The parent company of Super 8, Days Inn, and Ramada has added another well known hotel name to its portfolio.
Wyndham Worldwide (WYN) has purchased La Quinta for $1.95 billion. The acquisition of the 900-location hotel chain will bring Wyndham’s worldwide portfolio to over 9,000 hotels.
“La Quinta (LQ) will immediately become one of our flagship brands,” said Geoff Ballotti, president and chief executive officer of Wyndham Hotel Group. “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. … This acquisition also significantly expands our hotel management business and provides us with substantial new opportunities to drive increased growth in our business.”
The deal, which is expected to close in the second quarter of this year, sent shares of both companies higher in early trading.
The second quarter will be a busy one for Wyndham. The company also plans to spin off its hotel unit into a new publicly traded company at that time,