Choice Hotels International Inc is seeking to acquire Wyndham Hotels & Resorts WH, The Wall Street Journal reported Tuesday, citing people familiar with the matter.
Choice Hotels’s stock dropped more than 3% in midday trading Tuesday, while Wyndham shares were halted. A deal between the two hospitality companies would create one of the biggest budget hotel owners.
The companies, however, “aren’t in serious talks and it isn’t clear whether Wyndham wants to do a deal,” the Journal reported, adding that, if Wyndham doesn’t, Choice Hotels could take an offer directly to Wyndham’s shareholders. Wyndham brands include budget hotels such as Days Inn and Super 8, while Choice brands include Sleep Inn and Cambria hotels.