Hilton Worldwide Holdings Inc’s main shareholder HNA Tourism Group has put up 63 million shares of Hilton common stock for sale in a secondary offering. It recently sold its shares in Hilton Grand Vacations Inc. US $1.1 billion.
Reports suggest that HNA could raise more than $6 billion if it liquidates its entire stake in the hotel operator, which owns the Waldorf Astoria, Conrad and Doubletree brands. HNA paid some $6.5 billion for a 25% stake in Hilton in October 2016.
Reuters reports that "the sale is an attempt by HNA Group Co Ltd, to restructure its far-flung operations and raise cash by selling equity and prime real estate assets. Its restructuring follows a $50 billion acquisition spree over the past two years, which has sparked scrutiny of the firm’s opaque ownership and use of leverage."
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Hilton is all set to announce its first quarter earnings in May, and its filing with the US Securities and Exchange Committee also included early estimates for its net income which is estimated to range from $165 million to $171 million, and earnings before interest, taxes, depreciation and amortisation that ranges from $387 million to $394 million.
HotelierMiddleEast.com previously reported that HNA has been on a selling spree having sold off its stakes in Hilton’s two spun-off business units, Park Hotels & Resorts and Hilton Grand Vacations.