Jan
22
Wyndham to Buy La Quinta for $2B
ByThe transaction will expand Wyndham’s hotel portfolio to 21 brands and more than 9,000 properties, and result in the spinoff of La Quinta’s owned real estate assets into the newly formed CorePoint Lodging Inc., which will hold the distinction of being the only pure-play, publicly traded REIT focused exclusively on midscale and upper-midscale lodging.
Wyndham Worldwide Inc. is about to make a big purchase—a $2 billion purchase. The global hospitality company has entered into a definitive agreement to acquire the hotel franchise and hotel management businesses of La Quinta Holdings Inc. in an all-cash deal.
The financial terms of the deal are multi-faceted. La Quinta stockholders will receive $8.40 per share for a total of $1 billion. Additionally, Wyndham will repay $715 million of La Quinta debt net of cash, and designate $240 million for estimated taxes related to the taxable spinoff of La Quinta’s owned real estate assets into CorePoint Lodging Inc. Financing is in place for the transaction, with Barclays and Deutsche Bank furnishing committed financing to Wyndham…
