China's HNA Group to acquire 25% stake in Hilton

Chinese conglomerate HNA Group will acquire a 25 percent stake in international hotel operator Hilton Worldwide Holdings Inc, the companies announced Monday, another move expanding HNA's presence in the sector. HNA, an aviation and shipping group, announced in April that it had agreed to acquire Carlson Hotels Inc, which owns the Radisson and Park Plaza brands. "This investment is consistent with our strategy to enhance our global tourism business, and we look forward to working together on new initiatives that leverage our respective strengths," Adam Tan, vice chairman and CEO of HNA Group, said in a statement. HNA is purchasing the Hilton stake from the investment firm Blackstone in a deal valued at $6.5 billion, or $26.25 a share. That will reduce Blackstone's share in Hilton to 21 percent. HNA also will hold a 25 percent stake in Park Hotels & Resorts and Hilton Grand Vacations after the two companies are spun off later this year. Hilton CEO and President Christopher Nassetta said, "We believe this mutually beneficial relationship will open new opportunities for our brands and guests around the world, particularly in light of HNA's strong position in the fast-growing Chinese travel and tourism market, the largest outbound travel and tourism market in the world,"