Topic: How To Invest

Spinoffs, Takeovers & Special Situations Hotline – Friday, January 19, 2018

Article Excerpt

WYNDHAM WORLDWIDE CORP., $126.99, symbol WYN on New York, will now buy the hotel franchise and management businesses of LA QUINTA HOLDINGS INC., $20.18, symbol LQ on New York, for $1.95 billion in cash. Wyndham will formally acquire La Quinta’s hotel franchise and management business only after La Quinta spins off its real-estate assets as CorePoint Lodging Inc. La Quinta CEO Keith Cline will then lead the new separately listed CorePoint. Under the Wyndham agreement, La Quinta shareholders will receive $8.40 a share. As part of the La Quinta spinoff, they will also get the shares of CorePoint Lodging. After that split, CorePoint will own 316 hotels with 40,500 rooms in 41 states. It will focus exclusively on midscale and upper-midscale hotels. A total of 32% of its rooms will be in the top 25 U.S. markets. Overall, 72% of its rooms are in the suburbs or near airports. La Quinta will add the management of 900 hotels to Wyndham’s portfolio, and La Quinta…

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