HNA Group secures potential bidders for NH Hotel Group stake

NH Collection Madrid Eurobuilding, Spain. Photo credit: NH Hotel Group

HNA Group has drawn the interest of potential bidders, including Elliott Management and Apollo Global Management, to take over its stake in Spanish hotel company NH Hotel Group. 

Other funds and hotel companies have expressed their interest in the stake as well. The Chinese conglomerate's shares of the hotel company are worth approximately $758 million. 

HNA began working with advisers, including JP Morgan Chase, in January 2018 to sell off the stake. The group aims to sell off its NH Hotel stake along with other assets to decrease its debt following the company's $40-billion buying spree. HNA recently sold a San Francisco office tower and its stakes in Hilton, Park Hotels & Resorts and Hilton Grand Vacations. The San Francisco tower sold to Northwood Investors in a $300-million deal.

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HNA invested in NH Hotel in 2013 when the hotel company started losing money. The group started to regain profit in 2015 after a debt refinancing. 

While HNA has been seeking bidders for its NH Hotel stake, Minor International took over a stake in the hotel group originally held by the company's second largest stakeholder Oceanwood Group in early May 2018. The Thai company later increased its stake to 10.5 percent. 

Potential bidder Elliott Management has been especially active in Europe's investment market recently as well. The firm acquired a stake in steel and engineering company Thyssenkrupp and another in Telecom Italia. Elliott plans to make improvements at both companies, including operations at Thyssenkrupp and corporate governance and asset sales at Telecom to reduce debt.

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