By Sabela Ojea
Wyndham Hotels & Resorts’ shares rose on Tuesday after The Wall Street Journal reported in an exclusive that Choice Hotels is looking into buying the company.
At 2:54pm ET shares of Wyndham Hotels & Resorts had climbed 7.2% to $70.38, putting them on pace for their largest single-day percentage increase since July 15, 2020, when they rose 10%. Choice Hotels’ stock was down 4.5% to $113.41. Both stocks were down on the day before the news broke.
The hotel franchising companies have yet to hold serious talks, but if Wyndham doesn’t want to do a deal Choice Hotels could take an offer directly to Wyndham’s shareholders, according to unnamed people familiar with the matter cited by the WSJ.
A deal with Wyndham Hotels & Resorts, whose brands include Days Inn and Econo Lodge, would make Choice Hotels one of the biggest budget hotel owners in the U.S.
Choice Hotels, with brands including Quality Inn, Econo Lodge, Clarion and Comfort, with more than 7,000 hotel locations in 40 countries, has said that it wants to grow in the so-called upper-midscale and upscale segments.
Write to Sabela Ojea at [email protected]; @sabelaojeaguix
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