Ed Brock is an award-winning journalist who has worked for various U.S. newspapers and magazines, including with American City & County magazine, a national publication based in Atlanta focused on city and county government issues. He is currently assistant editor at Asian Hospitality magazine, the top U.S. publication for Asian American hoteliers. Originally from Mobile, Alabama, Ed began his career in journalism in the early 1990s as a reporter for a chain of weekly newspapers in Baldwin County, Alabama. After a stint teaching English in Japan, Ed returned to the U.S. and moved to the Atlanta area where he returned to journalism, coming to work at Asian Hospitality in 2016.
MONTHS OF RUMOR were confirmed true when Choice Hotels International on Wednesday announced it has proposed to acquire Wyndham Hotels & Resorts in an approximately $9.8 billion transaction. The proposal to Wyndham stockholders came after months of negotiations broke down and Wyndham’s board of directors voted to decline Choice’s offer, calling it “underwhelming” and risky.
AAHOA also issued a statement saying it has “high concern” that a Choice/Wyndham merger would give one franchiser too much dominance over the economy/limited service hotel segment.
The proposal
In its announcement of the proposal, Choice said it sought to acquire all the outstanding shares of Wyndham at a price of $90 per share, payable in a mix of cash and stock. Shareholders would receive $49.50 in cash and 0.324 shares of Choice common stock for each Wyndham share they own. Choice claims that is a 26 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 shareholders would be able to choose either cash, stock, or a combination of cash and stock consideration, subject to a customary proration mechanism. The proposal implies a total equity value for Wyndham of approximately $7.8 billion on a fully diluted basis.
"We have long respected Wyndham's business and are confident that this combination would significantly accelerate both Choice's and Wyndham's long-term organic growth strategy for the benefit of all stakeholders,” said Patrick Pacious, Choice’s president and CEO. “For franchisees, the transaction would bring Choice's proven franchisee success system to a broader set of owners, enabling them to benefit from Choice's world-class reservation platform and proprietary technology to drive cost savings and greater investment returns. Additionally, the value-driven leisure and business traveler would benefit from the combined company's rewards program, which would be on par with the top two global hotel rewards programs, enabling them to receive greater value and access to a broader selection of options across stay occasions and price points."
Choice’s efforts to acquire Wyndham has been rumored about since June, at which time both companies denied it. Geoff Ballotti, Wyndham's president and CEO, continued to deny the reports as late as September during the company’s 2023 Global Conference in Anaheim, California.
“We never will comment on rumors,” Ballotti said at the time. “I hear a rumor just about every hour on the hour about something going on.”
Choice said negotiations on the deal have been ongoing for six months.
"A few weeks ago, Choice and Wyndham were in a negotiable range on price and consideration, and both parties have a shared recognition of the value opportunity this potential transaction represents. We were therefore surprised and disappointed that Wyndham decided to disengage,” Pacious said. “While we would have preferred to continue discussions with Wyndham in private, following their unwillingness to proceed, we feel there is too much value for both companies' franchisees, shareholders, associates, and guests to not continue pursuing this transaction. Importantly, we remain convinced of both the many benefits of the combination and our ability to complete it."
Choice made its proposal public as a direct appeal to Wyndham’s shareholders. It also created a website, CreateValueWithChoice.com, to promote the merger.
In its response, Wyndham outlined its specific reasons for declining Choice’s offer.
The response
Wyndham’s board unanimously rejected Choice’s proposal, calling it unsolicited, “highly conditional” and not in the best interest of shareholders. They identified several issues with the proposal, including:
The proposed transaction involves significant business and execution risks, including an extended regulatory timeline and uncertainty of outcome, potential franchisee churn, and excessive leverage levels at the pro forma combined company.
The consideration mix includes a significant component of Choice stock, which the board believes is fully valued relative to Choice's growth prospects, especially when compared to Wyndham.
The offer is opportunistic and undervalues Wyndham's future growth potential.
"Choice's offer is underwhelming, highly conditional, and subject to significant business, regulatory and execution risk. Choice has been unwilling or unable to address our concerns," said Stephen Holmes, chairman of the Wyndham board. "While our board would support a value-maximizing transaction, given the substantial, unmitigated embedded risks and value destruction potential presented by the proposed transaction, our board determined it is not in the best interests of Wyndham shareholders. We have engaged with Choice and its advisors on multiple occasions to explore these risks. However, it became clear the proposed transaction likely would take more than a year to even determine if, and on what terms, it could clear antitrust review, and Choice was unable to address these long-term risks to Wyndham's business and shareholders. We are disappointed that Choice's description of our engagement disingenuously suggests that we were in alignment on core terms and omits to describe the true reasons we have consistently questioned the merits of this combination – Choice's inability and unwillingness to address our significant concerns about regulatory and execution risk and our deep concerns about the value of their stock."
AAHOA gave similar reasons for opposing the merger.
Concerned about ‘sector dominance’
In its statement, AAHOA pointed out that a merged Choice/Wyndham would have 16,500 hotels with 46 brands and dominate the economy/limited service segment.
“As the owners of more than two-thirds of both Choice Hotels and Wyndham-branded hotels, AAHOA members have much at stake with Choice’s potential purchase of Wyndham,” said AAHOA Chairman Bharat Patel. “To have one franchisor Choice Hotels control so many economy and limited service hotels will give our members little opportunity to have a say in whether the franchise mandates and requirements are fair, and significantly limit their options to find a different brand under which they could successfully operate their hotels.”
In February, Choice withdrew its support for AAHOA over the association’s support for franchising reform, including a proposed bill in New Jersey’s Assembly Bill 1958, which would make changes to the New Jersey Franchise Practices Act that could benefit hotel owners.
“This news of a potential merger has sent a shock wave of high concern and even fear through our AAHOA membership,” said Laura Lee Blake, AAHOA president and CEO. “We have seen in the past the major impact that mergers and acquisitions by the big hotel franchisor corporations can have on our members as the hotelier franchisees. Indeed, our AAHOA members fear a significant further dilution of the brands and fighting over the guest reservations on one reservation system. The changes can be highly disruptive to their business practices, and even cause a significant decrease in revenues overall.”
Blake said AAHOA is calling on the Federal Trade Commission to investigate the proposed merger.
Stonebridge Cos. added the Statler Dallas, Curio Collection by Hilton, to its managed portfolio.
The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group.
The property is near Main Street Garden Park, the Arts District and the Dallas World Aquarium.
STONEBRIDGE COS. HAS contracted to manage the Statler Dallas, Curio Collection by Hilton in Dallas to its managed portfolio. The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group, led by Mehrdad Moayedi.
It has an outdoor pool and more than 26,000 square feet of meeting space, Stonebridge said in a statement. The downtown Dallas property is near Main Street Garden Park, the Arts District, the Kay Bailey Hutchison Convention Center, Deep Ellum, Klyde Warren Park, and the Dallas World Aquarium.
“The Statler is an extraordinary asset with a storied history in Dallas, and we are thrilled to welcome it to our managed portfolio,” said Rob Smith, Stonebridge’s president and CEO. “Its blend of modern hospitality with timeless character makes it a natural fit within our lifestyle collection. We look forward to honoring the property’s legacy while enhancing performance and delivering an elevated guest experience.”
Stonebridge, based in Denver, is a privately held hotel management company founded by Chairman Navin Dimond and led by Smith. The company recently added the 244-room Marriott Saddle Brook in Saddle Brook, New Jersey, to its full-service portfolio.
By clicking the 'Subscribe’, you agree to receive our newsletter, marketing communications and industry
partners/sponsors sharing promotional product information via email and print communication from Asian Media
Group USA Inc. and subsidiaries. You have the right to withdraw your consent at any time by clicking the
unsubscribe link in our emails. We will use your email address to personalize our communications and send you
relevant offers. Your data will be stored up to 30 days after unsubscribing.
Contact us at data@amg.biz to see how we manage and store your data.
G6 Hospitality and the Texas Hotel & Lodging Association will support Texas hotel advocacy.
G6 adds an economy-brand perspective to policy and support discussions.
The two will co-host workshops for market education and talent development.
G6 HOSPITALITY, PARENT of Motel 6 and Studio 6, recently joined the Texas Hotel & Lodging Association to expand a statewide coalition on advocacy, public safety and market growth for its Texas franchisees. The company brings an economy-brand perspective to discussions that influence policy, operations and guest experience across the state.
The two will co-host workshops, forums and tech showcases to support market education, best-practice sharing and talent development statewide, the duo said in a statement.
“As we join THLA, our goal is to contribute to a stronger Texas lodging ecosystem—advocating smart policy, elevating safety and guest experience and providing collaborative learning opportunities for our franchisees and employees statewide,” said Sonal Sinha, G6 Hospitality's CEO. “We’re proud to add our voice and scale to THLA’s efforts while equipping our franchisees with Texas-specific resources to operate confidently and grow.”
The company will support discussions on competition, consumer protection, tourism promotion and workforce initiatives for independent and branded hotels, the statement said. OYO CEO Ritesh Agarwal is chair of G6 Hospitality.
“G6 Hospitality’s membership strengthens our initiatives that help advance Texas hotels," said Scott Joslove, THLA's president and CEO. "Their reach in the economy segment brings valuable insights to policy development, workforce initiatives and community safety programs that benefit properties in every market and price point."
THLA works with state and local leaders to promote business growth, protect consumers, and support hotels with legal guidance, policy insights and education, the statement said. The association will provide Texas-specific compliance and operations training for G6 owners and teams alongside G6’s standards.
Peachtree secured EB-5 approval for a Florida multifamily development project.
The 240-unit community in Manatee County is backed by $47 million in construction financing.
It is Peachtree’s fourth EB-5 project approval since launching the program in 2023.
PEACHTREE GROUP RECENTLY secured EB-5 approval from U.S. Citizenship and Immigration Services for Madison Bradenton, a 240-unit multifamily development in Bradenton, Florida. It also raised $47 million in construction financing with a four-year term for the project on a 10.7-acre site in Manatee County.
The approval allows the company to advance its EB-5 Immigrant Investor Program, which directs foreign investment to U.S. job creation, Peachtree said in a statement.
“Madison Bradenton reflects the strong demand for high-quality multifamily housing in growing markets,” said Adam Greene, Peachtree’s executive vice president of EB-5. “This project underscores our ability to pair EB-5 financing with secured lending, delivering attractive opportunities for investors while meeting critical housing needs.”
The project will include five four-story apartment buildings with elevators, a two-story carriage building and a clubhouse, with residences averaging 1,027 square feet and featuring private patios or balconies. The location provides access to employment centers, healthcare facilities and Siesta Key Beach.
Atlanta-based Peachtree is led by Greg Friedman, managing principal and CEO; Jatin Desai, managing principal and CFO and Mitul Patel, principal.
This is Peachtree’s fourth approved I-956F application, following projects such as Home2 Suites by Hilton in Boone, North Carolina; SpringHill Suites by Marriott in Bryce Canyon, Utah and TownePlace Suites by Marriott in Palmdale, California. In May, Peachtree secured USCIS approval for four regional centers—South, Northeast, Midwest and West—allowing it to sponsor EB-5 projects in those territories.
The EB-5 visa program allows foreign investors to obtain a green card by investing in a U.S. commercial enterprise that creates jobs, the statement said. Investors who contribute at least $800,000 to a project that creates or preserves 10 full-time jobs for U.S. workers are eligible for permanent residency.
Separately, Peachtree launched the $250 million Special Situations Fund to invest in hotel and commercial real estate assets affected by capital market illiquidity.
GSA will keep federal per diem rates the same for FY 2026.
The lodging rate stays $110 and meals allowance $68.
AHLA raised concerns over the impact on government travel.
THE U.S. GENERAL Services Administration will keep standard per diem rates for federal travelers at 2025 levels for fiscal year 2026. The American Hotel and Lodging Association raised concerns that the decision affects government travel, a key economic driver for the hotel industry.
The standard lodging rate remains $110 and the meals and incidental allowance is $68 for fiscal year 2026, unchanged from 2025, GSA said in a statement.
“Government travel is a vital economic driver for the hotel industry and the broader travel economy,” said Rosanna Maietta, AHLA’s president and CEO. “That’s why it’s so important for government per diem rates to keep pace with rising costs across the economy. The GSA’s decision to keep per diem rates flat will place a strain on the hospitality industry as well as government travelers seeking lodging. A strong economy requires a thriving hospitality sector. We will continue to advocate with the GSA and members of Congress for per diem rates that reflect hotels’ rising costs of doing business.”
GSA sets per diem rates to reimburse federal employees’ lodging and meal expenses for official travel within the continental U.S., based on the trailing 12-month ADR for lodging and meals minus 5 percent. This is the first year in five that GSA has not raised the rates.
The federal administration said the decision reflects the federal government’s commitment to using taxpayer funds appropriately and for core mission activities. The steady per diem rates are enabled by the reduction in inflationary pressures from the previous administration.
“GSA's decision ensures cost-effective travel reimbursement while supporting the mission-critical mobility of the federal workforce,” said Larry Allen, associate administrator, GSA Office of Government-wide Policy.
The rate applies to federal travelers and those on government-contracted business for all U.S. locations not designated as “non-standard areas,” which have higher per diems. For fiscal year 2026, GSA will keep the number of non-standard areas at 296, unchanged from 2025.
North America recorded a 10 percent decline while Central America dropped 12 percent.
THE GLOBAL TRAVEL and tourism sector recorded an 8 percent year-on-year decline in total deal activity during the first half of 2025, according to market data firm GlobalData. Reduced investor appetite was seen across major deal types: mergers and acquisitions, private equity and venture financing.
GlobalData’s analysis shows venture financing deals fell by about 25 percent and private equity deals dropped by around 20 percent compared to the same period last year. M&A activity proved more resilient with a smaller 3.5 percent decline in volume. North America saw a 10 percent decline while Central America saw a 12 percent decline.
“The overall decline underscores a broader trend where macroeconomic factors and investor sentiments are reshaping deal-making strategies within the industry. The subdued activity suggests that dealmakers are becoming increasingly cautious, likely due to macroeconomic challenges and volatile market conditions,” said Aurojyoti Bose, lead analyst at GlobalData. “The decline in venture financing and private equity deals, suggests a dent in investor sentiment, emphasizing a trend of reduced risk appetite.”
The Asia-Pacific region posted growth, with deal volume rising 11 percent in H1 2025, driven by increased activity in Japan and India. In contrast, Europe saw a 19 percent drop, the Middle East and Africa fell 39 percent and South and Central America declined 12 percent.
Among major markets, the US, China and Germany all recorded declines in deal announcements while the UK maintained deal volumes at similar levels to last year.
GlobalData notes that historical figures may change if additional deals from earlier months are disclosed later.
Last year saw a 12.6 percent decline, with a total of 347 mergers and acquisitions, private equity and venture financing deals reported in the global travel and tourism sector during the first half of 2024.