US-based private equity group Blackstone has announced plans to acquire Hilton Hotels for £13bn (US$26bn, 19bn euro).

The deal will see Blackstone pay £24 (US$47.50, 35 euro) for each Hilton share, a 40 per cent premium over the hotel chain’s closing price on Tuesday.

A spokesperson for Blackstone said the deal had been approved by Hilton's board, and will be completed by the end of 2007.

Jonathan Gray, Blackstone’s managing director, said: “We intend to invest in the Hilton properties and brands globally to enhance and grow the business for the benefit of owners, franchises and customers.

“This transaction is about building the premier global hospitality business.”

The deal means that Blackstone, which currently owns more than 100,000 hotel rooms in the US and Europe, will take over Hilton’s 2,800-strong hotel portfolio (480,000 rooms) which are include brands such as Waldorf-Astoria and Doubletree.

The news comes just weeks after Hilton announced deals to expand its portfolio by introducing 40 new hotels in the UK, 25 in Russia and 15 across the Caribbean region.

Blackstone's visitor attraction arm, Merlin Entertainments, recently completed a takeover of UK-based Tussauds Group, making Merlin the world's second largest operator of attractions and theme parks behind Disney.