Choice Hotels International, Inc. has announced its intention to acquire Wyndham Hotels & Resorts, Inc. for a total value of $7.8 billion in cash and stock ($9.8 billion including debt). The proposed offer of $90 per share (a 26% premium to Wyndham’s 30-day volume-weighted average closing price on October 16, 2023) includes a combination of cash and Choice shares.
The proposal also provides shareholders with the option to receive either cash or stock or a mix of both as part of the transaction process.
According to Patrick Pacious, President and CEO of Choice Hotels, discussions between the two companies had been ongoing for nearly six months before Wyndham decided to withdraw from further negotiations. Despite being close on price and consideration at one point during these talks, Wyndham ultimately chose not to pursue any further discussions.
In April this year, Choice initially approached Wyndham about acquiring their hotel business for $80 per share (with a split between cash [40%] and Choice stock [60%]). This was followed by another offer in May worth $85 per share (comprising mostly cash [55%] with some choice shares included).
As it stands currently – based on market capitalization figures from Monday – Choice is valued at around $6.29 billion while that figure stands at approximately$5 .82billionforWy ndha m.
Choice Hotels International is making headlines with its recent announcement that it plans on purchasing fellow hospitality company,Wy ndh amHotels&Resorts.Inc.,inacashandstockdealvaluedat$7 .8billion($9 .8billionincludingdebt).Thisofferof$90pershareincludesapremiumof26percentoverWy ndhams30-dayvolume-weightedaverageclosingpriceonOctober16th2023.Theproposalalsooffersshareholdersanoptiontoreceivecash,stock,oracombinationofboth.
According to Choice Hotels’ President and CEO Patrick Pacious, discussions between the two companies had been ongoing for nearly six months before Wyndham decided to withdraw from further negotiations. Despite being close on price and consideration at one point during these talks,Wy ndh am ultimately chose not to pursue any further discussions.
In April of this year, Choice initially approached Wyndham about acquiring their hotel business for $80 per share (with a split between cash [40%] and Choice stock [60%]). This was followed by another offer in May worth $85 per share (comprising mostly cash [55%] with some choice shares included).
Based on market capitalization figures from Monday,Wy ndh am is valued at approximately$5 .82billionwhileChoice’svaluestandsaround$6 .29billion.
