US private equity firm Blackstone Group s to buy Hilton Hotels Corporation for about $26 billion cash, the richest deal in a series of recent private equity offers for hotel companies.
Under terms of the agreed deal, Blackstone will pay $47.50 for each Hilton share. Blackstone, which raised $4.1 billion in an IPO late last month, said it intends to invest in the Hilton properties and brands globally to grow the business. It already has a significant portfolio of hotel and resort properties with more than 100,000 hotel rooms.
“The transaction is subject to approval by share-holders as well as customary closing conditions – this is expected by end of this year,” said Jean-Paul Herzog, president, Hilton Hotels, MENA. “Blackstone are making a strategic investment and will seek to continue growing the business. They intend to invest in the Hilton Hotels Corporation properties and brands globally. It is business as usual.”