There are reports that Blackstone group is considering breaking up Hilton to realize value prior to debt repayment deadlines. Blackstone group purchased Hilton at the peak of the Leveraged Buyout Boom in 2007 for $26 billion. While a Blackstone spokesman is saying the reports are “categorically untrue” the RTT news site has a report, and so does the Wall Street Journal stating that Blackstone is considering breaking up parts of Hilton.
What this means to Hilton Point Junkies
While this doesn’t necessarily mean that the Hilton Honors program will breakup, you can never be too sure. Since most of the Hilton properties are franchised, a sell-off or IPO of assets may or may not have an impact on the Hilton Honors program. Are you willing to bet your points on it?
I would expect that Hilton will see a down tick in stays from their most valuable guests if those guests feel their points are at risk. I’ve already completed my Hilton stays for the year so I have no stays to cancel. If I had stays planned at Hilton Honors with the sole purpose of earning points I would be looking for further news to come out. If I’m right and there is a down-tick in frequent guest stays, I could see Hilton offering up a juicy additional Q3 promo (promo 1, promo 2) to entice frequent guests to continue to frequent their properties.