Hilton Hotels Faces Being Broken Up by Blackstone
Robert JonesNew plans are being drawn up that could be breaking up the Hilton group. These plans are being drawn up by the owner of the Hilton group, Blackstone. Right now it is understood that Blackstone, which bought Hilton for $26 billion, is still considering a number of options. This does include the sale of portfolios to rival hotel chains, public listings for certain parts of the company, and debt for equity swaps.
These plans by Blackstone need to be drawn up to maximize value from the group ahead of debt repayment deadlines in three to four more years. Some sources have already been noted as saying that they are still in the very early stages of discussion. Either way, the $21 billion worth of debt that was raised by Hilton back in 2007 will not be easily refinanced.
Blackstone has, as of now, denied any reports of splitting up Hilton. A spokeswomen for Blackstone said that plans to breakup Hilton were simply untrue. Experts still point out that Blackstone could have already lost half of the value for its investment in Hilton at the height of the market slump. This is due to both business travel cutbacks and consumers not willing to travel.
When Blackstone bought Hilton, it acquired almost 3,000 properties and 480,000 rooms. Adding this to their existing portfolio and other hotel assets, Blackstone became the world’s biggest operator. More news on what Blackstone chooses to do with Hilton will be released later on in the future. Until more is known, Hilton Hotels remains unchanged. However, no one is sure what Blackstone is truly planning to do with the company.
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