Wyndham Worldwide is to acquire the La Quinta hotel franchise and management businesses for $1.95 billion.
The addition of La Quinta’s almost 900 managed and franchised hotels will see Wyndham Hotel Group spanning 21 brands with more than 9,000 hotels across more than 75 countries.
La Quinta, one of the largest midscale brands in the US hospitality industry, will build on Wyndham Hotel Group’s existing presence in the sector.
The La Quinta Returns loyalty scheme, with 13 million members, will be combined with the Wyndham Rewards programme, which has 53 million members.
La Quinta will spin off its owned real estate assets into a publicly-traded real estate investment trust, CorePoint Lodging ahead of the deal being finalised.
Wyndham Worldwide’s planned spin-off of Wyndham Hotel Group remains on track for an expected distribution in the second quarter of the year, according to the company.
Wyndham Worldwide chairman and CEO Stephen Holmes said: “This transaction builds on Wyndham
Worldwide’s proven track record of acquiring companies that are a strong strategic and cultural fit, add highly-regarded brands to our portfolio and offer clear opportunities to drive shareholder value through growth, shared best practices and sharp execution.”
Wyndham Hotel Group president and CEO Geoff Ballotti added: “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.
“We expect that La Quinta guests and franchisees will benefit from our intense focus on product quality and our best-in-class technology, digital, loyalty and distribution platforms.
“This acquisition also significantly expands our hotel management business and provides us with substantial new opportunities to drive increased growth in our business.”
La Quinta president and CEO Keith Cline, who is to lead CorePoint following completion of the acquisition, added: “As we anticipated, the separation of our businesses is enabling greater strategic clarity and allowing our company to take advantage of growth opportunities that naturally flow from each business model.
“To that end, we are excited to announce the addition of the La Quinta franchise and management businesses to Wyndham Hotel Group’s portfolio.
“We believe that, under the management of Wyndham’s seasoned team of executives, the La Quinta portfolio will grow and thrive, yielding long-term benefits to the stakeholders of both companies.”