Hilton Name Goes Home Again

Updated from 9:14 a.m. EST

Hilton Hotels (HLT Quote - Cramer on HLT - Stock Picks) agreed to buy the lodging assets of the U.K.'s Hilton Group in a $5.71 billion deal that reunites the Hilton brand under one organization.

The transaction is expected to close in the first quarter, Hilton Hotels said Thursday. Hilton Group will retain its gambling and betting business Ladbrokes, whose name it will likely adopt as its own.

Hilton International, an operating division of the Hilton Group, owns the rights to the Hilton brand outside the U.S. Hilton Hotels spun off Hilton International in 1964, but the companies have had a marketing pact since 1997.

After the acquisition, Hilton Hotels will have nearly 2,800 hotels and 475,000 rooms in 80 countries. The company's hotels operate under the names Hilton, Conrad, Doubletree, Embassy Suites, Hampton Inn and others.

"This transaction represents the final and logical step in a process that began in 1997 with the signing of our strategic alliance, and is a unique opportunity to once again position [Hilton Hotels] as a global lodging industry leader for the first time in more than 40 years," said Stephen F. Bollenbach, Hilton Hotels' co-chairman and chief executive.

The combined company will be based in Beverly Hills, Calif., Hilton Hotels' current hometown. Shares of Hilton Hotels were gaining $1.38, or 6.2%, to $23.68 on the news.

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