March 29 (Reuters) - General Electric (NYSE:GE) Co GE.N said it had
agreed to sell GE Capital's U.S. hotel franchise loan portfolio
to a unit of Western Alliance Bancorp WAL.N .
The business, which includes outstanding loans of about $1.4
billion, provides real estate financing to owners of limited
service hotels.
GE said it would also sell to an unnamed buyer its business
that provides financing to Canada's hospitality and restaurant
industries. The unit has about $300 million of loans.
GE said it would gain about $200 million from the deals,
which are expected to close in the second quarter.
Both the businesses represent a large part of GE Capital's
franchise finance unit, which is the last North American
business to be sold as part of a plan to cut down the size of GE
Capital, GE said.
The deal is expected to immediately add to Western
Alliance's earnings, the bank said in a separate statement.