Choice Hotels, which also owns the American leg of the Ramada Hotel Group, offered $ 9.8 billion to acquire Wyndham Hotels, while the Wyndham Hotels Board of Directors rejected the offer, which was 30 per cent more than the share price in the stock market.
While the official negotiations between the two groups started in recent months, choice hotels stated that Choice and Wyndham were close to an agreement on price and valuation, but Wyndham withdrew from the negotiations. However, even if Wyndham rejects the deal, it is rumoured that Choice Hotels may make an offer directly to Wyndham's shareholders. Choice Hotels CEO Patrick Pacious said, "We continue to believe in both the many benefits of the combination and our ability to complete it.
The possible deal would create the largest budget hotel chain in North America. The two groups have a total of 16,300 hotels in their portfolio. Choice Hotels, which has 22 brands in its portfolio, competes mainly in the economy, middle and upper middle segment with brands such as Comfort, Sleep Inn, Quality Inn, Clarion, Rodeway Inn and EconoLodge.
Wyndham Hotels, on the other hand, has 24 brands such as Ramada, Days Inn, Super 8, Super 8, Travelodge, La Quinta and Wyndham Garden, which play in the economy, middle and upper middle segments.
Last summer, Choice acquired the American arm of the Radisson Group for $675 million.
