Skip to content

Search

Latest Stories

Choice asks Wyndham shareholders to tender shares before deadline

U.S. senator sends letter to FTC urging the commission to deny the proposed merger

Choice asks Wyndham shareholders to tender shares before deadline

CHOICE HOTELS INTERNATIONAL issued a last-minute appeal to Wyndham Hotels & Resorts shareholders to tender shares toward a proposed acquisition with a March 8 deadline to do so. At the same time, a U.S. senator has written to the Federal Trade Commission expressing concerns about the proposed merger.

The fate of the proposal may hinge on getting more Wyndham share holders to show interest by tendering shares, Choice said in a statement. The company pointed out that tendering shares would not obligate shareholders to accept Choice’s current offer.


“Tendering shares will send a clear message to Wyndham's board of directors to constructively engage with Choice to reach a consensual agreement on the terms of a transaction,” Choice said. “Depending on participation, Choice intends to either extend or terminate the exchange offer and will evaluate next steps related to its nomination of a slate of independent directors for election to the board of directors of Wyndham.”

Shareholders may withdraw any shares tendered if Choice gives notice of an extension, which it is required to publish not later than 9 a.m. ET on March 11, the company said.

In its original proposal, made public in October, Choice said it sought to acquire all the outstanding shares of Wyndham at a price of $90 per share and shareholders would have received $49.50 in cash and 0.324 shares of Choice common stock for each Wyndham share they own. Choice claimed that is a 30 percent premium to Wyndham’s 30-day volume-weighted average closing price ending on Oct. 16, an 11 percent premium to Wyndham’s 52-week high, and a 30 percent premium to Wyndham’s latest closing price.

Wyndham’s board unanimously rejected Choice’s proposal, calling it unsolicited, “highly conditional” and not in the best interest of shareholders. On Nov. 14, however, Choice sent a letter to the Wyndham board with an “enhanced proposal” intended to address Wyndham’s concerns about clearing federal regulations. On Dec. 12, Choice launched  its public exchange offer to acquire Wyndham and on Dec. 19 the Wyndham board officially rejected the offer and urged shareholders not to tender shares for the deal.

In February, Geoff Ballotti, Wyndham’s president and CEO, and Pat Pacious, Choice’s president and CEO, used their companies’ earning calls to debate the merger. In its most recent statement, Choice insists it stands by its original offer.

“Choice remains steadfast in its belief that a combination offers a compelling value to all stockholders, benefits franchisees and guests, and will receive regulatory approvals within a one-year customary timeframe,” the company said. “As a result, Choice believes that Wyndham stockholders should tender their shares to send a clear message to Wyndham's board to engage in good faith to reach a value maximizing transaction.”

A note of concern

Sen. Elizabeth Warren of Massachusetts on Feb. 28 sent a letter to Lina Khan, FTC chairwoman of the, in which she urged the commission not to approve the acquisition. Warren said a Choice/Wyndham combination would “would harm entrepreneur franchisees and lead to higher hotel rates for customers across the country.”

“The takeover would create the largest branded hotel chain in the United States, giving one chain control over a huge portion of the hotel market,” Warren said. “If the takeover of Wyndham is successful, Choice could use the reduced competition to raise prices and increase their profits, all while using dozens of brands to hide the fact that customers have fewer travel options.”

Warren goes on to cite FTC and U.S. Department of Justice guidelines for mergers that refer to how a proposed merger may affect market concentration, thereby lessening competition.

“Per Wyndham’s data, if Choice’s takeover succeeds, the combined entity would control 57 percent of the economy hotel market and 67 percent of the midscale hotel market nationwide,” Warren said. “The economy hotel market and midscale hotel market are already highly concentrated, according to FTC’s standards, reaching 2,343 and 2,877 respectively on the Herfindahl-Hirschman Index, and would rise to 3,591 and 5,011 respectively if this transaction proceeds, according to analysis provided by Wyndham.”

More for you

Two best friends reunite on a Days Inn trip for social media ambassador campaign

Days Inn launches $10K bestie contest

How Can You Win $10K with Days Inn’s Best Friends Contest?

WYNDHAM HOTELS & RESORTS’ Days Inn brand is launching a nationwide search to reunite five pairs of long-distance friends as brand ambassadors. The pairs, named “Days Inn-siders,” will spend a weekend highlighting a destination on the brand’s social media and receive $10,000, accommodations, flights and a daily stipend.

The initiative aligns with National Best Friends Day on June 8, and applications are open online through July 1, Wyndham said in a statement.

Keep ReadingShow less
Ameyalli Park City by Appellation resort

Appellation, Chopra launch Utah retreat

Introducing Ameyalli Park City by Appellation

APPELLATION HOTEL BRAND co-founders Charlie Palmer and Christopher Hunsberger are working with wellness expert Deepak Chopra to launch a new branded hospitality concept, “Ameyalli Park City by Appellation”, near Park City, Utah. The 78-acre retreat, set to open in 2026 in Midway, will include an 80-key hotel, a wellbeing center and multiple dining venues.

The resort will feature the Ameyalli Center of Excellence, offering health and longevity programming based on Chopra’s seven pillars of wellbeing: emotional regulation, sleep, mindfulness, movement, relationships, nutrition and laughter. Appellation will operate the property.

Keep ReadingShow less
RevPAR trends for US extended-stay hotels in April 2025

Report: Extended-stay April performance mixed

What's the latest on US extended-stay hotel performance for April 2025?

U.S. EXTENDED-STAY AND overall hotel RevPAR declined in April, reflecting their long-term correlation, according to The Highland Group. Economy and mid-price extended-stay hotels performed better than their respective classes, while upscale extended-stay hotel RevPAR fell in line with all upscale hotels, according to STR/CoStar.

The Highland Group’s “US Extended-Stay Hotels Bulletin: April 2025” reported a 3.6 percent year-over-year increase in extended-stay room nights available. This gain partly reflects the addition of mid-price brands WaterWalk by Wyndham in May 2024 and Executive Residency by Best Western in January to the database.

Keep ReadingShow less
Red Roof and Bridge partner to streamline hotel financing for U.S. owners and developers

Red Roof, Bridge to provide capital to owners

RED ROOF IS working with digital financing platform Bridge, led by Rohit Mathur as CEO, to improve access to capital for hotel owners and developers. The partnership allows Red Roof owners and operators to submit loan requests in about 10 minutes and access Bridge’s network of more than 150 lenders.

The platform provides loan terms by packaging each opportunity with data and side-by-side comparisons to support decision-making, the companies said in a joint statement.

Keep ReadingShow less