The Blackstone Group's real estate penchant has resurfaced. No sooner had the EOP deal passed from the headlines than a new one cropped up: the $26 billion deal for Hilton Hotels. Only now the market conditions are a lot different. Breakingviews.com makes clear what the company is up against. It looks like it will need to come up with debt financing in the range of $19 billion. So you can add one more big deal to the list of litmus test deals that have emerged recently. There is a decent chance that it will run into some trouble issuing the bonds. We've noted that the market has already shown some signs of wariness. There's no need to panic, but you have to wonder. Of course, you can expect some property sales as well. We may see the fund put up more equity than usual or rely more on bridge financing.

For more:
- here's the article from Breakingviews.com