The attempted takeover of Wyndham Hotels & Resorts by Choice Hotels has come to an inglorious end, with the latter announcing that it is abandoning its “hostile takeover bid” for Wyndham, worth $8 billion, which was made public five months ago.
Even before Choice publicly announced its intentions, Wyndham had already rejected four of its offers, with the first offer of $80 per share last April, then an $85 offer in May and a $90 offer in August 2023. In November, Choice tried again to make an $86 per share offer, which Wyndham called a “step backwards.”
However, Choice kept pushing, giving Wyndham shareholders until last Friday to deposit their shares, but ultimately found insufficient support. “As a result, Choice has decided not to extend the exchange offer and has decided to withdraw its offer,” the hotel chain said in a statement.
Earlier on Monday, Wyndham had sent a letter to its shareholders urging them against the deal. “Choice’s opportunistic offer comes at a time when Wyndham continues to outperform Choice across all key operating factors and metrics,” Wyndham argued. It added: “Choice has a business with slower growth, lower profitability and, post-transaction, will have a higher debt burden. Choice sees Wyndham as a pharmacy with medicines for its many ailments.”
If Choice’s bid is successful, the acquisition would represent a massive merger in the economy hotel industry, combining the fifth and sixth largest hotel groups in North America and creating the continent’s largest economy hotel franchisor.
Wyndham describes itself as the largest hotel franchisor in the world, with 9,280 hotels under the umbrella of 24 brands in 95 countries. The company operates a range from budget, hotel brands such as Days Inn and Super 8, mid-range brands such as Ramada and La Quinta, to high-end hotels such as the eponymous Wyndham.
Choice Hotels manages nearly 7,500 hotels in 46 countries, including brands such as Radisson, Comfort Inn, and so on.
