With the year-end omnibus bill pending in Congress set to ban certain real estate investment trust spinoffs, Hilton revealed its plans to form a REIT to the IRS, according to the Wall Street Journal. By going to the IRS for approval, Hilton is exempt from the ban, which now includes a clause that grandfathers companies that sought an IRS ruling for their spinoffs before Dec. 7. The bill is up for a vote in the House later today. Hilton’s spinoff of its real estate holdings continues the company’s ongoing asset-light strategy and it has signaled that its timeshare business is next in line to leave the nest. Hilton owns or leases 147 hotels around the world, with a reported value of more than $10 billion. For the full story, click here.
