Hilton is one of the most well-known hotel brands in the world. But have you ever wondered who owns it? There have been several rumors and speculations about Hilton’s ownership, and one of the most popular claims is that Blackstone owns Hilton. In this blog post, we’ll be diving into the details of Hilton’s ownership and whether Blackstone plays a significant role in it.
Who owns Hilton?
Before we get into whether Blackstone owns Hilton, it’s important to understand the actual ownership structure of Hilton.
Hilton is a publicly-traded company, which means that anyone can buy shares of the company on the stock market. As of June 2021, the largest shareholders of Hilton are mutual fund companies, including Vanguard and BlackRock. These funds own around 17% of Hilton’s shares, but they do not have controlling interest in the company.
The remaining shares of Hilton are owned by a wide range of institutional and individual investors. However, the largest individual shareholder of Hilton is Christopher Nassetta, the company’s CEO. As of June 2021, he owned around 1.5 million shares of Hilton.
Blackstone’s acquisition of Hilton
Now that we know who the major shareholders of Hilton are let’s delve into Blackstone’s involvement with the company.
In 2007, Blackstone acquired Hilton Hotels Corporation for $26 billion. This acquisition was an all-cash leveraged buyout, which means that Blackstone financed the majority of the acquisition with debt. At the time, it was the largest private equity buyout in history.
As a result of the acquisition, Blackstone became the owner of Hilton Hotels Corporation, which included more than 2,800 hotels under various brand names, including Conrad, Hampton Inn, and Waldorf Astoria.
However, this ownership did not last forever. In 2013, just six years after Blackstone’s acquisition of Hilton, the company went public again. Blackstone sold shares of Hilton to the public through an IPO, which reduced the private equity firm’s ownership of the company to around 46 percent. Since then, Blackstone has continued to reduce its stake in Hilton, and as of June 2021, it owns less than 5 percent of the company.
Blackstone’s impact on Hilton
Blackstone’s acquisition and subsequent ownership of Hilton had a significant impact on the company. Prior to the acquisition, Hilton had struggled to compete with other hotel brands, and its stock price had stagnated. However, under Blackstone’s ownership, Hilton implemented several changes that helped turn the company around.
One of the most significant changes was an increased focus on franchising. Blackstone recognized the potential profitability of franchising, and over time Hilton began to shift from a company-owned model to a franchising model. This strategy helped Hilton expand its brand presence significantly, and it is now one of the largest hotel franchisors in the world.
Additionally, Blackstone invested heavily in improving Hilton’s technology and digital capabilities. This included the development of the Hilton Honors loyalty program, which has since become one of the most popular hotel loyalty programs in the industry.
Overall, Blackstone’s ownership of Hilton had a positive impact on the company’s financial performance and helped position it as a leading hotel brand.
Conclusion
So, does Blackstone own Hilton? The answer is no, not anymore. While Blackstone did acquire Hilton in 2007 and was its owner for a few years, the private equity firm has significantly reduced its stake in the company since then. As of June 2021, Blackstone owns less than 5% of Hilton.
However, Blackstone’s ownership did have a significant impact on Hilton’s development and success. Through an increased focus on franchising and digital capabilities, Blackstone helped Hilton become the thriving hotel brand it is today.
FAQ
Who is Hilton owned by?
Hilton is a well-known brand in the global hospitality industry that has been operating for nearly a century. The ownership of Hilton has changed hands multiple times since its founding in 1919 by Conrad Hilton. Currently, Hilton Hotels is owned by the hospitality giant, Hilton Worldwide Holdings Inc. which is a publicly traded company.
Hilton Worldwide Holdings Inc. went public with an initial public offering (IPO) on the New York Stock Exchange (NYSE) in 2013 under the ticker symbol HLT. However, Hilton Worldwide was initially owned by Blackstone Group, a private equity group that purchased Hilton for $26 billion in 2007.
Before the acquisition by Blackstone Group, Hilton was owned by a consortium of private equity firms, including The Blackstone Group, Texas Pacific Group, and the Carlyle Group. This consortium acquired Hilton in 2007 for $26 billion. At the time, it was the largest leveraged buyout (LBO) in the history of the hospitality industry.
After the acquisition, Blackstone Group made several strategic moves to improve the financial performance of Hilton. The company sold off non-core assets, restructured the company, and focused on expanding the Hilton brand globally. As a result, Hilton’s financial metrics, such as revenue, profitability, and return on investment, have improved dramatically.
Over the years, Hilton has grown through acquisitions, partnerships, and organic growth. Today, Hilton has over 6,100 properties in 119 countries and territories, making it one of the largest hospitality companies in the world. The Hilton brand includes 18 different hotel brands, including Waldorf Astoria, Conrad, Hilton Hotels & Resorts, and DoubleTree by Hilton, among others.
The ownership of Hilton has changed hands multiple times over the years. Currently, Hilton is owned by Hilton Worldwide Holdings Inc., which went public on the NYSE in 2013. The history of ownership is a testament to Hilton’s resilience and adaptability as it has grown into a global hospitality giant.
What hotel chain does Blackstone own?
Blackstone is a private equity firm that has made significant investments in various industries over the years, including hospitality. Blackstone owns several hotel chains, including La Quinta, Hilton, and the Cosmopolitan of Las Vegas, to name a few. La Quinta, for instance, is a mid-priced hotel brand that has over 900 locations across the United States, Canada, and Mexico. Hilton, on the other hand, is a world-renowned brand that operates over 6,100 hotels in 118 countries. Blackstone acquired Hilton in 2007 in what was the largest hotel privatization deal in history at the time, valued at $26 billion. Additionally, the Cosmopolitan of Las Vegas is a luxury hotel and casino located on the Las Vegas Strip that Blackstone acquired in 2014 for $1.73 billion.
Furthermore, Blackstone also owns BRE Hotels and Resorts, which is a hospitality platform that delivers industry-leading returns for stakeholders. This platform includes several owned assets that span across all chain scales with a focus on luxury and upper upscale resorts. The portfolio includes hotels such as the LXR Hotels & Resorts, Waldorf Astoria Hotels & Resorts, and many more upscale properties where innovation, creativity, and excellence are nurtured, enhancing guests’ experiences.
Blackstone’S hotel chain portfolio is diverse, ranging from budget hotels to luxury resorts. Blackstone’s acquisition of these hotel chains has helped them establish a strong foothold in the hospitality industry, allowing them to continue investing in the sector and providing exquisite experiences for hotel guests worldwide.