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Wyndham shares increase as Choice Hotels suggests a $7.8 billion acquisition deal.

Following Choice Hotels International Inc.’s (CHH) announcement that it intended to purchase Wyndham Hotels & Resorts Inc. (WH) in a stock-and-cash deal for $90 per share, valued at around $7.8 billion1, Choice shares dropped 5.6% on the news. Wyndham shares increased more than 8% in trade on Tuesday.

For each Wyndham share owned, shareholders will get $49.50 in cash and 0.324 shares of Choice common stock. The most recent proposal in the lengthy negotiations is 26% more than Wyndham’s 30-day volume-weighted average closing price on Monday.

Choice Inns. “Choice Hotels Proposes To Acquire Wyndham Hotels & Resorts for $90.00 per Share in Cash-and-Stock Transaction.”

The Wall Street Journal reported on Tuesday that Wyndham had turned down the offer.

Depending on their choices, Wyndham stockholders will be able to select cash, shares, or a mix of the two.

Consumers may have chosen less expensive travel due to inflation and recessionary pressures, which has increased demand for budget hotel companies like Choice and Wyndham.

Days Inn and Travelodge are among the accommodation brands operated by Wyndham. Additionally, it oversees and holds licenses for a wide range of hotels, the majority of which are found in smaller American communities.

Choice Hotels, which franchises roughly 7,400 hotels and serves a variety of consumers with budgets ranging from moderate to upmarket, operates Econo Lodge, Quality Inn, and Clarion.

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