HBI Staff | Hyderabad 
Choice Hotels International (CHH) has ceased its approximately USD 7.8 billion takeover bid for competitor Wyndham Hotels & Resorts (WH), citing Wyndham’s board’s reluctance to engage constructively and substantively on terms. the acquisition attempt, initiated nearly a year ago, evolved from an acquisition offer to a takeover attempt by choice in December. choice stated it will now focus on its own operations and announced an increase in its stock buyback program by 5 million shares, valued at approximately USD 632 million at choice’s current price. while choice garnered some support among Wyndham’s shareholders, it has concluded that there is currently no viable path toward a transaction.
wyndham responded with a statement and a letter to shareholders on monday, asserting that the company has a strategy to deliver value to its shareholders that surpasses choice’s inadequate and uncertain offer. wyndham’s letter to shareholders highlighted several concerns raised by the board regarding choice hotels’ offer, including insufficient valuation, unattractive consideration mix, and asymmetrical regulatory risk. wyndham accused choice of being either unable or unwilling to address these concerns and modify the offer accordingly.
both choice hotels international and Wyndham hotels & resorts operate numerous hotel chains across the u.s., including days inn and La Quinta under Wyndham’s umbrella, and radisson and comfort inn under choice. had the acquisition been successful, the combined brands would have operated approximately 16,000 locations worldwide.
