Santa Claus Came Early for Hilton With The Biggest Hotel IPO Ever
HLT. That's now the symbol for Hilton Hotels on the New York Stock Exchange, after the hotel company went public today in the biggest-ever hotel initial public offering yesterday. (Hilton returns to the stock market after being taken private by the Blackstone Group in 2007.)
Hilton raised $2.34 billion in the IPO with 112 million shares priced at $20. As of 10:45am EST today, that price was at $21.72 and rising. Previously, Hyatt Hotels had the largest ever IPO with $950 million in 2009.
So what does this biggest-ever hotel IPO mean for a Hilton hotel guest? Nothing really, although one report says Hilton, now being a public company, could tap into more capital which could lead to lobby, room and even rewards program improvements. And then what does this means for an investor? Well, according to Morningstar equity analyst Chad Mollman, the Hilton stock might not be the best choice for people seeking a long-term investment. Mollman also priced the stock at $16 a share, well below the $21 mark it's at now.
But if you're interested in owning a piece of Hilton, $21 might be worth paying, especially when something goes wrong during your stay and you can throw down this, "But I'm a shareholder!"
[Photo: Hilton Hotels/Twitter]