La Quinta IPO raises $650M

National Report – Blackstone Group has taken its third hotel company public in less than a year. The latest, La Quinta Holdings, began trading on the New York Stock Exchange in early April. La Quinta sold 38.25 million shares for $17 each after offering 37.2 million shares for $18 to $21 a share. It earned a reported $650 million in the IPO, according to The Associated Press. In late March, Blackstone announced it was seeking as much as $781 million in the sale, with La Quinta currently holding an estimated value of $2.1 billion.

Blackstone acquired La Quinta in January 2006 for approximately $3 billion. The firm initially expected to sell the company, and only recently opted for an initial public offering. La Quinta floated roughly 30 percent of its shares in the IPO, with Blackstone expected to retain 66.7 percent of the common stock.

JPMorgan Chase & Co. and Morgan Stanley managed the offering. La Quinta joins Extended Stay America and Hilton Worldwide as the two other Blackstone-owned lodging companies to go public. ESA had its IPO in November 2013, raising $566 million. Hilton followed a month later, raising $2.34 billion, the largest hotel IPO in history. Shares of both companies have risen since their IPOs.

Virtual Event


Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.

Suggested Articles

Hoteliers must communicate their safety efforts not only to potential guests but also to those who help get heads in the beds: the meeting planners.

Carver Road Hospitality will invest in, develop and operate lifestyle hotels, restaurants, lounges and other hospitality concepts.

During a conference call hosted by advocacy organization Economic Innovation Group, industry leaders emphasized the need for immediate fiscal help.