HNA Group, the largest shareholder of Hilton Worldwide and owner of landmark hotels such as the Waldorf Astoria New York, has announced that it will be selling some or all of its 26.1% ($6.5 billion) stake in the US hotel operator.
The announcement comes after months of speculation, and the announcement of HNA’s sale of its stake in both Hilton Grand Vacations as well as Park Hotels & Resorts earlier this year.
HNA Group has been divesting its overseas investments, as about $20 billion of its US dollar denominated debt is due to mature in 2018 and 2019.
When HNA purchased its stake in Hilton from Blackstone, it agreed to a two-year suspension on share sales unless Hilton’s board approved the transaction.
As these lock-up provisions are still in place, analysts suspect that Hilton could use those provisions to either repurchase its shares directly or ensure that the sale is conducted in a way that gives no one group such a large stake in the company.
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