Wyndham Rejects Choice Hotels’ Bid, Citing Concerns

Wyndham Hotels & Resorts has officially rebuffed the unsolicited exchange offer from Choice Hotels International to acquire all outstanding shares of the hospitality company. Following a thorough review with external financial and legal advisors, Wyndham officials unanimously advised shareholders against tendering their shares to Choice. The rejection is based on concerns related to a potential lengthy regulatory review period of up to 24 months, a lower valuation, and unfavorable reactions from franchisees.

Wyndham’s Chairman of the Board, Stephen P. Holmes, emphasized the unchanged nature of Choice’s offer and reiterated the core issues, including regulatory uncertainties, inadequate valuation, and the neglect of Wyndham’s independent growth prospects. Choice Hotels, however, maintains its stance that the proposed transaction is “pro-competitive” and would generate value for both companies’ stakeholders. This development follows Choice’s announcement last week to commence an exchange offer directly to Wyndham shareholders after the latter’s unanimous rejection of the previous bid in October.