Hilton Worldwide (NYSE: HLT) reported Q4 EPS of $0.22, in-line with the analyst estimate of $0.22. Revenue for the quarter came in at $2.86 billion versus the consensus estimate of $2.96 billion.

System-wide comparable RevPAR increased 3.7 percent and 5.4 percent for the fourth quarter and full year 2015, respectively, on a currency neutral basis

GUIDANCE:

Hilton Worldwide sees FY2016 EPS of $0.92-$0.98, versus the consensus of $0.97.

Asset Spin:

Hilton also announced plans to enhance long-term shareholder value by spinning off the bulk of its real estate business into a publicly traded real estate investment trust (REIT) and by spinning off its timeshare business, Hilton Grand Vacations (HGV), as a separate publicly traded company.

“The transactions we announced today will result in three pure-play companies, enabling dedicated management teams to fully activate their respective businesses, taking advantage of both organic and inorganic growth opportunities as well as capital market and tax efficiencies,” said Christopher J. Nassetta, president & CEO of Hilton Worldwide. “We intend to have the appropriate leadership, strategies and capital structures in place to set up all three companies for further success.”

Additional Transaction Details

Hilton Worldwide has received a private letter ruling from the Internal Revenue Service on certain issues relevant to the qualification of the spin-offs as tax-free. These transactions will be effected through a distribution of the new entities’ stock to existing Hilton Worldwide shareholders. The intention is to file appropriate registration statements with the Securities and Exchange Commission (SEC) during the second quarter and to complete both spin-offs by the end of the year.

Hilton Worldwide intends to elect REIT status for the newly formed real estate company, which will include approximately 70 properties and 35,000 rooms, forming one of the largest and most geographically diversified publicly traded lodging REITs. The REIT will have a high quality portfolio of luxury and upper upscale assets, located across high-barrier-to-entry urban and convention markets, top resort destinations, select international regions and strategic airport locations.

Hilton Worldwide expects the newly formed timeshare company to manage nearly 50 club resorts in the United States and Europe and have an exclusive, long-term license agreement with Hilton Worldwide to market, sell and operate resorts under the Hilton Grand Vacations brand.

Hilton Worldwide will disclose more details of the proposed timeshare and real estate transactions upon the filing of appropriate registration statements with the SEC, including financial and other details. The transactions are subject to execution of intercompany agreements, arrangement of adequate financing facilities, the effectiveness of the registration statements, final approval by Hilton Worldwide’s Board of Directors and other customary conditions. The spin-off transactions will not require a shareholder vote. The spin-offs are expected to be completed by year-end but there can be no assurance regarding the ultimate timing of the spin-offs or that either or both of the spin-offs will ultimately occur.

Deutsche Bank Securities Inc. and Goldman, Sachs & Co. are acting as financial advisors to the Company.

Investor Call

Hilton will host its fourth quarter and full year 2015 financial results conference call at 10:00 a.m. Eastern Time today, February 26.

Participants may listen to the live webcast by logging onto the Hilton Worldwide Investor Relations website at http://ir.hiltonworldwide.com/events-and-presentations. A replay and transcript of the webcast will be available within 24 hours after the live event at http://ir.hiltonworldwide.com/financial-reporting/quarterly-results. Alternatively, participants may listen to the live call by dialing 1-888-317-6003 in the United States or 1-412-317-6061 internationally with the Conference ID 0824669. Participants are encouraged to dial into the call or link to the webcast at least fifteen minutes prior to the scheduled start time. A telephone replay will be available for seven days following the call. To access the telephone replay, dial 1-877-344-7529 or 1-412-317-0088 using the replay access code 10079673.

For earnings history and earnings-related data on Hilton Worldwide (HLT) click here.