Choice Hotels Offers to Buy Wyndham at $7.8 Billion Valuation

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The move creates the largest player in the economy segment in the Americas.

Choice Hotels said on Tuesday it proposed to acquire all the outstanding shares of Wyndham Hotels & Resorts at a price of $90 a share.

Under the plan, Wyndham shareholders would receive $49.50 in cash per share and 0.324 shares of Choice common stock per share.

Choice’s proposal, which it spelled out on a website, represents approximately a 30% premium to Wyndham’s latest closing price.

The deal assumes a $7.8 billion valuation for the company. “With the assumption of Wyndham’s net debt, the proposed transaction is valued at approximately $9.8 billion,” says a company spokesperson.

The move would create the largest player in midscale and budget hotels

Wyndham was up 15% pre-market. Choice was down 2%.

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