In what could potentially represent its second major brand company acquisition in as many years, Choice Hotels reportedly has inquired about the possibility of bringing Wyndham Hotels & Resorts under its umbrella, according to The Wall Street Journal.
Driven by speculation of a possible deal, Wyndham shares on Tuesday surged closing up more than 5 percent, while Choice shares dropped 4.6 percent on the day. The Wall Street Journal further added that the companies are not in serious discussions at this time and it’s unclear if Wyndham would be interested in such a deal.
There are a lot of synergies between the companies, both of which have a strong presence in the economy and midscale segments. Silver Spring, Maryland-based Choice Hotels currently has more than 7,400 locations and some 22 brands, while Parsippany, New Jersey-based Wyndham has more than 9,200 locations with 20 brands. Last June, Choice Hotels acquired Radisson Hotels for $675 million and added the upscale brand and some 600 hotels to its portfolio.