La Quinta chairman and CEO Francis W. Cash added that "Blackstone has indicated" that it want to grow the firm's two brands--La Quinta and Baymont Inns & Suites--and may covert some northeast properties to La Quintas. A Blackstone Group spokesperson tells GlobeSt.com that the firm cannot comment on the deal at this time.
Cash said he expects the company, which will transition from a publicly held company to a privately held one, to be headquartered in Dallas with the same management team. "We'll have a broader platform and hope to accelerate occupancy rates." He added that Blackstone intends to invest $100 million over the next three years to upgrade the properties.
Of the $3.4 billion, approximately $2.3 billion is equity that will be paid to shareholders and $800 million is in assumed debt and costs related to the transaction. A shareholders' vote has yet to be set on a proposal for $11.25 per share in cash. Cash said additional details will be released when a proxy statement is filed a few weeks from now.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
