NORTH BETHESDA, Md. - Choice Hotels (NYSE:CHH) International, Inc. (NYSE: CHH), a leading lodging franchisor, today announced the termination of its exchange offer to acquire all outstanding shares of Wyndham Hotels & Resorts, Inc. (NYSE: NYSE:WH). The company has also withdrawn its independent director candidates for election at Wyndham's 2024 Annual Meeting.
Additionally, Choice's Board of Directors has authorized an increase of five million shares in its share repurchase program, raising the total available for buyback to approximately 6.8 million shares.
The exchange offer, which began in April 2023, was part of Choice's attempt to negotiate with Wyndham. Despite multiple increased offers and additional concessions, Wyndham's board did not engage in substantive discussions, leading to the decision not to extend the offer.
Choice will now focus on its standalone strategy, which is expected to deliver strong earnings growth, with adjusted EBITDA projected to increase by roughly 10% at the midpoint of their guidance for the year.
Key drivers of this growth include accelerated unit growth and higher royalty revenue per hotel, synergies from the integration of the Radisson Americas business, the success of the co-brand credit card program, and international business earnings growth.
The exchange offer expired on March 8, 2024, without any shares of Wyndham being purchased. Choice has directed the exchange agent to promptly return all tendered shares of Wyndham stock to shareholders.
Choice Hotels, with nearly 7,500 hotels in 46 countries and territories, operates 22 brands ranging from full-service upper upscale properties to economy options. The company's award-winning Choice Privileges rewards program and co-brand credit card offerings provide members with various perks and rewards.
This news is based on a press release statement and does not include any endorsements of claims. The company's forward-looking statements involve risks and uncertainties, including those related to economic conditions, consumer demand, and the impact of pandemics on the hospitality industry. These factors could affect the company's financial and operational performance.
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