Choice Hotels International is seeking to buy Wyndham Hotels & Resorts, The Wall Street Journal reported Tuesday.
If it were to happen, the deal would create one of the largest budget hotel owners in the U.S., according to WSJ.
Wyndham Hotels & Resorts is the largest hotel franchise company globally, with over 9,000 hotels in more than 80 countries. Choice Hotels is also a large hotel franchisor, with nearly 7,500 properties in 46 countries and territories.
The companies are not in serious talks, WSJ reported, and it isn’t clear whether Wyndham wants the deal. People familiar with the matter told WSJ that Choice Hotels could take an offer directly to Wyndham’s shareholders if its corporate leadership isn’t interested in the deal.
Wyndham shares jumped 7.2% after news of the potential deal broke, MarketWatch reported.
A spokesperson for Choice Hotels told Hotel Dive: “We do not comment about market rumors and speculation.”
Choice Hotels’ portfolio is primarily budget hotels. But purchasing Wyndham would help the company expand in upper-midscale and upscale segments, something it has said previously it hopes to do, according to WSJ.
Wyndham owns highly recognizable economy hotels such as Days Inn and Super 8, but it also has higher-end brands like Wyndham Grand and Registry Collection Hotels.
Choice Hotels is valued at $6.06 billion as of Tuesday, and earlier this month, the company posted a record first quarter. Part of its $332.8 million Q1 total revenue earnings stems from another acquisition: that of Radisson Americas, which it purchased last year.
Wyndham — valued at $5.64 billion — also posted a strong first quarter this year of $313 million in revenue, which it attributed to continued travel demand domestically and international travel’s recovery following the pandemic.
Wyndham did not respond to Hotel Dive’s request for comment.
This story is developing. Check back on Hotel Dive for further updates.