Choice Hotels offers nearly $8 billion for larger rival Wyndham Hotels & Resorts as travel booms

Associated Press

Choice Hotels International is asking shareholders of rival chain Wyndham Hotels & Resorts to sign off on a buyout worth nearly $8 billion after Wyndham broke off negotiations. Choice, based in Rockville, Maryland, is offering $49.50 in cash and 0.324 shares of Choice common stock for each Wyndham share they own. Choice operates about 7,500 hotels and seeks to absorb a much larger chain in Wyndham, which operates nearly 9,300 hotels. Like most hotels, its benefited from booming travel in recent years. Its shares are up more than 170% since it stock price tumbled close to $25 each at the start of the pandemic. Shares of Wyndham jumped more than 19% before the opening bell Tuesday.