Tuesday November 26th, 2013 - 7:04PM
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.