Choice Hotels wants to buy Wyndham

Old Oct 18, 2023, 11:19 am
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Choice Hotels wants to buy Wyndham

I didn't see this posted previously.

https://www.prnewswire.com/news-releases/choice-hotels-proposes-to-acquire-wyndham-hotels--resorts-for-90-00-per-share-in-cash-and-stock-transaction-301958752.html

As someone that is a happy Wyndham/Caesars Diamond member AND also enjoys 8X earning on gas through the Wyndham Business Earner card, I wonder what will happen if this goes through.

Barclays just lost Choice to Wells Fargo too.

Of course, any acquisition has to be approved and Choice already acquired Radisson recently.
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Old Oct 18, 2023, 11:30 am
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My guess is regulators would approve. It wont create a monopoly, and they can easily argue that merging will better enable them to compete with the Hilton/Marriott/IHG group.

More than likely they will keep the Wyndham/Caesars match since I am guess that is a locked in deal, but you might just get a 2:1 ratio rather than 1:1. If they give me 30,000 choice points every year instead of 15,000 Wynham, that would be fine with me. Add that to my Choice card and thats 60,000 points total.

Hopefully they keep giving top status too. Unfortunately, with eliminating the competition at the discount chain level, benefits will just continue to shrink
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Old Oct 18, 2023, 1:36 pm
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Originally Posted by Schnit
My guess is regulators would approve. It wont create a monopoly, and they can easily argue that merging will better enable them to compete with the Hilton/Marriott/IHG group.

More than likely they will keep the Wyndham/Caesars match since I am guess that is a locked in deal, but you might just get a 2:1 ratio rather than 1:1. If they give me 30,000 choice points every year instead of 15,000 Wynham, that would be fine with me. Add that to my Choice card and thats 60,000 points total.

Hopefully they keep giving top status too. Unfortunately, with eliminating the competition at the discount chain level, benefits will just continue to shrink
I definitely wouldn't complain if they did that.

One of the biggest benefits of the Wyndham Earner cards is the ability to access rates that don't include "mandatory" resort fees at certain hotels, like THE NEW YORKER.
Hopefully we don't experience too much of a devaluation.
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Old Oct 19, 2023, 8:49 pm
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Originally Posted by diesteldorf
I didn't see this posted previously.

https://www.prnewswire.com/news-rele...301958752.html

As someone that is a happy Wyndham/Caesars Diamond member AND also enjoys 8X earning on gas through the Wyndham Business Earner card, I wonder what will happen if this goes through.

Barclays just lost Choice to Wells Fargo too.

Of course, any acquisition has to be approved and Choice already acquired Radisson recently.
Apparently this been going on for a while, the previous offer was $80 a share and now the $90 offer which was made public.

Personally I am VERY happy with Wyndham/Caesars so I'm glad Wyndham said no again.

IMO there is no way we get a better deal than what we have with CET Diamond, transfer points to/from CET, 8X on gas and of course the ability to churn the credit cards.

However Wyndham stock still being up about $4 a share over pre buyout offer news leads me to believe Choice may submit another offer.

Choice has been engaging with Wyndham for nearly six months. In April 2023, Choice sent its initial letter to Wyndham regarding a potential transaction, proposing to acquire Wyndham for $80.00 per share, comprising 40% cash and 60% Choice stock. On Tuesday, Choice Hotels went public with its offer to buy Wyndham after months-long private talks collapsed.

Oct 17 (Reuters) - U.S. budget hotel operator Wyndham Hotels and Resorts (WH.N) on Tuesday rejected rival Choice Hotels' (CHH.N) $7.8 billion cash-and-stock acquisition offer, calling it "underwhelming" and citing regulatory risks around a possible combination.


https://www.reuters.com/markets/deal...on-2023-10-17/
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Last edited by flyer4512; Oct 19, 2023 at 9:12 pm
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Old Oct 29, 2023, 3:36 pm
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Old Nov 6, 2023, 6:50 am
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Originally Posted by Schnit
My guess is regulators would approve. It wont create a monopoly, and they can easily argue that merging will better enable them to compete with the Hilton/Marriott/IHG group.

More than likely they will keep the Wyndham/Caesars match since I am guess that is a locked in deal, but you might just get a 2:1 ratio rather than 1:1. If they give me 30,000 choice points every year instead of 15,000 Wynham, that would be fine with me. Add that to my Choice card and thats 60,000 points total.

Hopefully they keep giving top status too. Unfortunately, with eliminating the competition at the discount chain level, benefits will just continue to shrink
You may be right that the regulators may approve, but it won't be good for the traveling public. Mergers never are. At best, highest tier members may get to enjoy benefits at a wider range of hotels. At worst, the program benefits will be reduced to offset the cost of the merger, especially if the price goes higher than the acquiring company initially expected.

There have to be synergies and cost savings to drive the merger, or removal of a competitor lessening competition. Otherwise it is does not make sense for the acquiring company.
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Old Jan 12, 2024, 7:40 pm
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Originally Posted by diesteldorf
I didn't see this posted previously.

https://www.prnewswire.com/news-rele...301958752.html

As someone that is a happy Wyndham/Caesars Diamond member AND also enjoys 8X earning on gas through the Wyndham Business Earner card, I wonder what will happen if this goes through.

Barclays just lost Choice to Wells Fargo too.

Of course, any acquisition has to be approved and Choice already acquired Radisson recently.
Wyndham's stance on the buyout/takeover

https://www.staywyndham.com/?utm_sou...BoCO2EQAvD_BwE
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Old Jan 13, 2024, 5:59 am
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So let me get this straight, is the merger still happening or not?
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Old Jan 13, 2024, 7:56 pm
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Originally Posted by purplenightskylovertv
So let me get this straight, is the merger still happening or not?
Probably neither. Ie, it's going to undetermined for a long time.

For one thing, I think it needs approval from one or more agencies in one or more countries. So unless both sides agree that's it's no longer happening, it's not going to be decided soon, because while they can agree to it not happening, they need others to agree to get it to actually happen.
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Old Jan 15, 2024, 2:51 pm
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Originally Posted by purplenightskylovertv
So let me get this straight, is the merger still happening or not?
From what I understand Choice is buying Wyndham stock like crazy and if Wyndham doesn't agree to the buyout Choice is going to try to appoint members to the Wyndham board that see thing their way.

Even if Choice succeeds chances are nothing happens until at least 2025

I believe the Wyndham board meets in May.


https://www.reuters.com/markets/deal...es-2023-11-27/

Nov 27 (Reuters) - Choice Hotels International (CHH.N) is preparing to nominate directors to the board of rival Wyndham Hotels & Resorts (WH.N), seeking to break a stalemate in an $8 billion takeover battle, people familiar with the matter said.

Choice has become a Wyndham shareholder by snapping up its shares in the open market and plans to raise its stake in the coming days, the sources said.

This gives Choice the right to nominate directors to Wyndham's board come January. If Wyndham continues to rebuff Choice's acquisition overtures, the latter could turn the election of directors at Wyndham's annual shareholder meeting in the spring into a referendum for investors on whether negotiations should take place, the sources said.

Last edited by flyer4512; Mar 18, 2024 at 2:56 pm
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Old Jan 16, 2024, 5:45 am
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Basically right now Wyndham is ignoring them. They are trying to buy enough stock that they can force a hostile take over
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Old Mar 13, 2024, 10:51 am
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Originally Posted by Schnit
Basically right now Wyndham is ignoring them. They are trying to buy enough stock that they can force a hostile take over
Just FYI....Choice dropped their takeover bid.

https://www.barrons.com/news/choice-...ndham-519c5af0

Personally, I'm glad. I have both credit cards, stay at both brands, and appreciate more competition.
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Old Mar 13, 2024, 2:09 pm
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Wonder why they gave up
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Old May 23, 2024, 1:04 pm
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Originally Posted by Schnit
Wonder why they gave up
I was wondering the same thing myself.
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