Blackstone’s Hilton Files for $1.25B IPO

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Sept. 12 (Bloomberg) –- Bloomberg’s Devin Banerjee reports on Hilton, the hotel operator owned by Blackstone, filing to raise $1.25 billion in a U.S. initial public offering. He speaks with Erik Schatzker and Sara Eisen on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Lack stone would do with hilton and when it would choose an exit.

That's what private equity is all about.

Why now?

It is about timing.

They fumbled the buy right before the crisis and they are being very careful about timing this exit.

The people we have been talking about have been talking about this filing in the work so they are timing it well.

Analysts today are talking about how the hotel industry is not -- is in perfect midcycle.

It has done well in the last few years out of the crisis and has two more years of good growth to go.

This is the perfect time for an ipo and shows investors there is growth behind it and it shows them where it is headed and it can show investors there is two years of growth ahead.

Not to mention commercial real estate has made a significant comeback.

What have you seen in terms of the ipo filing as far as hilton successes?

Black stone has worked hard to turn around hilton.

It is the biggest single investment it has done, y¢6.50 dollars.

That is investors money, 6.5 ilya and dollars.

-- billion hollers.

They have gone from 2900 hotels down to fourth house and hotels -- up to 4000 hotels.

They have also relied on the recovery out of the recession and occupants in the -- occupancy rates are higher saw earnings are up 58% since 2009. i took a look at the ipo filing.

Some of this is thanks to expansion.

There is about $1 billion of revenue more than helton had before blacks don't take it private.

They are still making less money.

Is that because the hotel cycle was at a peak in 2006? maybe we are not there yet.

That's one reason -- what room rates have not -- have gone down.

They have sunk investment into opening 1100 more hotels and building another 1000 hotels.

With all that dead even though interest rates are low, they still have to service that.

Does lack stone have any other interest in the hotel industry?

Black stone has been making a lot of exits in the ipo market but not with hotels.

They filed to take britsmore public and sea world and pinnacle foods which are doing well.

They are watching the ipo market and seeing how well they can do.

In real estate, they are exiting a lot of their real estate investments.

Some of these investments like helton, investors are asking for money.

Bricksmore they filed to take public and broadgate well-known in london, they have sold their 50% stake to singapore for $2.7 billion.

So much calculus the new investor has to make.

Do you believe the idea that hotels are mid cycling?

Good to see you and thank you so much.

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

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