Choice Hotels Ends Bid to Acquire Wyndham
Photo Credit: A guest room at the Wyndham Grand Krakow hotel, which opened in 2023 Wyndham Hotels & Resorts
Skift Take
The market liked this conclusion: both companies' stock prices rose, with Choice Hotels up 6% and Wyndham Hotels 2%, indicating investor relief – or strategic reassessment.
The DJIA was up 47 points but Nasdaq was down 66, the S&P 500 fell 6 points and the 10 year treasury yield was up .02 to 4.10%. Lodging stocks were mixed.
The big news of the day was that the Exchange Offer from Choice Hotels to acquire all the shares of Wyndham Hotels & Resorts had expired this past Friday. Based on CHH’s press release last week, we felt they were saying they would pull the offer if more people did not tender their shares. We felt it was very unlikely CHH was going to get a lot of shares tendered given they were pushing a $90 offer which was not even close to that given the plunge in CHH’s share price. CHH management did an investor call with Truist and on that call, they sounded completely different, saying they were confident they would get the shares and be able to acquire WH. The rise in CHH stock after their press release showed more
