The Wall Street Journal reported late Tuesday morning that The Blackstone Group is preparing to sell or launch an IPO for its La Quinta hotel chain before the end of the year, having hired J.P. Morgan and Morgan Stanley to explore the options.
Blackstone reportedly values La Quinta at around US$4.5 billion, including debt after acquiring the brand in 2006 for US$2.3 billion—not including about US$800 million in debt.
La Quinta has since nearly doubled in size – mostly via franchise sales – to 805 hotels with more than 80,000 rooms. However, actual hotel properties still account for about two-thirds of the value of La Quinta.
Wall Street Journal sources added that earlier this year, Wyndham Hotels and Resorts and Hospitality Properties Trust formed a venture that approached Blackstone with an offer for La Quinta, but it was rejected.
A La Quinta move is also viewed as a precursor to a widely expected public offering filing for Blackstone’s biggest hotel holding, Hilton Worldwide, which analysts predict could happen before the end of the year.