China's HNA Group buys 25% stake in Hilton
HNA paid £5.3bn for the share previously owned by Blackstone, the hotel group’s largest shareholder.
Adam Tan, CEO of HNA, said the deal was part of the group’s strategy to grow its global tourism business.
It follows a surge in Chinese companies investing in tourism businesses with the country set to become the world's largest outbound tourism economy by 2023.
HNA bought US-based Carlson Hotels Inc in April, after China’s Anbang Insurance Group dropped its £11.4bn bid to buy Starwood Hotels and Resorts.
Christopher J. Nassetta, president and CEO of Hilton, said: “We believe this mutually beneficial relationship will open new opportunities for our brands and guests around the world, particularly in light of HNA's strong position in the fast-growing Chinese travel and tourism market.”
The deal will cut Blackstone’s share to 21 per cent when the sale closes in the first quarter of 2017, the companies said.
Hilton operates 4,700 hotels in 104 countries worldwide under 13 brands including DoubleTree, Conrad Hotels and Resorts and Canopy by Hilton.
