La Quinta Acquires Baymont Chain

La Quinta Corp. today announced it has acquired Baymont Inns & Suites, a chain of 86 midprice without food and beverage hotels that has a significant presence in the Midwest. The acquisition makes La Quinta, which is strong in the Southwest, a stronger national brand with 178 hotels, containing almost 17,000 rooms in 32 states. The deal, which includes eight other similar hotels also owned by Baymont's parent, the Marcus Corp., is valued at $395 million.

While the midprice with F&B lodging segment fared relatively well during the recent industry downturn, competition remains intense, especially for business travelers. Multi-brand hotel company midprice brands, such as Hilton Garden Inn, Four Points by Sheraton and Courtyard by Marriott, have experienced rapid expansion during the past few years and have benefited from their parents' existing relationships with corporate buyers.

In announcing the deal, Butch Cash, La Quinta president and CEO, cited the expansion potential, describing Baymont as a "brand positioned for growth."