Wyndham Worldwide Corporation and La Quinta Holdings Inc announced today that they have entered into a definitive agreement under which Wyndham Worldwide will acquire La Quinta’s hotel franchise and hotel management businesses for US$ 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 and most diverse hotel business based on number of properties. 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 La Quinta Returns loyalty programme, with its 13 million enrolled members, will be combined with the award-winning Wyndham Rewards programme, with its 53 million enrolled members.
Stephen P. Holmes, chairman and chief executive officer of Wyndham Worldwide, said, “This transaction builds on Wyndham Worldwide’s proven track record of acquiring companies that are a strong strategic and cultural fit, add highly-regarded brands to our portfolio and offer clear opportunities to drive shareholder value through growth, shared best practices and sharp execution.”
“La Quinta will immediately become one of our flagship brands,” said Geoff Ballotti, president and chief executive officer of Wyndham Hotel Group. “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. We expect that La Quinta guests and franchisees will benefit from our intense focus on product quality and our best-in-class technology, digital, loyalty and distribution platforms. This acquisition also significantly expands our hotel management business and provides us with substantial new opportunities to drive increased growth in our business.”
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 into the separate entity.