Hilton Worldwide plans to raise up to US$2.4bn (£1.4bn) via a share sale in what would be the world’s biggest hotel flotation.
The company has informed the US Securities and Exchange Commission it plans to sell 112.8m shares for between $18 and $21 each in its initial public offering (IPO).
City analysts have predicted Hilton will use money raised from the flotation to pay down debt. Analysts have also said the IPO is timed well. A strong rebound in room rates and occupancy levels means that the amount expected to be raised by the flotation would be double the $1.25bn Hilton had indicated it would raise in September.
The share sale would mark Hilton’s return to a public listing after being acquired by Blackstone Group in 2007 for $26.7bn (including $7bn worth of debt).
Hilton has over 4,000 properties and includes brands such as Conrad, Waldorf Astoria, Doubletree, Embassy Suites, Homewood Suites, Home2Suites, Hilton Garden Inn, Hampton Inn, and Hilton Grand Vacations.
It is thought the shares will be listed on the New York Stock Exchange.
Blackstone is not expected to sell any of its Hilton Worldwide stock and should retain control of the company when the IPO pricing is finalised on 12 December.
Blackstone, which also floated Merlin Entertainments, appears to be cashing in on a roaring listings market and sustained stock market rally. Analysts believe the private equity firm will also pursue a public offering for La Quinta hotel chain, expected to be valued at $4.5bn.
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