Equities

Reuters reveals hotel operator La Quinta prepares to explore sale; shares rise

Reuters reveals hotel operator La Quinta prepares to explore sale; shares rise

Shares of La Quinta Holdings rose as much as 14 percent after Reuters exclusively reported that the North American budget hotel chain is preparing to explore a sale of the company, hoping for a high valuation as its seeks to spin off its real estate assets. La Quinta believes proceeds from the potential sale would help make the tax hit it will incur as a result of the spinoff more palatable to shareholders. It plans to place its real estate business into a publicly listed real estate investment trust, and keep its franchise and management operations.