Development

Blackstone Prepares To Break Up Hilton Hotels Group-Report

Sunday, reports said financial services provider Blackstone Group (BX) is preparing to break up its Hilton Hotels Corp. business under plans to realize value from the group ahead of debt repayment deadlines three and four years away.

Hilton Blackstone bought the hotel chain, which includes Conrad Hotels & Resorts and the Waldorf Astoria Collection, for about $26 billion in 2007 at the height of the leveraged buy-out boom. At that time, the buy-out added significantly to its existing hotels and leisure holdings. The transaction was financed with $20.6 billion of debt and $5.7 billion of equity.

Citing people close to the firm, reports said several options are being explored by Blackstone. The private equity house is said to be looking at options to alter Hilton's capital structure, such as a debt-for-equity swap, as well as a trade sale of some of its hotels to rivals. Reports said the plans are at an early stage.

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Source - RTT



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