Blackstone's Hilton Files for $1.25B IPO

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Sept. 12 (Bloomberg) -- Hilton Worldwide Holdings, the hotel operator owned by Blackstone Group, filed to raise $1.25 billion in a U.S. initial public offering as lodging shares trade at close to their highest level in six years. Bloomberg's Jason Kelly reports on Bloomberg Television's "Money Moves." (Source: Bloomberg)

With more on what this means for blackstone, we are going to bring in our equity expert and author of the "the new tycoon," jason kelly.

As you told me, this up sip arguably the most anticipated one for blackstone, maybe even for private equity in general.

Why is that?

Well, it's just this seminal deal of the buyout boom.

It really marked the end of what -- the good times the good times, really, what was called at the time the golden age of private equity, where literally trillions of dollars of deals were done with easy credit, where nothing really was off the table.

And this was a deal that was announced on july 3, 2007. yeah, like hold that date, july 3, 2007. i mean, it was like money just fountains of money.

And then it just turned off like that.

And so even as the deal was closing, blackstone was evening a company very exposed to the consumer, really in the teeth of the great recession, and everybody thought, good lord, what is going to happen here?

Yeah, so basically it's been a five-year recovery for them to even think about bringing this public, to even think about this exit, right?

That's right.

And they had to do a lot of things to the company, and it was interesting, you know, you would run into jonathan gray, who runs real estate at blackstone, and this was his deal.

I mean, this was $7 billion of blackstone -- an albatross, yeah.

I would run into him on the street, and he would say it's going to be a great deal, it's going to work out, don't believe what you read or write, in some cases, and it turns out that they are getting out, and we'll see what the stock does.

But this is not -- this is -- this is what looks like a happy ending.

Well, i like this, we're skeptics, journalists, that's what we do.

Really, the consumer has to be strong to stay in hotels.

You have to see business travelers.

I mean, that's a big part of the hilton business.

What else has to go in favor for the stock to outperform?

Well, for the fact to outperform, people have to continue to like hotels.

They have to continue to like hospitality.

This is obviously, as you said, for both consumers and business, you know, this is a macro economic play.

To some extent, we need a thriving global economy.

We need people moving around the world no-trade to stay in hilton hotels to keep driving revenue up.

Jason, blackstone is the biggest hotel owner in the u.s., actually the biggest realtor in the u.s. what does this mean for blackstone?

This has been blackstone's single most active year in their real estate business.

This is a roughly $50 billion business.

Blackstone gets almost half of its profit or revenue in the past year from real estate.

Which is crazy, actually, which you think about it.

Well, it's a company that really got into the business of buying and selling companies, but over the past 20 years, has become a juggernaut and really outpaced all of its private equity rivals and become the most dominant player in this space.

They've been very active buying and selling, taking a number of companies public really churning these deals out for their investors and returning a lot of capital.

This is another example, assuming this goes well, where they're going to be returning to -- returning money to

This text has been automatically generated. It may not be 100% accurate.


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