• Hedgeye Investing Summit (A Special HedgeyeTV Webcast Event)

    The sharpest minds in investing discuss the most important market and economic developments and their investing implications.

Please join us for an in-depth look at the upcoming Hilton (HLT) IPO with a conference call today at 2:00pm EST.  HLT IPO will be the largest lodging IPO and the 3rd largest IPO of the year.

OVERVIEW OF THE CALL

  • HLT stock should trade well
    • NAV supports at least a $22/share valuation
    • High end of the offer range implies an EV/EBITDA ratio in line with the comp set
    • HLT is just one of many Blackstone portfolio companies that it will look to bring public over the next 12-24 months- including LaQuinta which is likely coming in January 2014
    • Blackstone will make a hefty profit on the IPO, so there is plenty of pie to pass around
    • Once the lock-up expires, Blackstone will be back to the secondary market with more stock - they will own ~80% of the company post IPO, so they have a lot riding on the stock trading well
    • Leveraged balance sheet but plenty of FCF generation will allow HLT to get to 3.0x-3.5x by the end of 2015 without counting on proceeds from asset sales

CALL DETAILS

  • Toll Free Number:
  • Direct Dial Number:
  • Conference Code: 572198#
  • Materials: CLICK HERE