I'm with Henk for not lacquering the hilt. IMHO old pieces deserve an old treatment whenever possible
You can also buff after oiling. I found out that this not remove patina entirely, but the upper surface of the newer dirt will gone.
The other method used in traditional wood polishing is by using bone ash as the polishing agent (dry method). On this method, you will need to start buffing after you have a smooth surface, in Indonesia traditionally we will first use glass fragment upon raw surfaces (this will remove any patina), but when safety and convenience factor was concerend, a fine sandpaper will do.
Good luck with your project!