Wyndham Hotels & Resorts Inc. shares surged following reports that it could be acquired by Choice Hotels International Inc.
(Bloomberg) — Wyndham Hotels & Resorts Inc. shares surged following reports that it could be acquired by Choice Hotels International Inc.
Wyndham stock climbed 5.1% to $69.01 in New York Tuesday after the Wall Street Journal reported that Choice is seeking to buy the company in a deal that would combine two major players in the economy-lodging segment. Choice shares fell 4.6% to $113.40.
The companies “aren’t in serious talks and it isn’t clear whether Wyndham wants to do a deal,” the report said. A spokeswoman for Wyndham declined to comment, while a representatives for Choice didn’t immediately respond to a request seeking comment.
While both companies have market capitalizations of roughly $6 billion, Choice Chief Executive Officer Pat Pacious would be acquiring a rival with a bigger property footprint.
Wyndham, whose holdings include economy brands Days Inn and Super 8 as well as some higher-end offerings, operates a system with more than 9,000 properties across 95 countries. Choice, by comparison, has more than 7,000 franchised hotels with brands such as Comfort and Quality Inn.
Both companies have been relative winners in the pandemic lodging bust — and subsequent rebound — that favored properties within driving distance of their guests, as well as those catering to small business travelers over big corporate accounts.
(Updates shares in second paragraph, company response in third paragraph.)
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