Hilton Doubles Up on IPO and Looks Overseas for Growth
There must be a lot of interest in the forthcoming Hilton Worldwide Holdings (NYSE:HLT) initial public offering. In less than a month, the hotel chain has nearly doubled the amount of money it is seeking to raise, from $1.25 billion to $2.4 billion, by offering 129.74 million shares at a price between $18 and $21 each.
The hotel chain initially filed an S-1 prospectus with the U.S. Securities and Exchange Commission in September but revised the document at the beginning of December to reflect a more ambitious strategy. Hilton was bought by Blackstone Group (NYSE:BX) in 2007 for $26 billion and has since refinanced about $13 billion worth of debt. Net proceeds are expected at about $1.21 billion, and the company is expected to use the cash to pay down some of its debt. After that, the chain will be freer to pursue its international growth strategy.
Hilton reports that it claims a leading 4.5 percent share of total existing room supply globally. Ranked by room supply by region, Hilton is the No. 1 hotel in the United States with 8.5 percent of the supply; No. 6 in Europe with 1.3 percent of the supply; No. 4 in the Middle East and Africa with 2.4 percent of the supply; and No. 8 in Asia Pacific with 1.1 percent of the supply.