La Quinta Holdings Enters Definitive Agreement to Sell 24 Owned Hotels
September 8, 2015 12:31pm
IRVING, Texas, Sept. 8, 2015 -- La Quinta Holdings Inc. ("La Quinta" or the "Company") (NYSE: LQ) today announced that it has signed a definitive purchase and sale agreement to sell 24 owned hotels. This portfolio is geographically dispersed and the vast majority of these hotels will be removed from the La Quinta system. The sale price for these assets represents an attractive EBITDA multiple and the Company expects to close the sale prior to the end of 2015, subject to customary closing provisions, providing additional balance sheet flexibility at that time.
As a result of this transaction, the Company expects to realize a number of benefits, including:
"This is another positive step as we continue to enhance our portfolio and improve the overall brand experience for our customers," said Wayne B. Goldberg, President & Chief Executive Officer of La Quinta. "We are continuing to execute our strategy of optimizing the owned hotel portfolio. We are excited to be working with a group of key franchise partners in this transaction where we are able to monetize assets from our portfolio at an accretive multiple and grow our franchise pipeline, while allowing our franchise partners to acquire assets strategic to their businesses. As part of this transaction, the buyers have committed to work with us in developing several franchised La Quinta hotels in key markets. As this transaction illustrates, we remain committed to finding ways to improve our performance and grow long-term shareholder value."
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La Quinta Holdings Inc. (LQ) is a leading owner, operator and franchisor of select-service hotels primarily serving the upper-midscale and midscale segments. The Company's owned and franchised portfolio consists of more than 875 properties representing over 87,000 rooms located in 47 US states, Canada, Mexico and Honduras. These properties operate under the La Quinta Inn & Suites™, La Quinta Inn™ and LQ Hotel™ brands. La Quinta's team is committed to providing guests with a refreshing and engaging experience. For more information, please visit: www.LQ.com.
Contact: Investor Relations
Contact: For Media - Phil Denning / Jason Chudoba
Phil.Denning@icrinc.com / Jason.Chudoba@icrinc.com /
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