AAHOA has again issued a statement on Choice Hotels International’s proposed acquisition of Wyndham Hotels & Resorts. On Monday, Choice proposed a full slate of “independent, highly qualified individuals for election at the 2024 Annual Meeting of Wyndham Hotels & Resorts.” The Choice Hotels’ statement listed the nomination of eight individuals, including an AAHOA Lifetime Member.
In addition, a piece published by Reuters on January 22, “Choice Hotels nominates board directors in hostile Wyndham bid,” reported statements from several hospitality leaders in support of the deal, along with a quote attributed to an AAHOA co-founder.
"While we respect opinions and viewpoints from every side of the issue, the individuals nominated by Choice Hotels and quoted by Reuters do not speak for AAHOA, and they do not represent AAHOA’s viewpoint,” AAHOA President & CEO Laura Lee Blake said in a statement. “AAHOA remains highly concerned about the significant impact this proposed merger will have on the industry, and we strive to always represent the best interests of our members.”
AAHOA members responded in what the association called “record numbers” to a new survey. Nearly 80 percent of owner respondents with either a Choice Hotels or Wyndham property stated that a merger will have a negative impact on their businesses. Nearly 70 percent of owner respondents with either a Choice Hotels or Wyndham property said that it is unlikely, or very unlikely, they will consider being a licensee if the Choice Hotels takeover occurs.
The survey, Blake said, “raised the alarms that a hostile takeover by Choice Hotels will limit competitiveness, dilute the merged brands in this segment and decrease the value offered to guests” As such, “AAHOA remains resolute in highlighting these grave concerns of its hotelier Franchisee Members, since they are the stakeholders who have the most at stake if a merger were to occur.”
AAHOA member-owners represent roughly two-thirds of all Wyndham and Choice franchise hotels, with brands that are largely in the economy and midscale segments of the hotel industry.
Follow the Choice/Wyndham news here.