HNA Group to sell stake in Hilton

Monday, 06 Apr, 2018 0

China’s debt-ridden HNA Group Co will continue its asset sell-off by offloading some or all of its stake in Hilton, just 18 months after spending about $6.5 billion.

It announced its intention to sell in a regulatory filing with the U.S. Securities and Exchange Commission but hasn’t disclosed whether it will sell all or part of its more than 25% stake.

HNA is Hilton’s largest shareholder.

The Chinese conglomerate has been facing a liquidity crunch after racking up massive debt after a two-year $50 billion shopping spree, much of it in aviation and hospitality brands.

HNA paid Blackstone Group $6.5 billion in 2017 to acquire the Hilton stake.

HNA has already sold its interest in Hilton subsidiaries Hilton Grand Vacations Inc. and Park Hotels & Resorts Inc.

As part of HNA’s agreement to purchase the Hilton stake, it is required to hold on to the shares for a minimum of two years unless the Hilton board approves a sale.

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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.