Hilton announced on Monday that it has entered into an agreement to repurchase 10 million shares from an HNA Tourism Group affiliate making a secondary offering of Hilton shares.
The HNA affiliate will make a secondary offering of 63,050,000 shares of Hilton stock, and underwriters will have a 30-day option to purchase an additional 9,450,000 shares.
Hilton also has the right to increase its number of shares repurchased, up to 16.5 million shares. Pricing for the offering has not been set and is conditional on the closing of the offering.
Hilton also said on Monday that it raised its Q1 profit forecast. It now expects first quarter adjusted earnings per share in a range of 52-54 cents per share, up from 43-47 cent per share previously. Hilton also raised its quarterly forecast for RevPAR to 3.5-4%, from 1-3%.