Blackstone’s High Hopes for Their La Quinta IPO

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

April 8 (Bloomberg) -- Bloomberg’s Leslie Picker reports on Blackstone’s La Quinta preparing for its IPO. She speaks on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

$2.5 billion.

We are joined by leslie, who covers the ipo world for us.

This is the third blackstone a lodging company to go public within the last six months.

We saw hilton and extended day.

They are up since their ipos.

This is one company that blackstone is hoping to have the same kind of success.

What can be learned from hilton and extended stay?

One thing blackstone did was steered them away from being a real estate oriented and more of a franchise model.

They put on a brand and are not as exposed to fluctuations in the real estate market because those properties are owned and managed by someone else.

What blackstone did with la quinta is the same thing.

They made it less exposed to the real estate side.

Were they looking to sell this at some point?

They were.

La quinta was on a dual track process.

They decided they could get a higher valuation in the public market.

Looking at some comparative valuations for la quinta, it is coming out at a premium to hilton and extended stay.

About 58 times earnings is what they are looking for at the high-end of the range.

They are expecting a high amount of demand.

Blackstone is taking this public after a strong demand for hilton and extended stay.

We think they are expecting the same success here.

It will be interesting to see where they price.

They priced in the middle of the road for the other two lodging

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change