Choice Hotels looking to buy Wyndham Hotels & Resorts
Choice Hotels International is seeking to buy Wyndham Hotels & Resorts in a deal that would create a U.S. budget hotel giant
The talks between the companies are at an early stage and it is not clear whether Wyndham is interested in pursuing a tie-up with Choice, the source said, requesting anonymity as these discussions are confidential.
Key takeaways
- If Wyndham executives resist a deal, Choice Hotels would have the option to pitch the acquisition directly to Wyndham’s shareholders, the report noted;
- News of the potential deal comes at a time when high inflation and recession risks could sap consumer spending on travel and drive up demand for affordable hotels such as Choice and Wyndham;
- The news was first reported by the Wall Street Journal on Tuesday, after which shares of Wyndham Hotels closed 5.1% higher, while Choice Hotels ended about 4.6% lower.
Get the full story at Reuters