ONE COMPANY WAS absorbed and another was born when Wyndham Hotel Group on May 30 completed its acquisition of La Quinta Inns & Suites franchising and management business.
La Quinta Holdings Inc., the Texas-based parent of La Quinta Inns & Suites, is no more.
Newly formed in a spinoff is CorePoint Lodging Inc., a REIT that owns more than 300 La Quinta hotels. CorePoint is now Wyndham Hotel Group’s largest franchisee.
The REIT is publicly traded and celebrated its birth on May 31 by ringing the opening bell at the New York Stock Exchange. Its ticker is CPLG.
“Today we are excited to announce the creation of CorePoint Lodging, the only publicly traded U.S. lodging REIT strategically focused on serving the midscale and upper-midscale select service segments,” said Keith Cline, previously CEO of La Quinta Holdings, and now CEO of CorePoint Lodging.
With him at the NYSE opening were other former leaders at La Quinta who have crossed over to CorePoint, including Mit Shah, previously chairman of La Quinta’s board of directors and now chairman of CorePoint Lodging’s board. Shah is CEO of Noble Investment Group in Atlanta.
Wyndham Worldwide also announced the closing on May 30 of Wyndham Hotel Group’s $1.95 billion purchase of La Quinta’s franchise and management business. The deal adds more than 900 franchised hotels with nearly 89,000 rooms to Wyndham’s franchise portfolio and gives it a footprint in the upper-midscale segment of the U.S. lodging industry.
Wyndham now owns a portfolio of 20 lodging brands. It sold its Knights Inn economy brand to Red Lion Hotels Corp. last month.
Wyndham Hotel Group will not be part of Wyndham Worldwide much longer as it, too, will undergo a spinoff of its own at close of business today.
On June 1, it will trade on the NYSE as Wyndham Hotels & Resorts Inc., ticker WH. Geoffrey Ballotti, CEO of Wyndham Hotel Group, will continue in his role with the new company.
Wyndham Worldwide’s time share and vacation ownership business will be named Wyndham Destination and will also trade on NYSE beginning June 1.