NEW YORK— One of the monolithic private equity firms that have been buying up the hotel industry is about to become partially public. The Blackstone Group LP intends to sell a portion of the company for an initial public offering valued at $4 billion, according to a published report. Blackstone did not reveal how many company units it will sell or what their estimated price will be. But it did reveal that it will trade on the New York Stock Exchange. Blackstone noted that it will move into the public domain because by doing so it can access new sources of capital, flexibility and financial and retention incentives for employees. Morgan Stanley and Citigroup are the lead underwriters for the IPO. Units will be sold as a master limited partnership. During 2006, Blackstone’s net income increased approximately 70% over 2005’s total and reached $2.3 billion. Its net gains from investment activities reached $7.6 billion in 2006. In 2005, those net gains were $5.1 billion.
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