Blackstone leaves Hilton behind after an 11-year stay

Private equity giant Blackstone is selling its 5.8 per cent stake in Hilton, the hotel company announced today.

Blackstone will be selling 15.8 million shares, generating $1.32bn (£980m), based on Hiltons current $83 share price.

The American investment firm had held shares in the hotel chain for 11 years.

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“Hilton did not offer any shares of common stock in the transaction and will not receive any proceeds from the sale of shares by the selling stockholders,” the company said in a statement.

However, the hotel group did say it would repurchase some 1.3 million shares from shareholders affiliated to Blackstone.

Blackstone, which took Hilton public five years ago, has been selling its stake in the company since 2014.

The private equity firm cut its stake to under 50 percent in a $2.69bn stock sale back in 2015, which, at the time, was the biggest ever sell-down by a private equity sponsor through a block trade.

Read more: Blackstone to buy Gramercy Property Trust for $7.6bn

However, the New York-based company has struggled of late, with profits dropping more than 20 per cent in the first quarter of this year amid stock market turmoil.

The company announced profits of $792m, down from $967.9m in same quarter in 2017, a fall of 22 per cent.

Earlier this month, Blackstone announced it would be acquiring commercial real estate manager Gramercy Property Trust for $7.6bn.

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