Blackstone ups Hilton IPO to new $2.4B record

TRD New York /
Dec.December 03, 2013 11:55 AM

Private equity firm Blackstone Group is closer to narrowing down exactly how much it plans to raise in Hilton Worldwide Holdings’ initial public offering. Its goal is up to $2.4 billion, a record for a hotel company.

Hilton and its shareholders intend to sell 112.8 million shares in the range of $18 and $21 apiece. The hotel chain will then sell 64.1 million of the total amount in an effort to pay back $1.25 billion in debt. Blackstone does not plan to sell any of its own stock in Hilton. The price of the IPO is slated to be set Dec. 12.

Blackstone had said in September it would raise $1.25 billion in the Hilton IPO, then upped it to $2.25 billion last month. The IPO would surpass Twitter’s $2.1 billion offering last month, and beat Hyatt Hotels Corporation’s $1.09 billion public offering in 2009 for the title of largest lodging IPO. Bloomberg News first reported the news, citing a regulatory filing today.

Blackstone paid $18 billion for Hilton in 2007, and also assumed about $7 billion in existing debt, making the deal one of the largest leveraged buyouts at the time. Jonathan Gray, who runs the Blackstone Group’s real estate division, was the latest executive to reach billionaire status this year. [Bloomberg News]Mark Maurer

Related Articles

Brookfield's largest-ever $15B property fund has invested in properties from New York (666 Fifth Avenue) to Bangalore (the Leela Palace hotel) (Credit: Brookfield, Getty Images, Leela)

Real estate fundraising hits lowest level since 2013

Hilton CEO Christopher Nassetta and Arianna Huffington (Credit: Getty Images)

Hilton unveils new brand, with a hand from Arianna Huffington

Blackstone's Jonathan Gray and an aerial of Industry City (Credit: Getty Images and Google Maps)

Industry City gets $720M refinancing

From left: Blackstone's Jonathan Gray, Joseph Simone of Simone Development and 535 Zerega Avenue in the Bronx (Credit: Google Maps, Simone Development)

Blackstone buys Bronx warehouse for $29M from controversial carter

Canarsie Plaza and Blackstone’s Kathleen McCarthy (Credit: Google Maps and Blackstone)

Blackstone picks up Canarsie shopping plaza for $130M

Blackstone Chairman Stephen Schwarzman (Credit: Blackstone via YouTube)

It will make you laugh, it will make you … cringe: Blackstone’s latest holiday video

Jonathan Gray

Moving out: Blackstone sells remaining stake in Invitation Homes

Optera Capital's Glenn Alba, AWH Partners' Russ Flicker and a rendering of 88 Schermerhorn Street

Downtown Brooklyn is getting another Hilton