Wyndham Rejects Choice Hotels’ $7.8 Billion Takeover Bid

Wyndham Hotels & Resorts, one of the world’s largest hotel chains, has rejected a $7.8 billion takeover bid from Choice Hotels International. The offer, made public on Tuesday, would have combined the two companies into a single entity with over 15,000 hotels in over 95 countries.

Wyndham’s board of directors said the offer “undervalues the company and is not in the best interests of our shareholders.” The board also cited concerns about the regulatory risks associated with the deal.

Choice Hotels, the owner of brands such as Comfort Inn, Econo Lodge, and Quality Inn, said it was “disappointed” with Wyndham’s decision. However, the company said it “remains confident in the value of our proposal and our ability to create a combined company that would be a leader in the global hospitality industry.”

The rejection of Choice Hotels’ bid is a setback for the company, which has been looking to expand its scale and reach. The deal would have given Choice Hotels a stronger presence in the upscale and midscale hotel segments.

For Wyndham, the rejection of the bid is a sign that the company is confident in its ability to grow independently. The company has been performing well in recent quarters, and it has a number of initiatives in place to drive future growth.

The outcome of the bidding war between Choice Hotels and Wyndham remains to be seen. Choice Hotels will likely return with a higher offer, or another company will emerge as a bidder. However, it is also possible that Wyndham will remain independent.