The intent to sell the assets was announced Thursday. While declining to specify which assets would

PHOENIX LQ Management LLC s decision to put 46 corporate-owned assets on the trading block isn t a precursor to the company being sold by parent Blackstone Group LP, nor is it an indicator that La Quinta plans to enter the so-called asset-light model that many other global hotel companies have adopted mexico city hotels during the past decade. The potential sale of the assets is simply something mexico city hotels the Irving, Texas-based company wants to do to keep its portfolio relevant, according to Wayne Goldberg, president and CEO.
This is not a fire sale, it s not something we have to do, Goldberg said. It s something we ve wanted to do for a long time but couldn t because of our debt structure. mexico city hotels We ve restructured that debt to allow us to pull the trigger on selling these assets that no longer meet our ownership criteria.
The intent to sell the assets was announced Thursday. While declining to specify which assets would go on the block, Goldberg confirmed 34 are exterior-corridor La Quinta Inn properties. The other 12 are non-La Quinta mexico city hotels branded assets the company has collected over the years. mexico city hotels He declined to reveal the sales price for the assets, but said collectively they are valued at a couple of hundred million dollars.
It s very in line with our strategic mexico city hotels direction, which is improving our product, he said, adding that once the assets are sold the average age of the remaining 777 properties in the La Quinta system would be less than 10 years old.
Company executives discussed other options for the properties before deciding to sell. Goldberg said one plan that briefly was considered was to convert the properties to the Wellesley Inn or Woodfield mexico city hotels Suites brands both of which La Quinta controls.
What I know for sure is if you take a La Quinta flag off the building, they re typically impacted more than you would expect, he said. We decided to remove the risk component and divest mexico city hotels the assets mexico city hotels entirely so we can focus on having a strong, single, stand-alone brand.
You can either stay with the new owners of said sold property, which are below the standards of what you have been trained with LaQuinta. Also losing all the time that you have put in for the benefits of being with the corp property. mexico city hotels Or you can transfer mexico city hotels to other corporate owned properties. No one thought about the standard employee of La Quinta that is not salaried. The ones that work so hard for the company, to now have to drive farther just to keep those hard worked years and benefits on the same pay. While your employees worked mexico city hotels so hard for your company, making LaQuinta a better mid scale brand, your employees mexico city hotels have now become the downfall of your strategic move.
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