Blackstone to buy Hilton Hotels for $20bn

US-based private equity firm Blackstone Group has agreed to buy Hilton Hotels Corporation for about $20 billion plus debt, according to a report on the website of Reuters.

Blackstone will pay $47.50 per share in cash, a 32% premium to Tuesday's closing share price of Hilton.

Blackstone, which raised $4.1 billion in an IPO late last month, said it intends to invest in Hilton properties and brands globally to grow the business.

According to a report on the website of Bloomberg, Barron Hilton, the son of founder Conrad Hilton and co-chairman of the California-based company, will get $990 million for his 20.8 million shares.

Hilton Hotels is a leading global hospitality company with more than 2,800 hotels and 4,80,000 rooms in 76 countries.

Hilton has nine franchised hotels in India, under Trident Hilton and Hilton brands, through its alliance with the Oberoi family-controlled East India Hotels (EIH). These properties are managed by EIH, while Hilton is responsible for international marketing.

Hilton has also announced a 26:74 joint venture with DLF to develop and own 75 hotels and service apartments in the country over the next seven years.  Hilton is planning to invest up to $143 million in the venture.

Hilton has also been permitted to set up a wholly-owned subsidiary in India for managing hotels involving an investment of Rs 130 crore.