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Hilton Board Approves $26B Blackstone Buy-Out

BEVERLY HILLS, CA-The public hotelier will be acquired for $47.50 per share, a 40% premium over yesterday's closing stock price, if shareholders sign off on the deal.

By Brian K. Miller | Updated on July 03, 2007

BEVERLY HILLS, CA-Locally based Hilton Hotels Corp. revealed late Tuesday that it has agreed to be taken private by Blackstone Group for $26 billion, $18.5 billion ($47.50 per common share) in cash plus assumed debt. Shareholders still must affirm the board’s approval of the agreement, which represents a 32% premium to Tuesday’s closing price. The deal is tentatively scheduled to close before the end of the year.

Hilton currently owns more than 100,000 hotel rooms in the US and Europe, ranging from limited service properties such as La Quinta Inns and Suites to high-end brands such as LXR Luxury Resorts and Hotels. Hilton’s controls more than 480,000 rooms worldwide under brands ranging from Doubletree to the Waldorf=Astoria Collection.

Unlike its acquisition of Equity Office Properties, Blackstone says in a statement that “no significant divestitures are envisaged” as a result of this transaction. The company says it views Hilton as “an important strategic investment” that it plans to grow.

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