Hilton IPO Goes For Record $2.4B Public Offering


Hilton Worldwide Holdings Incorporated, the lodging chain owned by Blackstone Group LP since 2007, has plans to gain upwards of $2.4 billion in its U.S. public offering, which will be the most ever raised for a hotel company.

The hotel operator out of McLean, Virginia and existing shareholders plan to sell 112.8 million shares for $18 to $21 each, according to a regulatory filing on December 2nd. Hilton is the world’s largest hotel company, with over 4,000 properties and intends to sell $64.1 million of the total and use the proceeds toward $1.25 billion of debt. Blackstone is not selling any of its stock in the company. The decision of Blackstone to take Hilton public came after the hotel chain refinanced around $13 billion of debt. Capitalizing on a rebound in hotel occupancies and rates, Hilton plans to continue their positive growth from Chief Executive Officer Christopher Nassetta.

In the past 6 years, Nassetta increased the number of Hilton’s open rooms by 34 percent, and expanded the development pipeline and frequent-guest program. After meeting with potential investors in multiple cities across the United States for the past few weeks, the IPO is to be set on Dec. 12th.

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