La Quinta is purchasing real estate and franchise rights plusassuming the operation of the Marcus-owned properties and theBaymont franchise system. The buyout includes 86 Baymont Inns &Suites and one management pact, seven Woodfield Suites, oneBudgetel brand, and Baymont's 84-hotel franchise network with 7,074rooms. Half of the assets are in the Midwest. La Quinta secured a$150-million financing commitment to close the deal.

In a press release, Francis W. Cash, La Quinta president, saysthe like cultures, in-place management strategies and similarsurvival techniques in recent years will aid in the transition."The current management team has done a great job of investing intheir hotels and employees throughout the difficult lodgingenvironment of the last few years," Cash says of the Baymonthierarchy. "As a result, Baymont is a strong brand positioned forgrowth. ... La Quinta runs an 18% RevPAR premium to Baymont. Webelieve we can help Baymont grow its revenues."

Cash and the La Quinta team are eyeing the prospects frombeefing up the franchise network, which the Dallas-based hotelgroup put into play in 2001. La Quinta's franchise system now has100 hotels and plans to add at least 50 per year. The Baymont brandis positioned to add upward of 25 hotels per year, he says.