As IPO market booms, Hilton shares jump in debut


| Zoom

(AP) - It's a suite day for Hilton investors.

Shares gained 7.5 percent to close at $21.50 Thursday after the hotelier raised $2.35 billion, the largest hotel IPO ever.

Hilton Worldwide Holdings Inc. is the world's largest hotel group with 665,667 rooms across 90 countries and territories. It operates luxury brands such as the Waldorf Astoria and Conrad Hotels & Resorts but has built much of its recent growth on franchise deals.

Investor demand for IPOs has been strong recently _ there have been 218 IPOs in the U.S. this year, the most since 2000, according to IPO research and investment firm Renaissance Capital. And Hilton's offering trumped the $2.1 billion generated by Twitter's IPO last month, as well as proceeds from IPOs of its competitors. The next biggest was Hyatt Hotels Corp.'s $1.1 billion IPO in 2009, according to data provider Dealogic.

Hilton's market value of about $21.2 billion is well above that of other hoteliers. Marriott International Inc. and Starwood Hotels & Resorts Worldwide Inc. are both worth about $13.8 billion, while Hyatt has a market capitalization of $7.3 billion as of Thursday's close.

Hilton was taken private in 2007 by Blackstone Group LP, a private equity firm. In its initial public offering, the company and a shareholder sold 117.6 million shares at $20 each.

Blackstone did not sell any shares in the IPO, and will continue to hold majority voting power in the company. Hilton, based in McLean, Va., plans to use the proceeds from the offering to pay back debt.

Hilton sold 64.1 million shares and a stockholder sold 53.5 million shares. The banks that managed the deal also may buy another 17.6 million shares to cover additional demand. If those sell out, that could bump the proceeds from the IPO up to $2.7 billion. That would make Hilton's deal the second-biggest U.S. IPO of 2013, behind Plains GP Holdings LP at $2.9 billion.

Hilton's shares now trade under the symbol "HLT" on the New York Stock Exchange.


(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Top Stories

  • Failing
    So far, King County voters are rejecting higher car tab fees to save buses

  • Minimum Age Debate
    There's a push to raise the age from 18 to 21 in order to legally buy tobacco

  • Time for Change
    Shannon Drayer is expecting some changes after the Mariners' eighth straight loss
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know a student who stands out in the classroom, school and community?
Help make their dreams come true by nominating them for a $1,000 scholarship and a chance to earn a $10,000 Grand Prize. Brought to you by KIRO Radio and Comprehensive Wealth Management.

Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.