CorePoint Lodging Is Being Acquired: What Does This Mean for Shareholders?

On Nov. 8, CorePoint Lodging (NYSE: CPLG) announced that it had agreed to be acquired. But there was a little bit of an unusual twist here. This is what you need to know about the deal, why shareholders might get another small payout, and why that still won't "make you whole." In the end, however, the bigger issue for investors is what this deal could mean for the larger hotel real estate investment trust (REIT) sector.

Affiliates of Highgate and Cerberus Capital Management are partnering up to buy CorePoint Lodging for $1.5 billion. It is an all-cash deal that will end up paying CorePoint investors $15.65 per share. With the stock currently trading $0.10 to $0.15 lower than that, investors have to decide whether they want to sell and move on to a new investment or stick around and collect the dime or so of extra cash. Only, it's not that easy.

Image source: Getty Images.

Source Fool.com