PARSIPPANY, NJ—Wyndham Worldwide Corp. said Thursday it would acquire La Quinta Holdings' hotel franchise and hotel management businesses for $1.95 billion in cash. The acquisition is expected to close in the second quarter.

In connection with the acquisition, La Quinta will spin off its 315 owned assets into a publicly traded REIT, CorePoint Lodging. Keith Cline, currently CEO of La Quinta, has been named president and CEO of CorePoint, an appointment that will take effect when the spin-off is complete.

Wyndham's chairman and CEO, Stephen Holmes, says the deal builds on his company's “proven track record of acquiring companies that are a strong strategic and cultural fit, add highly-regarded brands to our portfolio and offer clear opportunities to drive shareholder value through growth, shared best practices and sharp execution.” The deal will add nearly 900 midscale locations flying the La Quinta flag to Wyndham's portfolio. At La Quinta, Cline says, “The separation of our businesses is enabling greater strategic clarity and allowing our company to take advantage of growth opportunities that naturally flow from each business model.”