La Quinta Holdings Files Paperwork To Proceed With REIT Spinoff

In a move that will divide its real estate assets from its corporate and franchise business, La Quinta Holdings has filed documents with the Securities and Exchange Commission to spin off its real estate business into a REIT, creating two separate publicly traded companies.

The Irving, Texas-based hotel company confirmed these plans Thursday after mentioning to analysts the possibility of a spinoff in January. The REIT will be named CorePoint Lodging Inc., CoStar reports. Should the spinoff go through as planned, CoStar writes that CorePoint would be the only publicly traded REIT solely dedicated to the mid- to high-end select-service segment.

The REIT will have a portfolio of 316 hotels, or 40,500 rooms throughout the country, 32% of which are in the top 25 markets, as defined by STR.

“We’ve thought about how to really provide an opportunity for the business, to potentially maximize value,” La Quinta Holdings CEO Keith Cline said to analysts in January, according to the Dallas Business Journal. “As we’ve always said, management, the board and this team is open to all ideas that we feel will maximize value and create a catalyst for the business.”

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