Blackstone eyes $4.5bn La Quinta exit


hotel_bell_170sqPrivate equity firm Blackstone is reportedly looking to exit its investment in budget hotel chain La Quinta Inns & Suites, which could be valued at $4.5bn in a deal.

The New York-based buyout major has hired JPMorgan Chase & Co and Morgan Stanley to explore a sale of La Quinta, but it is also open to floating the business, said Reuters, citing a person familiar with the matter.

Blackstone acquired the hotel chain in a $3.4bn take-private deal in 2006. It has since expanded the business via new site openings and bolt-on deals.

Earlier this week Blackstone completed the acquisition of Credit Suisse’s secondary private fund of funds business Strategic Partners, which has $10bn of assets under management.

Back in April the firm revealed that the average private equity multiple for 2012 was 2.1 times, allowing the firm to return $3.5bn to LPs.

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