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Choice Hotels Seeks to Buy Wyndham Hotels & Resorts

Choice Hotels Seeks to Buy Wyndham Hotels & Resorts

Old May 23, 2023, 1:47 pm
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Choice Hotels Seeks to Buy Wyndham Hotels & Resorts

Article in Wall Street Journal today May 23,2023
https://www.wsj.com/articles/choice-...=hp_lead_pos10

Reuters version that might not be as paywalled:
https://www.reuters.com/markets/deal...sj-2023-05-23/
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Old May 23, 2023, 3:08 pm
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First Radisson, now Wyndham
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Old May 23, 2023, 3:10 pm
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Interesting. I have Radisson points. So perhaps in time I can use them for Wyndham time share properties? Frequent Miler posted an article this week about redeeming for Wyndham on the Big Island of Hawaii. https://frequentmiler.com/bargain-lu...sa-experience/
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Old May 23, 2023, 6:03 pm
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Wyndham has single-handedly run their brands into the ground. The once iconic Howard Johnson has for the most part turned into a dilapidated budget chain. Then there's Ramada, which once was a notch up from Holiday Inns, and is now is on par with Days Inns, at best. I can see why Choice Hotels might be interested in gaining a dominant market share in the economy segment, but I'm intrigued that they feel they can actually do something with Wyndham. Maybe it's the timeshare business they are after.
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Old May 23, 2023, 7:18 pm
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Originally Posted by TTT103
I can Maybe it's the timeshare business they are after.
Then it seems they are looking to buy the wrong company?

From the Reuters article linked upthread: “Wyndham was formed in 2018. Wyndham Worldwide spun off its $11 billion hotel business to create two separate publicly-traded hospitality companies. Wyndham Worldwide is now known as Travel + Leisure and focuses on timeshare resorts.”

(note: I thought Wyndham was still in the timeshare business, but perhaps T&L is just licensing the reasonably well-known brand name for timeshare properties?)


Originally Posted by SanDiego1K
Interesting. I have Radisson points. So perhaps in time I can use them for Wyndham time share properties? Frequent Miler posted an article this week about redeeming for Wyndham on the Big Island of Hawaii. https://frequentmiler.com/bargain-lu...sa-experience/
Same here. I still have a pile of Radisson points looking for some use, and a Vacasa rental via Wyndham might be a good use.
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Old May 24, 2023, 2:41 am
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I hope this attempted transaction never makes it to closing — it will not mean good things for my Choice points and it will likely also mess up the value of Wyndham point redemptions for me.
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Old May 24, 2023, 3:55 am
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Originally Posted by notquiteaff

(note: I thought Wyndham was still in the timeshare business, but perhaps T&L is just licensing the reasonably well-known brand name for timeshare properties?)
Wyndham actually bought T&L for $100M two years ago.
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Old May 24, 2023, 3:59 am
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Originally Posted by TTT103
Wyndham actually bought T&L for $100M two years ago.
T+L is currently traded on the NYSE under ticker symbol TNL.

Wyndham trades on the same market under WH.

Choice’s CEO Ballotti thinks Choice will fly higher and higher with middle income customers on the road, and this is part of that. He is very optimistic about the segment, even before considering the possibility of people buying down.

Last edited by GUWonder; May 24, 2023 at 4:06 am
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Old May 24, 2023, 7:36 am
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Originally Posted by TTT103
Wyndham actually bought T&L for $100M two years ago.

Link?

T+L doesnt mention that on their website:

https://www.travelandleisureco.com/about-us

In 2018, we established Wyndham Destinations, Inc. and spun off our hotel business into a separate publicly traded company, Wyndham Hotels & Resorts. While they are two separate entities, we have long-term exclusive license agreements to retain our connection with Wyndham Rewards, one of the top loyalty programs in the hospitality industry. Since then, we have also acquired Alliance Reservations Network and the iconic Travel + Leisure brand.

$100M seems like it wouldnt be nearly enough.
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Old May 24, 2023, 4:05 pm
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Originally Posted by notquiteaff
Link?

T+L doesn’t mention that on their website:

https://www.travelandleisureco.com/about-us

”In 2018, we established Wyndham Destinations, Inc. and spun off our hotel business into a separate publicly traded company, Wyndham Hotels & Resorts. While they are two separate entities, we have long-term exclusive license agreements to retain our connection with Wyndham Rewards, one of the top loyalty programs in the hospitality industry. Since then, we have also acquired Alliance Reservations Network and the iconic Travel + Leisure brand.”

$100M seems like it wouldn’t be nearly enough.
Post-Wyndham Hotels spin-off from Wyndham Destinations, Wyndham Destinations acquired Travel+Leisure; and with Wyndham Destination’s acquisition of Travel+Leisure, Wyndham Destinations was renamed as Travel+Leisure while Wyndham Hotels continues as Wyndham Hotels:

Originally Posted by JANUARY 06, 2021 6:30AM EST
WYNDHAM DESTINATIONS ACQUIRES TRAVEL + LEISURE BRAND FROM MEREDITH CORPORATION IN STRATEGIC ALLIANCE; WYNDHAM DESTINATIONS TO BE RENAMED TRAVEL + LEISURE CO.
?

https://www.travelandleisureco.com/n...ure-brand-from
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Old May 24, 2023, 4:57 pm
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Originally Posted by GUWonder
Post-Wyndham Hotels spin-off from Wyndham Destinations, Wyndham Destinations acquired Travel+Leisure; and with Wyndham Destination’s acquisition of Travel+Leisure, Wyndham Destinations was renamed as Travel+Leisure while Wyndham Hotels continues as Wyndham Hotels:



?

https://www.travelandleisureco.com/n...ure-brand-from

My point was: Wyndham (the hotel company) didn’t buy T+L. The timeshare company (Wyndham Destinations) did, and it then renamed itself T+L.

So in this post

Originally Posted by TTT103
Wyndham actually bought T&L for $100M two years ago.
I interpreted “Wyndham” to refer to the hotel company, and it didn’t buy T+L.
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Old May 25, 2023, 4:15 am
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Originally Posted by notquiteaff
My point was: Wyndham (the hotel company) didnt buy T+L. The timeshare company (Wyndham Destinations) did, and it then renamed itself T+L.

So in this post



I interpreted Wyndham to refer to the hotel company, and it didnt buy T+L.
That is correct. I was not specific enough in my post.
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Old May 29, 2023, 7:38 pm
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Is it just me, or am I getting a Marriott-Starwood merger vibe from this?
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Old May 30, 2023, 1:51 am
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Originally Posted by purplenightskylovertv
Is it just me, or am I getting a Marriott-Starwood merger vibe from this?
No, it’s not just you.

Choice’s CEO is even sort of inspired by what Marriott achieved by pulling Starwood out as a competitor by eating it, but this time it’s a more downmarket-specific focus than Marriott. Unfortunately, WH BOD/shareholders will likely want a replay of Marriott+Starwood, and Choice will be willing to offer a premium sufficient to clear the deal to see those kind of benefits play out again but this time for Choice and Choice+Wyndham.

The only hope is that the US federal government blocks the combination or heavily conditions the combination on so many particular elements that the deal is not seen as worth pursuing by Choice BOD/shareholders. But hope and expectation are separated from the other by a chasm.
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Old May 30, 2023, 9:30 am
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Originally Posted by purplenightskylovertv
Is it just me, or am I getting a Marriott-Starwood merger vibe from this?
It is just you.

This is more like if Waffle House bought Perkins.
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