La Quinta raised $650 million from the offering of 38.25 million shares, which priced slightly below the expected range at $17 per share.
La Quinta's shares opened at $16.75 and touched a low of $16.65 on the New York Stock Exchange on Wednesday, valuing the company at $2.04 billion. At 11:30 a.m. ET the stock was up 1.2 percent.
Blackstone did not sell any shares in La Quinta, which owns and operates hotels under the La Quinta Inn & Suites and La Quinta Inns brands.
The IPO marks the third hotel chain offering in the past six months by the private equity firm, the biggest owner of hotels in the United States, as it cashes in on a recovery in the travel industry and a booming stock market.
Shares of both Hilton and Extended Stay, which is co-owned with Centerbridge Partners and Paulson, have risen since their IPOs.
The hotel chain had about $2.10 billion in debt on a pro forma basis as of Dec. 31.
JPMorgan and Morgan Stanley were lead underwriters for the offering.
The price of La Quinta's shares had increased by 1.2 percent by midday.