Choice Hotels goes hostile in Wyndham takeover battle

The budget hotel operator launched a hostile bid for Wyndham Hotels & Resorts and prepared for a board battle to bring the target to the negotiating table

Dec 13, 2023

Choice went public with its cash-and-stock offer for Wyndham in October, then valued at about $8 billion, in an attempt to combine two of the biggest U.S. budget hotel operators. The offer is now worth about $7.2 billion, tracking a decline in Choice's stock.

Key takeaways

  • Wyndham on Tuesday said its board would evaluate the offer even as it reiterated that the offer undervalues its business and carries regulatory risks;
  • It has also highlighted a combined company's likely high debt level, as well as the slower growth prospects of Choice's business;
  • The bid comes when domestic travel is under pressure from sticky inflation, likely fueling demand for budget hotels from travelers looking for cheaper options.

Get the full story at Reuters

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