Shares of Wyndham Hotels & Resorts experienced a sharp rise in premarket trading on Tuesday following an announcement by Choice Hotels International regarding a proposal to acquire the hotel chain. The proposed deal values each share of Wyndham at $90, with $49.50 in cash and the remaining amount in stock. This implies a total equity value of approximately $7.8 billion for Wyndham, and when factoring in the company's net debt, the transaction is estimated to be valued at around $9.8 billion.
Wyndham (WH) stock soared by 13% in response to the proposal, while Choice Hotels (CHH) shares declined by 6.4% during premarket trading. Conversely, Marriott International experienced a marginal 0.3% decrease, Hilton Worldwide Holdings remained unchanged, and Intercontinental Hotels Group (IHG.U.K) saw a 2.7% increase in London trading.
This public proposal comes after Wyndham's decision to disengage from further discussions with Choice Hotels, despite almost six months of negotiations. In a press release, Choice President and CEO Patrick Pacious expressed surprise and disappointment at Wyndham's decision, stating that both companies recognized the value opportunity that this potential transaction presented.
While Choice would have preferred to continue private discussions with Wyndham, in light of their unwillingness to proceed, Choice Hotels International believes that the potential transaction holds significant value for both companies' franchisees, shareholders, associates, and guests. They are committed to pursuing this acquisition.
Our Latest News
Elon Musk suggests a live-streamed cage match with Mark Zuckerberg, sparking speculation and excitement. Will these tech billionaires step into the ring?
The Mutant Ape Planet NFT turns out to be a fraud, leaving investors empty-handed. Federal prosecutors expose the 'rug-pull' scheme and its consequences for the...
Vanguard and former advisor Matthew Snipes have settled their legal dispute regarding the transfer of client accounts. The terms of the settlement remain confid...