Hilton to Sell Scandic Hotels Brand for $1 Billion

Hilton Hotels Corp. has signed a $1.1 billion deal to sell its Scandic Hotels brand, a midsize market chain of properties located in Northern Europe that Hilton acquired last year. Hilton said it expects to the complete the sale in April, with the proceeds going to pay down debt.

Under terms of the deal, which are subject to approval by the European Union, EQT Partners –a private equity group with offices in Europe and Asia- will acquire 132 hotels, including 128 Scandic hotels, three Hilton hotels plus another unidentified property.

Hilton acquired the Scandic brand in January 2006 when it agreed to purchase the lodging assets of the Hilton Group, the U.K. company that operated Hilton-branded hotels outside the U.S. That transaction unified the lodging company after it was split more than four decades ago.