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La Quinta Holdings filed a Form 10 Registration Statement at the end ofJuly with the U.S. Securities and Exchange Commission to begin the process of spinning off its real estate business into a separate entity. La Quinta's new business will be a real estate investment trust operating under the name CorePoint Lodging, and will be independent of La Quinta's franchise and management business.
Once active, CorePoint will initially consist of 316 properties with approximately 40,500 rooms. The spinoff of La Quinta's real estate business was hinted at in January, with Keith Cline, president and CEO of La Quinta, saying at the time that the move was being taken in part to maximize the company's value. In an investor call, Cline said La Quinta has already received pre-clearance from the Securities and Exchange Commission for the spinoff.
"This new La Quinta will be a market-leading, asset-light, fee-based franchise and management business that expects to capitalize on the growth opportunity with a large and growing pipeline and strong interest from developers to develop the La Quinta brand into new markets...