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Hilton Hotels: A Case Study in Real Estate Private Equity

31 Pages Posted: 26 Apr 2014  

Ludovic Phalippou

University of Oxford - Said Business School; University of Oxford - Oxford-Man Institute of Quantitative Finance

Date Written: April 5, 2014

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.

Suggested Citation

Phalippou, Ludovic, Hilton Hotels: A Case Study in Real Estate Private Equity (April 5, 2014). Available at SSRN: https://ssrn.com/abstract=2429357 or http://dx.doi.org/10.2139/ssrn.2429357

Ludovic Phalippou (Contact Author)

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

University of Oxford - Oxford-Man Institute of Quantitative Finance ( email )

Eagle House
Walton Well Road
Oxford, Oxfordshire OX2 6ED
United Kingdom

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