Business Travel Show Europe is the place where
September 2022, Virtual
September 29 2022, Virtual
Having entered into a definitive merger agreement to acquire one of the world”s largest hotel groups, Hilton, for an all-cash transaction of $26bn (”13bn) on Tuesday (3 July), private equity giant The Blackstone Group is keeping quiet about its plans.
It is anticipated that the deal will close during the fourth quarter of 2007 and until completion Blackstone seems reluctant to reveal its plans for the company, although a source close to the transaction told ABTN that ”there are no plans to re-brand anything.”
The same source said that Blackstone ”wouldn”t be paying more than it thought [Hilton] was worth,” having agreed with Hilton”s Board of Directors to pay a massive 40% premium over Monday”s closing stock price, amounting to $47.50 per share.
According to the source no other bidders were thought to be involved in negotiations with Hilton, although until completion ”anything could happen” and other bidders could potentially join the discussions.
The Hilton acquisition is part of a long-term strategy to extend Blackstone's already impressive portfolio of hotels, which consists of the upscale LXR collection and limited service La Quinta Inns and Suites and represents a total of more than 100,000 rooms.
Taking on Hilton”s entire portfolio of Hilton, Conrad Hotels & Resorts, Doubletree, Embassy Suites Hotels, Hampton Inn, Hampton Inn & Suites, Hilton Garden Inn, Hilton Grand Vacations, Homewood Suites by Hilton and The Waldorf-Astoria Collection will increase Blackstone”s hotel ownership by some 480,000 rooms and more than 2,800 properties.
At present, there are no plans to merge Blackstone”s current brands with the Hilton name, although the source said it is likely that the ”oversight management will be co-ordinated.”
Hilton can also only give speculations about the future at this stage, although a spokesperson for the company told ABTN that the deal is forward looking for the company: ”This is a positive growth story for us as we”re still looking to grow our brands and we can accelerate that growth through Blackstone.”
Blackstone senior managing director, Jonathan Gray, also highlighted the plans to extend Hilton”s worldwide presence: ”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.”