Blackstone Deal Done, Hilton Names Host's Nassetta CEO
Despite an earlier announcement of plans to promote from within, Hilton Hotels Corp. has named Christopher Nassetta, CEO of Bethesda, Md.-based real estate investment trust Host Hotels & Resorts, as its new CEO. Nassetta will take the reins of the international hotel giant following his departure from Host at the end of this month.
Hilton announced the appointment less than a week after it completed its merger with The Blackstone Group. The $26 billion deal, the largest in hotel industry history, rolls Hilton's 2,896 properties worldwide into Blackstone's hotel portfolio.
"We are confident that Chris will be a superb addition to the already strong Hilton team," Blackstone senior managing director Jonathan Gray said in a statement. "Given his background overseeing the world's largest hotel ownership company, Chris understands the needs of hotel owners and is uniquely qualified to lead Hilton."
Nassetta succeeds Hilton CEO Stephen Bollenbach, who retired upon completion of the Blackstone deal. He is one of only four men to hold the title of Hilton CEO since the company's founding in 1919, the others being founder Conrad Hilton and his son, Barron Hilton.
In May, before the Blackstone merger had been announced, Hilton reported intentions to promote president and COO Matthew Hart to CEO upon Bollenbach's departure. Hart now is stepping down from those positions but will serve on Hilton's board of directors, according to the company.
As CEO, Nassetta will carry out Blackstone's plan of continued growth of the Hilton brands. Blackstone particularly plans to focus on international growth, expanding on opportunities created by Hilton's merger with Hilton International last year.
Blackstone also plans to move several of its luxury resorts and hotels to the Hilton platform. Alongside Nassetta's appointment, Blackstone also reiterated that it does not intend to sell any of Hilton's current brands or major assets.
Host, meanwhile, announced that it has appointed its CFO, Ed Walker, to succeed Nassetta, who has been with Host for 12 years.
Harry Curtis, an analyst with JPMorgan's hotel and gaming segment, said in a research note that Nassetta's departure did not signify "any meaningful shift in either strategy or execution at Host."