US private equity firm Blackstone Group agreed on Tuesday to buy Hilton Hotels Corp for about $20 billion plus debt, the richest in a series of recent private equity offers for hotel companies.

Under terms of deal, Blackstone will pay $47.50 per share in cash, a 32 per cent premium to Tuesday's closing price, for one of the most prominent global hotel brand names.

Ahead of the post-close announcement, shares of Hilton had risen 6.4 per cent to close at $36.05 on the New York Stock Exchange. Blackstone, which raised $4.1 billion in an initial public offering late last month, said it intends to invest in the Hilton properties and brands globally to grow the business.

The hotel industry is enjoying a multi-year boom as robust demand has allowed hoteliers to steadily raise rates. The upbeat market environment has made lodging assets hot commodities.