August 1, 2017
Irving, TX-based La Quinta Holdings Inc. is separating into a new REIT named CorePoint Lodging Inc. The transaction is expected to close by early 2018. Blackstone Group LP affiliates own roughly 27% of La Quinta’s public stock.
CorePoint will own and operate 316 select-service hotels, and La Quinta will continue to manage the brand and franchise business. La Quinta’s portfolio includes 886 owned and franchised upper-mid and mid-scale hotels, with roughly 87,500 rooms and a pipeline of 249 additional lodgings.
CorePoint will pay a management fee of 5% of gross hotel revenues in return for day-to-day hotel management, and a royalty fee of 5% of gross hotel room revenues. CorePoint can focus on maximizing portfolio operations, and growing via franchise opportunities with La Quinta and other brands. La Quinta is expected to benefit since it will be freed up from the cash requirements of owning and operating hotels.
For comments, questions or concerns, please contact Dennis Kaiser