This $1.5 Billion Deal Signals a Major Hotel Brand Trend
Photo Credit: CorePoint Lodging's portfolio is largely comprised of La Quinta-branded hotels. Wyndham Hotels & Resorts
Skift Take
Wyndham’s move to terminate its management contracts with an acquired CorePoint has significant implications around where major companies want to focus their resources in a post-pandemic hotel environment.
A joint venture between investment firms Highgate and Cerberus Capital Management plan to buy CorePoint Lodging, a lodging trust with a significant presence in the affordably priced hotel segment, for $1.5 billion.
But a move from Wyndham Hotels & Resorts is the play to keep an eye on in this closely watched potential acquisition. CorePoint’s portfolio is largely comprised of La Quinta hotels spun out into an independent lodging trust after Wyndham acquired the brand and its franchise and management operations in 2018.
Wyndham announced this week it would sever its management agreements with the new entity should the deal close, potentially in the first quarter of next year. That push adds to an ongoing initiative at the hotel company to move away from lower-profit revenue streams.
“The termination of these management contracts will mark our exit from the lower margin, resource-intensive, select-service management business and afford us the opportunity to foc
