Steve Schwarzman’s Blackstone Group LP is buying Hilton Hotels Corp. for $20 billion in cash.

The deal will give the Hilton family trust – headed by Paris Hilton’s 79-year-old grandfather William Barron Hilton – $989.7 million for its stake, which is the second largest in the company.

Blackstone will pay $47.50 a share for the nation’s second largest hotel chain, which is a whopping 32 percent premium over yesterday’s closing price.

Including the assumption of debt, the transaction value totals $26 billion.

Shares of the company, which owns, manages or franchises more than 2,800 hotels worldwide, jumped 6.4 percent, or $2.18, to $36.05 prior to the announcement.

Shares of Blackstone rose 45 cents to $29.72.