Blackstone Reportedly Poised to Take La Quinta Public
Tuesday November 26th, 2013 - 7:04PM W
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DALLAS—Blackstone Group LP is reportedly eyeing an IPO for La Quinta Inns & Suites rather than a sale of the hotel chain, according to a Bloomberg report.
The report cites a source familiar with the process and noted Blackstone believes La Quinta can attract a higher valuation in the public markets. Meanwhile, Reuters reported the Blackstone was seeking as much as $4.5 billion for the La Quinta chain in an auction that attracted interest from hospitality holding companies such as Choice Hotels International as well as private equity firms.
Blackstone took La Quinta private in 2006 in a $3.4 billion deal and spent millions of dollars to revitalize the brand. Blackstone also owns Hilton Worldwide, which recently filed plan to $1.25 billion in an IPO, as well as Extended Stay America.
La Quinta's portfolio includes more than 800 owned and franchised hotels in the U.S., Canada, and Mexico under the La Quinta Inns and La Quinta Inns & Suites brands.
Tags: IPO • valuation • Blackstone • La Quinta Inns Suites • Hospitality •
When you hear all the lodging industry projections for the months and years to come, much of the robust growth is forecast to be the result of the expected influx of travelers from China. In what could only be seen as good news for the industry, that expectation moved a little closer to reality when President Obama signed a visa waiver extension for Chinese travelers earlier this month.