WYNDHAM HOTEL GROUP’S $1.95 billion acquisition of La Quinta Inns & Suites is on track to close on May 30.
La Quinta’s board of directors on May 8 approved the stock split and subsequent spinoff of La Quinta Holdings’ owned assets into a lodging REIT called CorePoint Lodging Inc.
Keith Cline, CEO of La Quinta Holdings Inc., will be the CEO of CorePoint Lodging.
The stock split is to occur on May 18, according to information filed on May 8 with the U.S. Securities and Exchange Commission. Every shareholder will receive $8.40 in cash per share – or $16.80 in cash per share after the 1-for-2 reverse stock split.
The Wyndham acquisition and the spinoff of CorePoint Lodging will occur on May 30.
After the split, CorePoint Lodging will officially become its own entity – a franchisee of more than 300 La Quinta-branded hotels. It will begin trading on the New York Stock Exchange on May 31 under the ticker symbol CPLG.
On April 26, La Quinta shareholders approved the spinoff, the stock split and the pending merger with Wyndham of La Quinta’s franchising and management business.
At the end of 2017, La Quinta had 902 hotels opened, mostly in the U.S. Of those, 585 are franchised properties, with Asian Americans comprising the most owners.
Documents filed with the SEC show La Quinta shopped for the best buyer for its brand, saying it favored Wyndham Hotel Group from among three suitors after it heard how Wyndham CEO Geoff Ballotti planned to position La Quinta in its brand portfolio. Wyndham has said it will make La Quinta its flagship brand.
In related news, Wyndham Worldwide this month will execute a spinoff of its own. Stockholders of Wyndham Worldwide are scheduled to meet on May 17 to elect members to its board of directors.
This meeting will be held before the planned spin-off of Wyndham Worldwide into two separate companies, Wyndham Hotels & Resorts Inc., the hotel business, and Wyndham Destinations Inc., a combination of the company’s timeshare division and its vacation exchange.
Wyndham Worldwide said the split will take place in the second quarter of this year.
After the split, some of the newly elected board members will join newly appointed directors on the boards that will oversee Wyndham Hotels & Resorts and Wyndham Destinations.