Shares of Hilton Grand Vacations Inc. go for $1.1 billion
Hilton Grand Vacations bought shares from HNA, the Chinese brand
Chinese conglomerate HNA Group Co. has sold its shares in Hilton Grand Vacations Inc. for $1.1 billion, as the once aggressively acquisitive company continues practicing asset disposal in order to repay debts
Chinese conglomerate HNA Group Co. has sold its shares in Hilton Grand Vacations Inc. for $1.1 billion, as the once aggressively acquisitive company continues practicing asset disposal in order to repay debts.
As part of this sale, HNA sold 22.3 million shares at a price of $46.25 per share. This ends up being 1.6 percent below the stock’s latest closing price, according to a statement released last week. Meanwhile, HNA has also sold 2.5 million shares back to the Orlando, Florida-based timeshare company. That transaction took place at a price of $44.75 per share. What this means is that ultimately the company has sold its share at 90 percent above what it originally paid for them.
More Details of the Deal
The deal was completed March 19, and it now represents the second Hilton sale for HNA this month. As mentioned above, the Chinese conglomerate has shifted its market behavior and is now working to dispose of assets internationally in order to repay debts. The impetus for doing this comes from having spent tens of billions of dollars in a debt-fueled buying spree that netted it shares in Deutshe Bank AG, as well as in valuable skyscrapers located in New York City.
Even with the sale of these shares, HNA still retains ownership of about a quarter of Hilton Worldwide Holdings Inc., and experts say that that stake is valued at $6.7 billion.
HNA’s Original Hilton Purchases
While HNA is in sell mode now, this, of course, wasn’t always the case. In fact, it was just last year that HNA bought a quarter of Hilton Worldwide and two spinoffs, specifically Park Hotels & Resorts Inc., and Hilton Grand.
Those properties were purchased from Blackstone Group LP last year for roughly $6.5 billion. Founded in 1997, HNA Hospitality Group is a hotel investment and management platform under HNA Tourism. The company focuses on creating a mid-to-high end global network.
HNA Hospitality Group ranks as China’s largest private hotel group, as well as China’s best hotel management group with a sizable global presence. As of this time last year, HNA Hospitality Group itself operated or invested in a total of about 8,000 hotels with more than 1.2 million rooms spread throughout the world.
Let’s take a look at a few projects currently underway by HNA Group:
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