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Blackstone acquires Hilton Hotels for $26B
We’d sell out for half that! Ha ha. CLICK HERE to read the article accompanying this headline.

Blackstone acquires Hilton Hotels for $26B
Hilton Hotels said late Tuesday that it agreed to be bought by The Blackstone Group, a private equity fund, for about $26 billion in cash.
Blackstone will buy all the outstanding common stock of Hilton for $47.50 per share, which is about 32% over Tuesday’s closing price. Hilton’s shares ended $2.18 higher on Tuesday, more than 6%, at $36.05.
“Our board of directors concluded that this transaction provides compelling value for our shareholders with a significant premium,” said Stephen Bollenbach, Hilton’s co-chairman and CEO, in a statement.
In a statement, Hilton said it expects the transaction will close during the fourth quarter of 2007, subject to the approval of Hilton’s shareholders.
Blackstone is well-versed in hotel deals. It currently owns more than 100,000 hotel rooms in the USA and Europe, ranging from limited service chains such as La Quinta Inns and Suites to LXR Luxury Resorts and Hotels that includes high-end properties like The Boulders Resort and Spa in Arizona and The El Conquistador Resort in Puerto Rico.
Other than its flag chain, Hilton Hotels also Conrad Hotels & Resorts, Doubletree, Embassy Suites, Hampton Inn, Hilton Garden Inn, Hilton Grand Vacations and Homewood Suites by Hilton and The Waldorf Astoria Collection.
Beverly Hills-based Hilton owns 2,800 hotels — 480,000 rooms — worldwide.
Blackstone said it “intends to invest in the Hilton properties and brands globally to enhance and grow the business for the benefit of owners, franchisees and customers.”
Blackstone has invested about $1 billion in to renovate its LXR properties in the last three years. It has grown the La Quinta brand by about 45% since its acquisition in January 2006.

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Jul 03, 2007 18:14pm PDT

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