Choice Hotels Drops Bid to Takeover Wyndham Hotels

Choice Hotels has ended its pursuit of Wyndham Hotels.

Choice said on Monday that it was ending its bid to takeover Wyndham Hotels after lackluster support from the Wyndham shareholders. Choice had been engaged in a possible takeover since October 2023 when it went public with an $8 billion cash-and-stock offer for the hotel company.

“Choice has decided not to extend the exchange offer and is withdrawing its slate. Choice intends to continue focusing on its standalone strategy, which the Company is confident will create significant long-term value for its stockholders and franchisees,” Choice said on Monday.

Choice had engaged Wyndham for months prior to issuing its hostile takeover bid in October of last year. Its proposal, at the time, would have given Wyndham shareholders a 26% premium to the company’s 30-day volume-weighted average closing price.

Wyndham had fought against the Choice proposals, calling them a “step backwards” and saying that Choice was undervaluing Wyndham. It had also cited regulatory concerns and an approval timeline that it said would saddle Wyndham shareholders with “serious risk.”

Now that the Wyndham deal is dead, Choice said that it will focus on a share buyback program to add value for its shareholders.