Wyndham to Buy La Quinta’s Franchise Business for $1 Billion (1)

Wyndham Worldwide Corp. agreed to buy La Quinta Holdings Inc.’s hotel franchise and management business for about $1 billion in cash, adding the brand to a lineup that includes Wyndham Grand, Days Inn, Ramada and Howard Johnson.

La Quinta shareholders will receive $8.40 a share in cash, and Wyndham will repay about $715 million of La Quinta’s debt, the companies said in a statement Thursday. Before the deal is completed, La Quinta will spin off its property assets into CorePoint Lodging Inc., a publicly traded real estate investment trust. Wyndham also will set aside a reserve of $240 million ...