Choice Hotels has today made public its $7.8B offer to acquire its rival Wyndham Hotels. The US hotelier recently took over Radisson’s operations in the Americas (read more here).
Choice states that Wyndham has disengaged in their negotiations that have been going on for months, hence this hostile bid. Wyndham has not publicly commented on Choice’s offer.
You can access Choice’s website for the bid here.
READ MORE: Choice Privileges Rate & Bonus Points Offers
Key Points from Choise’s Release:
Franchisees: The acquisition is expected to lower the total cost of hotel ownership and increase hotel profitability for franchisees. It nearly doubles the resources available for marketing and direct bookings, reduces customer acquisition costs, and enhances the value of franchisees’ real estate assets.
Shareholders: The proposal offers a substantial premium to Wyndham shareholders and anticipates meaningful annual synergies of around $150 million. Shareholders can choose between cash and stock consideration, with the opportunity for long-term value creation.
Guests: Guests stand to benefit from a combined rewards program, a broader portfolio of brands, and more lodging options and value.
Associates: The transaction offers increased opportunities and stability for associates, including the potential to attract top talent and further career growth within a larger organization.
Choice’s Brands
Wyndham’s Brands
Choice’s Infographic:
Choice’s Presentation:
Conclusion
You would have roughly 16,600 hotels under combined Choice and Wyndham + another 3,000 or so are currently under development.
Choice and Wyndham are strong in the select service segment but lack premium brands.
The membership numbers of Choice Privileges and Wyndham Rewards are meaningless unless you know how many are active (I would assume less than 10%), meaning having any activity within the previous 12 months.
Let’s see what happens next.
