Choice Hotels eyes U.S. budget hotel giant with $7.8 billion Wyndham buy
Choice Hotels on Tuesday proposed to acquire Wyndham Hotels and Resorts for about $7.8 billion in a cash and stock deal that would create a U.S. budget hotel giant.
Demand for affordable hotels such as Choice and Wyndham are on the rise as persistent high inflation and recession sap consumer spending on travel.
Shares of Wyndham rose about 22% before the bell. The company did not immediately respond to Reuters request for a comment.
Choice offered Wyndham shareholders $90.00 per share, including $49.50 in cash and 0.324 shares of its common stock for each Wyndham share owned.
The offer represents about a 30% premium to Wyndham’s last closing price, and comes after on-again, off-again discussions between the two companies.
As of yesterday’s close, Choice had a total market capital of $6.29 billion, Wyndham’s stood at $5.82 billion.
Reuters reported in May about a potential deal between the two companies, citing a source familiar with the matter.
