Wyndham rejects Choice Hotels' hostile takeover bid
Earlier on Tuesday, Choice Hotels went public with its offer to buy Wyndham after months-long private talks collapsed
U.S. budget hotel operator Wyndham Hotels and Resorts on Tuesday rejected rival Choice Hotels' $7.8 billion cash-and-stock acquisition offer, calling it "underwhelming" and citing regulatory risks around a possible combination.
Key takeaways
- With nearly 1.5 million rooms worldwide between the two hotel groups, the combined entity could attract regulatory scrutiny, analysts said;
- A potential merger would have married Choice Hotels' brands such as Econo Lodge, Quality Inn and Clarion with Wyndham's Days Inn and Travelodge, offering inflation-hit customers a wide choice of affordable hotels;
- Unit growth has been challenging for Choice, which has nearly 7,500 hotels in 46 countries and territories, and it has turned to acquisitions to grow, UBS analysts have said.
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