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HNA considering sale of stake in Hilton Grand Vacations: WSJ
Posted on Tuesday, 13 March 2018 14:51
HNA Group is in talks to offload its stake in Hilton Grand Vacations, a spinoff of the larger Hilton Worldwide Holdings, in a deal that could be worth USD 1.20 billion, the Wall Street Journal (WSJ) reported.
People close to the matter told the paper that the Chinese firm is exploring a sale of some or all of its 25.0 per cent interest and could make a profit of USD 570.00 million in a disposal.
An announcement could be made as soon as this week, the sources noted, adding HNA plans to offload its shares to the open market and not to a direct buyer.
Hilton Grand Vacations, which has a market capitalisation of USD 4.59 billion, was spun off from Hilton Worldwide Holdings last year, at the same time the hotel group also separated its Park Hotels & Resorts.
Both businesses now trade on the New York Stock Exchange.
HNA picked up its holding after it acquired a stake in the US hotel chain from Blackstone in 2016. It also owned a similar interest in Park Hotels & Resorts.
The vendor is looking to cash in returns on investments that have done well, the people told the WSJ, and added the group wants to generate capital for new acquisitions by disposing of older ones.
HNA recently sold its stake in Park Hotels & Resorts in a deal worth USD 1.40 billion.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 80 deals targeting the global hotel industry announced since the start of 2018.
The largest such transaction involved Accor signing an agreement to sell a majority stake in France-based AccorInvest to a number of investors for EUR 4.40 billion.
La Quinta Holdings' hotel franchise and hotel management businesses, Wyndham Worldwide's European rental brands and Amaris Hospitality Designated Activity Company, among others, were also targeted.
© Zephus Ltd