FORMERLY PE OWNED
Hilton Hotels
Includes Hilton, Hilton Worldwide
hotel chain · McLean, VA
- PE Firm
- Blackstone →
- Year Acquired
- 2007
Blackstone's $14 billion payday. They gutted headquarters and replaced 80% of management to get there.
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