China is tightening its grip on the global hotel industry, after the HNA Group announced the acquisition of approximately 25% of Hilton Worldwide.
HNA Group, which already has extensive travel and tourism portfolio, including Hainan Airlines and Carlson Hotels, will acquire the Hilton stake from Blackstone. The agreement with worth US$26.25 per share in cash, for a total consideration of approximately US$6.5 billion. The transaction is expected to close in the first quarter of 2017.
“We are pleased to welcome HNA Group as a long-term investor and strategic partner,” said Christopher J. Nassetta, president & CEO of Hilton. “We believe this mutually beneficial relationship will open new opportunities for our brands and guests around the world, particularly in light of HNA’s strong position in the fast-growing Chinese travel and tourism market, the largest outbound travel and tourism market in the world.”
Adam Tan, vice chairman & CEO of HNA Group, commented; “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 to provide travellers more choice, value and world-class services.”
Based in Beijing and Hainan, HNA Group already has a strong portfolio of Chinese travel and tourism interests, including multiple airlines, hotels and tour operators. Its global expansion has already seen the company invest in international airlines including Brazil’s Azul and France’s Aigle Azur, and two major Swiss aviation companies, Swissport and Gategroup. In the hotel sector, it has taken a stake in Spain’s NH Hotels and recently acquired US-based Carlson Hotels.
HNA’s acquisitions continue the recent trend of Chinese companies investing in global hotel chains; Anbang Insurance Group recently tried to purchase Starwood, while Shanghai’s Jin Jiang Hotels has already taken control of Louvre Hotels.
Blackstone, the company involved in the sale of Hilton to HNA, has previously generated approximately US$8.5bn from the sale of US luxury hotel assets to China’s Anbang Insurance Group, including the US$2bn sale of the Waldorf Astoria New York – a property managed by Hilton.
Comments are closed.