Wyndham Worldwide Corporation (NYSE: WYN) today announced that its subsidiary, Wyndham Hotels & Resorts, has completed its previously announced acquisition of La Quinta Holdings’ hotel franchising and hotel management business.
The addition of La Quinta’s over 900 franchised hotels with a total of nearly 89,000 rooms builds Wyndham Hotels & Resorts’ midscale presence and expands its reach further into the upper-midscale segment of the lodging industry.
Wyndham Hotels & Resorts is the world’s largest hotel franchising company based on number of properties and will become an independent public company (NYSE: WH) when it is spun-off from Wyndham Worldwide after the market close on May 31. Wyndham Hotels & Resorts now operates a portfolio of 20 lodging brands with nearly 9,000 franchised hotels across more than 80 countries and six continents, and is a leading provider of hotel management services.
La Quinta’s loyalty program, La Quinta Returns®, which includes approximately 15 million enrolled members, will be combined in the coming months with the award-winning Wyndham Rewards® program, which includes over 56 million enrolled members. As a result, La Quinta guests and franchisees will soon benefit from Wyndham Hotels & Resorts’ intense focus on product quality, state-of-the-art technology solutions and a loyalty program widely regarded as the most generous in the industry.
Wyndham Hotels & Resorts funded the $1.95 billion acquisition of La Quinta with proceeds from its $500 millionoffering of 5.375% senior notes due 2026 completed in April and a $1.6 billion term loan due 2025 that closed in connection with the acquisition.
Prior to Wyndham Hotels & Resorts’ acquisition of La Quinta’s hotel franchising and hotel management business, La Quinta completed its spin-off of CorePoint Lodging Inc. (NYSE: CPLG), a publicly traded real estate investment trust that owns 316 La Quinta hotels.
May 31, 2018