Blackstone Group is aiming to control the restructuring of hotel owner Highland Hospitality after purchasing a key slice of Highland's debt from Wachovia, according to people familiar with the matter.

Blackstone's move comes as Highland, a real estate investment trust that owns 27 hotels, is struggling to restructure its $1.7bn (€1.2bn) debt load amid the worst downturn for the hotel industry in decades. The slice bought by Blackstone, with a face value of about $320m, is the most senior of Highland's mezzanine debt, giving Blackstone a significant say in how any restructuring unfolds, people familiar with the matter said.