Wyndham To Buy La Quinta's Franchise And Management Businesses - Quick Facts

(RTTNews) - Wyndham Worldwide Corp. (WYN) and La Quinta Holdings Inc. (LQ) announced a definitive agreement under which Wyndham Worldwide will acquire La Quinta's hotel franchise and hotel management businesses for $1.95 billion in cash. Stockholders of La Quinta will receive $8.40 per share in cash (approximately $1.0 billion in aggregate), and Wyndham Worldwide will repay approximately $715 million of La Quinta debt net of cash and set aside a reserve of $240 million for estimated taxes expected to be incurred in connection with the taxable spin-off of La Quinta's owned real estate assets into CorePoint Lodging Inc.

Immediately prior to the sale, La Quinta will spin off its owned real estate assets into a publicly-traded real estate investment trust, CorePoint Lodging. La Quinta also announced that Keith Cline has been appointed President and CEO of CorePoint Lodging effective upon completion of the planned spin-off.

With the acquisition of La Quinta's business consisting of nearly 900 managed and franchised hotels, Wyndham Hotel Group will span 21 brands and over 9,000 hotels across more than 75 countries. Wyndham noted that its planned spin-off of Wyndham Hotel Group remains on track for an expected distribution in the second quarter of 2018.