La Quinta's IPO Debut Based on Contrarian Strategy 7 Years in the Making
Skift Take
Despite the fact that the La Quinta IPO priced below the brand's intended range due to the overall tumble of the markets in recent days, investors are buying into La Quinta's growth story. With a CAGR of 18% from 2003 to 2013, there's little not to love.
La Quinta's IPO, which enabled the limited-service brand to raise $650 million to pay down debt, was based on a contrarian strategy that traces its roots to 2006 when Blackstone acquired it.
While some chains went into hibernation mode during the 2007 downturn and its prolonged aftermath, La Quinta, which has a portfolio of both owned and franchised properties, poured $759 million into the properties it owned to make improvements, and shed 44 noncore assets as it repositioned the company from primarily a southwestern U.S. economy brand into a national and increasingly international midscale and upper midscale brand.
As part of the roadshow presentation leading up to the comp
