Market Overview

Is La Quinta A Takeover Target? CEO Says 'We'll Look At Anything That's Opportunistic'


La Quinta Holdings Inc (NYSE: LQ) reported mixed second-quarter earnings on Wednesday. EPS of $0.19 came in-line with analysts' expectation, but revenue of $273.89 million for the quarter was slightly below the $276.08 million that analysts had expected.

Wayne Goldberg, La Quinta CEO, was on CNBC to discuss the biggest challenges the company faced during the quarter and if it is a takeover target.

The Good News

"The biggest challenges we faced in the quarter and we've laid this out and identified it yesterday on our call and in our release was the weather across the Southwest," Goldberg said. "I mean, we saw massive amounts of rain, we had hotels you couldn't get to, we had a particular hotel that actually flooded."

He went on, "So, we did have some significant impacts on demand based on the weather and that is the bulk of the challenge that we had. And again if you think about that it is a one-time type event, we're not going to get that kind of rain and we haven't seen it. The good news is that it has stopped raining in Texas."

Takeover Target?

Goldberg was asked if La Quinta is a takeover target. He replied, "We'll look at anything that's opportunistic. I can tell you that we're not focused on doing anything."

On whether the company is having talks with any potential buyer, he said, "We're not having talks with anyone. I can tell you that we are very focused on driving long-term shareholder value for all of our shareholders."

Posted-In: CNBC Wayne GoldbergMedia


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