Chinese HNA Group buys a 25% in Hilton

Chinese conglomerate HNA Group has extended its push into the global leisure industry with a deal to snap up a 25 per cent stake in Hilton for $6.5 billion — adding to a portfolio of hotel investments as it seeks to tap growing revenues from Chinese tourists. Its deal to buy the stake from private equity group Blackstone values the US hotel chain at $26.25 a share — a 14.5 per cent premium to Hilton’s closing price on Friday — and cuts Blackstone’s interest in Hilton to 21 per cent. For HNA, the investment marks the latest in a series of deals designed to give exposure to Chinese outbound tourism — through acquisitions in the hospitality, airlines and infrastructure sectors… For Blackstone — which bought the Hilton hotel chain in 2007 for $26 billion, in one of the biggest leveraged buyouts on record, before taking it public again in 2013 — this is another step towards an eventual exit from a business it helped revive.

 

Anna Nicolaou and Pan Kwan Yuk

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