Third time’s the charm: HNA once again borrows against Hilton stake

Company purchased 25% stake in hotel chain for $6.5B

TRD New York /
Jan.January 02, 2018 09:45 AM

HNA Group’s Adam Tan

HNA Group has once again borrowed against its stake in a Hilton Hotel chain, adding half a billion dollars to a $3 billion share-backed loan.

This was the third time in December that the Chinese conglomerate raised debt using its 25 percent stake in Hilton Worldwide Holdings, the Wall Street Journal reported. HNA purchased the 25 percent stake in Hilton for $6.5 billion in 2016 from the Blackstone Group, as part of a spending spree that’s totaled about $40 billion since 2015.

The company has pulled back significantly on its purchases and has plans to sell $6 billion worth of real estate to pay off its debt. HNA has announced plans to sell 1180 Sixth Avenue and 850 Third Avenue, though the company says it will be keeping 245 Park Avenue, which it bought last year for $2.21 billion.

In November, CEO Adam Tan announced that the company was considering shedding assets amid pressure from the Chinese government to limit capital from flowing out of the country.

“We will not invest in anything the government does not support,” Tan said at the time. In December, HNA added debt to its stake in Deutsche Bank and pledged shares in one of China’s largest banks, Postal Savings Bank of China. [WSJ] — Kathryn Brenzel 

Related Articles


Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Joel Schreiber (Credit: Shir Stein and Wikipedia)

WeWork’s first investor used his stock as collateral. Now his lenders are suing him

30 West 31st Street and 52 West 36th Street (Credit: Google Maps)

South Korean firm snaps up two Midtown hotels for $137M

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

163 North 6th Street and the Tel Aviv Stock Exchange Bull (Credit: Google Maps, Wikipedia)

Joel Gluck’s Israeli bond issuance falls through as Williamsburg rental project faces financing crunch

Brookfield Property Group CEO Brian Kingston and 652 11th Avenue (Credit: Google Maps)

Brookfield drops $83M on Hell’s Kitchen hotel

NYC’s foreign investment landscape in the era of trade wars and heightened nationalism