Choice Hotels ditches $8 billion hostile takeover bid for Wyndham

11.03.2024 - 20:39 / thepointsguy.com / Geoff Ballotti

Take it from me, a former high school mock trial and literary magazine nerd who wasn't exactly the star of the football team: Unrequited love usually never works.

Just ask Choice Hotels.

On Monday, the hotel company behind brands like Comfort Inn and the Radisson Americas portfolio finally walked away from its $8 billion attempt at a hostile takeover of Wyndham Hotels & Resorts. The deal seemed like a long shot for some time, and not just because Wyndham's leadership team balked at the idea of selling to Choice.

The Asian American Hotel Owners Association — the leading hotel ownership group in the U.S. — conducted a survey during the drawn-out takeover saga, and a majority of Wyndham franchisees polled said the takeover would hurt their business.

There was also thinking that the government wouldn't let Wyndham and Choice merge because it would eliminate a competitor in the increasingly consolidated hotel industry — especially after a federal judge blocked the attempted JetBlue and Spirit Airlines merger.

Others in the industry thought Wyndham was simply holding out for a better offer since the company sits atop a hefty portfolio of brands with affordable hotel rooms, which is increasingly the area all the major hotel brands want to play in.

Alas, this lopsided love was not meant to be.

"Since beginning this process in April 2023, Choice has attempted to engage in good-faith negotiations with Wyndham through numerous different avenues. ... Given Wyndham's refusal to constructively and substantively engage on terms, Choice took the extraordinary step of launching the exchange offer to initiate the regulatory review process and engage with Wyndham stockholders," reads a statement from Choice Hotels. "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."

Wyndham's leadership team doesn't appear to be that bothered by the idea of the Choice takeover attempt going away. Choice walking away arrives mere weeks after Wyndham leaders started an investor call noting a variety of reasons why the deal should not happen, including how many hotel owners within both companies were considering dropping their brand affiliation if the takeover happened.

"Wyndham is focused on moving ahead with the execution of our strategic plan, building on our success and generating meaningful value," Wyndham CEO Geoff Ballotti said in a statement Monday. "We look forward to doing so without the unnecessary distraction of this situation and disruption to our business. We would like to thank our shareholders and franchisees for their