Suitors line up for US budget hotel chain La Quinta Inns & Suites
04 Oct 2013
Several suitors are planning to bid for Blackstone Group-owned US budget hotel chain La Quinta Inns & Suites, which may fetch the New York-based private equity firm around $4.5 billion.
Interested buyers who are looking at La Quinta include hospitality holding companies Choice Hotels International Inc and Hospitality Properties Trust, as well as private equity firm Apollo Global Management, Reuters yesterday reported, citing three sources with knowledge of the matter.
First-round bids are due next week, the report said.
In August, Blackstone had hired JPMorgan Chase & Co and Morgan Stanley to explore an IPO and even an outright sale of La Quinta.
Blackstone, which acquired La Quinta n 2006 for $3.4 billion, has valued the budget hotel chain at around $4.5 billion, including debt.
The PE firm is also looking to list Hilton Worldwide, which it had acquired in 2007 in a $26 billion deal, and hotel chain Extended Stay America, which has an equity value of between $3 billion and $4 billion.
Quinta is one of the largest limited-service hotels in the US with more than 550 hotels in the US, Canada and Mexico having over 80,000 rooms.
The Dallas, Texas-based budget hotel chain competes with AmericInn Hotels, Comfort Inn, Baymont Inn & Suites, Fairfield Inn, Country Inns & Suites, and Hampton Inn.
