Wyndham Closes $1.95B La Quinta Acquisition
The spinoff of some of La Quinta’s properties, CorePoint Lodging, has begun trading on the NYSE.
PARSIPPANY, NJ–Wyndham Hotels & Resorts’ previously announced $1.95 billion acquisition of La Quinta Holdings‘ hotel franchising and hotel management business has closed. The resulting spinoff, CorePoint Lodging, will begin trading on the New York Stock Exchange today under the ticker symbol “CPLG.” The REIT is focused on the midscale and upper-midscale select service segments.
The transaction adds more than 900 of La Quinta’s franchised hotels to Wyndham’s portfolio. CorePoint’s portfolio holds 316 hotels previously owned by La Quinta. Keith Cline, CEO of La Quinta, is the president and CEO of CorePoint.
Wyndham funded the acquisition with proceeds from its $500 million offering of 5.375% senior notes that are due in 2026 and a $1.6 billion term loan due 2025.
CorePoint Lodging and La Quinta were provided financial advice by J.P. Morgan. Simpson Thacher & Bartlett LLP is acting as legal advisor to CorePoint and La Quinta.