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Demand for affordable hotels such as Choice and Wyndham are on
the rise as persistent high inflation and recession sap consumer
spending on travel.
Shares of Wyndham rose about 22% before the bell. The company
did not immediately respond to Reuters request for a comment.
Choice offered Wyndham shareholders $90.00 per share, including
$49.50 in cash and 0.324 shares of its common stock for each
Wyndham share owned.
The offer represents about a 30% premium to Wyndham's last
closing price, and comes after on-again, off-again discussions
between the two companies.
As of yesterday's close, Choice had a total market capital of
$6.29 billion, Wyndham's stood at $5.82 billion.
Reuters reported in May about a potential deal between the two
companies, citing a source familiar with the matter.
(Reporting by Priyamvada C and Shivansh Tiwary in Bengaluru;
Editing by Shinjini Ganguli)
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