Choice Hotels on Tuesday made a bid to acquire all the outstanding shares of Parsippany-based competitor Wyndham Hotels & Resorts for $90 per share, including $49.50 in cash and 0.324 shares of its common stock for each share of the company owned.
Choice, based in Rockville, Maryland, said the move would make it the largest franchisor of budget hotels in North America, merging the fifth- and sixth-largest Western hotel groups. Together, they would run about 16,360 properties, from budget to luxury.
The offering creates a valuation of approximately a $7.8 billion in cash and stock for Wyndham.
Choice’s proposal, which it details on a website, represents approximately a 30% premium to Wyndham’s latest closing price.
Choice said that, following nearly six months of dialogue, Wyndham has decided to disengage from further discussions with it and it was left no choice but to continue to pursue the transaction.
Wyndham operates approximately 9,100 hotels with 842,500 rooms and is best known for its budget brands, such as Super 8 and Ramada. But its 24 brands also include higher-end properties, such as Dolce, Wyndham and Wyndham Grand.