PARSIPPANY, N.J. - Wyndham (NYSE:WH) Hotels & Resorts (NYSE: WH) today announced the cessation of Choice Hotels (NYSE:CHH) International, Inc.'s (NYSE: CHH) unsolicited exchange offer and the withdrawal of its nominees for Wyndham's Board of Directors. The development marks the end of Choice's attempt to influence the composition of the Board at the upcoming 2024 Annual Meeting of Shareholders.
Stephen P. Holmes, Wyndham's Chairman of the Board, stated, "The Wyndham Board is pleased that Choice has ended its hostile pursuit and proxy contest, following the expiration of its unsolicited exchange offer." He expressed confidence in Wyndham's independent strategy and growth prospects, emphasizing the Board's commitment to shareholder interests and long-term value creation.
Geoff Ballotti, President and CEO of Wyndham, echoed Holmes' sentiments, focusing on the company's strategic plan and value generation. Ballotti expressed relief at moving forward without the distraction of Choice's actions and extended gratitude towards shareholders, franchisees, and team members for their support during the process.
Wyndham Hotels & Resorts, recognized as the world's largest hotel franchising company by property count, operates approximately 9,200 hotels in over 95 countries. The company's portfolio includes 24 hotel brands catering to the economy and midscale segments of the lodging industry, and its Wyndham Rewards loyalty program boasts over 106 million enrolled members.
The information in this article is based on a press release statement from Wyndham Hotels & Resorts.
InvestingPro Insights
Amid the recent developments between Wyndham Hotels & Resorts and Choice Hotels International, Inc. (NYSE: CHH), investors may be keen on the latter's financial health and market performance. Choice Hotels has been displaying a robust financial stance as evidenced by a series of metrics and management strategies.
InvestingPro data reveals that Choice Hotels currently holds a market capitalization of $6.36 billion, with a P/E ratio of 23.78, which adjusts to 21.26 when considering the last twelve months as of Q4 2023. The company's revenue growth over the same period was 8.7%, with a gross profit margin impressively high at 90.6%. These figures suggest that Choice Hotels has been effectively managing its profitability.
An InvestingPro Tip highlights the company's aggressive share buyback strategy, which often indicates management's belief in the company's undervalued shares and a commitment to shareholder value. Additionally, Choice Hotels has maintained its dividend payments for an impressive 21 consecutive years, underscoring a stable financial policy that could attract investors looking for consistent income.
However, it's worth noting that some caution may be warranted; 5 analysts have revised their earnings expectations downwards for the upcoming period. This may suggest potential challenges ahead that could impact financial performance. Moreover, the company's short-term obligations exceed its liquid assets, which could pose liquidity risks in the near term.
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For those interested in the strategic moves and financial intricacies of Choice Hotels, there are 9 more InvestingPro Tips available, which could provide a comprehensive understanding of the company's position and future prospects.
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