Thursday, July 5, 2007

Blackstone buys Hilton

Hilton Hotels Corp,second-biggest US hotel chain has agreed to be acquired by The Blackstone Group LP for $20.1 billion in cash.

The private equity group agreed Tuesday to buy all outstanding Hilton shares for $47.50 each, a 32 per cent premium over the day's closing stock price. The companies valued the deal at $26 billion including debt.

Blackstone, the owner of the La Quinta lodging chain, joins Apollo Management LP and Texas Pacific Group in targeting hotel companies for their cash flow and real estate. Worldwide, hotel acquisitions more than doubled in the first half of this year, to $81.4 billion.

Blackstone already has a significant portfolio of hotel and resort properties, which includes more than 100,000 hotel rooms in the United States and Europe.

The Hilton is the world's largest hotel group by number of properties, though the Intercontinental Hotels Group is the larger in terms of the number of rooms. In the US Hilton is the second largest hotel chain after Marriott International Inc.

The deal comes two years after Hilton Hotels Corporation merged with Hilton International, its sister company in the UK, in a $6-billion deal that split off Ladbrokes, the UK bookmaker, into a stand-alone company.

Hilton's brands include Hilton, Conrad Hotels & Resorts, Doubletree, Embassy Suites, Hampton Inn, Hilton Garden Inn, Hilton Grand Vacations, Homewood Suites by Hilton, and The Waldorf-Astoria Collecti
Digg Google Bookmarks reddit Mixx StumbleUpon Technorati Yahoo! Buzz DesignFloat Delicious BlinkList Furl

0 comments: on "Blackstone buys Hilton"