The Blackstone Group completed its purchase of Dallas-based hotel operator La Quinta Corp., acquiring the company in a public-to-private transaction valued at roughly $3.4 billion (€2.7 billion). The purchase price, at $11.25 a share, represents a premium of 37 percent over the company’s stock price a day prior to the deal’s November announcement.
La Quinta, which is headed by chairman and CEO Francis Cash, owns and operates 360 hotels, and oversees more than 240 franchisee locations. The hotels operate under the La Quinta Inns, Baymont Inn & Suites, Woodfield Suites and Budgetel brands.
Morgan Stanley acted as financial advisor to La Quinta, and Goodwin Procter provided legal advice. Blackstone tapped Bear Stearns, Deutsche Bank and Merrill Lynch as financial advisors, while Simpson Thacher & Bartlett served as legal counsel.
Blackstone is currently making real estate investments out of its 2003-vintage, $2 billion Blackstone Real Estate Partners IV fund. The firm is in the midst of raising a successor to that vehicle, which is expected to take in more than $3 billion.
Separately, in mid-December, Blackstone held a second close on its latest private equity fund, collecting $12 billion in commitments. The firm is expected to raise around $13 billion for the vehicle, Blackstone Capital Partners V.