Wyndham Rejects Choice Hotels’ Bid, Urges Shareholder Caution

In a resolute stance, Wyndham Hotels & Resorts continues to resist Choice Hotels’ advances for its business. The board of directors at Wyndham has now issued a clear message to shareholders, urging them to reject Choice Hotels’ unsolicited offer.

Stephen Holmes, Chairman of the Board at Wyndham, emphasized the board’s consistent stance on the matter, stating, “Our Board has made itself consistently clear on these risks, but Choice continues to ignore what is in the best interests of Wyndham shareholders. We are confident Wyndham can deliver long-term shareholder value well in excess of the offer by Choice.”

Wyndham contends that Choice Hotels downplays the potential for a protracted antitrust review. In response to this, Wyndham has taken proactive measures, launching StayWyndham.com, a website aimed at highlighting the risks associated with accepting Choice Hotels’ bid. The company asserts that there is ‘strong opposition’ from its franchisees regarding the proposed deal.

Choice Hotels has presented shareholders with the option to receive its own stock or cash for their Wyndham shares, claiming that this offer represents a 30% premium to Wyndham’s stock value prior to the proposal. The battle between the two hotel giants continues, with Wyndham standing firm in its belief that the long-term value it can provide to shareholders surpasses the appeal of Choice Hotels’ bid.