Published December 24, 2013
Blackstone’s (BX) La Quinta Holdings revealed this week that it has confidentially filed paperwork with the Securities and Exchange Commission for an initial public offering.
The possible IPO could allow private-equity firm Blackstone to cash out amid record stock prices and strong demand for shares of hotel and lodging companies.
Late Monday, La Quinta said it confidentially submitted an S-1 form with the SEC. The number of shares to be sold and price range have not yet been determined. The IPO is expected to launch after the SEC completes its review, subject to market and other conditions.
Based in Dallas, La Quinta has more than 80,000 rooms in 800 hotels under the La Quinta Inns and La Quinta Inns & Suites brands.
Under the 2012 Jumpstart Our Business Startups (JOBS) Act, companies with less than $1 billion in revenue are allowed to keep IPO applications secret until just a few weeks before they begin pitching their offering to investors. These young companies can yank the filing if investors fail to show interest.
The move by La Quinta, which was acquired by Blackstone in 2006 for about $3 billion, comes after fellow Blackstone hotel companies Hilton Worldwide Holdings (HLT) and Extended Stay America (STAY) went public earlier this year. Hilton’s $2.35 billion IPO earlier this month was the biggest offering ever for a hotel company, according to Dealogic.
Shares of New York-based Blackstone rose 0.99% to $31.17 Tuesday morning, extending their 2013 surge to 100%.