CorePoint Lodging Inc. Announces Completion of Spin-Off From La Quinta Holdings
May 31 2018 - 5:30AM
CorePoint Lodging Inc. (NYSE:CPLG) ("CorePoint") today announced
the completion of its spin-off from La Quinta Holdings Inc. (“La
Quinta”) into a stand-alone public company that holds a
geographically diverse portfolio of 316 hotels that were previously
owned by La Quinta. CorePoint elected to become a real estate
investment trust (REIT), effective following the completion of the
spin-off.
CorePoint will begin "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
& Chief Executive Officer, will ring 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,” said Mr. Cline. “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®
(NYSE:WYN). La Quinta also effected a previously-announced 1-for-2
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.
ABOUT COREPOINT LODGING INC.CorePoint Lodging
Inc. is the only pure-play publicly-traded U.S. REIT strategically
focused on select-service midscale and upper-midscale lodging.
CorePoint Lodging owns a geographically diverse portfolio of 316
hotels and more than 40,000 rooms across 41 states in attractive
locations primarily in or near employment centers, airports and
major travel thoroughfares. For more information, please visit
CorePoint’s website at
www.corepoint.com.
FORWARD-LOOKING STATEMENTS This press release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, the Private
Securities Litigation Reform Act of 1995, and Section 21E of the
Securities Exchange Act of 1934, as amended. You can identify these
forward-looking statements by the use of words such as "outlook,"
"believes," "expects," "potential," "continues," "may," "will,"
"should," "could," "seeks," "projects," "predicts," "intends,"
"plans," "estimates," "anticipates" or the negative version of
these words or other comparable words. Such forward-looking
statements are subject to various risks and uncertainties,
including, among others, risks inherent to the lodging industry,
macroeconomic and other factors beyond CorePoint’s control,
CorePoint’s concentration in the La Quinta brand and dependence on
third-party hotel managers and franchisors, our significant
investments in real estate, the growth of internet reservation
channels, and our substantial indebtedness. Additional
factors that could cause CorePoint’s results to differ materially
from those described in the forward-looking statements can be found
under "Risk Factors" in CorePoint’s Registration Statement on Form
10 filed with the Securities and Exchange Commission (“SEC”) on May
7, 2018, as such factors may be updated from time to time in
periodic filings with the SEC, which are accessible on the SEC's
website at www.sec.gov. Accordingly, there are or will be important
factors that could cause actual outcomes or results to differ
materially from those indicated in these statements. These factors
should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are included
in this press release and in CorePoint’s filings with the SEC.
CorePoint undertakes no obligation to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as required by law.
Media & Investor Contact:Kristin Hays(214)
501-5632investorrelations@corepoint.com
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