Hilton eyes USD2.4 billion in biggest hotel IPO

By VCPOST Staff Reporter

Dec 02, 2013 08:31 AM EST

American hotel giant Hilton Worldwide Holdings Inc. plans to raise as much as USD2.4 billion in its initial public offering. Should it go as planned, the float could be one of the biggest ever in the US for a hotel company, Bloomberg said in a report. 

According to the report, the Virginia-based hotel operator and existing shareholders plan to sell 112.8 million shares priced at USD18 to USD21 apiece. Hotel company Hilton intends to sell 64.1 million of the total. Proceeds from the listing will be used to help repay its USD1.25 billion debt.

Meanwhile, Blackstone Group LP will not be selling any of its stock. The New York-based private equity firm bought Hilton Worldwide in 2007, Bloomberg said.

Blackstone is taking Hilton public after the chain refinanced about USD13 billion of debt. Its refinancing program capitalized on US stocks near records and a rebound in hotel occupancy and rates, the report said. 

Bloomberg said about 11.5% of Hilton is being sold in the IPO, putting its market value of around USD19.2 billion. Its IPO could raise as much as USD2.7 billion if extra shares are sold to meet demand.   

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