IHG Accelerates Global Expansion
Skift Take
- Choice Hotels International purchased more shares in Wyndham Hotels & Resorts in its unsolicited exchange offer to acquire the company.
- The Baird/STR Hotel Stock Index rose 9.3% in November, with the Hotel REIT sub-index up 7.6% year-to-date and the Hotel Brand sub-index up 30.6% year-over-year.
- BCD Travel forecasts a global decrease in airfares and a 6.8% increase in hotel rates in 2024.
The DJIA closed up 0.48%, the Nasdaq was up 0.70%, and the S&P 500 was up 0.46%, while 10-year treasury yield was down 0.03%. Lodging stocks were mixed. Airbnb was down 1.65%. Soho House was up 3%.
Barclays lowered their rating on Airbnb to Underweight from Equal Weight. They slashed their target price to $100 from $135.
Choice Hotels International made it official, confirming they have commenced an unsolicited exchange offer to acquire all the outstanding shares of Wyndham Hotels & Resorts common stock. The hostile offer is the same as the previous one with some clarifications, mainly that CHH met with the FTC to address anti-trust concerns and are confident with the target timeline of one year to complete the transaction. There is a reverse termination fee of 6% or $435 million and a ticking fee of 0.5% per month if the deal takes longer than a year to close. WH holders can’t receive both because one is if the deal
