La Quinta To Spin Off Assets Into REIT After $1.95B Wyndham Buyout
Wyndham Worldwide will acquire La Quinta’s hotel franchise and hotel management businesses in a $1.95B cash deal.
Following the sale, La Quinta will proceed with plans to spin off its real estate assets into a publicly traded REIT under the name of CorePoint Lodging. The spinoff was first announced in July after La Quinta filed documents with the Securities and Exchange Commission to spin off its real estate business into a REIT.
"As we anticipated, the separation of our businesses is enabling greater strategic clarity and allowing our company to take advantage of growth opportunities that naturally flow from each business model," La Quinta President and CEO Keith Cline said in a statement.
The acquisition will aid Wyndham in achieving its goal to expand its upper-midscale segment and will increase its overall holdings to about 9,000 hotels spanning 75 countries.
“We expect that La Quinta guests and franchisees will benefit from our intense focus on product quality and our best-in-class technology, digital, loyalty and distribution platforms. This acquisition also significantly expands our hotel management business and provides us with substantial new opportunities to drive increased growth in our business," Wyndham Worldwide Chairman and CEO Stephen P. Holmes said in a statement.
The acquisition is anticipated to close in Q2 and is subject to customary closing conditions as well as La Quinta stockholder approval, and regulatory and government approval.
