Choice Hotels offered to buy its competitor, Wyndham Hotels & Resorts, for USD $7.8 billion or USD $90 per share, reports Skift. The merger would make them the largest budget hotel franchisor in North America, overseeing around 16,360 properties.
Under the proposal, Wyndham shareholders would get USD $49.50 cash per share and 0.324 shares of Choice's common stock. However, Wyndham rejected the offer, stating it undervalued its growth potential and carried risks.
Choice's CEO, Patrick Pacious, argued that the merger would result in cost savings and a more robust rewards program. Despite analyst support for the bid, Wyndham remains unconvinced of its merits.
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