Firm increases stakes in Hilton and Marriott

1Highfields Capital Management has bought a new stake in Hilton Worldwide Holdings and added to its position in Marriott International, Bloomberg reported.

The Boston-based firm purchased 21.4 million shares of Hilton for a stake valued at US$482 million at the end of the second quarter, according to a regulatory filing. The purchase made the global hospitality company its sixth-largest US public equity holding.

The firm also added about 2.4 million shares in Marriott, bringing its stake to US$612 million and making it the firm’s second-largest holding.

Highfields’ purchase of its stake in Hilton comes as executives foresee consolidation in the hotel industry.

Jon Gray, global head of real estate for Blackstone Group, the largest shareholder in Hilton, said in June that he expects the industry will continue to consolidate as operators try to create efficiencies and capture customers, Bloomberg reported.

Marriott is in the process of merging with Starwood Hotel & Resorts, which will make it the largest hotel operator. Hilton is also planning to spin off its real estate and timeshare business later this year.