(Bloomberg) -- CorePoint Lodging Inc., which owns about 160 hotels, is being acquired by a joint venture between affiliates of Highgate and Cerberus Capital Management in a deal valued at roughly $1.5 billion.
Highgate and Cerberus will pay $15.65 a share, a premium of about 42% to the company’s closing price on July 13. That was the last day it traded before announcing it would look for strategic alternatives, according to a statement Monday.
The shares plunged plunged 12% to $15.56 on Monday. CorePoint, which primarily owns La Quinta-branded hotels, closed Friday at $17.76.
The agreement is expected to close in the first quarter of 2022. Affiliates of Blackstone Inc., which own about 30% of the CorePoint’s total shares outstanding, have agreed to vote in favor of the deal, according to the statement.
CorePoint has been selling hotels since being spun off of La Quinta Holdings in 2018. In July, the company said it was exploring strategic alternatives.
