Wyndham said Thursday that the investment will push the hotel further into the upper-midscale segment.
Before the deal is closed, La Quinta Holdings, based in Irving, Texas, will spin off real estate assets into a publicly traded real estate investment trust (REIT) called CorePoint Lodging.
La Quinta shareholders will receive $8.40 per share. The deal also includes a $240 million reserve for estimated taxes expected for the CorePoint Lodging spinoff. Wyndham Worldwide, based in Parsippany, New Jersey, will also repay about $750 million in debt held by La Quinta.
The sale is targeted to close in the second quarter, if approved by La Quinta shareholders. The company's shares leaped nearly 12 percent in Thursday premarket trading, rising $2.31 to $21.76. Wyndham shares were also up, by 2.5 percent, or $2.87, to $120.