IRVING, Texas—CorePoint Lodging Inc. today announced the completion of its spin-off from La Quinta Holdings Inc. into a stand-alone public company. The real estate investment trust (REIT) now holds a geographically diverse portfolio of 316 hotels that were previously owned by La Quinta.
CorePoint began “regular way” trading on the New York Stock Exchange (NYSE) today, May 31, 2018, under the ticker symbol “CPLG.” To honor the occasion, Keith Cline, CorePoint president and chief executive officer, rang the NYSE Opening Bell.
“Today we are excited to announce the creation of CorePoint Lodging, the only publicly traded U.S. lodging REIT strategically focused on serving the midscale and upper-midscale select service segments,” Cline said. “We believe CorePoint is well-positioned within its segment and has imbedded growth opportunities for value creation in the near and long term. In addition, CorePoint’s experienced leadership team is strategically focused on proactive asset management, value-enhancing investments, disciplined capital allocation, and maintaining a solid balance sheet and conservative capital structure, which we believe will position CorePoint to generate premium long-term total returns for our stockholders.”
Upon completion of the spin-off, La Quinta’s remaining franchise and management business was acquired by Wyndham Worldwide. La Quinta also effected a previously-announced one-for-two reverse stock split, prior to the close of the transaction.
CorePoint Lodging and La Quinta were provided financial advice by J.P. Morgan. Simpson Thacher & Bartlett LLP is acting as legal advisor to CorePoint and La Quinta.