Hotel operator Wyndham Worldwide is back on the acquisition trial with plans announced to buy the La Quinta portfolio.
Wyndham said it would acquire La Quinta’s hotel operations for $1.95 billion which has nearly 900 locations in the mid-scale, upper mid-scale and economy segments.
Shares in both companies climbed on the news.
It will give Wyndham Hotel Group a total of 21 brands across 9,000 hotels once the deal closes.
La Quinta is one of the largest midscale brands in the US.
The 13 million La Quinta Returns loyalty members will get access to Wyndham Rewards when the two programs combine.
"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," said Stephen P. Holmes, Chairman and chief executive officer of Wyndham Worldwide.
Keith Cline, President and Chief Executive Officer of La Quinta said: We believe that under the management of Wyndham’s seasoned team of executives, the La Quinta portfolio will grow and thrive, yielding long-term benefits to the stakeholders of both companies."
Wyndham Worldwide additionally said its planned spin-off of Wyndham Hotel Group remains on track for the second quarter of 2018.
