Choice Hotels Mounts $8B Hostile Takeover of Rival Wyndham

Budget hotel chain Choice Hotels International has launched another hostile takeover bid to acquire Wyndham Hotels & Resorts following multiple failed attempts in recent months.

The offer of $49.50 in cash and 0.324 Choice shares for each Wyndham share is the same as the October 16 offer. That deal was worth $90 a share, or about $7.8 billion.

Choice announced it owns around 1.5 million shares of Wyndham stock worth more than $110 million. During its 2024 annual shareholder meeting, it intends to nominate several directors to Wyndham’s board. Choice is also submitting the required Hart-Scott-Rodino (HSR) notification to commence the regulatory review.

“While we would have preferred to come to a negotiated agreement, the Wyndham Board’s refusal to explore a transaction has left us with no choice but to take our proposal directly to Wyndham’s shareholders. Wyndham chose to publicly reject our last proposal without any engagement even after we addressed their concerns, including adding significant regulatory protections for their shareholders,” said Patrick Pacious, Choice president and CEO.

The exchange offer and withdrawal rights will expire at 5:00 pm ET on March 8, 2024, unless extended or terminated.

“Consistent with its fiduciary duties, and in consultation with its independent financial and legal advisors, the Wyndham Board of Directors will carefully review and evaluate the offer to determine the course of action that it believes is in the best interests of Wyndham and its shareholders,” responded Wyndham.

Choice went public with its takeover bid on October 16. It made a proposal privately to Wyndham on November 14, but Wyndham publicly rejected it, saying it was a “step backwards.”