AAHOA President & CEO, Laura Lee Blake, was recently quoted in a Forbes article regarding the possible Choice/Wyndham merger.

Choice Hotels has launched an exchange offer to acquire Wyndham for $49.50 in cash and 0.324 shares of Choice common stock per Wyndham share, valuing the deal at approximately $86 per share. The proposed merger aims to create the largest budget hotel franchisor in North America. However, Wyndham's board remains skeptical, stating that the offer appears unchanged from previously rejected proposals.

The potential merger has raised concerns among stakeholders, particularly franchisees represented by AAHOA, comprising over two-thirds of franchisees for both Choice and Wyndham, strongly oppose the merger, citing potential reduced competition in the limited-service segment to the detriment of franchisee hotel owners.

An informal survey of AAHOA members revealed that nearly 80% of Choice and Wyndham franchisees anticipate a negative impact on their businesses. The exchange offer expires on March 8, 2024, pending regulatory approval, including a potential Federal Trade Commission (FTC) second-round review, which could extend the process to 18 months. Wyndham has advised shareholders to await the board's recommendation before taking any action, adding uncertainty to the outcome of this industry-shaping merger.

“Most of the media coverage has not paid any attention to the hotel owners, the franchisees, who will face the most significant changes,” said Laura Lee Blake, President & CEO of AAHOA, in the article. “We feel strongly that the merger of the two brands would reduce competition, especially in this economy, limited-service segment, and really to the detriment of the franchisee hotel owners.”

Read the article by Forbes here

Read AAHOA’s press release over possible Choice-Wyndham merger