Choice Hotels Seeks to Buy Wyndham
New York, NY, May 24, 2023-Choice Hotels International is seeking to buy Wyndham Hotels & Resorts, according to people familiar with the matter, a deal that would create one of the biggest budget hotel owners in the country with brands including Days Inn and Econo Lodge, according to the Wall Street Journal.
“The companies, each valued at just under $6 billion as of midday Tuesday, aren’t in serious talks and it isn’t clear whether Wyndham wants to do a deal. If it doesn’t, Choice Hotels could take an offer directly to Wyndham’s shareholders, some of the people said. It is also possible that nothing will come of the bid.
“Wyndham shares surged on news of the possible deal, reported by The Wall Street Journal, closing up more than 5%. Choice shares, down before the report, dropped 4.6% on the day.
“Both companies primarily cater to budget-conscious consumers on the road for leisure or extended work trips. Choice Hotels, whose brands include Quality Inn, Econo Lodge, Clarion and Comfort, has said that it wants to grow in the so-called upper-midscale and upscale segments, and combining with Wyndham would help with that effort.”