NEW YORK (The Deal) -- Hotel operator La Quinta Holdings filed Thursday to raise up to $780 million in an initial public offering, the third hotel IPO offered by private equity giant Blackstone Group (BX) in recent months.
Irving, Texas-based La Quinta is an owner, operator and franchisor of hotels, with a portfolio of 834 hotels with 84,000 rooms spread across 46 states as of Dec. 31. The company owns 357 of those hotels, and said it has a pipeline of 187 additional franchised hotels to be located in the U.S., Mexico, Canada, Colombia and Honduras.
La Quinta said on a pro forma basis it earned $44.5 million in net income on total sales of $909 million in 2013.
Blackstone acquired the company in 2006 for $3.4 billion in cash and debt. La Quinta in its regulatory filing said it intends to sell 37.2 million shares at $18 to $21 per share, implying a company equity value of $2.5 billion at the top of the range. La Quinta also had $2 billion in debt as of year's end.
La Quinta said it would use net proceeds from the offering, along with available cash and a secured term loan facility, to repay about $1.9 billion in borrowings. Blackstone post-deal would own about 64% of the company's shares.
The deal continued a push by Blackstone to list its hotel portfolio. The firm last November took public Extended Stay America (STAY), which it along with partners had acquired out of bankruptcy, and in late December floated Hilton Worldwide Holdings (HLT).
The private equity firm has IPOed a number of nonhotel companies in the past year as well, including SeaWorld Entertainment (SEAS), Merlin Entertainments Group, Pinnacle Foods (PF) and Brixmor Property Group (BRX).