La Quinta explores selling company
Irving, Texas – 16 May 2017 –
North American budget hotel chain La Quinta is preparing to explore a sale of the company, hoping for a high valuation as its seeks to spin off its real estate assets, people familiar told Reuters.
It plans to place its real estate business into a publicly listed real estate investment trust, and keep its franchise and management operations.
La Quinta is preparing to engage with potential buyers once it files a so-called Form 10 with the US Securities and Exchange Commission registering the spinoff, according to the sources. La Quinta said earlier this month that it expected the filing to come in the second quarter of 2017.
Private equity firm Blackstone Group LP took La Quinta public in 2014 and still owns close to a third of the company.
The sources cautioned that the timing of the spinoff was uncertain and that a sale of the company may not occur. They asked not to be identified because the deliberations are confidential.
La Quinta declined to comment.
In total, La Quinta operates 889 properties, 319 of which are owned, spanning 48 US states. It also has a presence in Canada, Mexico, and Honduras.