China’s HNA Buys $6.5 Billion Stake In Hilton

The Millennium Hilton in New York City. Photo: Paul Sparkes

HNA Group agreed on Monday to buy about 25% of Hilton Worldwide Holdings from Blackstone Group for $6.5 billion, in yet another major investment in foreign real estate assets by the Chinese conglomerate.  

HNA will buy shares in Hilton, whose brands include Conrad Hotels & Resorts, Double Tree and Hilton, for $26.25 each. Blackstone’s reduced stake in Hilton will be 21%, making HNA Group the largest shareholder.

The deal will allow HNA to appoint two directors to the company’s 10-member board, based in its Virginia headquarters, which includes chairman Jon Gray. It’s expected to be completed in the first quarter of 2017. HNA also will own a 25% stake in Park Hotels & Resorts, the planned spinoff of Hilton’s real estate, as well as Hilton Grand Vacations, the company’s timeshare business.

HNA Group agreed to buy Carlson Hotels in April, acquiring brands such as Radisson, Radisson Blu, Radisson RED, Park Plaza, Park Inn by Radisson, and Country Inns & Suites By Carlson. The transaction also include Carlson’s majority stake in Brussels-based Rezidor Hotel Group. Last year, the company purchased a minority stake in Red Lion Hotels Corp. It also owns about a 30% share in NH Hotels Madrid, and operates more than a dozen airlines, including flagship carrier Hainan Airlines Co.

The move comes as an increasing number of Chinese-based companies look to invest in North America’s hospitality and lodging industry. Just last week, China Life Insurance Co. invested $2 billion in Starwood Capital Group’s portfolio. In addition, Anbang Insurance Group Co. acquired 15 luxury U.S. hotels last month, including New York’s JW Marriott Essex House and the Westin St. Francis in San Francisco, after losing a bidding war to acquire Starwood.