China’s debt-ridden HNA Group Co will continue its asset sell-off by offloading some or all of its stake in Hilton, just 18 months after spending about $6.5 billion.
It announced its intention to sell in a regulatory filing with the U.S. Securities and Exchange Commission but hasn’t disclosed whether it will sell all or part of its more than 25% stake.
HNA is Hilton’s largest shareholder.
The Chinese conglomerate has been facing a liquidity crunch after racking up massive debt after a two-year $50 billion shopping spree, much of it in aviation and hospitality brands.
HNA paid Blackstone Group $6.5 billion in 2017 to acquire the Hilton stake.
HNA has already sold its interest in Hilton subsidiaries Hilton Grand Vacations Inc. and Park Hotels & Resorts Inc.
As part of HNA’s agreement to purchase the Hilton stake, it is required to hold on to the shares for a minimum of two years unless the Hilton board approves a sale.
