#China #Fosun #HNA Group#Park Hotels and Resorts #Hilton Worldwide Hotels #Dalian Wanda #Anbang Insurance

HNA Group could sell $1.4bn stake in Hilton spin-off, Park Hotels and Resorts

|Mar 2|magazine5 min read

HNA Group is considering selling its stake in Hilton Worldwide Holdings spin-off, Park Hotels and Resorts, Inc.

HNA, which is a Chinese conglomerate, has holdings in real estate and tourism as well as financial services, logistics and aviation.

The company currently has a 25% stake in Park Hotels and Resorts which, based on the company’s most recently declared market cap of $5.6bn, is worth $1.4bn.

See also:

Are Nissan’s self-driving slippers a sign of Japan’s tourism boom?

Top 10 luxury hotels in Asia

Tourism surges from China and India

Park Hotels and resorts currently owns 55 Hilton Hotels, and HNA has not announced details but says it is “pursuing a sale of some or all of the ordinary shares” in the company.

Over the past three years, HNA has been on somewhat of a foreign acquisition spree and spent $40bn in total on shares in new companies, but it is not under examination by regulators and owes debt.

It is said to be planning to axe 100,000 jobs this year as it accelerates the sale of its overseas shares.

Part of the reason for the crackdown by regulators is concern about the company’s offshore investments in real estate, hotels and movie studios, as the Chinese government grows concerned about the outflow of cash from the country and financial risks taken by banks as a result of so many overseas acquisitions.

Currently many other Chinese companies are buying overseas, including Fosun, Dalian Wanda and Anbang Insurance.