HNA to sell stake in Park Hotels for $1.24B
Hotel operator to buy back some shares
HNA Group’s selling spree continues. The Chinese conglomerate officially put most of its stake in Hilton spinoff Park Hotels & Resorts up for sale on Tuesday and stands to make $1.24 billion.
The Chinese conglomerate is looking to sell 34.5 million shares at $25.75 each, or about $888 million in total, Park Hotels said in a statement. The secondary offering is expected to close March 9. Meanwhile, Park Hotels is buying back another 14 million shares from HNA at $24.85 each, or around $348 million.
HNA previously owned 53.7 million shares in the hotel company after buying a 25 percent stake in Hilton Worldwide Holdings and its spinoffs last year.
The Chinese company is struggling under a $90 billion mountain of debt and is looking to save itself by selling assets. It recently sold its office tower 1180 Sixth Avenue for $305 million and is trying to get rid of 245 Park Avenue, which it bought for $2.21 billion in May, as well.
The Real Deal broke down HNA’s sudden fall from grace in its March issue. — Konrad Putzier
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