The biggest hotel chain in Britain is facing huge financial problems and facing competition from rivals Hilton Head and The Grove.
The company announced it had reached a deal to sell its business to a consortium of private investors in the US.
The consortium, which will hold the Hilton head restaurants business, will take over the hotel chain, which has been struggling to find an expansion after losing a record $3bn (£2.9bn) in the second half of 2016.
The sale is worth about $2bn.
The hotel chain has been the subject of several investigations and was forced to slash its workforce to the bone by cutting more than 6,000 jobs, the BBC reported.
The news was welcomed by critics who say it could see the chain take on a much bigger role in the tourism industry.
Hilton Head said the sale of the business was not expected to have a material impact on its financial position.
It said the deal would “reassure our investors and staff that our business is healthy and we are on track to meet the objectives of our new management team”.
“The transaction also provides an opportunity for the company to better serve its customers in the coming years,” the company said in a statement.
It has been unable to attract enough new guests to the hotels, which are struggling to stay competitive in a world where there is a shortage of accommodation.
The deal comes at a time when Hilton Head has been under scrutiny for the way it has responded to the opioid crisis, including a recent move to restrict sales of painkillers to customers who have been prescribed opioids by their doctors.