As the Choice-Wyndham sparring match moves into its eleventh month, more attention is turning to potential antitrust issues involving a potential merger of the two lodging behemoths. In the meantime, as company executives trade salvos, lawyers amass billable hours and shareholders are bombarded with missives from both sides, Choice and Wyndham franchisees are playing a waiting game.
As is well-documented, Choice has been attempting to absorb Wyndham into its fold since April 2023. Choice argues that the deal would bring down the cost of operations for franchisees while allowing them to be more competitive against OTAs. Every cash and stock offer has been rebuffed by Wyndham, citing concerns with undervaluation compared with future growth prospects and the risk of uncertain regulatory review.
As the months have gone on, the back and forth between the two companies has become increasingly fraught and the takeover attempt became hostile in December. Upping the ante in January, Choice directly approached 40 percent of Wyndham shareholders and nominated eight people to stand for election to Wyndham’s board. That move will be considered at Wyndham’s annual board meeting this spring.
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