Blackstone-backed hotel chain La Quinta files to go public
(Reuters) - La Quinta Holdings Inc, a hotel chain backed by Blackstone Group LP, filed with U.S. regulators to raise up to $100 million in an initial public offering of its common stock.
J.P. Morgan and Morgan Stanley are the underwriters, the company said in a filing with the Securities and Exchange Commission (SEC) on Monday. (r.reuters.com/jyh76v)
Blackstone, the largest publicly listed alternative asset manager, took Hilton Worldwide Holdings Inc public in the biggest-ever hotel IPO in December.
Blackstone was initially exploring a sale of La Quinta, which it took private in a $3.4 billion deal in 2006.
La Quinta had in December filed confidentially with the SEC for an IPO under the Jumpstart Our Business Startups (JOBS) Act.
With more than 830 hotels, La Quinta is one of the largest owners and operators of budget hotels in the United States.
The U.S. hotel industry has been recovering, with room rates and occupancy levels expected to increase in 2014, according to PricewaterhouseCoopers.
Blackstone has moved aggressively to sell or take public its real estate assets.
Apart from Hilton Worldwide, the investment firm also listed shopping center company Brixmor Property Group Inc in October and Extended Stay America Inc in November.
The filing did not reveal how many shares La Quinta planned to sell or which stock exchange it intends to apply for listing.
The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.
(Reporting By Neha Dimri in Bangalore; Editing by Sriraj Kalluvila)
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