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Biggest hotel-IPO set for Hilton Worldwide

03 December 2013 by
Biggest hotel-IPO set for Hilton Worldwide

An initial public offering of Hilton Worldwide (IPO) could raise up to $2.37b (£1.44b), which would more than double the investment made by its private equity owner Blackstone.

On announcing its intention in September to float on the stock market, Blackstone said it intended to raise $1.24b (£783m) from the IPO. The new figure quoted by the company will make it the biggest-ever hotel IPO in history, according to Reuters.

Blackstone has invested about $6.8b (£4.15b) in Hilton since acquiring the global hotel group in 2007 for $26b (£15.8b), including $6b (£3.6b) debt. Hilton then ceased trading on the New York Stock Exchange.

Following the IPO, Blackstone's 76.2%t stake in Hilton will be worth up to $15.7b (£9.6b). The company has timed the IPO at a time when the market is enjoying increasing occupancy levels and room rates.

Over the past six years, the Hilton Worldwide has added more than 1,000 hotels to create a 4,000-strong portfolio across more than 90 countries. In the UK it operates nearly 120 properties under the Waldorf Astoria, Hilton Hotels and Resorts, Doubletree by Hilton, Hampton by Hilton and Hilton Garden Inn brands.

The headquarters, headed by chief executive Christopher Nassetta, are based in McLean, Virginia, near Washington DC, while the UK arm of the business is led by Simon Vincent, who is Hilton Worldwide's area president of Europe, Middle East and Africa.

Hilton Worldwide confirms return to stock market >>

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