The group strongly reenforces its offer on the midscale segment with the acquisition of La Quinta's 87,500 rooms.
Wyndham worldwide offered $ 1.95 billion in cash to acquire the franchise and management of La Quinta's hotels. Mostly located in the USA, the company also operates properties in Canada, Honduras and Mexico. With this external growth, Wyndham hotel group will become third hotel group worldwide in terms of rooms, surpassing IHG.
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."
Geoff Ballotti, President and Chief Executive Officer of Wyndham Hotel Group adds: "La Quinta will immediately become one of our flagship brands." "This acquisition also significantly expands our hotel management business and provides us with substantial new opportunities to drive increased growth in our business."
La Quinta is simultaneiously selling its properties to the real-estate investment trust Core Point Lodging.
As of January 1, 2017, Wyndham Hotel group ranked 4th hotel group worldwide with 8,035 properties totaling over 697,600 rooms, according to data published by Hospitality ON.