La Quinta Holdings is reportedly looking to spin off its real estate into a real estate investment trust, while retaining its management and franchise businesses, according to a Reuters report.
The report stated that La Quinta believes proceeds from a sale of the real estate would justify the tax hit that it will incur as a result of the spin-off.
La Quinta must first file a Form 10 with the U.S. Securities and Exchange Commission to register the spin-off, and sources told Reuters that could happen in the second quarter of this year.
La Quinta has not publically commented on the report.