Choice Hotels Proposes to Acquire Wyndham Hotels & Resorts
Choice Hotels International on Tuesday revealed that it has offered to buy rival chain Wyndham Hotels & Resorts for nearly $8 billion.
The Maryland-based hotel operator shared details on its proposal after it said Wyndham walked away from six months of merger discussions.
Choice is offering to pay $90 per share in a mix of cash and stock, a deal valued at roughly $7.8 billion, or $9.8 billion when including debt. The proposal is a 30% premium to Wyndham’s latest closing price.
Under Choice’s proposal, the $90.00 per share to be received by Wyndham shareholders would consist of $49.50 in cash and 0.324 shares of Choice common stock for each Wyndham share they own.
“We have long respected Wyndham’s business and are confident that this combination would significantly accelerate both Choice’s and Wyndham’s long-term organic growth strategy for the benefit of all stakeholders,” Choice President and CEO Patrick Pacious said in a statement.
A statement from Wyndham later this morning said it rejected the offer after determining that it was “not in the best interest of shareholders.”
“Choice’s offer is underwhelming, highly conditional, and subject to significant business, regulatory and execution risk,” Wyndham Board of Directors Chairman Stephen Holmes said. “Choice has been unwilling or unable to address our concerns.”
Choice Hotels currently operates 7,500 hotels across 46 countries and territories across brands like Radisson, Country Inn & Suites and Quality Inn. Wyndham on the other hand operates approximately 9,100 hotels across 95 countries across brands like Baymont, Days Inn, Howard Johnson, La Quinta, Ramada, Super 8, Travelodge, and Wyndham.
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