Consumer Discretionary
On 17th Oct Choice Hotels went public with an unsolicited offer for competitor WH. The nearly $10bn enterprise value strategic deal would be one of the largest of the year. However, WH has pushed back on the approach and CHH is now preparing a proxy fight and possibly an exchange offer to land its prey. Exclusive reporting from CTFN has covered the antitrust dimensions of the deal, the tactics likely to be employed and pricing insights. Click here for the full story.
Edition: 173
- 10 November, 2023
Choice Hotels International (CHH), Wyndham Hotels & Resorts (WH)
Consumer Discretionary
Checking in with the hotels - bearish thesis on the Midscale hotel segment playing out; unit growth story appears to be broken. OWS’ latest field work finds little evidence that franchisees are interested in building new units. ADR price inflation should begin to reverse as the labour market improves. This should weigh on RevPAR (and franchisors’ royalty revenues). Furthermore, OWS found evidence that demand in key areas is softening.
Edition: 142
- 19 August, 2022