HNA Group to sell Park Hotels stake

HNA Group to sell Park Hotels stake

HNA Group has unveiled plans to divest part or all of its 25 per cent stake US hotel chain Park Hotels & Resorts.

A potential deal could be worth up to $1.6 billion.

Park Hotels & Resorts said HNA has commenced an underwritten secondary offering of 32,950,000 shares of common stock.

In connection with the offering, the HNA intends to grant the underwriters an option to purchase up to 4,942,500 additional shares of common stock.

The decision to raise cash represents a sharp change in direction for the group, which also owns Hainan Airlines.

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HNA has spent $50 billion on acquisitions in the last two years.

The highly leveraged group has, however, recently come under political pressure to decrease its international presence.

Park Hotels & Resorts is the second largest publicly traded lodging real estate investment trust with a diverse portfolio of market-leading hotels and resorts with significant underlying real estate value.

Its portfolio currently consists of 55 premium-branded hotels and resorts with over 32,000 rooms located in prime US and international markets.

Park is not offering any shares of common stock in the offering and will not receive any proceeds from the sale of shares in the offering.

Barclays and J.P. Morgan are acting as joint book-running managers and representatives of the underwriters for the offering.

UBS Investment Bank, Goldman Sachs, Morgan Stanley, Deutsche Bank Securities, and Credit Suisse are also acting as joint book-running managers and underwriters for the offering.