Hospitality company Wyndham Worldwide has entered into an agreement with La Quinta Holdings to acquire La Quinta’s hotel franchise and management businesses for US$1.95 billion.
The sale is expected to close in the second quarter of 2018. Under the agreement, La Quinta stockholders will receive a payment for their shares, while Wyndham will repay $715 million of La Quinta’s debt.
Wyndham will acquire La Quinta’s 900 managed and franchised hotels, after which the hospitality company will have a stake in 21 brands and more than 9,000 properties across 75 countries.
In addition, the La Quinta Returns loyalty programme will be combined with the Wyndham Rewards programme.
Geoff Ballotti, president and CEO of Wyndham Hotel Group, commented: “La Quinta will immediately become one of our flagship brands. 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.”
La Quinta will also spin off its owned real estate assets into a publicly-traded real estate investment trust called Corepoint Lodging, of which Keith A Cline has been appointed president and CEO.
wyndhamworldwide.com; lq.com