Hilton Group has disposed of a portfolio of 11 UK hotels to a special purpose vehicle set up by The Royal Bank of Scotland. The deal was for a cash consideration of £312m, while simultaneously entering into turnover based leases on the properties. The agreement gives Hilton International, the hotels division of Hilton Group, turnover based leases with initial terms of 20 years on nine of the hotels with two options to extend, each 10 years at a time. For the remaining two hotels, namely the Hilton Hyde Park and the Glasgow Hilton, the initial term is for 30 years with a single 10-year extension option. Proceeds from the sale are to be used to expand the Hilton brand internationally. Commenting on the deal, chief executive David Michels, says the deal is an innovative one for the hotel industry: We have realised £312m of capital while retaining a significant interest in the future profit streams of the hotels. We also believe the deal has created real value for our shareholders and the proceeds will further strengthen our strategy of expanding the Hilton brand overseas. Iain Robertson, chief executive of The Royal Bank of Scotland's Corporate Banking and Financial Markets, says the bank anticipates undertaking further transactions of this nature both within the hotel sector and across other industries.