Blackstone Group Buys Hotel Chain
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The Blackstone Group, which is raising the world’s biggest buyout fund, agreed to acquire La Quinta for $2.28 billion, its third hotel purchase this year.
La Quinta adds a mid-priced chain to Blackstone’s roster of luxury hotels, resorts, and extended-stay properties. Earlier this year, Blackstone bought Wyndham International for $1.44 billion and the Rihga Royal Hotel in New York for an undisclosed amount. Last year it purchased Extended Stay America and Prime Hospitality.
“They see a business that has pricing power that is much greater than other sectors in the economy right now,” an analyst with Susquehanna Financial Group in Stamford, Conn., Robert LaFleur, said of Blackstone. LaFleur had rated La Quinta “neutral” and doesn’t own any shares.