La Quinta Holdings Inc., a midprice lodging chain owned by Blackstone Group LP (BX), 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.
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. (HLT), 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.
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