As widely anticipated, the La Quinta IPO is getting close to hitting the markets. Yesterday, the company filed an S-1 with the Securities and Exchange Commission and the lead underwriters on the deal include J.P. Morgan (JPM) and Morgan Stanley (MS). But the company did not provide any details on the exchange it will list on or the pricing terms.
La Quinta is one of the largest operators of limited-service hotels in the United States, featuring more than 84,000 rooms. The business model is based on a franchise system, which has made it easier for the company to grow because of the low capital costs. While the firm is focused on a low-cost strategy, it still provides key amenities like flat-screen HDTVs, high-speed Internet, free breakfast and swimming pools.
Investors in the La Quinta IPO will likely be attracted to the high margins. During the first nine months of 2013, the company posted $256.2 million in EBITDA on revenues of $673.4 million. Read