Blackstone Buy Should Bulk Up Hilton

The Blackstone Group's $26 billion acquisition of Hilton Hotels Corp.—pending shareholder approval—likely won't have a dramatic immediate impact on negotiations for corporate room rates, but may foreshadow changes both to Hilton and the industry. Blackstone during the past several years aggressively has acquired, combined and divested hotel brands, but the equity firm said it has no intention to break up the chain.

"This transaction is about building the premier global hospitality business," Blackstone senior managing director Jonathan Gray said in a prepared statement. "We are committed to investing in the company and working with Hilton's outstanding owners and franchisees to continue to grow and enhance the business."

That would mean continued expansion of Hilton brands, particularly midprice properties in Europe, and potential synergies with other Blackstone brands like LXR Luxury Resorts & Hotels and La Quinta Inns & Suites. "Blackstone shares best practices and systems across brands, so this will make Hilton bigger and stronger," said Bjorn Hanson, principal of PricewaterhouseCoopers' hospitality and leisure group. "This isn't a case of concentration resulting in higher prices and other unfavorable trends."