Reuters- U.S. private equity firm Blackstone Group agreed on Tuesday to buy Hilton Hotels Corp. for about $20 billion plus debt, the richest in a series of recent private equity offers for hotel companies.
Under terms of deal, Blackstone will pay $47.50 per share in cash, a 32 percent premium to Tuesday’s closing price, for one of the most prominent global hotel brand names.
Ahead of the post-close announcement, shares of Hilton had risen 6.4 percent to close at $36.05 on the New York Stock Exchange.
Options volatility and volume in Hilton stock was well above average before the close of trade on Tuesday, said Paul Foster, an options strategist at theflyonthewall.com.
Blackstone, which raised $4.1 billion in an initial public offering late last month, said it intends to invest in the Hilton properties and brands globally to grow the business.
The hotel industry is enjoying a multiyear boom as robust demand has allowed hoteliers to steadily raise rates. The upbeat market environment, supported by limited construction of new hotels, has made lodging assets hot commodities.
