What Now for Hilton After HNA Sells Stake?
Skift Take
Now the question arises, who will buy the HNA stake and what does it all mean for Hilton?
HNA Group, which has been selling assets under orders from the Chinese government, revealed Thursday that it will be selling its 26 percent stake in Hilton Worldwide. That position is worth $6.3 billion and analysts believe it could net HNA a profit of up to nearly $2 billion.
In March, HNA Group sold its 25 percent stake in Hilton Grand Vacations for $1.1 billion, as well as putting up for sale its $1.4 billion stake in Park Hotels & Resorts, the real estate investment trust that spun off from Hilton in 2017.
HNA originally announced it would buy its stake in Hilton in October, 2016, purchasing a total of $6.5 billion in shares from the Blackstone Group.
In 2017, Hilton completed its spinoff of its timeshare business, Hilton Grand Vacations, and its real estate investment trust, Park Hotels & Resorts. Following the spinoff, HNA received a quarter stake in all three entities. HNA's current stake in Hilton is now 26.1 percent, after share buybacks.
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