China's HNA Group is currently negotiating the sale of its 25-percent stake in Hilton Grand Vacations timeshare business. The group is reportedly expected to sell some or all of the shares in the open market.
HNA acquired a stake in Hilton Worldwide from Blackstone Group in 2016 for $6.5 million. This purchase allowed HNA to buy up similar stakes in Hilton's Park Hotels & Resorts and Hilton Grand Vacations divisions. According to the Wall Street Journal, HNA could earn close to $570 million on paper from selling its shares in Hilton Grand Vacations before leverage increases the total profit. The group's shares in Hilton Grand Vacations are now valued at more than $1 billion.
HNA announced this new sale just days after announcing its plans to sell some or all of its 25-percent stake in Park Hotels & Resorts worth $1.4 billion. The REIT owns 50 hospitality properties in the U.S., Europe and Latin America.
HNA aims to raise cash following its $50-billion buying spree over the past two years. The group is selling off some of its other assets around the world to reduce its approximately $100 billion of debt while restructuring many of its subsidiaries in mainland China and Hong Kong.
HNA Group announced on Mar. 12, 2018 that its Hainan Airlines will acquire HNA Hotel Group Holdings and an unnamed overseas hotel operator from its parent company HNA as part of the asset restructuring program. Hainan will also take over several aviation businesses, including domestic airlines West Air and Guilin Airlines, aircraft maintenance companies HNA Technic and SR Technics, and flight trainer Hainan Sky Plumage Flight Training.