Choice Hotels Makes Hostile Bid for Wyndham
Skift Take
- Choice Hotels made an offer to acquire Wyndham Hotels and Resorts, which was rejected. The situation may lead to a proxy fight.
- Marriott and MGM's partnership launch delayed to early 2024 due to a cyber attack on MGM and the complexity of the integration, which includes the creation of the MGM Collection with Marriott Bonvoy.
- Hyatt introduces the Wellbeing Collective, offering tailored wellbeing experiences at 30+ hotels globally, with plans to expand in 2024.
The DJIA was up 13 points, but the Nasdaq was down 34, the S&P 500 was down half a point, and the 10-year treasury yield jumped .14 to 4.85%.
Lodging stocks were mixed. The big winner, obviously was Wyndham, up 9%, while Choice Hotels was down -7%. Ashford Hospitality was the other mover of note, up 8% on the day.
Choice Hotels went public with an offer to acquire Wyndham Hotels and Resorts. The offer was described as $90 a share, $9.8 billion including Wyndham debt, but since it is only $49.50 a share in cash and 0.324 shares of CHH stock for each WH share owned, the real value is more or less, depending on CHH stock. In this case today, with CHH stock going down on the news, it was less. CHH’s press release sounded like one of frustration, making it public that they were in negotiations with WH, but then they were ghosted by them. In other words, CHH was going hostile. Late morning,Â
