CorePoint Lodging on Monday said it agreed to be acquired by affiliates of real estate investment and hospitality management company Highgate and private-equity firm Cerberus Capital Management in a deal worth about US$1.5 billion.
The Irving, Texas, hotel owner said the Highgate/Cerberus venture will pay US$15.65 a share in cash, nearly 12% below Friday’s closing price of $17.76 but a roughly 42% premium to its closing price of US$11.04 on July 13, before it announced that it was exploring strategic alternatives.
CorePoint said the US$1.5 billion transaction value includes the assumption of debt and a US$160 million reserve for to the pending resolution of an Internal Revenue Service proceedings related to an audit that began prior to its 2018 spinoff from La Quinta Holdings Inc.
Separately, Wyndham Hotels & Resorts Inc. on Monday said it has reached an agreement with CorePoint on the termination of all remaining hotel-management agreements upon completion of the Highgate/Cerberus deal, slated for the first quarter of 2022.
Wyndham said it will receive termination fees of about US$84 million, adding that it expects related franchise agreements will remain in place at the current fee structure.