PHOTO: Hilton Worldwide will become Hilton Inc. (Photo via Flickr/Julien Gong Min)
Nearly two months after the completed spin-offs of Park Hotels & Resorts and Hilton Grand Vacations, Hilton's board of directors has authorized a stock repurchase program of up to $1 billion of the company's common stock and has approved a corporate name change from Hilton Worldwide to Hilton Inc.
Hilton's new corporate name will take effect March 6.
The company also declared a quarterly dividend of $0.15 per share of Hilton's common stock, payable on March 31, 2017, to stockholders of record as of March 10, 2017.
Hilton said that its common stock will continue to trade on the New York Stock Exchange (NYSE) under the symbol "HLT."
Hilton can purchase the shares in the open market whether through privately negotiated transactions or through other repurchase plans that comply with the Securities and Exchange Commission's (SEC) rules and regulations. The amount and timing of the repurchases will depend on available liquidity, cash flow and market conditions, among other factors.
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The McLean, Virginia-based company also said it's not obligated to repurchase any specific dollar amount or number of shares of common stock and that the repurchase program can be suspended or discontinued at any point.
Friday's announcements come amid rapid growth for the hotel giant. According to its fourth quarter and full year 2016 results released earlier this month, Hilton opened 354 hotels last year at a rate of nearly one per day. Last month, Hilton launched its 14th brand in introducing the Tapestry Collection by Hilton.
According to WTOP, Hilton stock has climbed more than 40 percent in the past year and is now trading at roughly $58 per share.