HNA Group from China, with activities in air transport, logistics, and real estate investments, will acquire a 25% stake in Hilton Worldwide from the investment fund Blackstone for $6.5 billion.
HNA will pay $26.25/share, which equates to a valuation of the hotel operator at $26 billion.
“This investment is consistent with our strategy to strengthen the tourism segment,” said Adam Tan, Vice Chairman and CEO of HNA Group.
Hilton Worldwide includes hotel brands such as Conrad Hotels & Resorts, Curio, DoubleTree, and Hilton.
Last year, the Chinese group bought a minority stake in the American hotel company Red Lion Hotels, and in April of this year, it announced it would buy the American hotel operator Carlson Hotels, which also owns the Radisson hotel chain.
The main shareholder of Hilton Worldwide, Blackstone, will remain with a 21% stake in Hilton following this transaction, which is expected to be finalized in the first quarter of 2017.
Source: Capital
Frequently Asked Questions
Who is the buyer of the Hilton stake?
The buyer is China’s HNA Group, a conglomerate with operations in aviation, logistics, and real estate.
What is the value of the transaction between HNA and Blackstone?
HNA Group will pay $6.5 billion for a 25% stake, valuing Hilton Worldwide at approximately $26 billion.
Which hotel brands are part of Hilton Worldwide?
Hilton Worldwide includes major brands such as Conrad Hotels & Resorts, Curio, DoubleTree, and Hilton.