Hilton Group in UK hotels takeover talks

Plans to reunite the Hilton brand under one owner were revealed today after an approach for the UK hotels business thought to be worth £3.6bn (€5.2bn).

Hilton Group, which also owns the Ladbrokes gambling firm, said it was in talks with US-based Hilton Hotels Corporation (HHC) following an offer for the UK company’s hotels division.

A deal would recreate a business which split in 1964 when HHC operated within the US market and Hilton focused on the rest of the world.

Hilton Group's hotels division operates 403 sites, with 261 branded Hilton, 47 under Hilton Worldwide Resorts, plus 142 under the mid-market Scandic brand.

The deal would result in the Hilton Group being renamed Ladbrokes, which is thought to be large enough to keep the company in the FTSE 100 index.

Ladbrokes has more than 2,000 betting shops in the UK and Ireland.

Hilton Group issued a statement today to confirm speculation about a possible sale of its Hilton International division.

It said: “The board confirms that it has received an indicative offer from Hilton Hotels Corporation, which it is currently evaluating. Discussions are ongoing and subject to the resolution of a number of issues.”