Articles tagged “blackstone”

Blackstone didn't come in and suck the life out of Hilton Worldwide, but turned it into an organization that other hotel chains emulate. With its IPO imminent, Hilton will pay down a bunch of debt, and will find itself in an even more advantageous position.

What is the right formula for Blackstone? Two IPOs and a sale or perhaps three IPOs -- namely for Extended Stay America, Hilton, and possibly La Quinta. It is so nice to have options.

Proceeds from the IPO -- the size of which is still to be determined -- would go toward paying down debt. Unlike many other private equity acquisitions where the acquired companies have been hamstrung and loaded down with debt, Blackstone has really rationalized and improved Hilton's global operations.

Extended Stay America and Hilton are two totally different kinds of hotel companies, but Extended Stay America's IPO is likely to impact the timing and shape of a potential Hilton IPO. The most interesting thing is that if everything falls into place, it looks like Hilton's long-awaited IPO will finally be on tap for 2014.

Analysts tend to overlook the seeming little things at times. It's clear that Hilton Worldwide's headquarters relocation from Beverly Hills to Virginia four years ago was a game-changer for the company.

Blackstone is a very savvy, metrics-oriented hotel investor, and with $10 billion available to invest in real estate, the world's largest hotel operator is a lodging force to be closely monitored. Despite its public company status, Blackstone is fairly tight-lipped about its strategy, and the industry awaits Blackstone's next chess move.

Blackstone saddled Travelport and Orbitz Worldwide with tremendous debt, and greatly restricted Orbitz's freedom to maneuver. There have to be some champagne corks popping this weeks as Orbitz has a chance to taste some freedom.

There's still time for Blackstone to accept a buyout bid before SeaWorld hits the public markets. Private-equity backed IPOs are currently in vogue so that has given Blackstone more confidence.

Does Blackstone have an ethics policy related to doing business in Iran and other countries with international sanctions? Or is private equity and ethics a contradiction in terms?

Neither Blackstone nor the prospective buyer will confirm the information, but the sale is in line with the hotel group’s current efforts to restructure its luxury hotels unit out of debt.