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Why is Wyndham buying La Quinta?

How This Deal Happened. Wyndham Hotel Group, as the company demonstrated last year with its $170 million acquisition of AmericInn, is eager to grow its midscale business, and La Quinta has been open to buyers for some time and to pursue the kind of scale that's needed to power the growth of its brand.



This query refers to a major acquisition completed in 2018, where Wyndham Worldwide purchased La Quinta Holdings for $1.95 billion in cash. The primary reason for this deal was to create a dominant powerhouse in the "midscale" hotel segment. By adding La Quinta’s 900+ properties, Wyndham significantly expanded its footprint in high-traffic urban and suburban locations across the United States. Furthermore, the acquisition allowed Wyndham to integrate the "La Quinta Returns" loyalty members into its own Wyndham Rewards program, which in 2026 is one of the largest and most valuable loyalty ecosystems in the hospitality industry. The deal was also a "strategic simplification"; it allowed La Quinta to spin off its real estate assets into a separate entity (CorePoint Lodging) while Wyndham took over the high-margin "franchise and management" side of the business. For travelers, this means you can now earn and redeem points at La Quinta hotels just as you would at a Ramada or Days Inn, providing a level of brand consistency and "points-earning" power that was a primary driver for the multi-billion dollar price tag.

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The Travel + Leisure acquisition will result in Wyndham Destinations becoming the Travel + Leisure Co. The name change is a further signal the company wants to tap into new market segments that may not have been possible under its current brand.

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The split will enable the companies to maintain a sharper focus on its core business and growth opportunities and ease capital raising, Wyndham said. Wyndham shareholders will be given shares in the newly created hotel company through a pro rata distribution.

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The Hotel got its name when neighboring rancher Raymond Pedersen told Mr. Morgan about a hacienda in Mexico called La Quinta. The Hotel includes swimming pools surrounded by cozy casitas, tennis courts, and two golf courses. In 1993, the La Quinta Hotel Golf & Tennis Club was renamed The La Quinta Resort & Club.

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Based on the latest financial disclosure, Wyndham Hotels Resorts has a Probability Of Bankruptcy of 1.0%. This is 97.58% lower than that of the Hotels, Restaurants & Leisure sector and 97.15% lower than that of the Consumer Discretionary industry.

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On Feb. 17, 2021, our parent company was renamed Travel + Leisure Co. and made its debut as the world's leading membership and leisure travel company, with a portfolio of nearly 20 resort, travel club, and lifestyle travel brands. A link to a press release with more details is available here.

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Wyndham Group Hotels and Resorts has the most number of locations with 6,068 locations across 51 states and territories. Choice International Group Hotels has 6,054 and Marriott Group Hotels & Resorts has 5,779 locations in the US. These three together make 47.89% of the largest 10 hotels in the US.

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Known for its laid back, California roots, Travelodge by Wyndham is a brand for value-focused travelers looking for quality amenities and a good night's sleep. Friendly service and affordable rates ensure that guests are rested and refueled for before they head back out into the world.

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Over half of Wyndham's revenues are marketing and reservation fees which Wyndham is contractually obligated to spend in support of franchisees. These revenues have no impact on EBITDA or free cash flow. Stripping them out, Wyndham sports a 70% margin.

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