The Blackstone Group today continued on its path of hotel acquisition with an agreement to purchase La Quinta Corp. and La Quinta Properties Inc. The parties value the deal at $3.4 billion and, subject to regulatory and stockholder approval, expect it to close during the first quarter of next year. The transaction is the latest in a string of Blackstone-purchased lodging industry holdings, which most recently included the acquisition of Wyndham International.
Dallas-based La Quinta operates and franchises more than 590 hotels in 39 states in the United States and in Canada and is one of the largest owner/operators of limited-service service hotels in the country. La Quinta brands include Baymont Inn & Suites, La Quinta Inns, La Quinta Inn & Suites, Woodfield Suites and Budgetel. The company's board of directors unanimously approved the deal.
"We are pleased to have signed a merger agreement with one of the world's preeminent owners of hotels and resorts," La Quinta chairman and CEO Francis Cash said in a statement issued today. "Blackstone was attracted by our strong brands, high quality hotels, excellent management team and operating culture that is focused on delivering superior guest satisfaction. We believe this transaction is beneficial to our stockholders and will build on the accomplishments we have achieved over the last five years."
Blackstone Group earlier this year purchased Wyndham International Inc. for $3.24 billion in cash and debt
(BTNonline, June 14) and also owns a stake in Prime Hospitality. In addition, the firm in May acquired 16 extended stay hotels from Wichita, Kan.-based Sierra Suites
(BTNonline, May 12) and last year combined acquisitions of Extended Stay America, Homestead Studio Suites and Wellesley Inns & Suites into Extended Stay Hotels.