CoStar reports the major hotel chain wants to find a way to merge with Wyndham Hotels & Resorts, despite Wyndham’s disinterest.
Choice Pursuit of Wyndham Dates Back to May 2023
After announcing the acquisition of Radisson’s assets in the United States, the hospitality company became focused on purchasing Wyndham. In May 2023, persons familiar with the matter said the two were in private, high-level talks to determine if a merger was feasible.
Choice put their money on the table in October 2023 by submitting a $9.8 billion purchase deal to Wyndham. Tie company promptly denied the offer, with Wyndham board chair Stephen Holmes telling investors the bid was simply “a desperate grab to try and solve problems that the company has.”
Despite Wyndham’s reluctance, executives at Choice say they are determined to get a deal done with their competitor. They claim their offer came after six months of private negotiations with the hopes of attracting the interest of Wyndham’s board.
“The strategic rationale is just simply too compelling not to see it all the way through,” Pat Pacious, president and CEO of Choice Hotels, told investors on their 2023 third quarter call, as quoted by CoStar. “We’re well aware of what our options are to see this all the way through, and we’re confident we’ll get the transaction completed.”
Some of the synergies Pacious sees are in reducing labor costs, hedging interest rates, and building on the strength of both brands. Telling investors that franchisees are “very supportive” and calling Wyndham “complimentary” to their brand, the chief executive said he would welcome conversations with Wyndham’s board.
Outside of their investor calls, Wyndham has not commented further on the potential merger.
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Source: frugal travel guy