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China-based HNA Group will become Hilton Worldwide’s largest shareholder after reaching an agreement to acquire 25% of the hotel company from Blackstone Group.
HNA will pay $26.25 a share, or about $6.5 billion, for the stake, Hilton and Blackstone said Monday. Blackstone will retain about 21% of Hilton Worldwide after the completion of the transaction, expected by the end of March.
HNA is paying Blackstone 15% more than Hilton’s $22.91 closing share price on Friday.
As part of the deal, HNA will also own 25% of real estate investment trust Park Hotels & Resorts and 25% of timeshare operator Hilton Grand Vacations, which are scheduled to be spun off from Hilton Worldwide by the end of the year.
HNA, founded in 1993, owns or operates almost 2,000 hotels worldwide. The company continues to boost its stake in the hotel industry outside of its native China. HNA in April agreed to acquire Radisson parent Carlson Rezidor for a price that wasn’t disclosed.
Blackstone took Hilton public in late 2013 at $20 a share. In 2007, Blackstone took Hilton private for about $26 billion.
Sourse: travelweekly.com
