NEW YORK (TheStreet) -- Shares of Hilton Worldwide (HLT) - Get Hilton Worldwide Holdings Inc (HLT) Report were climbing in pre-market trading on Monday as Chinese aviation and tourism conglomerate HNA Group agreed to buy an about 25% stake in the McLean, VA-based hotel operator from Blackstone Group (BX) for $6.5 billion.
HNA will pay approximately $26.25 per share in cash, reducing Blackstone's investment in Hilton to about 21%, Hilton said in a statement.
The deal is expected to close in the first quarter of 2017 and allows HNA to appoint two directors to Hilton's board.
"This investment is consistent with our strategy to enhance our global tourism business, and we look forward to working together on new initiatives that leverage our respective strengths, expertise and tourism platforms to provide travelers more choice, value and world-class services," said HNA Group's CEO Adam Tan in a statement.
Chinese investors have been acquiring hotel and travel businesses around the world as international travel increases, according to Bloomberg.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
The team rates Hilton as a Hold with a ratings score of C. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and reasonable valuation levels. However, as a counter to these strengths, the team also finds weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: HLT