Blackstone Reclaims Old Property

Blackstone Group LP, the world's largest buyout firm, has pounced on the chance to make big money off of the recession. Blackstone has $100 billion worth of assets under managment, including Hilton Worldwide, Inc. The firm has now seeks to buy back properties it sold at peak value for a bargain. Blackstone has already captured Extended Hotels, Inc. along with its 680 hotels, which it sold for $8 billion in 2007, for a price of $3.9 billion. Now the firm has its eyes set on 14 hotel properties owned by Columbia Sussex. These same 14 properties were sold to Columbia Sussex for $1.4 billion in 2006. Blackstone now looks to regain these properties at the extremely discounted rate of $300 million. Columbia Sussex had invested $170.6 million to turn 13 out of the 14 properties into top-tier brand hotels.

I believe Blackstone Group has done the right job as they pick up the ripe treats before them. The hotel industry is continuing its recovery as occupancy and revenue rates continue to increase. For Blackstone to hold these major properties at the discounted rates now could promise them a very optimistic return in the future as they have already worked with these properties and seen their growth potential. In buying out their old properties, Blackstone also eliminates the fear of dabbling in unknown waters. The odds are that they will eventually capitilaze on their expenditures and I think that they are very aware of that.


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