Hotel chain La Quinta Holdings Inc announced on Monday that it filed confidentially for an initial public offering (IPO) of its common stock. La Quinta is backed by private equity firm Blackstone Group LP, wrote Reuters.
The hotel group has filed with the US Securities and Exchange Commission (SEC). The said IPO was filed under the Jumpstart Our Business Startups (JOBS) Act, which allows company to make SEC filings without public disclosure, the report explained.
Blackstone was earlier reported to seek $4.5 billion for La Quinta. The auction had drawn interest from holding firms such as Choice Hotels International Inc and private equity firms, the report stated.
With over 830 hotels, La Quinta is among the biggest owners of operators of US budget hotels. In 2006, Blackstone took La Quinta private in a $3.4 billion deal, the report detailed.
According to the company, the number of common stock shares to be sold and the price range for the said offering have not yet been confirmed, Reuters reported.
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