Rooms Hotels

La Quinta Plans to Refinance $2.1 Billion in Debt Prior to IPO

Feb 04, 2014 4:00 am

Skift Take

Blackstone has had a solid run of travel IPOs leading up to this, and its ready to see returns on brands it help onto during the financial crisis.

— Jason Clampet

Free Report: The Megatrends Defining Travel in 2015

Come Attend the Best Conference in Travel

faungg  / Flickr

A La Quinta hotel in Louisiana. faungg / Flickr

La Quinta Holdings Inc., a midprice lodging chain owned by Blackstone Group LP, plans to refinance about $2.1 billion of debt in preparation for an initial public offering in March, a person with knowledge of the matter said.

JPMorgan Chase & Co. and Morgan Stanley, hired by Blackstone last year to explore a sale or IPO of La Quinta, also will manage the refinancing, said the person, who asked not to be named because the process is private. La Quinta will seek a new term loan, the person said.

Blackstone is capitalizing on rising stocks and hotel occupancies to take some of its largest lodging assets public. The New York-based firm filed on Dec. 24 for an IPO of La Quinta under the Jumpstart Our Business Startups Act, which allows companies with less than $1 billion in revenue to keep applications confidential until shortly before they promote the share sale.

More About Blackstone and Travel IPOs:

La Quinta operates more than 800 midprice, limited-service hotels with about 80,000 rooms in the U.S., Canada and Mexico, according to its website.

Peter Rose, a Blackstone spokesman, declined to comment on the refinancing plans.

Another Blackstone hotel unit, McLean, Virginia-based Hilton Worldwide Holdings Inc., refinanced about $13 billion of debt before its December IPO. The offering raised $2.71 billion, a record for the lodging industry. Extended Stay America Inc., a chain whose owners include Paulson & Co., Centerbridge Partners LP and Blackstone, went public on Nov. 12.

Editors: Christine Maurus, Kara Wetzel. To contact the reporter on this story: Hui-yong Yu in Seattle at hyu@bloomberg.net. To contact the editor responsible for this story: Kara Wetzel at kwetzel@bloomberg.net

Tags: , ,

Next Up

More on Skift

Skift Business Traveler: Is Delta No Longer The Frequent Flyer’s Airline?
Expedia’s Tax Problems Go Global With VAT Challenges in Europe
The Next Great Untapped Airline Fee Is Getting off the Plane First
How Hotels and Airports Cater to the 21st Century Business Traveler