Blackstone Group to buy Hilton for $26 billion

U.S. private equity firm Blackstone Group agreed on Tuesday [3 Jul 2007] to buy Hilton Hotels Corp. for about $20 billion plus debt, the richest in a series of recent private equity offers for hotel companies. Under terms of deal, Blackstone will pay $47.50 per share in cash, a 32% premium to Tuesday's closing price, for one of the most prominent global hotel brand names. The hotel industry is enjoying a multiyear boom as robust demand has allowed hoteliers to steadily raise rates. The upbeat market environment, supported by limited construction of new hotels, has made lodging assets hot commodities.

Hilton is worth $20.1 billion, based on 424 million shares on a diluted basis at the end of March, at the price Blackstone is paying. Hilton reported more than $7 billion of debt during its January-March quarterly results. The Hilton chain was founded in 1919 by Conrad Hilton, the great-grandfather of U.S. celebrity socialite Paris Hilton.

- Do you see the Chinese connection?

1. China's Blackstone buy shows a new angle
2. China's Blackstone deal a hint of things to come

(2007-07-12 13:00:49 SGT) [Biz] Permalink

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