Hilton Hotels: A Case Study in Real Estate Private Equity

Phalippou, Ludovic (2014) Hilton Hotels: A Case Study in Real Estate Private Equity. University of Oxford.

Abstract

On December 13, 2013, two days after its IPO, Hilton hotels traded above $22 a share. This meant that the 2007 take-private transaction of Blackstone had produced the largest gain ever in private equity at about $10 billion. In addition, Hilton had become the largest hotel group in the world by number of rooms up from 4th position 6 years previously, when Blackstone bought the company. How can such success occur with a cyclical business during the worst financial crisis since 1929-1933? Somebody definitely deserves a big box of chocolates; but who? The answer is surprising and offers a detailed insight into the life-cycle of real estate private equity transactions.

Item Type: Other
Keywords: private equity; real estate; finance
Subject(s): Finance
Date Deposited: 11 May 2015 10:38
Last Modified: 02 Mar 2017 11:31
Funders: N/A
URI: http://eureka.sbs.ox.ac.uk/id/eprint/5316

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