Hilton Group, the UK-based hotel and gaming operator, has signed a conditional agreement to sell its hotels division to US-based Hilton Hotels Corporation (HHC) – from which it split in 1964 – for around £3.3bn (US$5.7bn, 4.8bn euro).

HHC operates the Hilton brand in the US while Hilton International (HI), an operating division of the UK group, owns the rights to the Hilton brand name throughout the rest of the world.

As part of the deal, Hilton Group’s two most senior directors – chief executive David Michels and his deputy Brian Wallace – are expected to receive a £14.9m pay bonus between them for their work as advisers to HHC.

The sale will be completed in the first quarter this year, after which Hilton is expected to return up to £4bn cash to shareholders.

Hilton Group has also reportedly received a number of approaches for its Ladbrokes chain which, following the successful completion of the HHC deal, will become a standalone FTSE 100 company, valued at an estimated £4bn, as Hilton Group will cease to exist.

The approaches are understood to be from private equity groups including BC partners, CVC Capital and Blackstone.

However, the group said that it remained focused on concluding negotiations regarding the HHC sale, although it added that it had “great confidence in the future of Ladbrokes”. Details: www.hilton.com