GE Capital revealed it is selling both the U.S. and Canadian operations of its Franchise Finance business.
The U.S. hotel side of Franchise Finance provides real estate financing to owners of limited-service hotel properties, and will be acquired by Western Alliance Bank, a wholly-owned subsidiary of Western Alliance Bancorporation of Phoenix. This sale includes a reported $1.4 billion in ending net investment and a majority of the hotel business' employees. The purchase price for this transaction was not disclosed.
The buyer of GE's Canadian Franchise Finance business was also not disclosed. The transaction represents roughly $300 million in ENI. The business primarily provides financing to Canadian hotels and restaurants.
Both transactions are expected to close in the second quarter.