A pair of companies hived off from storied hotelier Hilton Worldwide (NYSE: HLT) began trading Wednesday, although the root company ended the day with a better result than either of them. Debuting on the New York Stock Exchange were Park Hotels & Resorts (NYSE: PK), a real estate investment trust composed of the hotels and resorts formerly owned by Hilton Worldwide, and timeshare operator Hilton Grand Vacations (NYSE: HGV). The spinoffs were formally completed Tuesday.
On Wednesday, Hilton Worldwide's share price closed up by 2.5%. That beat Hilton Grand Vacations' 1% rise, and Park Hotels & Resorts' nearly 2% decline.
Last February, Hilton Worldwide announced it would split into the three companies, a move that was ratified by its board of directors last month. Stockholders were given shares in both Park Hotels & Resorts and Hilton Grand Vacations. The process culminated with a 1-for-3 reverse stock split in Hilton Worldwide shares.
"The new Hilton is a fee-based, capital efficient, and resilient business with tremendous growth potential around the world," said Hilton Worldwide CEO Christopher Nassetta in a press release. "We believe this will result in opportunities for our team members and meaningful returns for our hotel owners and shareholders."
The company pointed out that Park Hotels & Resorts immediately becomes the second-largest lodging REIT on the market. Meanwhile, it described Hilton Grand Vacations as "a premier operator and rapidly growing company in the timeshare industry."
Although Hilton Worldwide's stock price has taken a hit in recent days, it is still 16% higher than it was at this time last year.
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