In a recent development, Choice Hotels has made a bold move by proposing to acquire Wyndham Hotels and Resorts in a deal valued at approximately $7.8 billion. This cash and stock transaction is set to pave the way for the creation of a dominant U.S. budget hotel conglomerate. The rising demand for budget-friendly hotels, such as those under the Choice and Wyndham brands, is attributed to the ongoing high inflation rates and economic recession, which have impacted consumer spending on travel.
Wyndham’s stock witnessed a significant surge, rising about 22% prior to the announcement. In terms of the deal specifics, Choice has offered Wyndham shareholders a rate of $90.00 per share. This comprises $49.50 in cash and 0.324 shares of Choice’s common stock for each share of Wyndham owned. Notably, this offer is approximately 30% higher than Wyndham’s last recorded closing price. The discussions leading
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