Wyndham Worldwide Corp.'s Wyndham Hotels & Resorts subsidiary acquired La Quinta Holdings Inc.'s hotel franchise and management business in a $1.95 billion deal after CorePoint Lodging Inc. completed its spinoff from La Quinta into a stand-alone, publicly traded real estate investment trust.
The acquisition boosts Wyndham Hotels' midscale presence with the addition of La Quinta's more than 900 franchised hotels, comprising nearly 89,000 rooms, and expands the company's presence in the lodging industry's upper-midscale segment.
The $1.95 billion purchase was funded by Wyndham Hotels' recent $500 million offering of 5.375% senior notes due 2026 and a $1.6 billion term loan due 2025.
Wyndham Hotels, which is the world's largest hotel franchising company based on the number of properties, according to a release, will become an independent public company following its spinoff from Wyndham Worldwide after the market close May 31.
CorePoint, which comprises a portfolio of 316 hotels previously owned by La Quinta, will commence regular-way trading on the NYSE May 31 under the CPLG ticker.
La Quinta also gave effect to a 1-for-2 reverse stock split prior to the spinoff.
J.P. Morgan provided financial advice to CorePoint and La Quinta, while Simpson Thacher & Bartlett LLP acted as their legal adviser.
