Private equity firm Blackstone has categorically denied reports that it plans to break up and sell off pieces of the Hilton Hotels Corporation.

The Independent reported that Blackstone, which bought Hilton for US$26bn (£15.5bn) in 2007, was looking into a number of possibilities for the company, including breaking up the company on geographic lines, divesting of certain brands, debt-for-equity swaps or making sections of the company public.

The newspaper quoted a source who said: "These are very much early stage discussions, but clearly the US$21bn worth of debt raised to buy Hilton back in 2007 isn't going to be easily refinanced.”

“The costs on servicing the debt aren't onerous, but the world has changed a lot since this deal was done and preparations need to be made."

However, Blackstone has played down the reports, saying that the reports that brands would be sold off to rivals was “categorically untrue” and that a public listing of some parts of the company were one of many options being looked at.