Wyndham Worldwide Corporation and La Quinta Holdings Inc. have entered into a definitive agreement under which Wyndham Worldwide will acquire La Quinta's hotel franchise and hotel management businesses for $1.95 billion in cash. The acquisition is expected to close in the second quarter of 2018.
Wyndham's Hotel Group is the world's largest hotel business based on number of properties. With the acquisition of La Quinta's asset-light 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.
According to Wyndham, the addition of La Quinta, one of the largest midscale brands in the industry, will build upon Wyndham Hotel Group's strong midscale presence and expand its reach further into the fast-growing upper-midscale segment. The La Quinta Returns loyalty program, with its 13 million enrolled members, will be combined with the 53 million member Wyndham Rewards program.
"La Quinta will immediately become one of our flagship brands," said Geoff Ballotti, president and CEO of Wyndham Hotel Group. "It is an exceptionally strong brand that is led by service-minded associates.”
The transaction, which has been approved by the boards of directors of both companies, is expected to close upon the completion of the planned spin-off of La Quinta's owned real estate assets. Closing is subject to approval by La Quinta stockholders, regulatory and government approval and other closing conditions.
Barclays is acting as exclusive financial advisor and Kirkland & Ellis LLP is acting as legal advisor to Wyndham Worldwide. Barclays and Deutsche Bank are providing committed financing to Wyndham Worldwide.
J.P. Morgan is acting as exclusive financial advisor and Simpson Thacher & Bartlett LLP is acting as legal advisor to La Quinta. J.P. Morgan is providing committed financing to CorePoint Lodging.
