Hilton Hotels sell to Blackstone for $20 Billion

The Hilton Hotels Corp. has now made a deal with The Blackstone Group LP for a cash buyout for the sum of $20.1 Billion; this deal would now make Blackstone the largest hotel owner in the world. The company had to combine all of their cash from both their real estate and corporate private equity funds, so they could buyout all the Hilton shares that still remained for the sum of $47.50 per share.

The deal which Hilton’s board approved on Tuesday should all go through by the fourth quarter of 2008, as long as the deal gets the shareholder approval. At the moment Blackstone owns over 100,000 hotels in both the United States and Europe, and the buyout of Hilton Hotels will boost Blackstone’s portfolio massively.

Hilton Hotels only have 2,800 hotels in over 76 countries; the number is smaller than the Blackstone Group, but the Hilton run premier hotels just like the Waldorf-Astoria in New York. Waldorf-Astoria in New York In 2006 Hilton Hotels Corp managed to double their revenue to $8.16 billion; this is why Blackstone wanted a piece of the action.

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