The American chain Choice Hotels announced this Monday that it is giving up the purchase of its rival Wyndham, thus ending an operation that would have meant acquiring a total of 16,700 Hotels and more than 1.5 million beds.
The operation, which has been open for about a year, had been valued by US media at between US$8,000-9,000 million.
The two companies issued separate statements this Monday explaining the reasons for the end of this hostile acquisition: Choice highlighted that it has been several months in “good faith negotiations” with Wyndham, with an offer that has been improved time and time again, but was met with “an obvious disinterest” from the Wyndham address.
For its part, Wyndham pointed out that its competitor’s offer suffered from three drawbacks: insufficient evaluation, an unattractive consideration and an asymmetric regulatory risk in which it loses out.
Wyndham, which has 9,200 hotels in 95 countries totaling 872,000 beds, sent a letter to its shareholders promising to protect their investment, underlining its commitment to deliver “a value per share above Choice’s inadequate and uncertain offer”.
For its part, Choice has 7,500 hotels in 46 countries with a total of 630,000 beds, mainly in the high-end and mid-range segments.
Source: Gestion
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