Wyndham Hotels & Resorts' board of directors has rejected Choice Hotels International's multiple attempts to buy the company, but that doesn't necessarily mean it's over.
In this podcast interview, HNN News Editor Sean McCracken speaks with C. Patrick Scholes, managing director of lodging and leisure equity research at Truist Securities, about the chances of Choice acquiring a resistant Wyndham and the ways it could go about accomplishing that.
After speaking with the management teams involved, multiple types of investors, franchisees and industry players, Scholes said his assessment of Choice's latest offer is that "it's not that bad of an offer," but "it's hardly a slam dunk."
Upping the offer per share, perhaps to $95 from $90, might sway more Wyndham shareholders, he said.
Given Choice's decision to go public with its bid, many have characterized it as hostile, but Scholes said it hasn't actually reached that point, at least not yet. Choice publicly disclosing its efforts was likely a way to try to get Wyndham to reengage with the company and resume negotiations. If that doesn't happen, then Choice could initiate a proxy battle, taking the proposal directly to Wyndham's shareholders.
"I wouldn't call it hostile yet, but again, I wouldn't call it warm and fuzzy either," he said.
For more from this interview, listen to the podcast above.
Hotel News Now senior reporter Bryan Wroten contributed to this report.