Why Wyndham Hotels & Resorts Shares Are Jumping Today
Portfolio Pulse from Nabaparna Bhattacharya
Choice Hotels International, Inc. (CHH) has publicly proposed to acquire all outstanding shares of Wyndham Hotels & Resorts, Inc. (WH) at $90.00 per share, a mix of cash and stock, valuing Wyndham at approximately $7.8 billion. However, Wyndham has decided to disengage from further discussions with Choice. The offer presented a 26% premium compared to Wyndham's 30-day volume-weighted average closing price. Choice anticipates meaningful annual run-rate synergies, estimated at approximately $150 million.
October 17, 2023 | 12:10 pm
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POSITIVE IMPACT
Wyndham Hotels' shares are trading higher following the public proposal from Choice Hotels to acquire the company. However, Wyndham has disengaged from further discussions.
The public proposal from Choice Hotels to acquire Wyndham Hotels has led to an increase in Wyndham's share price due to the premium offered. However, Wyndham's decision to disengage from discussions introduces uncertainty.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Choice Hotels' shares are trading lower following the public proposal to acquire Wyndham Hotels. The company anticipates meaningful annual run-rate synergies from the acquisition.
The public proposal to acquire Wyndham Hotels has led to a decrease in Choice Hotels' share price. The company's anticipation of annual synergies suggests a positive long-term outlook, but the short-term impact is negative due to the costs and risks associated with acquisitions.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100