Hilton Group has said discussions to sell its hotels to its US sister company Hilton Hotels are progressing well, as talk that a deal could be unveiled today gave its shares a boost.
UK Hilton said in October it had received an offer from the US Hilton which sources close to the deal said valued the UK group's hotels at £3.6 billion pounds (€5.3bn), but since then it has sold nearly £400 million worth of hotel assets.
A source told Reuters last week that a deal was set to be announced between Christmas and New Year, and the Financial Timessaid a deal could be confirmed before the New York market's opening today.
"The deal has been progressing well and we would hope to conclude it in the not-too-distant future," a Hilton spokesman said, although he added a sale was not certain.
Hilton shares rose 1.7 per cent to 370-3/4 pence in early London trading, making it the top performing UK blue-chip and valuing the group at almost £6 billion.
A deal would reunite the Hilton brand after more than 40 years and leave Hilton UK shareholders holding onto the fast-growing Ladbrokes gambling business.