Hilton Worldwide (HLT) Stock Slipping After Announcing Secondary Offering, Cramer Weighs In

NEW YORK (TheStreet) -- Shares of Hilton Worldwide Holdings  (HLT) fell 1.2% to $29.74 in early market trading Monday after the company announced its secondary offering of common stock this morning.

The hotel company added that certain selling stockholders affiliated with Blackstone Group (BX) have commenced a secondary offering of 90 million shares. The deal range was between $29.85 to $29.95 per share.

TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio says, "This was a brilliant transaction for Blackstone, but I would prefer people buy Marriott International (MAR) or La Quinta (LQ)."

"On Friday I spoke to the CEO of La Quinta, Wayne Goldberg, on CNBC's Mad Money, and that company is smoking," Cramer added.

The underwriters will have a 30-day option to purchase 13.5 million additional shares of common stock from the selling stockholders. 

Hilton Worldwide is not offering any shares of common stock in the offering, and will not receive any proceeds from the sale.

Deutsche Bank Securities (DB), Bank of America/Merrill Lynch (BAC) and Citigroup (C) are serving as joint book-running managers for the offering.

McLean, VA-based Hilton Worldwide is a hospitality company operating 4,080 hotels, resorts and timeshare properties, consisting of 671,926 rooms in 90 countries and territories.

Separately, TheStreet Ratings team rates HILTON WORLDWIDE HOLDINGS as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

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