Published on : Thursday, October 27, 2016
HNA announced in April that it had agreed to acquire Carlson Hotels, which owns the Radisson and Park Plaza brands.
With more Chinese citizens travelling abroad, Chinese companies have increasingly been investing in tourism-related businesses overseas.
As per the deal, HNA cannot reduce its 25% stake over the next two years or increase it without Hilton’s permission. The deal, which is expected to go through in early 2017, will cut Blackstone’s share in Hilton to 21%.
HNA is one of China’s biggest tourism companies and has nearly 2,000 hotels worldwide and 1,250 aircraft. It has US$30bn in annual revenues and employs 200,000 people, mainly in North America, Europe and Asia.
Hilton’s 13 brands include Conrad Hotels and Resorts, Curio and Double Tree. It has 4,700 managed, franchised, owned and leased hotels and timeshares in 104 countries.
“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 largest outbound travel and tourism market in the world,” said Hilton chief executive Christopher J Nassetta.