Is Hilton Hotels Private Equity Owned?

Back to search

🟡 FORMERLY PE OWNED

Hilton Hotels

Includes Hilton, Hilton Worldwide

hotel chain · McLean, VA

PE FirmBlackstone →

Year Acquired

2007

“Blackstone's $14 billion payday — after gutting headquarters and replacing 80% of management.”

What Happened

•Blackstone's 2007 buyout loaded Hilton with $20.5 billion in debt; revenues fell 15% and the company's value dropped 70% by 2009
•Replaced 80% of headquarters staff after relocating from Beverly Hills to Virginia to cut costs
•Bought back $1.8 billion of its own distressed debt at 54 cents on the dollar, converting another $2B to preferred stock
•Taken public again in 2013 in largest-ever hotel IPO; Blackstone ultimately made $14 billion profit — a 3x return by 2018

The Damage Done

▸Daily housekeeping eliminated as standard service in 2022 — guests now have to specifically request room cleaning or it won't happen
▸Mandatory 'resort fees' of $15 to $45 per night added on top of advertised prices at 78+ properties — Nebraska and other states sued over deceptive pricing
▸FTC warned Hilton that its resort fee practices may violate federal consumer protection laws; class action lawsuits followed
▸Headquarters moved from Beverly Hills to Virginia — only 20% of original staff made the move

Get notified

Stay in the loop. No spam.

Frequently Asked Questions

Is Hilton Hotels owned by private equity?

Not anymore. Hilton Hotels was formerly owned by Blackstone starting in 2007, but the firm has since exited. The effects of PE ownership often linger.

What happened to Hilton Hotels after the acquisition?

Daily housekeeping eliminated as standard service in 2022 — guests now have to specifically request room cleaning or it won't happen Mandatory 'resort fees' of $15 to $45 per night added on top of advertised prices at 78+ properties — Nebraska and other states sued over deceptive pricing

Who owns Hilton Hotels?

Hilton Hotels is owned by Blackstone, which acquired it in 2007.