Choice Hotels Launches Another Takeover Attempt Of Wyndham 

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

Choice wrote in a press release early Tuesday morning, "It is commencing an exchange offer to acquire Wyndham Hotels & Resorts in order to present its compelling proposal directly to Wyndham shareholders." 

The offer of 49.50 in cash and 0.324 Choice share for each Wyndham shares is the same as the October 16 offer. That deal was worth $90 a share, or about $7.8 billion. However, Wall Street Journal sources Choice is ready to raise that offer after 'doing due diligence.'

Choice announced it holds about 1.5 million shares of Wyndham stock, valued at more than $110 million. It plans to nominate several directors to Wyndham's board during its 2024 annual shareholder meeting. 

"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," Patrick Pacious, President and Chief Executive Officer of Choice, wrote in a statement. 

Pacious continued, "It remains our goal to reach a mutually agreeable transaction, and there is potential for additional value to be unlocked if Wyndham were to return to the negotiating table and provide due diligence. We look forward to meeting with Wyndham's shareholders in the days and weeks ahead and to continuing the regulatory approval process we're starting this week."

Choice intends to file a Hart-Scott-Rodino notification as part of complying with US antitrust regulations. This facilitates the premerger review process, ensuring the merger does not negatively impact competition, consumers, and the broader economy.

"The exchange offer and withdrawal rights are scheduled to expire at 5:00 PM, New York City time on Friday, March 8, 2024, unless the offer is extended or terminated," Choice noted. 

A potential merger of Choice/Wyndham would allow the new entity to better compete with Hilton, Marriott, and other hotel rivals.