La Quinta Holdings Inc. Announces Agreement To Sell 24 Hotels
- Enhances Portfolio Quality and Opens Markets for Franchise Development
- Improves Operating Metrics
- Secures Commitments for Development of New Hotels in Key Markets
IRVING, Texas, Sept. 4, 2015 // PRNewswire // -- 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:
- Enhancement of the brand
- Improvement of several key operating metrics such as RevPAR and RevPAR Index
- Opening of additional markets for franchise development
- Reduction of near-term capital expenditure requirements
"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."
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to our expectations regarding the proposed sale transaction, including statements regarding the benefits of the transaction and the timing of the transaction. You can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission ("SEC"), as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
About La Quinta Holdings Inc.
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.
From time to time, La Quinta may use its website as a distribution channel of material company information. Financial and other important information regarding the Company is routinely accessible through and posted on our website at www.lq.com/investorrelations. In addition, you may automatically receive email alerts and other information about La Quinta when you enroll your email address by visiting the Email Notification section at www.lq.com/investorrelations.
SOURCE La Quinta Holdings Inc.