Hotel flipping Blackstone Group selling La Quinta. Hilton IPO by year end?

Blackstone Group is the owner of Hilton Worldwide, La Quinta and Extended Stay America hotel chains and one of the biggest real estate owners in the U.S. The company is reported to be seeking a buyer for La Quinta hotels or a possible public offering.

Blackstone bought La Quinta Inn for $2.3 billion in 2006. The company expanded the midscale hotel brand to more than 800 hotels. Blackstone now values La Quinta at around $4.5 billion.

Blackstone also plans to sell its shares in Extended Stay America valued at $3 to $4 billion. Blackstone with two partners bought Extended Stay America out of bankruptcy for $3.9 billion in 2010 and spent more than $400 million to upgrade the chain.

In 2007 Blackstone acquired Hilton Worldwide for $18 billion plus $7 billion in assumed debt. Industry analysts expect Blackstone to file IPO plans for Hilton by year-end.

Blackstone is a New York private equity firm with a $13.3 billion global property fund. Some analysts think the commercial property real estate market is hitting its peak value before higher interest rates hit the market. Commercial real estate values have climbed 68% since 2009.

Blackstone Group is the largest owner of hotel rooms in the U.S. with about 200,000 rooms.

Of course, the question for this loyalty traveler is what the impact will be on Hilton HHonors if the chain becomes a publicly traded company?

Story Source: Wall Street Journal August 6  Blackstone prepares to sell La Quinta Hotels


Ric Garrido, writer and owner of Loyalty Traveler, shares news and views on hotels, hotel loyalty programs and vacation destinations for frequent guests.

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About Ric Garrido

Ric Garrido of Monterey, California started Loyalty Traveler in 2006 for traveler education on hotel and air travel, primarily using frequent flyer and frequent guest loyalty programs for bargain travel. Loyalty Traveler joined in 2008.

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  1. “Of course, the question for this loyalty traveler is what the impact will be on Hilton HHonors if the chain becomes a publicly traded company?”

    It can get worse?

  2. They have lost my business
    if they go further down the drain I suppose they can ask for 200,000 points for a night in New York City
    its not far from half that now at the lowest level for a free night in a full service NYC property!!!
    Id stay at a Radisson before touching a Hilton now
    They killed the Golden Goose
    they for the most part gutted the program!

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