Choice Hotels Initiates Exchange Offer and Board Battle for Acquisition of Wyndham Hotels

Choice Hotels International has announced its intention to launch an exchange offer in a bid to acquire Wyndham Hotels & Resorts. The move comes as Choice seeks to present its proposal directly to Wyndham shareholders after unsuccessful negotiations.

Choice believes the proposed transaction is mutually beneficial and aims to generate value for shareholders, franchisees, guests, and associates of both companies. Choice currently holds approximately 1.5 million shares of Wyndham common stock, valued at over $110 million, and is initiating the required regulatory review.

Patrick Pacious, President and CEO of Choice Hotels, expressed disappointment in Wyndham’s board for refusing to explore a transaction, leading Choice to pursue a direct proposal to Wyndham shareholders. Choice’s proposed acquisition, outlined in October, involves a cash and stock deal valued at around $7.8 billion. Despite addressing concerns and adding regulatory protections, Wyndham’s board unanimously rejected the bid. Choice Hotels now plans to nominate candidates for Wyndham’s board, signaling an intensified effort to move forward with the proposed merger.