Chinese conglomerate HNA Group is back on the travel industry acquisition trail, announcing it is buying a 25% stake in Hilton International.
HNA is acquiring the stake from Blackstone Group LP for about US$6.5 billion, which is a 15% premium on Hilton’s closing price at the weekend.
That will take Blackstone’s shareholding in Hilton down to about 21%.
"This investment is consistent with our strategy to enhance our global tourism business, and we look forward to working together on new initiatives that leverage our respective strengths, expertise and tourism platforms," said Adam Tan, vice chairman and CEO at HNA Group.
The investment will give HNA two seats on the executive board. The company will hold on to the shares for a minimum two years under the terms of the deal and would need board approval to increase its stake.
The deal is expected to close in early 2017.
HNA recently purchased Radisson parent Carlson Hotels, and also has stakes in Red Lion Hotels Corp, Spain’s NH Hotels and numerous airlines and aviation services.
