Media Coverage
Source: Law360
Media Coverage
04.09.14
La Quinta Holdings Inc.'s rough debut on April 9 on the New York Stock Exchange does not indicate a waning of investment interest in the hotel market, said industry observers. The stock initially tumbled after Blackstone Group announced it would price the company at $17 per share, below the initial plan to sell between $18 and $21. The stock recovered to close at $17.12.
“Where La Quinta priced and then traded at debut and afterwards is just noise at the moment. The real story is that the hotel industry is back,” said Christian Salaman, co-head of Pillsbury’s travel, leisure and hospitality team.
“The IPOs of La Quinta, Hilton and Extended Stay show the returned appetite in the capital markets. And the real proof is the M&A, development and other deal flow that we are seeing throughout the industry thanks to the sustained improvements in occupancy and RevPAR and the willingness of players at all levels to spend more capital,” Salaman explained.