Wyndham hotels acquires La Quinta franchise in $1.95B deal

La Quinta will spin off 315 real estate assets into REIT

TRD LOS ANGELES /
Jan.January 18, 2018 10:00 AM
La Quinta (Credit: Wikimedia Commons, La Quinta)

Wyndham Worldwide Corporation has agreed to pay $1.95 billion for La Quinta Holding’s hotel franchise and management business, further extending its already considerable portfolio of hotels and resorts.

The acquisition includes La Quinta’s 900 managed and franchised hotels, bringing Wyndham to more than 9,000 locations in 75 countries between 21 brands, according to a joint press release.

The deal does not include La Quinta’s real estate assets, which include 315 hotels around the country. La Quinta will spin off those assets into a publicly traded real estate investment trust called CorePoint Lodging Inc.

New Jersey-based Wyndham Worldwide already owns and operates familiar hotel brands including Days Inn, Howard Johnson’s, Super 8, and Ramada.

The company will set aside $240 million to pay taxes incurred in the spinoff. La Quinta CEO Keith Cline has been appointed president and CEO of CorePoint Lodging, which will take effect when the deal completes.

Wyndham will also pay $715 million of La Quinta debt and La Quinta stockholders will receive $8.40 per share.

Blackstone owned La Quinta Holdings prior to 2014, when it took the Texas-based company public. Blackstone previously planned to sell La Quinta.

The acquisition is expected to wrap up in the second quarter.


Related Articles

arrow_forward_ios
510 Park Avenue and CEO of Monster Beverage Rodney Sacks

Monster Beverage affiliate guzzles down industrial project in San Fernando

Here’s why landlords don’t hate California’s rent control bill

From left: Saeed Nourmand, Michael Nourmand, Grant King and Richard Heyman

Relevant Group sues Nourmand & Associates’ founder, alleging extortion over hotel projects

Centennial founder and CEO Steven Levin with a rendering of the project

Centennial Real Estate approved for sprawling $300M mixed-use village

Apartment complex at 1435 Stanley Avenue and Raintree Partners CEO Jeffrey Allen (Credit: Apartment Finder)

Raintree Partners spends $79M on Glendale multifamily portfolio

LA Mayor Eric Garcetti

Down goes Measure EE: Property tax referendum routed at polls

CIM Group Founders, Shaul Kuba, Richard Ressler, and Avi Shemesh and 4750 Wilshire Boulevard (Credit: Google Maps)

CIM Group lists part of its Miracle Mile office campus

Arman Gabay and The Springs shopping center in Palm Springs, part of the 14-property portfolio

Charles Co. secures $215M refi for retail portfolio

arrow_forward_ios