Choice Hotels Calls Off Hostile Takeover Bid for Wyndham Hotels & Resorts

Choice Hotels International has officially ended its hostile takeover attempt of Wyndham Hotels & Resorts, a move initially announced in October 2023. The decision came after Choice failed to secure sufficient support from Wyndham’s shareholders, leading to the withdrawal of its bid and the cessation of efforts to nominate independent directors to Wyndham’s board.

The ambitious cash-and-stock offer, valued at approximately $8 billion, faced staunch opposition from Wyndham’s leadership, who criticized the proposal for undervaluing the company and raising antitrust concerns. Stephen P. Holmes, Chairman of the Board at Wyndham, expressed satisfaction with Choice’s decision to halt its unsolicited pursuit, reaffirming confidence in Wyndham’s independent growth strategy and management.

In a strategic pivot, Choice announced its Board of Directors approved the expansion of its share repurchase program by five million shares, bringing the total authorization to approximately 6.8 million shares. This move underscores Choice’s commitment to enhancing stockholder value through its own business strategies.

Choice articulated the rationale behind its withdrawal, pointing to Wyndham’s consistent refusal to engage constructively in discussions about a potential merger. Despite a notable number of Wyndham stockholders showing interest in the exchange offer, the lack of sufficient support, combined with Wyndham’s board’s disinterest, led Choice to conclude that a transaction was unfeasible at this time.

The termination of the takeover bid marks the end of a notable chapter in the hospitality industry’s corporate maneuverings. Choice Hotels now shifts focus back to its standalone strategy, aiming to drive long-term value for its stockholders and franchisees without pursuing the acquisition of Wyndham.