Hotel chain Hilton Worldwide raised $US2.34 billion in its IPO.
It opened at $US21.30 on Thursday, compared with IPO price at $US20. That’s up about 8%.
Blackstone took Hilton private in 2007. It holds 81.5% of the company and isn’t selling any of its shares in the offering.
“The big challenges for the industry are on the supply side,” he said. And since banks have loosened up with lending, that’s allowing companies in the hotel space to increase supply,” Ryan Meliker, an analyst with MLV & Co. told Business Insider ahead of the IPO. A demand shock from a global economic slowdown would be a headwind, he said.
Meliker also explained that its lockup on its Hilton investment will expire in the next three years. And when that happens, it will need to return capital to investors, and sell a bunch of its Hilton stock.
More to come…
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