Los Angeles – Fresh off a $4.1 billion initial public offering, private-equity house Blackstone Group solidified its position as a power to reckon with on Wall Street with a multibillion-dollar deal that gives the company control over a hotel empire with more than 600,000 rooms worldwide.
On Tuesday, Hilton Hotels Corp. agreed to an all-cash buyout from Blackstone in a $20.1 billion deal that would instantly make Blackstone the world’s largest hotel owner.
The deal was valued at $26 billion including debt.
Blackstone said it would buy all outstanding Hilton shares for $47.50 each, a 32 percent premium.
After Hilton’s board approved the terms, the company said the deal would close in the fourth quarter, pending shareholder approval.
Blackstone owns more than 100,000 hotel rooms in the United States and Europe, including La Quinta Inns and Suites as well as LXR Luxury Resorts and Hotels.
