THE BLACKSTONE HAS PURCHASED HILTON - A GOOD MOVE!

Implications: Blackstone Group purchase will add thousands of rooms to their already large inventory. Should this be considered a good deal for all? This may be a better deal for Hilton stockholders than meets the eye. They will be looking at a substantial increase in their stock investment portfolio's to the tune of about 30% give or take a little. It's a solid move by both companies.

Analysis: The Blackstone Groups purchase of the Hilton Hotel group at a price of $20 billion in cash and the $6 billion in debt service is a good purchase. They will now own some very top name brands, it's an important plus for any company. To take down these special brand names will allow Blackstone into some terrific markets. Hilton Hotels, Embassy suites, Doubletree and Hampton Inns are know just about everywhere. They will also acquire the Waldorf Astoria in New York. This is a landmark property with a very prestigious name. Hilton Hotels has had a good reputation in the hotel business over the years. If you ask anyone around the world, the name of Hilton will not be strange to them. This acquisition will certainly make Blackstone one of the power players in the Hotel Industry. They will have a significant amount rooms in their inventory and can market directly off of Hilton's strong data base. That alone will could be a terrific plus for Blackstone - this could be a great boost in customer loyalty for them. It may be possible that after all is said and done with this purchase, they may consider discarding some properties that are not producing at the rate expected. It's always good business to drop what is lowering the profit picture.

The thought that Strawoods and other major properties might also be on the minds of capital investment groups is not out of the question. Moving out of the public domain and taking a company private has many good vibes and the hotel and casino properties seem to be the directions these companies seem to like. It's has become a trend to sell to these Investors - the thought of being controlled by a group of stock holders that generally don't have a clue about the business is a tough way to operate. This, now allows companies to have to justify their future to a much more interested and qualified owner.

It seems that Blackstone can now put some new life into Hilton - they can use a boost and I do like what this purchase can do for for them.
It remains to be seen what if any major changes they have in mind...