Hilton bought for $20 billion
In what was described as the biggest acquisition of a hotel company, Hilton agreed to be purchased by buyout firm Blackstone Group LP for about $20 billion.
Hilton, the second-biggest U.S. chain behind Marriott International Inc., has more than 2,800 hotels worldwide.
Blackstone, which owns the La Quinta chain, and other private- equity firms are buying hotel companies to profit from their cash flow and real estate holdings, according to Bloomberg News.
“Blackstone has been a very aggressive investor in the hotel industry,” said Robert LaFleur, an analyst at Susquehanna Financial in Stamford, Connecticut. “They have a fairly extensive portfolio of hotel assets. Hilton is extremely complementary to that portfolio.”
The buyout firm plans to pay 32% more than Hilton’s closing price. Including the assumption of debt, the transaction totals $26 billion.
Blackstone owns more than 100,000 hotel rooms in the U.S. and Europe.
Hilton said the deal should be completed by the fourth quarter, subject to shareholder and regulatory approval.
The company owns, manages or franchises more than 480,000 hotel rooms worldwide under brands such as the Waldorf-Astoria, Doubletree and Homewood Suites by Hilton.
Report by David Wilkening
David
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