News of a REIT Spinoff Sent Hilton Stocks Soaring
After dropping 14% for the year, Hilton Worldwide Holdings shares spiked 5.2% this week—its biggest jump in two years—after news broke of the company’s REIT spinoff plans.
Hilton CEO Chris Nassetta (pictured) says the pending spinoff—part of a larger trend this year—is part of finding strategic options for its real estate.
Tax-privileged REITs are wildly popular with restaurant, retail and casino companies—Darden Restaurants completed a spinoff last month and both Macy's and McDonald's considered REITs, Bloomberg reports.
Hilton is running behind—other hotel giants, like Marriot International, have already spun off REITs.
The company is looking for the IRS go-ahead now. It better get moving—the House of Representatives proposed a bill to ban REIT spinoffs just last week. [Bloomberg]
