Choice Hotels International Inc. said it will acquire the brand and franchise business of WoodSpring Suites from WoodSpring Hotels Holdings LLC, a portfolio company of Lindsay Goldberg, for roughly $231 million, subject to customary adjustments.
The deal is expected to grow the company's existing MainStay Suites and Suburban Extended Stay businesses with the addition of nearly 240 extended-stay hotels in 35 states.
Choice Hotels plans to hire WoodSpring Suites' franchise business employees, it said in a release.
Choice Hotels will fund the acquisition through cash and expects it to be accretive to its financial performance in 2018.
The transaction is expected to close in the first quarter of 2018.
WoodSpring Hotels Holdings will be renamed and retain its hotel management operations, according to the release.
Moelis & Co. LLC is serving as financial adviser to Choice Hotels on the deal, and Willkie Farr & Gallagher is serving as legal adviser. Morgan Stanley and Co. LLC is WoodSpring's financial adviser, and Weil Gotshal & Manges LLP is serving as legal adviser.