Buy out report comes as Wyndham marks fifth anniversary as a publicly traded company
By Vishnu Rageev RJun 06, 2023
RECENT MEDIA REPORTS indicate that Choice Hotels International is considering acquiring Wyndham Hotels & Resorts. The report comes as Wyndham marked its fifth anniversary as a publicly traded hotel company.
According to a recent article in The Wall Street Journal, which cited undisclosed sources, Choice Hotels International is reportedly considering the acquisition of Wyndham Hotels. The report also mentioned that the two companies are not currently engaged in formal discussions regarding a merger or acquisition, and it remains uncertain whether Wyndham is interested in being acquired.
In August 2022, Choice completed the acquisition of Radisson Hotels Americas for $675 million. The transaction includes Radisson’s franchise business, operations and intellectual property. Similarly, in September 2022, Wyndham also purchased the Austria-based Vienna House Hotel brand for $44 million from Berlin-based HR Group.
The recent WSJ report suggested that there is a possibility that Choice Hotels may directly present an acquisition offer to Wyndham shareholders. However, Wyndham seemed to dismiss the WSJ report.
“We don’t comment on rumors,” the company said in a statement. “We are focused on business as usual, driving value for our franchisees, team members, guests and stakeholders.”
Choice did not return a request for comment in time for this article.
Five years on Wall Street
In its report marking the fifth anniversary as a public company, Wyndham said it has a portfolio of approximately 9,100 hotels across more than 95 countries. Geoff Ballotti, president and CEO of Wyndham Hotels & Resorts, said in a statement that during the past five years, the company launched and integrated five new brands, expanding its global portfolio to 24 in total.
"In addition to our portfolio growth, we have entered over 55 new countries and introduced our brands in over 100 new locations. Furthermore, our exceptional development pipeline consists of over 1,800 hotels, indicating positive growth,” Ballotti said. “These achievements exemplify our unwavering dedication to the long-term success of our franchisees, team members, and shareholders, who have collectively received over $1.5 billion in dividends and share repurchases. While we take pride in our accomplishments thus far, we are even more enthusiastic about our future, which holds great promise.”
Focussing economy, midscale segments
Since its initial public offering in 2018, Wyndham expanded its select service portfolio in the economy and midscale segments, providing enhanced opportunities for travelers and guests. Presently, the company offers a diverse range of 24 brands across various segments, catering to the preferences of both owners and guests, the company said.
According to Wyndham, the company saw growth in its midscale and above portfolio, experiencing a global increase of 63 percent. It noted the acquisition of La Quinta that allowed Wyndham to expand its presence to three new continents and four additional countries, including China, New Zealand, Turkey and the United Arab Emirates.
“The company introduced several brands in new segments, including ECHO Suites Extended Stay by Wyndham, catering to the extended-stay market, Wyndham Alltra, offering all-inclusive experiences, and Registry Collection Hotels, delivering luxurious accommodations,” the statement said.
Global pipeline
Wyndham expanded its global pipeline more than 50 percent to 226,000 rooms. Around 80 percent of this growth consists of new construction. In addition, the U.S. pipeline has experienced a nearly 60 percent increase, and the direct franchising pipeline in China has grown by almost 70 percent, the statement added.
According to the company, Wyndham also streamlined its business operations by transitioning to a predominantly franchised model, divesting its two owned hotels and reducing its involvement in the U.S. hotel management business.
“In Europe, Wyndham expanded its presence by acquiring the Vienna House brand from HR Group, a longstanding Wyndham franchisee based in Berlin. This acquisition has resulted in the addition of over 40 new hotels and more than 6,400 rooms to Wyndham's European portfolio,” it said.
Healthy financials
In terms of financial performance, the company said it has demonstrated strong results, generating over $1.4 billion in free cash flow. Additionally, Wyndham has returned $1.5 billion to shareholders, accounting for nearly 25 percent of its initial market capitalization. This includes the repurchase of 16 percent of its outstanding common shares, highlighting the company's commitment to delivering value to its shareholders.
Focus on the franchisees
Wyndham said it prioritizes the success of its franchisees, recognizing that their achievements directly contribute to the company's own success.
“This owner-focused approach has positioned Wyndham as one of the industry's most respected and trusted franchisors,” the company said. “The company has significantly improved its contribution, accounting for over 75 percent of all U.S. bookings. Furthermore, it has nearly doubled the size of its loyalty program, Wyndham Rewards, with over 100 million enrolled members. Notably, nearly half of all U.S. check-ins are from program members who tend to stay twice as long and spend twice as much on average.”
Wyndham increased its franchisee retention rate from 92 percent to over 95 percent, placing it among the highest in the economy and midscale segments. To support franchisees, Wyndham invested more than $275 million to provide them with technology solutions.
“Collaborating with industry leaders such as Sabre and Oracle, the company has implemented next-generation property management systems,” the company said. “It has also partnered with IdeaS for advanced revenue management systems, Salesforce for a sales and service platform, and Amperity for a customer data platform, among others.”
Wyndham's mobile app has become the company's fastest-growing booking channel. It offers features tailored to road trippers, including Lightning BookSM and Road Trip Planner, as well as mobile check-in and checkout. Additionally, the company provides in-stay features like digital room keys.
Upholding core values
Wyndham said it has aimed to cultivating a diverse global community while upholding its core values of integrity, accountability and inclusivity.
“The company has prioritized team member work-life balance by organizing regular appreciation days, annual philanthropic-focused WISH days, and offering hybrid and flexible work arrangements. This approach has been instrumental in attracting and retaining top-tier talent while solidifying Wyndham's standing within the industry,” the company said.
Wyndham has launched programs to advance diversity and ownership opportunities, including the Women Own the Room initiative and BOLD by Wyndham.
“These programs have resulted in over 50 combined signings and the opening of more than a dozen establishments,” Wyndham said. “The company has placed a strong emphasis on greater industry diversity through comprehensive training programs focused on antiracism, unconscious bias, allyship, and gender equity. Wyndham is on track to achieve its 2025 goals of achieving 100 percent gender pay equity globally and providing unconscious bias training to 100 percent of hotel team members.”
The company has reinforced its commitment to protecting human rights by supporting humanitarian causes and combatting human trafficking. Through partnerships with organizations like Polaris, BEST, and ECPAT-USA, Wyndham requires global training for all hotels and recently donated $500,000 to the AHLA Foundation's Survivor Fund.
Wyndham has implemented the Wyndham Green program to assist franchisees in reducing their environmental footprints and operating more efficiently through eco-friendly initiatives. All hotels globally are required to attain a minimum Level 1 Core Wyndham Green Certification.
Ballotti expressed gratitude for the support and engagement of owners and team members.
“We will continue to deliver on our mission of making hotel travel possible for all by providing the very best value in the industry to our owners and guests, offering Count On Me service while living our core values of integrity, accountability, inclusivity, caring and fun,” he said.
Peachtree adds six hotels to third-party platform.
Five are owned by La Posada Group, one by Decatur Properties.
Third-party portfolio totals 42 hotels.
PEACHTREE GROUP’S HOSPITALITY management division added six hotels to its third-party management platform. Five are owned by La Posada Group LLC and one by Decatur Properties Holdings.
La Posada’s hotels include Fairfield Inn Evansville East in Evansville, Indiana; Fairfield Inn Las Cruces and TownePlace Suites Las Cruces in Las Cruces, New Mexico; and SpringHill Suites Lawrence Downtown and TownePlace Suites Kansas City Overland Park in Kansas, Peachtree said in a statement.
It also assumed management of Decatur Properties’ Hampton Inn in Monahans, Texas.
“Our third-party management business is experiencing growth and these six hotels demonstrate the trust owners are placing in our team,” said Vickie Callahan, president of Peachtree’s hospitality management division. “We have experience managing hotels and managing operations for partners who have entrusted us with their assets. We are committed to protecting asset value, driving results for partners and delivering a strong guest experience.”
The division manages hotels across brands and markets nationwide, the statement said. It operates 115 hotels across 29 brands with 14,212 rooms in 27 states and Washington, D.C. The additions bring its total third-party operations to 42 hotels.
Callahan said the team uses scale, operating systems and brand relationships to optimize revenue, control costs and improve guest satisfaction.
Atlanta-based Peachtree is led by Greg Friedman, managing principal and CEO; Jatin Desai, managing principal and CFO and Mitul Patel, principal.
In July, Peachtree launched a $250 million fund to invest in hotel and commercial real estate assets mispriced due to capital market illiquidity.
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The Highland Group: Extended-stay occupancy, RevPAR and ADR declined in August.
Room revenue rose 0.4 percent, while demand increased 2.2 percent.
August marked the second time in 47 months that supply growth exceeded 4 percent.
U.S. EXTENDED-STAY OCCUPANCY fell 2.1 percent in August, its eighth consecutive monthly decline, while ADR declined 1.8 percent and RevPAR dropped 3.9 percent for the fifth consecutive month, according to The Highland Group. However, total extended-stay room revenue rose 0.4 percent year over year.
The Highland Group’s “US Extended-Stay Hotels Bulletin: August 2025” noted that summer leisure travel has a greater impact on the overall hotel industry than on extended-stay hotels.
“August’s performance metrics further indicated that economy extended-stay hotels are weathering the hotel industry downturn better than most hotel classes, especially at lower price points,” said Mark Skinner, The Highland Group partner.
The 2.1 percent drop in extended-stay hotel occupancy in August was the eighth straight month of decline, the report said. Occupancy declined more than the 1.3 percent drop STR/CoStar reported for all hotels. However, extended-stay occupancy was 11.3 percentage points higher than the overall hotel industry, consistent with long-term late-summer trends.
The 1.8 percent decline in extended-stay ADR was partly due to a larger share of economy supply in August 2025 versus August 2024, the report said. Economy extended-stay ADR fell for the first time since May 2024 but outperformed the 3.4 percent drop for all economy hotels reported by STR/CoStar. Mid-price extended-stay ADR also declined, while upscale extended-stay ADR fell more than upscale hotels overall.
RevPAR fell 3.9 percent in August, the fifth straight monthly decline and the largest in 2025. The overall drop was greater than individual segment decreases because economy supply made up a larger share than in August 2024. STR/CoStar reported RevPAR declines of 5.7 percent for economy, 2.6 percent for mid-price and 2 percent for upscale hotels.
Revenue, demand and supply trends
Extended-stay room revenue rose 0.4 percent in August from a year earlier, The Highland Group said. STR/CoStar reported overall hotel revenue fell 0.1 percent and excluding luxury and upper-upscale segments, revenue fell 2 percent. STR/CoStar also reported August room revenue declines of 6.4 percent for economy hotels, 1.4 percent for midscale and 0.7 percent for upscale compared to August 2024.
Extended-stay demand rose 2.2 percent in August, the second-largest monthly increase in seven months. STR/CoStar reported total hotel demand fell 0.4 percent. Adjusting for the extra day in February 2024, extended-stay demand has grown in 32 of the past 33 months.
August was the second time in 47 months that supply growth exceeded 4 percent, the report said. Supply has risen about 3 percent year to date. Annual supply growth ranged from 1.8 to 3.1 percent over the past three years, below the long-term 4.9 percent average.
The 8 percent rise in economy extended-stay supply, with minimal change in mid-price and upscale rooms, is mainly due to conversions, as new economy construction accounts for about 3–4 percent of rooms compared to a year ago.
The Highland Group reported that economy, mid-price and upscale extended-stay segments led first-quarter 2025 RevPAR growth over their class counterparts. The report noted 602,980 extended-stay rooms at quarter-end, a net gain of 17,588 rooms over the past year, the largest in three years.
AHLA Foundation distributed $710,000 in scholarships to 246 students.
Nearly 90 percent of recipients come from underrepresented communities.
The foundation funds students pursuing education and careers in the lodging sector.
AHLA FOUNDATION DISTRIBUTED $710,000 in academic scholarships to 246 students at 64 schools nationwide for the 2025–2026 academic year. Nearly 90 percent of recipients are from underrepresented communities, reflecting the foundation’s focus on expanding access to hospitality careers.
The foundation awards academic scholarships annually to students in hospitality management and related programs, it said in a statement.
“Our scholarship program is helping ensure the next generation of talent has the resources to pursue careers in the hospitality industry,” said Kevin Carey, AHLA Foundation's president and CEO. “We’ve invested millions of dollars over the last several decades to recruit and support future leaders who will strengthen our industry.”
It provides funding to help students pursue education and careers in the lodging sector, the statement said. Award decisions are based on applicants’ academic performance, extracurricular involvement, recommendations and financial need.
In September, AHLA Foundation, the International Council on Hotel, Restaurant and Institutional Education and the Accreditation Commission for Programs in Hospitality Administration announced plans to expand education opportunities for hospitality students. The alliance aim to provide data, faculty development and student engagement opportunities.
The U.S. government shut down at midnight after Congress failed to agree on funding.
About 750,000 federal employees will be furloughed daily, costing $400 million.
Key immigration and labor programs are halted.
THE FEDERAL GOVERNMENT shut down at midnight after Republicans and Democrats failed to agree on funding. Disputes over healthcare subsidies and spending priorities left both sides unwilling to accept responsibility.
The shutdown could cost America’s travel economy $1 billion a week, the U.S. Travel Association said previously. It will disrupt federal agencies, including the Transportation Security Administration and hurt the travel economy, USTA CEO Geoff Freeman wrote in a Sept. 25 letter to Congress.
“A shutdown is a wholly preventable blow to America’s travel economy—costing $1 billion each week—and affecting millions of travelers and businesses while straining an already overextended federal travel workforce,” Freeman said. “While Congress recently provided a $12.5 billion down payment to modernize our nation’s air travel system and improve safety and efficiency, this modernization will stop in the event of a shutdown.”
USTA said that halting air traffic controller hiring and training would worsen a nationwide shortage of more than 2,800 controllers and further strain the air travel system.
About 750,000 federal workers are expected to be furloughed each day at a cost of about $400 million, according to the Congressional Budget Office. Essential services to protect life and property remain operational, CNN reported. The Department of Education said most of its staff will be furloughed, while the Department of Homeland Security will continue much of its work. Agencies released contingency plans before the deadline.
Immigration services are directly affected. Most U.S. Citizenship and Immigration Services operations continue because they are fee funded, but programs relying on appropriations—such as E-Verify, the Conrad 30 J-1 physician program and the special immigrant religious worker program—are suspended. Houston law firm Reddy Neumann Brown said employers must manually verify I-9 documents if E-Verify goes offline, though USCIS has historically extended compliance deadlines.
The Department of Labor will halt its Office of Foreign Labor Certification, freezing labor condition applications for H-1B visas, PERM applications and prevailing wage determinations, India’s Business Standard reported. Its FLAG system and related websites will also go offline. Immigration lawyers warn of ripple effects, since USCIS depends on DOL data. The Board of Alien Labor Certification Appeals and administrative law dockets will also pause.
Visa and passport services at U.S. consulates generally continue because they are fee funded. If revenue falls short at a post, services may be limited to emergencies and diplomatic needs.
Reuters reported that the disruption could delay the September jobs report, slow air travel, suspend scientific research, withhold pay from active-duty U.S. troops and disrupt other government operations. The funding standoff involves $1.7 trillion in discretionary agency spending—about one-quarter of the $7 trillion federal budget, according to Reuters. Most of the rest goes to health programs, retirement benefits and interest on the $37.5 trillion national debt.
According to The New York Times, unlike previous shutdowns, Trump is threatening long-term changes to the government if Democrats do not concede to demands, including firing workers and permanently cutting programs they support.
The U.S. led global travel and tourism in 2024 with $2.6 trillion in GDP, WTTC reported.
India retained ninth place with $249.3 billion in GDP.
The sector supported 357 million jobs in 2024, rising to 371 million in 2025.
THE U.S. LED global travel and tourism in 2024, contributing $2.6 trillion to GDP, mainly from domestic demand, according to the World Travel & Tourism Council. Europe accounted for five of the top 10 destinations, while India ranked 9th.
WTTC opened its 25th Global Summit in Rome with research showing investment reached $1 trillion in 2024, led by the U.S., China, Saudi Arabia and France.
“These results tell a story of strength and opportunity,” said Gloria Guevara, WTTC interim CEO. “The U.S. remains the world’s largest travel and tourism market, China is surging back, Europe is powering ahead, and destinations across the Middle East, Asia and Africa are delivering record growth. This year, we are forecasting that our sector will contribute a historic $2.1 trillion in 2025, surpassing the previous high of $1.9 trillion in 2019. As Italy hosts this year’s Global Summit, its role as a G7 leader showcases the importance of tourism in driving economies, creating jobs and shaping our shared future.”
The U.S. kept its top position, but international visitor spending is expected to fall by $12.5 billion in 2025, limiting growth to 0.7 percent. China, the second-largest market, contributed $1.64 trillion in 2024 and is forecast to grow 22.7 percent this year. Japan, the fifth-largest market, is expected to rise from $310.5 billion to nearly $325 billion.
Italy, which hosted the summit and is a G7 member, contributed $248.3 billion in 2024, driven by international visitors and the meetings and events sector. Germany, the third-largest market, contributed $525 billion. The UK generated $367 billion despite a fall in international visitor spending, while France and Spain added $289 billion and $270 billion. Europe’s growth was supported by both cultural and modern sectors.
India contributed $249.3 billion in 2024. In June, WTTC reported international visitors spent $36.09 billion in India in last year, up 9 percent from 2019.
Jobs on the rise
Travel and tourism supported 357 million jobs in 2024 and is expected to reach 371 million in 2025, increasing its share of global employment, the WTTC report found. By 2035, the sector is projected to support one in eight jobs worldwide, adding 91 million positions—most in Asia-Pacific—and accounting for one in three new jobs globally.
Uncertainties over trade tariffs and geopolitical tensions could limit sector growth in 2025, the report said. Travel and tourism’s GDP contribution is forecast to rise 6.7 percent, returning toward pre-pandemic averages but still outpacing the 2.5 percent growth projected for the global economy.
The sector is expected to contribute $11.7 trillion, or 10.3 percent of global GDP and add 14.4 million jobs, bringing total employment to 371 million, or 10.9 percent of global jobs. International visitor spending is projected to fully recover, rising 8.6 percent above 2019 levels to nearly $2.1 trillion, while domestic visitor spending is expected to rise 13.6 percent to $5.6 trillion. Annual growth for 2025 is forecast at 10 percent for international and 5.1 percent for domestic spending.
In May, WTTC projected the U.S. stood to lose $12.5 billion in international travel spending this year, falling to under $169 billion from $181 billion in 2024. The council said U.S. needs to do more to welcome international visitors rather than “putting up the ‘closed’ sign.”