HNA drops stake in Hilton timeshare spinoff

HNA selling stakes in Hilton Grand Vacation and Park Hotels & Resorts

In the middle of an asset reorganisation, debt-ridden Chinese conglomerate HNA Group is selling its shares in Hilton Grand Vacations for US$1.1 billion and is transferring much of its tourism portfolio to its airline subsidiary, Hainan Airlines.

HNA sold 22.3 million shares at US$46.25 a share, or 1.6 per cent below the stock’s latest closing price. It also sold 2.5 million shares back to the timeshare company for US$44.75 a piece.

HNA selling stakes in Hilton Grand Vacation and Park Hotels & Resorts

The deal is scheduled to be completed March 19.

With the group having put its stakes in another Hilton spinoff, Park Hotels & Resorts, up for sale, Bloomberg reports there are speculations if Hilton Worldwide is next.

HNA reportedly still owns about a quarter of Hilton Worldwide, a stake valued at US$6.7 billion.

The group had in 2016 bought a quarter of Hilton Worldwide and the two spinoffs from the Blackstone Group for about US$6.5 billion.

Meanwhile, in a statement to the Shanghai stock exchange last weekend, HNA’s flagship carrier said it would take controlling stakes in HNA Hospitality Group, an unnamed overseas hotel operator, West Air, Guilin Airlines, among several other tourism and aviation assets.

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