Jacobson’s Highfields Takes Stake in Hilton, Adds to Marriott

  • Firm expands into hospitality as executives see consolidation
  • Hedge fund adds to Marriott stake amid pending merger

Highfields Capital Management, the investment firm run by Jon Jacobson, bought a new stake in Hilton Worldwide Holdings Inc. and added to its position in Marriott International Inc. in the second quarter.

The Boston-based firm purchased 21.4 million shares of Hilton for a stake valued at $482 million at the end of the second quarter, according to regulatory filing Monday. The purchase made the global hospitality company its sixth-largest U.S. public equity holding. The firm also added about 2.4 million shares in Marriott, bringing its stake to $612 million and making it the firm’s second-largest holding.

Highfields’ purchase of its stake in Hilton comes as executives foresee consolidation in the hotel industry. Jon Gray, global head of real estate for Blackstone Group LP, the largest shareholder in Hilton, said in June that he expects the industry will continue to consolidate as operators try to create efficiencies and capture customers. Marriott is in the process of merging with Starwood Hotel & Resorts Inc., which would make it the largest hotel operator. Hilton is also planning to spin off its real estate and timeshare business later this year.

Money managers who oversee more than $100 million in equities must file a Form 13F within 45 days of each quarter’s end to list their U.S.-traded stocks, options and convertible bonds. The filings don’t show non-U.S. securities or how much cash the firms hold.

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