The move is part of HHC's strategy of moving away from hotel ownership into managing and franchising hotels. The Scandic brand, which includes 130 hotels and 23,000 rooms, mainly in Sweden, Norway, Finland and Denmark, was acquired when HHC took over its UK namesake Hilton Group in a euro 4.67-billion ($6-billion) deal in February.

Chief financial officer Robert M. La Forgia says Hilton wanted to sell assets to focus on a strategy of generating a higher proportion of future earnings from managing and franchising hotels. "Any future sale of assets is a continuation of a process that began in early 2005," La Forgia comments.

HHC has already sold more than euro 1 billion ($1.3 billion) in assets. At the same time, the firm is building its management strategy. HCC officials reveal the completion of a multi-year agreement with WB-LCP Kuhio Owner, an affiliate of Lodging Capital Partners LLC and Westbrook Partners, to manage an upscale, 404-room hotel in Honolulu, HI.