NEW YORK (TheStreet) -- Hilton Worldwide Holdings (HLT - Get Report) stock is rising 2.08% to $20.62 in late morning trading on Friday after the company announced plans to spin-off most of its real estate business into a publicly traded real estate investment trust (REIT).

The McLean, VA-based hospitality company also plans to separate its timeshare business, Hilton Grand Vacations, into a 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," CEO Christopher Nassetta said in a statement.

The company expects to complete the spin-offs by the end of the year.

Additionally, Hilton reported mixed financial results for the 2015 fourth quarter before today's market open.

The company posted earnings of 22 cents per share, in line with estimates, and revenue of $2.86 billion that missed estimates of $2.96 billion for the latest quarter.

Separately, Hilton has a "hold" rating and a letter grade of C- at TheStreet Ratings because of the company's strengths, such as earnings per share, net income and revenue growth, and its weaknesses including disappointing stock performance, generally higher debt management risk and weak operating cash flow.

You can view the full analysis from the report here: HLT

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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