Reuters reports Choice is considering a purchase of Wyndham Hotels & Resorts, either by friendly merger or hostile takeover.

 

Choice-Wyndham Merger Could Create Full-Spectrum Hospitality Brand

The reports are based on information from someone “familiar with the matter,” who requested anonymity because the talks are still private. According to their account, there are two options for Choice to move forward with an acquisition.

 

First, both companies could come to the negotiating table willingly to discuss the takeover. The source says the discussions are at an early phase, and it’s unclear if Wyndham wants to be taken over by Choice. If that move is unsuccessful, the source claims Choice could attempt a hostile takeover and go straight to shareholders – not very different to what JetBlue did with Sprit Airlines in 2022.

 

Spokespersons for both Choice and Wyndham have not provided any insight on the rumors. In a statement to Reuters, Wyndham said they are focused on “Business as usual.”

 

If the two brands were to merge, it would create a hospitality giant with over 16,000 properties with over 30 brands around the world and a brand value upwards of $10 billion. While Wyndham hotels range from budget to upscale hotels, Choice Hotels focuses on the midscale to upscale traveler.

 

Merger Move Comes after Aggressive Growth from Choice

The rumors of a Choice purchase of Wyndham caps what has been a year of aggressive growth for the hospitality company. In addition to launching a new credit card with Wells Fargo, Choice Hotels also purchased Radisson’s 624 U.S. hotels in June 2022 for $675 million.

 

How would a Choice Hotels-Wyndham Hotels & Resorts merger affect your travel? Share your thoughts on the FlyerTalk Forums. 

Source: frugal travel guy