HNA May Sell Its Stake In Hilton Grand Vacations
A week after putting its $1.4B stake in Park Hotels & Resorts on the market, HNA Group is in talks to sell its stake in Hilton Grand Vacations Inc.
Much like Dalian Wanda Group, HNA has been a major investor in U.S. commercial real estate over the years, having acquired notable assets like 245 Park Ave. from Brookfield for $2.2B and a 25% stake in Hilton Worldwide Holdings from Blackstone Group for $6.5B.
The selling spree comes amid a government crackdown on overseas investment. Chinese regulators are restricting foreign investment activities to keep some capital from leaving the country. In response to increased regulations, buyers Dalian Wanda, Anbang and HNA are considering selling assets across the globe to free up capital. HNA is looking to unload $16B worth of assets from its portfolio in the first half of the year.
The Grand Vacations stake is currently valued at $1.2B and could garner HNA approximately $570M, the Wall Street Journal reports. The sale would reportedly take place in the open market rather than with a direct buyer, and could take place as early as mid-March.
HNA initially bought the Hilton stake from Blackstone Group for $6.5B in 2016. Shortly after, the hotel group split into three publicly traded companies, including Hilton Worldwide, Hilton Grand Vacations and Park Hotels & Resorts Inc. HNA was given a 25% stake in each when the deal with Blackstone was finalized in March 2017, the WSJ reports.
While HNA is considering the sale of stakes in two of the Hilton companies, it will be retaining its stakes in Hilton Worldwide as it plans to keep this as part of its overall global strategy. The Hilton Worldwide stake is currently valued at about $6.7B.