Newstrack

Blackstone Investment funds buys out Hilton Hotels

EH Staff - Mumbai

Hilton Hotels has entered into a definitive merger agreement with The Blackstone Group's real estate and corporate private equity funds in an all-cash transaction valued at approximately US$ 26 billion.

The acquisition brings together a leading global hospitality company with Blackstone's extensive portfolio of hotels and resorts. Blackstone currently owns more than 1,00,000 hotel rooms in the US and Europe, ranging from limited service properties such as La Quinta Inns & Suites to LXR Luxury Resorts & Hotels.

Hilton's board of directors has approved the transaction and it is anticipated that the transaction will close during the fourth quarter of 2007; completion is subject to the approval of Hilton's shareholders. A special shareholders meeting will be scheduled at a later date.

Hilton's family of brands includes Hilton, Conrad Hotels & Resorts, Doubletree, Embassy Suites, Hampton Inn, Hilton Garden Inn, Hilton Grand Vacations, Homewood Suites by Hilton, and The Waldorf Astoria Collection. Blackstone intends to invest in the Hilton properties and brands globally to grow the business for the benefit of owners, franchisees and customers. Over the last 15 years, Blackstone has been the largest private investor in hospitality worldwide and it has a strong track record of reinvesting in its hotel properties.

Stephen F Bollenbach, Hilton's co-chairman and CEO, said, "Our priority has always been to maximise shareholder value. Our board of directors concluded that this transaction provides compelling value for our shareholders with a significant premium. We are delighted that a company with the resources and reputation of Blackstone fully appreciates the value inherent in our global presence, strong brands, industry leading marketing and technology programmes, and unique portfolio of hotel properties."

Jonathan Gray, senior managing director of Blackstone, commented, "It is hard to imagine a better strategic fit for us than Hilton with its world-class people, brands and network of hotels. This transaction is about building the premier global hospitality business. We are committed to investing in the company and working with Hilton's outstanding owners and franchisees to continue to grow and enhance the business."