Choice Hotels International is pursuing a hostile takeover of rival accommodation provider Wyndham Hotels & Resorts Inc (NYSE:WH), it announced on Tuesday.
Wyndham – whose portfolio includes the LaQuinta, Ramada, Travelodge, and Days Inn chains of hotels – has turned down several buyout offers from Choice, most recently in October, when it rejected an $8 billion unsolicited purchase offer.
Choice said its exchange offer being presented directly to Wyndham shareholders remains the same as its most recent revised offer of $49.50 in cash and 0.324 shares of Choice stock per Wyndham share presented to the company.
Wyndham shareholders will have the opportunity to elect to receive this in all cash, all shares, or a combination of cash and shares.
"While we would have preferred to come to a negotiated agreement, the Wyndham board's refusal to explore a transaction has left us with no choice but to take our proposal directly to Wyndham's shareholders,” Choice CEO Patrick Pacious said in a statement.
“Wyndham chose to publicly reject our last proposal without any engagement even after we addressed their concerns, including adding significant regulatory protections for their shareholders."
Wyndham did not immediately comment on the announcement on Tuesday.
When rejecting Choice’s latest takeover bid in October, Wyndham said the offer undervalued its business and raised U.S. antitrust scrutiny concerns.
Choice Hotels International shares traded 1% higher at US$113.81 at Monday’s close, while Wyndham shares were up 3.5% at US$82 in pre-market trade on Tuesday.