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 more than 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 Wyndham Rewards programme, with its 53 million enrolled members.
Stephen P. Holmes, chairman and chief executive 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.”
Geoff Ballotti, president and chief executive, said: “La Quinta will immediately become one of our flagship brands. 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.”
Keith Cline, president and chief executive of La Quinta, added: “As we anticipated, the separation of our businesses is enabling greater strategic clarity and allowing our company to take advantage of growth opportunities that naturally flow from each business model. “
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.
Closing is subject to approval by La Quinta stockholders, regulatory and government approval and the satisfaction of other customary closing conditions.
