China's HNA Group is buying an approximately 25 percent stake in hotel operator Hilton from Blackstone affiliates in a deal worth about $6.5 billion.
HNA will have a stake in Hilton and its planned spinoffs of Park Hotels & Resorts and Hilton Grand Vacations, which are expected to take place by the end of the year. As part of a stockholders agreement with Hilton, HNA will appoint two directors to Hilton's board. This brings the Hilton board to 10 members.
HNA Group runs hotels, airlines, airports, and financial services and real estate businesses. Earlier this year one of its units agreed to buy Carlson Hotels. Chinese companies have been looking to diversify abroad to counter slowing growth at home while also scooping up foreign expertise and technology.
Blackstone will now have an approximately 21 percent interest in Hilton Worldwide Holdings Inc. Blackstone will continue to have two seats on Hilton's board.
The deal is expected to close in 2017's first quarter.
Shares of Hilton Worldwide Holdings Inc. rose 46 cents, or 2 percent, to $23.37 in morning trading Monday while the Blackstone Group LP shares rose 69 cents, or 2.9 percent, to $24.76.