Choice Hotel Franchise Owners Unhappy With Merger Plans With Wyndham Hotels & Resorts

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The merger plans between Wyndham Hotels & Resorts ($NYSE:WH) and Choice Hotels International are facing stiff resistance from the franchise owners of Choice Hotels. The franchise owners are not happy with the merger proposal, as they fear it would disrupt their businesses and lead to a loss in profits. It is ranked among the world’s largest hotel chains and is one of the most recognized names in hospitality. In addition to offering accommodations, Wyndham Hotels & Resorts also offers timeshare options, vacation rentals, and corporate housing.

However, many franchise owners of Choice Hotels are concerned that the merger would negatively affect their bottom lines. They are worried about the potential impacts on their businesses, such as increased competition, a change in customer service norms, and a possible lack of flexibility when it comes to pricing strategies. The concerns of the Choice Hotel franchise owners have led to a significant amount of resistance to the proposed merger. In spite of this resistance, however, it remains to be seen whether the merger will go through or not. The outcome will depend on the negotiations between the two companies and the decisions of those involved.

Price History

On Friday, WYNDHAM HOTELS & RESORTS stock opened at $80.1 and closed at $79.7, up by 0.2% from prior closing price of 79.5. This is despite news of their planned merger with a major global hotel franchise, Choice Hotels, which has left many of the franchise owners unhappy and concerned for their future. While the details of the merger remain unclear, it is clear that there is significant opposition to the deal from Choice franchise owners, who fear the potential changes in their contracts and investments. This uncertainty has cast a shadow over the potential merger, and so far has failed to move WYNDHAM’s stock prices in either direction. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for WH. More…

Key Ratios Snapshot

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Analysis

GoodWhale has conducted an analysis of WYNDHAM HOTELS & RESORTS’s financials and according to the Star Chart, it has a high health score of 8/10 with regard to its cashflows and debt – indicating it is capable to sustain its future operations in times of crisis. In addition, WYNDHAM HOTELS & RESORTS is strong in the areas of dividend and profitability, yet weak in asset and growth. Based on this assessment, we classify WYNDHAM HOTELS & RESORTS as a ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. Given this information, investors may be interested in such a company due to its ability to deliver cashflows and dividends in times of crisis. It can be an attractive option for those who are seeking a steady stream of income in their portfolios. Additionally, this company can be a sensible choice for those who are looking for long-term investment opportunities, where they can benefit from the growth potential through capital appreciation. More…

Peers

The hotel industry is a fiercely competitive marketplace. The four largest hotel chains in the world are Wyndham Hotels & Resorts, Choice Hotels International, Hilton Worldwide Holdings, and InterContinental Hotels Group. These companies are all fighting for market share, and each has its own strengths and weaknesses.

– Choice Hotels International Inc ($NYSE:CHH)

Hotels International Inc is one of the world’s largest hotel companies, with more than 6,500 hotels across more than 30 countries. The company operates under a variety of brand names, including Choice Hotels, Comfort Inn, Quality Inn, Sleep Inn, Clarion, Cambria Hotel & Suites, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge, and Rodeway Inn. The company also has a vacation rental business, which operates under the Vacation Rentals by Choice Hotels brand.

– Hilton Worldwide Holdings Inc ($NYSE:HLT)

Hilton Worldwide Holdings Inc is a hospitality company that owns, leases, manages, develops, and franchises hotels and resorts. The company has a market cap of 37.86B as of 2022 and a return on equity of -143.8%. Hilton Worldwide Holdings is headquartered in Virginia.

– InterContinental Hotels Group PLC ($LSE:IHG)

InterContinental Hotels Group PLC is a hotel company that owns, manages, and franchises hotels and resorts. The company has a market cap of 8.36 billion as of 2022 and a return on equity of -34.42%. The company operates in over 100 countries and has over 7,000 properties.

Summary

Wyndham Hotels & Resorts is a hospitality company with a large portfolio of hotel franchises in the United States and globally. Recently, the company has merged with Choice Hotels, further expanding their holdings.

However, franchise owners of Choice Hotels have expressed concerns about the merger, citing worries about changes to the Choice brand. From an investing perspective, the merger could provide Wyndham with an increased presence in the hotel sector, potentially leading to higher profits and stock prices. Investors should consider the financial health of the company as well as any potential synergies that may result from the merger when analyzing Wyndham’s investment potential.