Irving-based hotel owner CorePoint Lodging is being acquired for $ 1.5 billion in a joint venture between Highgate and Cerebrus Capital Management LP.
Highgate and Cerebrus will acquire all of the outstanding shares of CorePoint in a cash transaction for consideration of $ 15.65 per share. The deal is expected to close in the first quarter of 2022.
As part of the transaction, CorePoint’s shareholders could receive an additional payment per share if the company is able to complete an ongoing IRS review and settle with the agency for less than $ 160 million.
CorePoint was formed in a spin-off deal of more than 300 La Quinta hotel properties from La Quinta Holdings. That deal closed in 2018 and created a publicly traded real estate investment trust.
“Over the past several years, CorePoint has pursued a disciplined asset disposition strategy that has transformed the company’s portfolio and created significant value. This transaction continues our strategy of maximizing value and represents a compelling opportunity to deliver instant and secure cash value to our shareholders, ”said Keith Cline, President and CEO of CorePoint.
CorePoint announced in the summer that it was looking for strategic alternatives. The acquisition is the second major deal announced this week in the changing hotel sector in North Texas.
NewCrestImage recently sold a portfolio of 15 hotel properties in a $ 822 million deal with Austin-based real estate investment Trust Summit Hotel Properties Inc. It was one of the biggest hotel deals since the pandemic began.
CorePoint said it will not hold a conference call on third quarter results due to the pending deal with Highgate and Cerebrus.
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