Asset manager Blackstone Group (BX) is set to check out of its investment in Spanish hotel group Hotel Investment Partners (HIP). According to reports in Spanish media, Blackstone, which acquired HIP from Banco Sabadell in 2017, is ready to sell its 65% equity stake in the €6.5 billion-valued firm.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
The sale could take one of two forms, it is understood: a sale, presumably to private equity, or an initial public offering (IPO) sometime later this year.
It is worth noting that Singapore’s sovereign wealth fund GIC holds the remaining 35% stake in HIP. It invested back in October 2023.
More on HIP’s Solid Presence
Barcelona-based HIP has 73 hotels, which are mostly four- or five-star rated, with over 22,000 rooms across Spain, Italy, Greece, and Portugal. Nearly three-quarters of the hotels are next to the beach and operated by well-known brands such as Marriott and Hyatt.
Blackstone has helped build the portfolio through acquisitions and has reportedly invested nearly €750 million in refurbishing the hotels over its eight years of ownership. This has included revamping the culinary experience for guests, rooftop bars with views over the Mediterranean Sea, and fitness suites.
Some of the hotels have been badged as “adults-only” for the increasing number of travelers keen on having their pool and bar time uninterrupted by “over-tired” children.
Why Could Blackstone be Looking to Sell?
Indeed, the sale fits Blackstone’s strategy of cashing in on assets where it sees high investor and consumer demand.
Tourism within and to Europe continues to recover strongly post-pandemic, boosting hospitality companies. According to recent figures from the European Travel Commission, the summer of 2024 saw a 6% increase in arrivals from overseas compared with 2019 figures. It was driven by pent-up demand, major events such as Euro 2024 in Germany, and Chinese tourists.
Is BX a Good Buy Right Now?
On TipRanks, BX has a Moderate Buy consensus based on three Buys, five Holds, and no Sells. The highest price target is $230. BX stock’s consensus price target is $190, reflecting only a marginal upside from the current levels.
