May 17, 2020

Hilton's largest shareholder, HNA Group, to sell some or all of its $6.5bn stake

Hilton Worldwide
Hilton
Hotels
hospitality HNA Group
Laura Mullan
2 min
The innovation gallery is designed to be space where leaders, design experts and hospitality professionals within the Hilton brand can meet and deliver new solutions for its guests. 
Chinese conglomerate HNA Group has announced that it intends to sell “some or all” of its $6.5bn stake in Hilton Worldwide, according to a regulator...

Chinese conglomerate HNA Group has announced that it intends to sell “some or all” of its $6.5bn stake in Hilton Worldwide, according to a regulatory filing. 

HNA Group is the largest shareholder in Hilton with a 26.1% share in what is one of the world’s largest hotel operators. 

The Chinese firm bought around a one-quarter stake in Hilton Worldwide in 2016.

This investment turned into three separate stakes when Hilton split itself into three publicly traded entities the following year - Hilton Worldwide, Hilton Grand Vacations and Hilton Park Hotels and Resorts. 

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Last month, HNA began offloaded its stakes in Hilton when it sold shares in Hilton Grand Vacations and Park Hotels and Resorts for around $1.1bn and $1.4bn respectively.

HNA said that it is “determined to pursue a sale of some or all of the common stock” that it currently holds in Hilton Worldwide, as it tries to balance its books. 

One of the world’s largest hotel operators, Hilton Worldwide has more than 5,200 hotels across the globe operating under 14 brands including Waldorf Astoria, Conrad, Hilton Hotels & Resorts, Doubletree by Hilton and the Tapestry Collection.

Hilton Hotels did not respond to HNA’s announcement. 
 

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May 17, 2020

Minor International edges closer to NH Hotel Group takeover with €619mn deal for HNA Group stake

NH Hotel Group
Mergers and acquisitions
Hotels
Ben Mouncer
2 min
Hotel frontage
Minor International in lining up the full acquisition of NH Hotel Group after purchasing an additional 25.2% stake in the Spanish company for €619mn...

Minor International in lining up the full acquisition of NH Hotel Group after purchasing an additional 25.2% stake in the Spanish company for €619mn.

Thailand-based Minor revealed its plans on Wednesday having completed a deal for the extra shareholding previously held by Chinese conglomerate HNA Group, taking its current total stake in NH Hotel Group to approximately 38%.

By moving beyond a 30% stake in the company, Minor is now eligible under Spanish law to launch a takeover bid – something it plans to do within the next few months.

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NH rejected a similar approach from rival Grupo Barcelo earlier this year however and any completion is subject to the approvals of Minor’s shareholders, the National Securities Market Commission of Spain (CNMV) and clearance by relevant anti-trust authorities.

The share purchase from HNA Group will be in two tranches of 65.85mn shares to be completed on or around 15 June and 32.94mn shares, expected to be completed in September. HNA is selling as part of a wider divestment of assets through which it hopes to complete debt repayments.

“Today we are embarking on a new era, driving investment strategy to further cement our footprint in the European hospitality industry,” said Dillip Rajakarier, CEO Minor Hotels.

“We will be able to create a network of over 540 hotels with a reach across Asia, Oceania, the Middle East, Africa and Europe, all of which are important hospitality regions around the world. The business network will allow the two companies to capitalise on our leadership positions in key growth areas, highly complementary asset and brand portfolio, technology platform and talented employees.”

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