La Quinta Business Model All About Hotel Rooms: CEO

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July 9 (Bloomberg) -- Wayne Goldberg, president and CEO of La Quinta, discusses the company's business strategy and expansion plans with Pimm Fox on "Taking Stock." (Source: Bloomberg)

Of the history.

How it came to be in private equity, and then it went public in april.

Prior to the blackstone acquisition, we actually were a public company.

A blackstone purchased the company in 2006. we took the company private.

We spent a number of years in positioning the brand, and then we took the company public in april.

What does the brand stand for in the hotel industry?

At la quinta, we focus on driving loyalty and engagement.

He do that through differentiation.

We focus on the things that make us different from competitors.

In dentistry that some would say -- in an industry that some would say is commoditized, we focus on those points of differentiation.

Let's just talk about price.

A lot of this comes down to, how much does it cost to stay for a night?

What segment of the market does looking to focus on?

-- la quinta focus on?

We are in the midscale segment.

We have a simple model.

98% of our revenue comes from the sale of a room.

It is about the experience in the room.

We deliver a unique experience to the customer by delivering on those touch points that are unique.

Can you give us a range of prices?

What would be a low price?

I know you guarantee these rights.

What would be a low price and a higher price?

The price range is going to vary depending on the market and the property, but the price could arrange -- could range from $85 to several hundred dollars.

In irving, texas, what would it be better?

It is so going to vary property to property even in irving.

We have several properties in irving.

Our average rates we run in the $80-plus range on average.

Free breakfast is also part of the la quinta experience?

We provide free continental breakfast at every property, and we also provide free high-speed internet.

We continue to deliver those points of differentiation.

Where geographically are you strongest, and where would you like to get stronger?

Texas is where the company started.

Texas is still our largest market.

Our three largest markets are texas, florida, and california.

We continue to see growth in those markets.

There are competitors that have more competitors than we do even in texas.

We have plenty of room to grow our brand even in the united dates today -- united states today.

We are really focused on getting into those market tracks we are not in.

Where would you like to go next?

We are focused on growing our brand all over the united states , canada, mexico.

We have hotels under construction in honduras, and we have a hotel under construction in colombia today.

10% of our population today is urban.

The stock is up about 9% since the ipo.

I wonder if you could tell us a little bit about how the company is structured and whether there is any debt in the company that you have to service.

We do have a debt in place.

We redid the debt upon ipo.

We have a great capital structure today.

We are really focused -- this is a quick cash generating business, and we have committed to making the free cash flow in the business, which is very strong.

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


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