Wyndham Worldwide Corp. and La Quinta Holdings have entered into a definitive agreement under which Wyndham Worldwide will acquire La Quinta’s hotel franchise and hotel management businesses for $1.95 billion in cash.
The acquisition is expected to close in the second quarter of 2018.
Immediately prior to the sale of La Quinta to Wyndham Worldwide, La Quinta will spin off its owned real estate assets into a publicly traded real estate investment trust, CorePoint Lodging.
With the acquisition of La Quinta’s asset-light, fee-for-service business consisting of nearly 900 managed and franchised hotels, Wyndham Hotel Group will span 21 brands and over 9,000 hotels across more than 75 countries.
La Quinta also announced today that Keith Cline has been appointed president and CEO of CorePoint Lodging effective upon completion of the planned spin-off.
Wyndham Worldwide’s planned spin-off of Wyndham Hotel Group remains on track for an expected distribution in the second quarter of 2018.