The Blackstone Group has completed its $26
billion acquisition of the Hilton Hotels Corp., making the private
equity group the world's biggest hotel operator.
The merger gives
Blackstone 15 hotel brands and 560,000 rooms, which puts it
slightly ahead of the previous leader, InterContinental Hotels
Group, according to Paris-based MKG Consulting.
Hilton shareholders
last month overwhelming approved the deal, which gives them $47.50
per share, or 40% more than the stock traded the day before the
acquisition was announced July 3. Hilton ceased trading on the New
York Stock Exchange on Oct. 24.
Blackstone has
indicated that it does not plan any "significant disposition" of
Hilton assets. But the industry will be watching its next moves
very closely.
Asked if he thought
Hilton would keep the business intact, California hotel lawyer Jim
Butler, of Jeffers, Mangels, Butler & Marmaro, said "that's not
equity investors are known for."
After the sale was
first announced, Butler was quick to point out that Blackstone made
similar statements when it purchased Wyndham in 2005.
Within weeks after
closing that deal, Blackstone "basically terminated its employees
in Dallas, moved Wyndham's headquarters to Parsippany, N.J., and
started selling off properties and brands," he said.
Hilton owns,
manages or franchises a hotel portfolio of well-known brands:
Hilton, Conrad, Doubletree, Embassy Suites, Hampton, Hilton Garden
Inn, Hilton Grand Vacations, Homewood Suites and Waldorf-Astoria
Collection.
To
contact reporter Jeri Clausing, send e-mail to [email protected].