Thursday, November 10, 2005

Hit #67

La Quinta, the hotel chain, is being acquired by Blackstone Group in an all-cash deal, for $3.4 billion. The offer, of $11.25/share is a 41% premium over my average cost of $7.99/share.

The Blackstone Group had earlier acquired the Wyndham chain - Hit #47. Before that, the same group had bought Boca Resorts and Extended Stay America chains.

Who next ? As I mentioned in this post as a followup to the Wyndham buyout, the remaining independent chains are all targets, since Blackstone is moving towards building an all-encompassing portfolio.

Lodgian (LGN), Boykin Lodge (BOY), Jameson Inns (JAMS), Winston (WXH) and Equity Inns (INN) are all either attractively or atleast fairly priced. I own a few shares of Jameson Inns and will be seriously considering buying Lodgian and Winston at current prices.

Previous hit - Verity (#66)


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