Choice Hotels International has scrapped its $9bn hostile takeover of Wyndham Hotels and Resorts, ending an almost year-long pursuit of the rival hotel group whose board repeatedly criticised the deal.
Choice said its exchange offer for Wyndham, which valued the company at $7bn on current prices and $9bn including debt, had expired and it was withdrawing its nomination of an independent director to Wyndham’s board.
A deal combining Choice and its bigger rival, both of which operate under a franchised model, would have created one of the largest budget hotel owners in the US, with nearly 1.5mn rooms.
Choice also said on Monday that it would increase its share buyback programme by a further 5mn shares, or around $600mn.