Choice Hotels International has made a hostile bid worth nearly $8bn for Wyndham.
Talks between the two companies broke down, with Wyndham unexpectedly pulling out of discussions that were going well.
Choice Hotels CEO Patrick Pacious expressed surprise and disappointment at Wyndham’s decision to disengage.
Choice Hotels has offered a 20pc premium to Wyndham’s latest closing price and proposes a choice of cash, stock, or both for Wyndham shareholders.
The offer values Wyndham at approximately $7.8bn, or $9.8bn including debt. Choice Hotels, despite being smaller, sees potential value for both companies’ franchisees and shareholders.
Wyndham operates about 2,000 more hotels and has a brand portfolio that includes Days Inn, Howard Johnson, La Quinta, Ramada, Super 8, and Travelodge. Last year, Wyndham posted a profit of $355m.
