McLEAN, VA–HNA Group is seeking to sell “some or all” of its 26% stake in Hilton Worldwide, according to a regulatory filing made on Thursday. The Chinese company's stake in the hotel conglomerate is approximately $6.5 billion.
The sale would be done through one or more stock offerings, and their timing would depend on market conditions.
HNA bought its stake in Hilton in 2016 from Blackstone Group. It then inherited a stake in Hilton Grand Vacations when the business was spun off the following year. Park Hotels & Resorts, as well, was spun out of Hilton Worldwide in early 2017 and HNA inherited that holding as well
Last month HNA sold its 25% stake in Hilton Grand Vacations for $1.1 billion. It also announced that it was seeking to sell “some or all of its Park Hotels stake, which is also 25% and reportedly worth about $1.4 billion.
HNA, an erstwhile airline that turned mega global investor, has been selling off its assets to pay down debt and in response to a recent Chinese government policy change on what type of overseas investments a company can own.
HNA has also sold its stake in Deutsche Bank, while maintaining a 9% ownership.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
