Hilton Worldwide Files For IPO
Thursday September 12th, 2013 - 1:08PM W
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MCLEAN, VA—Hilton Worldwide has filed a registration statement with the Securities and Exchange Commission for a proposed initial public offering of its common stock.
The company noted the number of shares to be offered and the proposed offering have not yet been determined. However, according to Reuters, the IPO will be for up to $1.25 billion.
Blackstone Group LP, which owns Hilton Worldwide, took the large branded hotel chain private in a $26.7 billion in 2007. Blackstone is looking to take advantage of the hotel industry's recent recovery as well as the company's increased profitability. According to Reuters, Hilton's earnings before interest, tax, depreciation and amortization are expected to be 58 percent higher in 2013 than they were in 2009.
According to the New York Times, Blackstone is not prepared to sell enough shares to lose control of Hilton.
Tags: • Hospitality •
When you hear all the lodging industry projections for the months and years to come, much of the robust growth is forecast to be the result of the expected influx of travelers from China. In what could only be seen as good news for the industry, that expectation moved a little closer to reality when President Obama signed a visa waiver extension for Chinese travelers earlier this month.