Blackstone Completes Acquisition of Hilton

The Blackstone Group today completed its record $26 billion acquisition of the Hilton Hotels Corp. Hilton shareholders last month overwhelming approved the deal, which gives them $47.50 per share, or 40 percent more than their stock was worth the day before the acquisition was announced July 3.

Blackstone has indicated it does not plan any “significant disposition” of Hilton assets. But the industry will be watching its next moves very closely.

Asked if he thought Hilton would keep the business intact, California hotel lawyer Jim Butler, of Jeffers, Mangels, Butler & Marmaro, said “that’s not what equity investors are known for.”

After the sale was first announced, Butler was quick to point out that Blackstone made similar statements when it purchased Wyndham in 2005, then within weeks after closing the deal “had basically terminated its employees in Dallas, moved its headquarters to Parsippany, N.J., and started selling off properties and brands.”