Hilton Plans Largest-Ever Hotel IPO

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Hilton Worldwide plans to raise up to $2.37 billion this month in the biggest-ever hotel initial public offering. 

Hilton is expected to sell about 11.5 percent of its shares in the IPO, giving the company a value of up to $32.5 billion, including debt, Reuters reports. 

The IPO would more than double the investment from Blackstone Group, which took Hilton private in 2007 for $26.7 billion, including debt, according to Reuters.

Blackstone's 76.2 percent stake after the IPO would be worth up to $15.7 billion, after investing about $6.4 billion in total.

"The Blackstone Group has timed the Hilton IPO at the perfect market inflection points of increasing global consumer travel demand, daily room rates, and occupancy," Christopher Muller, a professor at Boston University's School of Hospitality Administration, told Reuters.

To date, the largest hotel IPO was in 2009 when Hyatt Hotels raised about $950 million. 

Hilton is expected to price 112.8 million shares at between $18 and $21 per share, giving the hotelier an equity value of $20.7 billion. 

Hilton operates in 90 countries, with 10 brands, more than 4,000 hotels and more than 650,000 hotel rooms in its portfolio. 

In October, Blackstone also listed its retail property arm, Brixmor Property Group, raising $825 million -- the largest for a retail REIT since 1993.