La Quinta files for $100 million IPO
La Quinta Holdings, a limited-service hotel chain backed by Blackstone Group, has filed with the U.S. Securities and Exchange Commission for an initial public offering of its common stock that could raise up to $100 million.
It’s the third hotel company that private equity firm Blackstone has taken public in recent months. Hilton Worldwide had a record $2.3 billion IPO in December and Extended Stay America raised $565 million in its IPO in November.
In December, La Quinta submitted to the SEC a confidential draft registration statement for an IPO under the Jumpstart Our Business Startups (JOBS) Act.
Monday’s SEC filing reveals more about the state of the company. It does not, however, disclose any pricing terms for the stock. Nor does it say which stock exchange it will list the stock on.
In its filing, La Quinta, founded in 1968, says it’s the fastest-growing select-service brand in the USA, a category that includes Courtyard by Marriott and Hilton Garden Inn among others.
As of Sept. 30, 2013, the company had 836 hotels, up from 362 in 2003. Another 175 hotels are set to open in the USA, Mexico, Canada, Colombia and Honduras.
The company says in its filing that “following the industry-wide economic downturn that began in 2008, our operating performance has improved significantly over the past three years, during the strong lodging industry recovery that industry analysts believe will continue for the next several years.”
For instance, its average daily rate went from $69.38 by the end of 2010 to $75.21 by the end of 2012.
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