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.