Sunday, December 04, 2005

Hilton Hotels Completes GBP 400 Million Sale Manageback of 16 UK Hotels

The Jerusalem Post - November 27, 2005

Igal Ahouvi's Managed Hotels Unit Trust and Delek Real Estate have purchased 15 Hilton hotels in the United Kingdom and agreed to buy a 16th, for a total of roughly NIS 3.5 billion, a source close to the deal confirmed Thursday.

The source stated further that Ahouvi and Delek Real Estate CEO Ilik Rozanski were conducting negotiations toward bringing two or three more partners into the deal, and intend to divide it up evenly, with each party holding 20% or 25% of the value. They expect to recruit the partners within two weeks.

Hilton, which had announced Tuesday that it had completed the sale of the first 15 hotels to Managed Hotels, will keep its banner on the buildings, and continue to manage them as full Hilton hotels for at least the next 30 years, with two options for additional 10-year periods thereafter. Hilton also expects to earn around GBP5.4 million yearly from the management contracts on the original 15.

Funding for the initial purchase was provided by the Royal Bank of Scotland. The 16 hotels contain a total of 3,100 rooms. Hilton International intends to sell further hotels valued in excess of GBP400m., including the Hilton London Metropole and Hilton Birmingham Metropole. Sphere: Related Content

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