PARSIPPANY, N.J. (AP) — Wyndham is buying the Texas-based La Quinta hotel franchise and management businesses for $1.95 billion in cash.

Wyndham said Thursday that the investment will push the hotel further into the upper-midscale segment.

READ MORE: State Fair Taking Extra Measures To Keep Guests Safe

La Quinta Inn & Suites DFW Airport North. (credit:

Before the deal is closed, La Quinta Holdings Inc., based in Irving, will spin off real estate assets into a publicly traded real estate investment trust called CorePoint Lodging.

READ MORE: Officials: Man Suspected Of Making Threats Against Texas Lawmakers Arrested

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 Corp., 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.

MORE NEWS: State Fair Offers Hundreds Of Free Acts, Shows And Exhibits

(© Copyright 2018 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)