Ackman's Pershing Square Takes 3.7% Stake In Hilton
It appears Bill Ackman couldn't stay away from Hilton for very long.
A widely known activist investor who exerts influence on the companies in which he buys an interest, Ackman's hedge fund — Pershing Square Capital Management — has purchased 10.9 million shares of Hilton Worldwide Holdings, worth 3.7% of the company, Reuters reports based on a recent Securities and Exchange Commission filing.
The investment is worth about 13.9% of Pershing Square Holdings.
Hilton has a market capitalization of $19B, according to Reuters, which would make Pershing Square's investment worth $703M if based on the price of outstanding shares. The fund reportedly invests about $8.4B.
Ackman also bought into Hilton for an undisclosed percentage of the company in 2016 before exiting that investment one year later, after earning a 32% profit, Reuters reports. Earlier this year, two of Hilton's biggest shareholders sold their stakes for hefty returns, but the hotel conglomerate's share price is lower than it has been in over a year.
Blackstone purchased Hilton in 2007, and after 10 years of ownership that included taking private then public again, sold 25% of its stake to Chinese investment giant HNA Group in 2017. HNA then sold that interest in April of this year, only a month before Blackstone sold its own remaining stake in the company. In each transaction, the seller made billions of dollars in profits, and Blackstone agreed to purchase competitor LaSalle Hotel Properties just three days after its final Hilton sale.
Ackman told Reuters his plans for his new investment will be revealed during an investor call next month.