Instead of the selling the La Quinta national hotel chain — valued at $4.5 billion — the Blackstone Group has opted for an initial public offering.
Blackstone, one of the largest property owners in the U.S., expects to see higher returns via the IPO, especially after Extended Stay America rose by 20 percent in gains after its IPO earlier this month.
In August, Blackstone was strongly considering selling California-based La Quinta. It enlisted JPMorgan Chase and Morgan Stanley to advise it on the pros and cons of a private sale. But given their other, recent successes, which include the record-setting IPO for retail real estate investment trust Brixmor, Blackstone has gone the public offering route again, Bloomberg News reported, citing unnamed sources.