Private equity giant Blackstone Group has acquired US-based Hilton Hotels Corp for $26 billion, inclusive of debt, making it one of the biggest PE deals in recent times. Under the terms of the agreement, Blackstone will acquire all the outstanding common stock of Hilton for $47.50 per share, which is at a premium of 32 per cent to the closing price of the Hilton stock on Tuesday on the New York Stock Exchange.

The group would combine cash from its real estate and corporate private equity funds to buy all outstanding Hilton shares. The transaction is expected to close in the fourth quarter of 2007.

In India, the company’s global arm Hilton International currently operates in eight locations across the country in association with East India Hotels and had also entered into a joint venture with real estate major DLF last year to develop 75 mid-sized hotels with an investment of $143 million over a period of seven years. Industry analysts believe the acquisition would not alter Hilton’s current growth plans, since ultimately, Blackstone too would want to cash in on the huge opportunities in India.

Blackstone said it intends to invest in the Hilton properties and brands globally to enhance and grow the business for the benefit of owners, franchisees and customers. Blackstone already has a significant portfolio of hotel and resort properties that includes more than 1 lakh hotel rooms in the US and Europe.