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Going lower ? Hope so I will add more
"The focus is on stressed, not distressed oil and gas companies in good areas," says Patrick Fleury, managing director at Blackstone's (NYSE:BX) GSO Capital Partners. The team there feels oil prices are set to renew their decline and wants to hold assets of high enough quality and low enough cost to pay off if the price forecast is correct.
unknown, sold my position, I might jump back in at a later time.
How much more could this one grow
IPO for BX owned PGI Speciality Materials
http://www.marketwatch.com/story/blackstones-pgi-specialty-materials-files-for-ipo-2015-02-10-7913235
thanks for the info!
I sold @ 37.25 figured there would be pull back looking for new entry soon
You're right. Looks like they kept a lot of shares in HLT after the IPO. Technically they do still own it.
They are majority owners according to this
http://www.sec.gov/Archives/edgar/data/1585689/000119312514396786/d785734d424b4.htm#toc785734_12
558,132,363 shares/ or 56.7 % (( on Page 30))
Also I thought you might find this interesting. It's about the deal...
Good luck and Best wishes!!
The Hilton Trade
Sep. 22, 2014 10:57 AM ET
http://seekingalpha.com/article/2512305-the-hilton-trade?page=2
Bill Cohan has a glowing account, in Businessweek, of how Blackstone (NYSE:BX) made $12 billion or so on its acquisition of Hilton Hotels (NYSE:HLT). On its face the outcome is indeed surprising: when the deal was originally announced, in July 2007, I wrote about the "crazy leverage" involved, and said that the banks and other lenders in the deal weren't being remotely well compensated for the risk they were taking.
In a sense, I was right. The financial crisis sparked a huge restructuring of the lenders' debts, on which they took haircuts of more than 50%. But somehow Blackstone retained control of the company?-?which means that instead of seeing Hilton handed over to its creditors, they ended up making billions of dollars when interest rates plunged and the stock market started hitting new highs.
As Cohan says, a lot of similar leveraged buyouts ended very badly. And yes, a lot of the credit for the success of this one can be attributed to the managerial prowess of Hilton CEO Christopher Nassetta. But there are broader lessons to be learned from what happened here, too.
The main lesson is that private equity is a bit like real estate: it's a business which requires deep pockets. How is it that Blackstone managed to retain control of Hilton through its 2009-10 restructuring, when standard practice in such situations is for the equity to be pretty much wiped out? The answer is that Blackstone, even at the height of the financial crisis, had the wherewithal to find more than $800 million of new money, which it used not to invest in Hilton directly, but rather to buy back debt from bond investors at a deep discount. Blackstone was not only highly leveraged; it was also highly liquid. And the combination of the two was a winner.
In many ways that is the most impressive achievement here: there were very, very few private institutions at the time with that kind of cash. If Blackstone had not been willing and able to find the money to do this deal, there's a very good chance that Hilton would have gone bust, and been taken over by its lenders. Instead, the lenders took a haircut, and Blackstone effectively managed to buy $1.8 billion in enterprise value (roughly speaking, the value of the equity in a company plus the face value of the debt) at a discount of 54%. Blackstone claimed that its own equity had fallen in value by much more than that? - ?but because it was in Hilton for the long term, it had the patience to be able to wait until stock markets rebounded.
Which is the other important part of this deal: Blackstone got very lucky with respect to the stock market. It's very hard to find any leveraged company which hasn't soared in value between 2009 and today, and it's worth remembering that Blackstone's $12 billion gain on its Hilton stake is on paper only. Unless and until that stock is sold, it can go down in value just as easily as it can go up. In general, if you just bought the most leveraged companies you could find at the bottom of the stock market plunge in 2009, you would have made an absolute fortune in the past five years. Since Blackstone is in the business of running highly leveraged companies, you should expect anything it owned in 2009 to have done very well indeed.
Still, it's worth recalling Matt Levine's explanation of the big picture. In the years between Blackstone buying Hilton and Blackstone taking it public, the enterprise value of Hilton grew by about $7 billion. Some of that is good management; some of that is just the fact that stock-market multiples are higher now than they were back then. Hilton's lenders, by contrast, lost about $1 billion on the deal, because they exited at the worst possible moment. Which means that Hilton's owners, Blackstone, made substantially more than $7 billion. At the IPO they were up about $8.5 billion; today, they're up about $12 billion.
Which says to me that buying junk bonds from Blackstone is something of a sucker's game. As I said at the time, the lenders were taking equity-like risk, but only Blackstone was leaving itself open to equity-like returns:
“
Lenders, in this situation, are essentially taking equity-like risk... and aren't being well compensated for it. $2 billion of debt service on $25 billion of debt works out at 8%, which might be high by debt-market standards but is a pittance compared to the returns that Blackstone's limited partners are expecting. And the amount of debt that Hilton is taking on - $25 billion - dwarfs Hilton's book value of about $3.9 billion. In other words, don't expect much recovery value in the event of a credit crunch.
Blackstone ended up investing $6.5 billion of its own (or rather, of its LPs') money into Hilton, and is sitting on a $12 billion profit after 7 years. That's an internal rate of return of about 16% per year, albeit a return which has yet to be realized.
While that's an impressive achievement, and worth writing up in Businessweek, it's worth putting it in perspective. Hilton, after all, was just one of Blackstone's portfolio companies, and the really important number, as far as Blackstone's investors are concerned, is how well their funds as a whole have performed, after fees. It's great that one company saw healthy returns? - but how did all the other companies do? How do Blackstone's returns compare to those of the stock market as a whole, which is much more liquid and which doesn't charge 2-and-20?
Cohan doesn't say: indeed, he can't say, because the funds in question haven't been wound down yet. But, as this deal shows, you take a lot of risk when you invest with Blackstone. In order to get its impressive return, Blackstone needed not only to be able to come up with $816 million at the height of the financial crisis, but also needed a huge tailwind from the Federal Reserve. Those things can't be counted on, in future. So while Blackstone surely handled its Hilton investment with great skill, I'd put at least half of its return down to dumb luck.
Indeed, it's only because there was a financial crisis that Blackstone managed to double down on its investment in the first place, and that the Fed started pumping trillions of dollars into the American stock and bond markets. Absent the financial crisis, in other words, Blackstone's overall return would have been much lower. Which is both a bit ironic, and also, maybe, a reason to believe that Blackstone won't be replicating this result any time soon.
BX acquires 400,000 sq germany. http://www.blackstone.com/news-views/press-releases/details/blackstone-acquires-400-000-sqm-of-logistics-assets-in-germany
BX still owns Hilton BrandsRoom for Expansion
Since acquiring Hilton Hotels in 2007, we have invested in the growth of the leading global hospitality chain. Hilton’s worldwide system has grown by nearly 30% since the acquisition, and now totals 633,000 rooms. The system added 20,000 rooms in 2011 alone, with non-U.S. rooms accounting for over half that total. The company should continue to exhibit strong growth, with its pipeline at 149,000 rooms, an all-time high.
I don't know if they own a part of them or not, anymore.
They did own it once upon a time.
BX does well at restructuring ailing companies and sending them off again after turning them around.
Their home page would show all of their business and property's. Past and present, I believe...or at least it used to?
http://www.blackstone.com/
I know HLT was sent off into the real world and had it's own IPO because I actually owned that for a wee bit.
Now - I don't own BX or HLT. So I don't keep up with either.
Sorry. I wish I could have been more help! But that's all I got. :)
didn't know that, doesn't bx own them?
You know Hilton trades on it's own, right?
HLT
BX could triple the street reports http://www.thestreet.mobi/story/13034956/1/kkr-bx-and-stt-pushing-financial-services-industry-downward.html?puc=TSMKTWATCH&cm_ven=TSMKTWATCH
I love staying at Hilton brands!
I have a credit card that got me 50,000 bonus points!
I bought some stock to get some juicy dividends.
good to stay & play ( the stock ) all the way around!
go BX!
Added here today divy time coming up !
Couldn't help myself had to start adding shares @ 29.00 and lower
Does any one feel good about hitting that 52w hight of today or just to common these days ?
To bad I had to liquidate today would have held for longer
This stock will strongly outperform this year plus I get paid Holding them with a dividend of roughly 7.5 %
Very exciting Blackstone Group!!! lovely price rising.. accumilate and hold!!!!!!
The Blackstone Group L.P. : Blackstone Mortgage Trust Announces Public Offering Of Class A Common Stock01/08/2014 | 04:02pm US/EasternRecommend: 0 NEW YORK, Jan. 8,
2014 /PRNewswire/ -- Blackstone Mortgage Trust, Inc. (NYSE: BXMT) (the "Company") today announced it has commenced an underwritten public offering of 8,500,000 shares of its class A common stock. The underwriters have been granted a 30-day option by the Company to purchase up to an additional 1,275,000 shares.
The Company intends to use the net proceeds from the offering to originate and purchase additional commercial mortgage loans and other target assets and investments consistent with its investment strategies and investment guidelines, and for working capital and other general corporate purposes.
BofA Merrill Lynch, Citigroup, J.P. Morgan and Wells Fargo Securities are acting as joint book-running managers for the offering.
The offering will be made pursuant to the Company's currently effective shelf registration statement filed with the Securities and Exchange Commission.
The offering of these securities may be made only by means of a prospectus and a related prospectus supplement, copies of which may be obtained by contacting: BofA Merrill Lynch, 222 Broadway, New York, NY 10038, Attn: Prospectus Department or email dg.prospectus_requests@baml.com; Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, tel: 800-831-9146; J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, tel: 1-866-803-9204; or Wells Fargo Securities, Attention: Equity Syndicate Department, 375 Park Avenue, New York, New York, 10152, at (800) 326-5897 or email a request to cmclientsupport@wellsfargo.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Blackstone Mortgage Trust
Blackstone Mortgage Trust, Inc. (NYSE: BXMT) is a real estate finance company that primarily originates and purchases senior mortgage loans collateralized by properties in the United States and Europe. The company is externally managed by BXMT Advisors L.L.C., a subsidiary of The Blackstone Group L.P., or Blackstone, and is a real estate investment trust traded on the NYSE under the symbol "BXMT." Blackstone Mortgage Trust, Inc. is headquartered in New York City.
About Blackstone
Blackstone (NYSE: BX) is one of the world's leading investment and advisory firms. Blackstone seeks to create positive economic impact and long-term value for its investors, the companies it invests in, the companies it advises and the broader global economy. Blackstone does this through the commitment of its extraordinary people and flexible capital. Blackstone's asset management businesses include investment vehicles focused on private equity, real estate, hedge fund solutions, non-investment grade credit, secondary funds, and multi asset class exposures falling outside of other funds' mandates. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services.
Forward-looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to future financial results and business prospects. The forward-looking statements contained in this press release are subject to certain risks and uncertainties including, but not limited to, the risks indicated from time to time in Blackstone Mortgage Trust Inc.'s Form S-3 (File No. 333-190191), as amended, and the documents incorporated in the registration statement, including Blackstone Mortgage Trust, Inc.'s Form 10-K for the fiscal year ended December 31, 2012 and Form 10-Q for the fiscal quarters ended March 31, 2013, June 30, 2013 and September 30, 2013. Blackstone Mortgage Trust, Inc. assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events or circumstances.
SOURCE Blackstone Mortgage Trust, Inc.
http://www.4-traders.com/THE-BLACKSTONE-GROUP-LP-51975/news/The-Blackstone-Group-LP--Blackstone-Mortgage-Trust-Announces-Public-Offering-Of-Class-A-Common-St-17768738/
I agree.
All year long I waited for the end of the year to sell it. This was going to be my final year owning BX.
A LT shareholder who wanted to dump it just because I am tired of what BX does to my accountant ;)
(preliminary tax info in April, with the updated/final version in June; K-1's)
Now the stock is finally doing what I had hoped, and the company has tremendous long term potential.
BX Weathered the financial storm, took advantage of it, and positioned themselves beautifully.
So yes - I agree...
Hilton Seeks as Much as $2.4 Billion in Biggest Hotel IPO
http://www.bloomberg.com/news/2013-12-02/hilton-seeks-as-much-as-2-4-billion-in-biggest-ever-hotel-ipo.html?cmpid=yhoo
By Hui-yong Yu - Dec 2, 2013 7:41 AM MT .
Hilton Worldwide Holdings Inc. (HLT), the lodging chain bought by Blackstone Group LP (BX) in 2007, plans to raise as much as $2.4 billion in its U.S. initial public offering, the most ever for a hotel company.
The McLean, Virginia-based hotel operator and existing shareholders plan to sell 112.8 million shares for $18 to $21 each, according to a regulatory filing today. Hilton, the world’s largest hotel company with more than 4,000 properties, plans to sell 64.1 million of the total, using its proceeds to help repay $1.25 billion of debt. New York-based Blackstone isn’t selling any of its stock.
Blackstone is taking Hilton public after the chain refinanced about $13 billion of debt, capitalizing on U.S. stocks near records and a rebound in hotel occupancies and rates. In the past six years, Hilton Chief Executive Officer Christopher Nassetta increased the number of open rooms by 34 percent, most of them overseas and in franchised and managed hotels, which require almost no capital investment. He also expanded the development pipeline and frequent-guest program.
“The things he talked about doing, he’s delivered on,” said Drew Babin, senior lodging analyst at CBRE Clarion Securities in Radnor, Pennsylvania. “Hilton has been doing these massive things under the radar.”
Largest IPO
Nassetta and other Hilton executives will begin meeting potential investors in the IPO starting tomorrow, according to a schedule obtained by Bloomberg News. They’ll travel to cities including New York, Boston, Chicago and Dallas, with the price of the IPO scheduled to be set on Dec. 12 after the close of trading, the schedule shows.
At the midpoint of the IPO range, the company will have a market value of about $19.2 billion, making it larger than Starwood Hotels & Resorts Worldwide Inc. (HOT), Marriott International Inc. (MAR), and Hyatt Hotels Corp. (H)
Hilton’s IPO could raise as much as $2.7 billion if extra shares are sold to meet demand. That would make it the second-largest U.S. IPO this year, after Plains GP Holdings LP, an affiliate of an oil and gas pipeline company. It would surpass Hyatt’s $1.09 billion sale in November 2009 as the biggest lodging IPO, based on data compiled by Bloomberg.
Overseas growth potential and hotel-management expertise help make Hilton attractive to investors, said Arthur Adler, head of the Americas division of brokerage Jones Lang LaSalle Inc.’s hotels group.
“They’re growing in Asia, South America and a lot of these emerging markets,” he said. “The U.S. is a very mature market. Offshore is still kind of nascent.”
Blackstone’s Profit
Hilton still has 78 percent of its rooms in the U.S., where industrywide revenue per available room, a measure of average daily room rates and occupancies, has been increasing since 2010. U.S. revpar is forecast to grow 5.7 percent this year and 6 percent next year, according to STR, a Hendersonville, Tennessee-based lodging data provider.
Blackstone bought Hilton for $26 billion in October 2007, at the tail-end of the biggest buyout boom in history. The buyout firm and its investors put in about $6.4 billion of equity in the buyout and subsequent debt restructuring, making it Blackstone’s biggest investment to date, according to a person with knowledge of the matter. The deal looked like a money loser, when the credit crisis and recession reduced travel, before the market rebounded.
After the IPO, Blackstone will hold about 750.6 million Hilton shares, a stake of 76.2 percent that is valued at $14.6 billion -- or about 2.3 times the equity investment -- at the midpoint of the price range, according to the filing.
Texas Roots
A company whose investments are managed by GIC Pte, Singapore’s sovereign-wealth fund, will own 49.5 million shares, or 5 percent of Hilton, and Nassetta, Hilton’s president and CEO, will hold about 7.6 million shares, valued at $148.2 million.
Hilton -- whose 10 brands include Waldorf Astoria, DoubleTree, Homewood Suites and Hampton Inn -- dates to 1919, when founder Conrad Hilton bought his first hotel in Cisco, Texas. The company reported 2012 net income of $352 million, up 39 percent from a year earlier, on revenue of $9.3 billion.
The shares will be listed on the New York Stock Exchange under the symbol HLT. Deutsche Bank AG, Goldman Sachs Group Inc., Bank of America Corp. and Morgan Stanley are managing the offering.
This year has been the busiest for real estate IPOs since 2004, Bloomberg data show. The biggest real estate IPO this year was Empire State Realty Trust Inc., owner of New York’s Empire State Building, which raised $1.07 billion in October.
The Blackstone Group LP on Rising Distributions, Solid Growth
Dwight Einhorn, Benzinga Staff Writer
September 16, 2013 9:09 AM
In a report published Monday, Bank of America analyst Michael Carrier upgraded the rating on The Blackstone Group LP (NYSE: BX [FREE Stock Trend Analysis]) from Neutral to Buy, and raised the price target from $25.00 to $28.00.
In the report, Bank of America noted, “We are upgrading BX to Buy from Neutral given rising distributions and attractive asset growth at a time when some in the sector are likely to begin facing some cyclicality. We are increasing our 2014 DE (distributable earnings) estimate by over 10% given stronger realizations and asset growth, and we are increasing our PO to $28. We view BX as one of the most attractive alternative asset managers given the powerful combination of healthy distributions and solid asset growth. We expect distributions at BX to ramp up over the next 0-18 months, first driven by real estate, then potentially by private equity. Given the sizeable amount of seasoned capital, mostly strong current performance, a sizeable accrued incentive base, and a favorable exit backdrop, we expect realizations and distributions to ramp up and likely beat expectations over the next 1-2 years.”
Read more: http://www.benzinga.com/analyst-ratings/analyst-color/13/09/3914970/update-bank-of-america-upgrades-the-blackstone-group-lp-#ixzz2fGUwgENS
Blackstone Seeks IPOs as Hotel Sales Climb: Real Estate
By Hui-yong Yu - Sep 17, 2013 8:03 AM MT .
http://www.bloomberg.com/news/2013-09-17/blackstone-seeks-ipos-as-sales-of-hotels-accelerate.html?cmpid=yhoo
Private-equity firms are accelerating sales of hotels to take advantage of a recovery in U.S. lodging demand and stock prices close to record highs.
Hotel-property transactions jumped 47 percent to $14.1 billion this year through July in the U.S., according to Real Capital Analytics Inc. Sales by institutional investors, including private-equity funds, more than doubled in the first half, as the growth of revenue per available room slowed. Blackstone Group LP (BX), the largest buyout firm, has decided now’s the time to sell shares as it prepares initial public offerings of Hilton Worldwide Holdings Inc. and Extended Stay America Inc.
A recovery in travel after the last recession has led to hotel real estate values almost doubling since 2009’s low, based on an index from research firm Green Street Advisors Inc. Companies including Starwood Hotels & Resorts Worldwide Inc. (HOT) and Marriott International Inc. (MAR) have climbed to their highest prices since 2007, when Blackstone bought Hilton Hotels Corp. for $26 billion at the tail end of the biggest buyout boom in history. With some firms cashing in on their investments, further property-price gains may be muted.
“Fundamentals are still pretty strong but, in general, revpar is increasing at a declining rate,” said Keith Gelb, a managing member of Rockpoint Group LLC, a Boston-based private-equity real estate firm that has been selling hotel assets. “The capital markets have been quite strong and we’ve executed our business plans sooner than anticipated.”
Outpacing Purchases
Institutional investors, after snapping up hotels at distressed prices at the real estate market’s bottom in 2009 and 2010, have made sales totaling $3.44 billion in the first half, compared with $1.68 billion a year earlier, according to New York-based Real Capital, a property-research firm. Purchases rose at a slower pace, climbing 21 percent to $3.43 billion.
Growth in revpar, the lodging industry’s measure of average daily room rates and occupancies, is slowing after three years of gains. It rose 5.6 percent in the first half, compared with 6.8 percent growth for all of last year and 8.2 percent in 2011, according to STR, a Hendersonville, Tennessee-based data provider. The firm forecasts revpar will increase 5.7 percent this year and 6 percent in 2014.
“We still have two to three years of pretty good growth and below-average supply increases,” said Scott D. Smith, senior vice president in the Atlanta office of PKF Consulting USA LLC, a San Francisco-based research and advisory firm for the hotel industry. “But if demand declines, then hoteliers will start to lose occupancy and discount their room rates, and obviously that will have a great impact on net operating income.”
Cap Rates
Some investors are attracted to hotels because they offer investment yields, as measured by capitalization rates, of about 7.8 percent, or about 2 percentage points higher than the average of the other major commercial-property types -- office, industrial, retail and apartments, said Lukas Hartwich, a lodging analyst at Green Street in Newport Beach, California. Cap rates are net operating income divided by purchase price.
If interest rates rise further, that would boost borrowing costs and may reduce the prices that buyers who rely on debt financing are willing to pay for hotel assets, Hartwich said.
“Some buyers are looking for a certain return on equity so if the cost of debt goes up, that hurts their return,” he said.
Rockpoint Deals
Rockpoint has sold or recapitalized more than $1.5 billion of hotel properties in the past 12 months, including New York’s Milford Plaza, Boston’s Park Plaza Hotel, Hawaii’s Waikiki Courtyard and Bacara Resort & Spa in Santa Barbara, California.
“We’ve monetized a significant percentage of our hotel assets in the past year,” Gelb said.
Private-equity firms continue to make new hotel bets as they sell or start to exit older investments. Blackstone bought about $4 billion of hotel assets during the past year, including the Motel 6 budget chain and a leasehold in a Hyatt resort in Waikiki.
Hilton, the world’s largest hotel chain, filed to raise as much as $1.25 billion when it goes public, a placeholder amount that may change. New York-based Blackstone also filed for an IPO of Extended Stay, a mid-priced lodging chain, in July, and is exploring a stock sale of La Quinta Inns & Suites. The firm is seeking to take advantage of surging stocks while holding on to a stake in Hilton in a bet travel will remain robust.
Hyatt Shares
The last large chain to go public, Hyatt Hotels Corp. (H), has risen 82 percent since its November 2009 share sale. Marriott, the largest publicly traded U.S. hotel chain, is up 16 percent this year, while Starwood has gained 19 percent. The Bloomberg Hotel Real Estate Investment Trust Index reached a five-year high in May before slipping 4 percent through yesterday on the prospect that rising interest rates will limit property demand.
Planned IPOs may curb gains in lodging stocks in the next few months, said James Corl, a managing director overseeing distressed real estate investments at New York-based Siguler Guff & Co. and former head of real estate securities fund management at Cohen & Steers Inc.
“New supply is always going to compete with the existing companies for the incremental dollar,” Corl said. “One of the reasons the REIT market’s been off the last couple of months is there’s a pretty significant backlog of new public companies” preparing to sell stock.
A successful IPO of Hilton would mark a major turnaround for Blackstone’s biggest investment ever and a victory for the firm’s real estate chief, Jonathan Gray. The firm’s real estate and private equity funds put $5.7 billion of equity in the October 2007 buyout, betting on the company’s international growth potential. The deal looked like a money loser when the credit crisis severely curtailed travel.
Debt Restructure
Instead of walking away, Blackstone invested $800 million of equity to buy back some debt, convert other loans and push out maturities in a 2010 debt restructuring that cut Hilton’s borrowings by $4 billion.
Hilton President and Chief Executive Officer Christopher Nassetta has moved the company headquarters to the Washington suburb of McLean, Virginia, from Beverly Hills, California, and expanded the hotel count by more than 30 percent to over 4,000 properties. The majority of that growth is overseas and in franchised and managed hotels, which require almost no capital investment by the company.
Hilton, with brands including Hampton Inns and Embassy Suites, had a 3 percent increase in revenue in the first half, to $4.64 billion from $4.52 billion a year earlier, following 5.6 percent growth last year, according to the IPO filing. The company has more than $13.5 billion of debt that it expects to refinance before the end of the year.
Waldorf Astoria
The majority of Hilton’s earnings before interest, taxes, depreciation and amortization comes from the 3,843 hotels, resorts and timeshare properties it franchises or manages. The company also owns or leases stakes in 157 hotels with about 62,500 rooms, including icons such as the Waldorf Astoria in New York, the Hilton Hawaiian Village and the London Hilton on Park Lane, according to its IPO filing.
Hilton could be valued at about $30 billion, based on multiples of earnings before interest, taxes, depreciation and amortization at comparable companies such as Stamford, Connecticut-based Starwood and Bethesda, Maryland-based Marriott, a person with knowledge of Blackstone’s plans has said.
When Blackstone agreed in July 2007 to pay $47.50 a share for Hilton, the price was 40 percent more than the stock’s closing price the day before the acquisition was announced. The deal ignited a round of high-fives in Corl’s office at Cohen & Steers, a Hilton shareholder, at the time.
Potential ‘Heroes’
“The valuation they paid was extraordinary,” Corl said. “If they’re able to get out of that with any sort of decent returns, they are indeed heroes.”
Asset sales by investors reflect strength in the hotel market, said Smith of PKF.
“In a nine-inning game, we’re probably in the sixth inning,” said Greg Duff, chairman of the hospitality, travel and tourism practice of Seattle-based law firm Garvey Schubert Barer. “On many levels and in many different markets in terms of occupancy, we have met or exceeded where we were pre-recession.”
Management Presentation of Earnings Call
Coming up here before full transcript gets published
http://www.earningsimpact.com/index.aspx
UPDATE 2-Blackstone's second-quarter earnings more than triple
http://www.reuters.com/article/2013/07/18/blackstone-earnings-idUSL1N0FO09P20130718?feedType=RSS&feedName=industrialsSector&rpc=43
Thu Jul 18, 2013 8:37am EDT
* Total assets under management up 21 pct to $230 bln
* Q2 ENI 62 cents/share vs Street view 49 cents
* Q2 distributable earnings up 73 pct to $338 mln
By Greg Roumeliotis
July 18 (Reuters) - Blackstone Group LP, the largest alternative asset manager, said on Thursday that second-quarter earnings more than tripled as the value of its funds rose and it cashed out on parts of its portfolio, including SeaWorld.
Despite market jitters in the second half of the quarter over the Federal Reserve ending its bond buying program, Blackstone's private equity and real estate funds appreciated more than 5 percent, while its hedge and credit funds posted strong gains.
Blackstone, whose investments include The Weather Channel, Hilton Worldwide and Pinnacle Foods, reported economic net income (ENI) of $703 million, up from $212 million a year ago. ENI takes into account changes in the market value of its funds.
The result was better than most analysts expected. ENI was 62 cents per share versus the average analyst projection of 49 cents, according to a Thomson Reuters poll.
"Robust realizations allowed us to generate significant returns for our fund investors and higher distributable earnings for our unitholders," Blackstone Chief Executive Stephen Schwarzman said in a statement.
Distributable earnings, which show cash available to pay dividends, rose 73 percent to $338 million as Blackstone took advantage of strong capital markets to exit more of its investments.
At the end of the quarter, SeaWorld Entertainment Inc , which completed a $702 million initial public offering in April, was valued at three times its investment. Also, Blackstone sold shares in PBF Energy Inc, Travelport Ltd and TV ratings company Nielsen Holdings NV at an average valuation of 2.6 times its investment.
In real estate, Blackstone Mortgage Trust Inc raised $660 million through a secondary offering. Overall, Blackstone realized $2.1 billion in real estate asset sales and $1.6 billion in private equity asset sales in the quarter.
Assets under management totaled $230 billion at the end of June, up 21 percent year on year. Fee-earning assets under management rose 12 percent to $176 billion.
Blackstone completed the first fundraising period of its inaugural Asian real estate fund in June, with $1.5 billion in total commitments from investors, while its latest real estate debt strategies drawdown fund has so far raised $3.5 billion.
Blackstone's second rescue lending fund raised $5 billion at the end of the quarter, while its tactical opportunities investment vehicles amassed $3 billion.
Blackstone declared a second-quarter distribution of 23 cents per common unit.
BX: Q2 EPS 62c vs 19c Beats 49c Est
Thursday , July 18, 2013 07:22ET
QUARTER RESULTS
Blackstone Group LP (BX) reported Q2 results ended June 2013. Q2 Revenues were $1,432.85M; +122.38% vs yr-ago; BEATING revenue consensus by +27.26%. Q2 EPS was 62c; +226.32% vs yr-ago; BEATING earnings consensus by +26.53%.
Q2 RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $1,432.85M $644.33M +122.38% $1,125.90M +27.26%
---------- ------------ ------------ ---------- ------------ ----------
EPS: 62c 19c +226.32% 49c +26.53%
---------- ------------ ------------ ---------- ------------ ----------
Second quarter numbers should be out soon.
I believe we go up from here the next few days on anticipation of another good report.
OK...I get Stansberry Research and here was a piece of one of the articles today. I think this company will be fine. But like a fine wine it has to age. I'm holdin.
Also doing well: Real estate markets targeted by billions of dollars from Wall Street.
The New York Times reports how giant investors, like private-equity firm Blackstone Group, are scouring America in search of cheap housing. With billions of dollars to manage and few assets offering safe yields (bonds certainly are not), Wall Street firms are buying huge numbers of homes and renting them out. The Times reports:
Blackstone, which helped define a period of Wall Street hyperwealth, has bought some 26,000 homes in nine states. Colony Capital, a Los Angeles-based investment firm, is spending $250 million each month and already owns 10,000 properties. With little fanfare, these and other financial companies have become significant landlords on Main Street. Most of the firms are renting out the homes, with the possibility of unloading them at a profit when prices rise far enough.
Regular readers are familiar with this trend. Steve Sjuggerud has been bullish on housing for nearly three years. He's written dozens of pieces urging readers to buy cheap real estate. And Blackstone has been one of his top recommendations for the past six months. Blackstone is a huge asset manager that has become one of the country's largest home buyers.
Large home buyers (like Blackstone) and low interest rates are major reasons why U.S. home prices increased 10% from March 2012 to March 2013. Steve expects more price increases… and more gains for Blackstone shareholders. The stock is up 61% since November for True Wealth readers. Despite the big share price gain, the stock yields more than 5%. Income-seeking investors should drive shares much higher.
I know. I'm not selling yet.
Looking for a bounce by week's end
Hope this is consolidation nearly 2.00 per share in a couple of days. It was on a pretty nice run. Just wonder what's going on under the hood.
Nothing. Just the pack mentality.
Should be a great buying opportunity.
I picked up another 2500 shares.
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Blackstone is one of the world's leading investment and advisory firms. We seek to create positive economic impact and long-term value
for our investors, the companies we invest in, the companies we advise and the broader global economy. We do this through the commitment
of our extraordinary people and flexible capital. Our alternative asset management businesses include the management of private equity funds,
real estate funds, hedge fund solutions, credit oriented funds and publicly-traded closed-end mutual funds. The Blackstone Group also provides
various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement service.
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