Wyndham Worldwide Corp. will acquire La Quinta Holdings' hotel franchise and hotel management businesses for $1.95 billion in cash.
Wyndham will gain 900 managed and franchised hotels, as well as the La Quinta brand, bringing Wyndham Hotel
Group's portfolio to 21 brands and over 9,000 hotels across more than 75 countries. Wyndham Rewards will absorb the La Quinta Returns loyalty program and its 13 million members.
"La Quinta will immediately become one of our flagship brands," said Wyndham Hotel Group president and CEO Geoff Ballotti. "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."
The companies expect the deal to close in the second quarter of 2018. The transaction comes amid plans from both companies to spin off parts of their businesses. La Quinta announced in January 2017 that it planned to spin off its owned real estate assets into a publicly traded company and intends to complete the spinoff in advance of the sale to Wyndham, forming a publicly traded investment trust called CorePoint Lodging.
Wyndham Worldwide in August announced it would spin off its hotel business from its time-share business to create two publicly traded companies. As of Wyndham's most recent earnings call, in late October, the spinoff is expected to occur during the second quarter of 2018 and Ballotti will stay on as head executive for the new hotel company.
Business Travel News 1/18/2018