The acquisition is expected to close in the second quarter of 2018, the companies said in a release.
MORE: West Chester restaurant property sells for $2.55M
Under the terms of the agreement, stockholders of La Quinta will receive $8.40 per share in cash (about $1 billion), 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 owed in connection with the taxable spin-off of La Quinta’s real estate assets.
Wyndham describes its hotel group as “the world’s largest and most diverse hotel business based on number of properties.”
MORE: Downtown Dayton's third tallest tower sells for $12.5 million
“With the acquisition of La Quinta’s asset-light, fee-for-service 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,” the company said.
“La Quinta will immediately become one of our flagship brands,” Geoff Ballotti, president and chief executive of Wyndham Hotel Group, said in the company’s announcement. “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.”
MORE: Racino revenues warm up in frigid weather
The transaction will close after the planned spin-off of La Quinta’s real estate assets.
About the Author