FAIRFIELD, Conn.--(BUSINESS WIRE)--GE (NYSE:GE) has completed the previously announced sale of GE Capital’s Franchise Finance U.S. hotel business to Western Alliance Bank, a wholly owned subsidiary of Western Alliance Bancorporation (NYSE: WAL). The sale includes approximately $1.3 billion in ending net investment (ENI) and the majority of the hotel business employees. The business provides real estate financing to owners of limited service hotel properties.
“We continue to make strong progress on closing our previously announced sales as we work to divest the majority of GE Capital assets,” said Keith Sherin, GE Capital chairman and CEO. “We wish our Franchise hotel business employees all the best as they transition to Western Alliance.”
Today’s closing releases approximately $0.2 billion of capital. GE Capital believes it is on track to deliver about $35 billion of dividends to GE under this plan, subject to regulatory approval.
As previously announced, GE is focusing on its high-value industrial businesses and is selling most GE Capital assets. GE will retain the financing verticals that relate directly to GE’s industrial businesses. The total closed transactions to date are now approximately $148 billion in ENI and signed agreements have reached more than $166 billion of the more than $200 billion in ENI that GE Capital plans to sell.
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