China’s HNA Group buys Hilton stake from Blackstone
Aviation and shipping conglomerate to appoint two directors on Hilton board
China’s HNA Group, controlled by billionaire Chen Feng, is acquiring about 25 per cent of Hilton Worldwide Holdings from Blackstone Group in a deal valued at about US$6.5 billion.
HNA will pay US$26.25 a share in cash in a transaction that cuts Blackstone’s interest in Hilton to about 21 per cent, the firms said in a statement Monday. Hilton’s shares closed at US$22.91 on Friday.
The deal is expected to be completed in the first quarter of 2017 and allows HNA to appoint two directors to the lodging company’s board.
“This investment is consistent with our strategy to enhance our global tourism business, and we look forward to working together on new initiatives that leverage our respective strengths, expertise and tourism platforms,” said Adam Tan, vice chairman and chief executive officer at HNA Group.
Chinese investors have been buying hotel and travel businesses around the world as outbound travel surges and because yields from the underlying real estate is typically higher than from other properties.
HNA in April agreed to buy Minneapolis-based Carlson Hotels and its majority stake in Rezidor Hotel Group, and last year purchased a minority stake in Red Lion Hotels Corp.