Highgate and Cerberus’ $1.5 Billion Acquisition of CorePoint Lodging

Simpson Thacher represented CorePoint Lodging in the transaction. Kirkland & Ellis and Latham & Watkins advised the joint venture between Cerberus Capital Management, L.P. and affiliates of Highgate.

CorePoint Lodging Inc. (NYSE: CPLG) (“CorePoint”), announced its proposed acquisition by a joint venture between affiliates of Highgate and Cerberus Capital Management, L.P., for $15.65 in cash per share in a transaction valued at approximately $1.5 billion. The transaction is subject to customary closing conditions, including the approval of CorePoint’s stockholders, and is currently expected to close in the first quarter of 2022.

CorePoint is a pure-play publicly traded U.S. lodging REIT focused on the ownership of midscale and upper-midscale select-service hotels, with a portfolio consisting primarily of La Quinta branded hotels. Highgate is a leading real estate investment and hospitality management company with a 30-year track record as an investment manager, operating partner and developer for REITs, private equity firms, sovereign wealth funds and other investors. Cerberus is a global leader in alternative investing.

The Simpson Thacher team included Eric Swedenburg (Picture), Jakob Rendtorff, Chelsea Penther and Kevin Perron (M&A); David Rubinsky, Jeannine McSweeney, Laura Gallo and Jeffrey Penn (Executive Compensation and Employee Benefits); Sas Mehrara, Whitney Salinas, Steven Stickler, Jason Mohr and Brendan Galloway (Real Estate); Brian Gluck and Leah Nudelman (Credit); Edgar Lewandowski and Arielle Katzman (Capital Markets); Drew Purcell and Brian Mendick (Tax); Peter Guryan, Kelly Karapetyan and Nick Ingros (Antitrust); Adeeb Fadil and Tim Mulvihill (Environmental); and Lori Lesser (Intellectual Property).

The Kirkland team was led by real estate partners Andrew Small, Richard Grossmann, Jonathan Schechter and Travis Fleming, corporate partners David Klein and Michael Brueck, and tax partner Mike Beinus. 

Latham & Watkins LLP represented Highgate and Cerberus in the transaction with a corporate team led by Chicago partners Gary Axelrod and Jonathan Solomon and Los Angeles partners Brad Helms and Meghan Cocci, with associates Megan Staub, Tara Nair, John Jefferson, and Sophia Popovic. Advice was also provided on tax matters by Los Angeles partners Pardis Zomorodi; on benefits & compensation matters by Los Angeles partner David Taub and Chicago partner Nineveh Alkhas, with associate Vanessa King; on insurance matters by Los Angeles partner Drew Levin and San Diego partner Drew Gardiner; on litigation matters by Los Angeles partner Joshua Hamilton with associate Chandler Howell; on antitrust matters by Washington, D.C. counsel Peter Todaro; and on environmental regulation and transaction matters by Chicago partner Karl Karg.

Involved fees earner: Michael Beinus – Kirkland & Ellis; Michael Brueck – Kirkland & Ellis; Travis Fleming – Kirkland & Ellis; Richard Grossmann – Kirkland & Ellis; David Klein – Kirkland & Ellis; Jonathan Schechter – Kirkland & Ellis; Andrew Small – Kirkland & Ellis; Nineveh Alkhas – Latham & Watkins; Gary Axelrod – Latham & Watkins; Meghan Cocci – Latham & Watkins; Drew Gardiner – Latham & Watkins; Joshua Hamilton – Latham & Watkins; Bradley Helms – Latham & Watkins; Chandler Howell – Latham & Watkins; John Jefferson – Latham & Watkins; Karl Karg – Latham & Watkins; Vanessa King – Latham & Watkins; Drew Levin – Latham & Watkins; Tara Nair – Latham & Watkins; Sophia Bairaktaris Popovic – Latham & Watkins; Jonathan Solomon – Latham & Watkins; Megan Staub – Latham & Watkins; David Taub – Latham & Watkins; Peter Todaro – Latham & Watkins; Pardis Zomorodi – Latham & Watkins; Adeeb Fadil – Simpson Thacher & Bartlett; Laura Gallo – Simpson Thacher & Bartlett; Brendan Galloway – Simpson Thacher & Bartlett; Brian Gluck – Simpson Thacher & Bartlett; Peter Guryan – Simpson Thacher & Bartlett; Nicholas Ingros – Simpson Thacher & Bartlett; Jakob Rendtorff – Simpson Thacher & Bartlett; Kelly Karapetyan – Simpson Thacher & Bartlett; Arielle Katzman – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; Edgar Lewandowski – Simpson Thacher & Bartlett; Jeannine McSweeney – Simpson Thacher & Bartlett; Sasan Mehrara – Simpson Thacher & Bartlett; Brian Mendick – Simpson Thacher & Bartlett; Jason Mohr – Simpson Thacher & Bartlett; Leah Nudelman – Simpson Thacher & Bartlett; Jeffrey Penn – Simpson Thacher & Bartlett; Chelsea Penther – Simpson Thacher & Bartlett; Kevin Perron – Simpson Thacher & Bartlett; Andrew Purcell – Simpson Thacher & Bartlett; David Rubinsky – Simpson Thacher & Bartlett; Whitney Salinas – Simpson Thacher & Bartlett; Steven Stickler – Simpson Thacher & Bartlett; Eric Swedenburg – Simpson Thacher & Bartlett;

Law Firms: Kirkland & Ellis; Latham & Watkins; Simpson Thacher & Bartlett;

Clients: Cerberus Capital Management, L.P.; CorePoint Lodging; Highgate Capital Investments;