Blackstone's Probably Won't Put Others in Play...

Implications: * Blackstone/Hilton deal is unique on several levels * Hotel Industry metrics have probably peaked in terms of RevPAR. * New Construction in the piptline is at an all time high * Starwood's management is weak and no apparent strategy. *  Marriott is not about to sell the family business

Analysis:

 I do not believe the Blackstone acquisition will put others in play for several reasons.  Clearly Blackstone would be prohibited from purchasing any other major chain from a Hart-Rodino antitrust perspective.  More importantly the Blackstone acquisition is unique for several reasons. 
1. They were already in the hotel and REIT business with their other properties like LaQuinta.
 
2. Hilton's acquisition of Hilton International was presumed to be a precursor to putting itself up for sale.

3. Hilton has a strong management team in place even with their CEO retiring at the end of the year.

While I believe the Hilton stock was not as undervalued as Blackstone would suggest even with strong REIT values, strategically it does make sense given their other hotel/REIT business.

The industry I believe will peak late summer early fall in terms of occupancy and RevPAR as other sectors of the industry are indeed already experiencing some weakness.  Additionally "new builds" in the pipeline are at record levels which would further indicate a future softness as they come online.  Finally, I do not believe Marriot would sell the "family business" and nor is Starwood a good candidate for acquisition given relatively weak management and no discernable strategy and turnstyle senior management changes.  Therefore this is a "one-off" kind of deal.