Hilton Worldwide Files for IPO to Raise up to $1.25 billion

Hilton Worldwide Files for IPO to Raise up to $1.25 billionHilton Worldwide filed for an initial public offering on Thursday after six years of private-equity ownership. The move is likely to raise up to $1.25 billion. The move was not surprising for many.  People familiar with the matter confirmed in August that the McLean-based hotel chain had tapped four banks to take the company public.

It has been revealed by a filing with the Securities and Exchange Commission, that the hotel chain has not determined the number of shares of the company's common stock to be offered and the price range.

It is expected that Private equity giant Blackstone Group will retain controlling interest in the hotel chain. The proceeds, according to Hilton Worldwide, will be used from the initial public offering to clear its debts and for general purposes.

According to the filing, the profit of Hilton in the first six months of 2013 was $189 million on revenue of $4.6 billion. On its balance sheet, the company had $15 billion in debt as of June 30, 2013.

Nikhil Bhalla, vice president of equity research at FBR Capital Markets in Arlington, said, "The timing is right for lodging companies to go public right now. We've already seen a few years of sustained growth and the industry is positioned for another several years of growth".