Choice Hotels International dropped its attempted hostile takeover of Wyndham Hotels & Resorts, citing a lack of buy-in from Wyndham shareholders.
"While the support from Wyndham stockholders tendering into the exchange offer was significant considering the number of investors structurally prevented from participating at this stage, it was not sufficient for Choice to conclude that a path towards a transaction is available at this time," Choice said in a statement.
Concurrently, the company also said it is withdrawing its nomination of director candidates for election at Wyndham's 2024 annual meeting of stockholders.
Choice has been in public pursuit of Wyndham since last October, though the two companies had reportedly been in talks as early as April 2023. After being repeatedly rebuffed by Wyndham's leadership, Choice launched its hostile takeover effort last December.
Choice's bid had pegged Wyndham at approximately $8 billion, though Wyndham's board of directors deemed that offer inadequate. Wyndham's board also argued that Choice's proposal failed to consider "significant regulatory and business risks," as well as take "Wyndham's superior, standalone growth prospects" into account.
Choice also faced an uphill battle on the franchisee front, with the American Hotel Owners Association (AAHOA) voicing strong opposition to a potential Choice-Wyndham merger late last year. According to the AAHOA, a combined company would "dominate the economy/limited service segment," severely limiting options for hotel franchisees playing within that space.
The AAHOA's membership base comprises approximately 20,000 hotel owners, who collectively own around 60% of the hotels in the U.S.