Private equity giant Blackstone Group is priming Hilton Worldwide to go public within weeks.
The initial public offering is expected to raise $1.25 billion – the highest amount raised for a US hotel company, the Financial Times reported.
It would move the buyout firm closer to realising the profits from its biggest single investment six years after acquiring the former Hilton Hotels.
While Blackstone will keep its stake for now, it is creating a mechanism to sell down its holding gradually. In the meantime, proceeds will go towards repaying Hilton’s $13 billon in net debt, according to the FT.
It said people familiar with the company say Blackstone has doubled its initial $6 billion equity investment from its real estate and private equity funds. Hilton now has an enterprise value of around $30 billion.
Hilton operates 4,041 hotels, resorts and timeshare properties in 90 countries through its namesake brand, as well as Waldorf Astoria, Doubletree, Homewood Suites and Hampton Inn among others.