Hilton Aims to Raise US$1.25bn from IPO
Hotels operator Hilton Worldwide Holdings aims to raise US$1.25bn from an initial public offering (IPO) of its common stock, although the company has not disclosed in its filing how many shares it plans to offer or the anticipated price range.
Hilton was taken private by investment firm The Blackstone Group in October 2007 for US$26.7bn. It hopes that signs of recovery in the US and other major economies, growing demand for business travel and rising room rates will enable it to secure a healthy valuation for the company.
A Reuters report suggested that Blackstone will value Hilton at around US$30bn, which it will use to pay back debt while using any remaining funds for general corporate purposes. In its latest financial year Hilton reported net income of US$427m and revenue of US$9.4bn from its estate of 4,041 hotels, resorts and timeshare properties.