential,"
"continues," "may," "will," "should," "could," "seeks," "projects,"
"predicts," "intends," "plans," "estimates," "anticipates" or the
negative version of these words or other comparable words. Such
forward-looking statements are subject to various risks and
uncertainties, including, among others, risks inherent to the
hospitality industry, macroeconomic factors beyond Hilton's
control, competition for hotel guests, management and franchise
agreements and timeshare sales, risks related to doing business
with third-party hotel owners, Hilton's significant investments in
owned and leased real estate, performance of Hilton's information
technology systems, growth of reservation channels outside of
Hilton's system, risks of doing business outside of the United
States, risks related to Hilton's proposed spin-offs and Hilton's
indebtedness. Additional factors that could cause Hilton's results
to differ materially from those described in the forward-looking
statements can be found under the section entitled "Part I-Item 1A.
Risk Factors" of the Annual Report on Form 10-K for the fiscal year
ended December 31, 2015, filed with the SEC, as such factors may be
updated from time to time in Hilton's periodic filings with the
SEC, which are accessible on the SEC's website at www.sec.gov.
Accordingly, there are or will be important factors that could
cause actual outcomes or results to differ materially from those
indicated in these statements. These factors should not be
construed as exhaustive and should be read in conjunction with the
other cautionary statements that are included in this release and
in Hilton's filings with the SEC. The Company undertakes no
obligation to publicly update or review any forward-looking
statement, whether as a result of new information, future
developments or otherwise, except as required by law.
About Hilton
Hilton (NYSE:HLT) is a leading global hospitality company,
comprising more than 4,800 managed, franchised, owned and leased
hotels and timeshare properties with nearly 789,000 rooms in 104
countries and territories. For 97 years, Hilton has been dedicated
to continuing its tradition of providing exceptional guest
experiences. The company's portfolio of 13 world-class global
brands includes Hilton Hotels & Resorts, Waldorf Astoria Hotels
& Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Curio
- A Collection by Hilton, DoubleTree by Hilton, Embassy Suites by
Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton,
Homewood Suites by Hilton, Home2 Suites by Hilton and Hilton Grand
Vacations. The company also manages an award-winning customer
loyalty program, Hilton HHonors®. Hilton HHonors members who book
directly through preferred Hilton channels have access to benefits
including an exclusive member discount, free standard Wi-Fi, as
well as digital amenities that are available exclusively through
the industry-leading Hilton HHonors app, where Hilton HHonors
members can check-in, choose their room, and access their room
using a Digital Key. Visit news.hiltonworldwide.com for more
information and connect with Hilton on Facebook, Twitter, YouTube,
Flickr, LinkedIn and Instagram.
1 Source: STR (12 months ended 12/31/2015). “RevPAR” or “Revenue
per Available Room” represents hotel room revenue divided by room
nights available to guests for a given period.
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Hilton Contacts:Christian CharnauxInvestor
Contact1-703-883-5205christian.charnaux@hilton.comorNigel
GlennieMedia Contact1-415-298-4424nigel.glennie@hilton.comorPark
Hotels & Resorts Contact:Ian WeissmanInvestor
Contact1-703-584-7441iweissman@pkhotelsandresorts.comorHilton
Grand Vacations Contact:Robert LaFleurInvestor
Contact1-407-722-3327rlafleur@hgvc.com
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