and Morgan Stanley also managed the offering. The bank, which is also one of the underwriters and a lender to Hilton, will receive more than 5 percent of the offering proceeds, regulatory filings show.ĭeutsche Bank AG, Bank of America Corp. Selling shareholders included a unit of Goldman Sachs Group Inc. Christopher Nassetta, Hilton’s president and chief executive officer, will hold about 7.6 million shares. “While Hilton is content owning hotels today, the company is likely to eventually monetize its owned portfolio.”Ī company whose investments are managed by GIC Pte, Singapore’s sovereign-wealth fund, will own 49.5 million shares, or 5 percent. “These ‘super tanker’ hotels make up a large portion of value,” he said. The company is likely to eventually sell some of its iconic properties, Hartwich said. Hilton also owns stakes in or leases 156 hotels, including the Waldorf Astoria in New York and the Hilton Hawaiian Village in Honolulu. While Hilton owns 10 hotel brands from luxury to budget chains, it lacks a “boutique” brand to compete with Starwood’s W Hotels, Hartwich wrote. Hilton surpassed Hyatt’s $1.09 billion sale in November 2009 as the biggest lodging IPO, based on data compiled by Bloomberg.Īfter the IPO, Blackstone will hold about 750.6 million Hilton shares, according to the prospectus, a stake of 76.2 percent that is valued at about $15 billion. IPO this year, after Plains GP Holdings LP, an affiliate of an oil and gas pipeline company that raised $2.91 billion in October. That would make it the second-largest U.S. Hilton could raise an additional $353 million if underwriters sell extra shares to meet demand, increasing the total amount of the IPO to $2.7 billion. If Hilton shares rise past $22.11, the firm’s paper profit would surpass the record $10.1 billion that Apollo Global Management LLC has reaped from its investment in chemicals producer LyondellBasell Industries NV. Blackstone Maneuvers its La Quinta, Extended Stay and Hilton Chess Piecesīlackstone’s paper profit on the deal, once seen as a money-loser, ranks as the second-biggest ever among private- equity buyouts on a nominal basis.īased on the roughly $6.5 billion that Blackstone and its investors put into Hilton, the valuation would give the firm an unrealized gain of $8.5 billion.Hotel Chain Extended Stay America Plans to Raise $593 Million in U.S.Extended Stay Raises $565 Million in Its IPO, Starts Trading Tomorrow.Hilton CEO Says Hotel Chain Was ‘Totally Dysfunctional’ Before Blackstone.More About Blackstone’s Hotel Investments: The offering was more than nine times oversubscribed, according to a person with knowledge of the matter who asked not to be named. markets.”Īt the IPO price, Hilton will have a stock-market value of about $19.7 billion, based on the original terms in the prospectus, eclipsing Starwood Hotels & Resorts Worldwide Inc., Marriott International Inc. “Future growth has shifted to primarily non-U.S. “Hilton has been focused on re-establishing its industry leader status,” Lukas Hartwich, lodging analyst at Green Street Advisors Inc., a Newport Beach, California-based research firm, said in a Dec. and in franchised and managed hotels, which require almost no capital investment. Since the New York-based private-equity firm purchased Hilton, the company has expanded its room count by a third, most of it outside the U.S. stocks near highs and a rebound in the hotel market to take Hilton public six years after acquiring it for $26 billion at the end of the buyout boom. The McLean, Virginia-based company had offered 112.8 million shares for $18 to $21 apiece.īlackstone Group LP is taking advantage of U.S. The company and existing shareholders sold about 117.6 million shares for $20 each, according to a statement yesterday. Hilton Worldwide Holdings Inc., the world’s biggest hotel operator, raised $2.35 billion in a record initial public offering for a lodging company.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |