Hilton Group Plc may become just a gaming company
now that its hotel division has been sought out by
its American namesake, Hilton Hotels Corp.
Based in the UK, the Hilton Group owns the highly
successful gambling chain Ladbrokes in addition to a
hotel division that is likely to be sold to the
other Hilton, popularly known in America.
Ladbrokes makes up
approximately 60% of Hilton Group's profit, which
only seems to be growing since the enactment of the
UK Gambling Bill, the British gambling market in
general, and Ladbrokes very own expansion of more
betting shops and current business renovations.
Considering the hotel division of Hilton Group has
dropped business since the London bomb attacks,
turning Hilton Group into a gambling focused company
is looking like a viable option for investors and
stock holders.
And although there are
speculations that Hilton Group might be getting
offers from casino and gambling companies to buy out
Ladbrokes as well, the company remains intent on
carrying out negotiations with Hilton Hotels Corp.
Since the talk of buyouts all began, Hilton Groups
stock has risen 2.8%, bringing the company's value
to an all-time high of GBP 5.88 billion. This
is nearly a 30% rise in stock value from the start
of fiscal year 2005.
With the online casino
gambling and land-based betting industries growing
as they are in the UK (value in 2010 is estimated
over 10 billion) the sale of Ladbrokes alone could
easily bring in 3 to 4 billion. Pending on the
sale of Hilton Groups lodging division, stock
holders could be in for some big earnings.
Management will be keeping all shareholders posted
on the current talks and the company's intent.