La Quinta Inn & Suites Dallas – Richardson, Texas
Wyndham Worldwide Corporation (WWC) has announced that it will acquire La Quinta Holdings’ hotel franchise and management businesses for $1.95 billion in cash. The deal is expected to close within the second quarter of 2018.
“We are excited to announce the addition of the La Quinta franchise and management businesses to Wyndham Hotel Group’s portfolio,” says Keith Cline, resident and chief executive officer of La Quinta. “We believe that, under the management of Wyndham’s seasoned team of executives, the La Quinta portfolio will grow and thrive, yielding long-term benefits to the stakeholders of both companies.”
In addition to its signature properties, Wyndham Hotel Group owns Ramada, Days Inn, and Super 8 locations. The acquisition, WWC will add another 900 locations to the company, bringing the total number of brands to 21 and total number of hotels to more than 9,000 in more than 75 countries. By acquiring La Quinta’s locations, Wyndham Hotel Group will broaden midscale presence and expand its upper-midscale segment.
“La Quinta will immediately become one of our flagship brands,” says Geoff Ballotti, CEO of Wyndham Hotel Group. “It is an exceptionally strong brand that is led by service-minded associates who deliver some of the highest customer engagement levels in our industry.”
Prior to the acquisition, La Quinta will spin off its real estate into a publicly-traded real estate investment trust, CorePoint Lodging. WWC will set aside a reserve of $240 million for taxes related to the spin-off. Stockholders will receive $8.40 per share in cash, and WWC will also repay an estimated $715 million of La Quinta debt net of cash.