Why Wyndham Hotels & Resorts Stock Is Rising Today

Wyndham Hotels & Resorts, Inc. WH shares are up Tuesday on chatter Choice Hotels CHH is considering buying the company.

What To Know: According to a Wall Street Journal report citing people familiar with the matter, Choice Hotels aims to acquire Wyndham Hotels. 

The deal, if completed, could result in one of the biggest budget hotel owners in the country as both companies mainly serve customers who are budget-minded and traveling for leisure or extended work trips.

Choice Hotels has expressed an interest in growth in the "so-called upper-midscale and upscale segments" and a purchase of Wyndham could help do just that. 

The report indicates that the companies are not in serious talks and there's no indication Wyndham is even interested.

It's possible Choice Hotels could make an offer directly to shareholders of WH if the hotel chain says it's not interested in a potential deal. 

Related Link: Hotels Embrace Blue-Collar Workers to Prop Up Sagging Business Travel

WH Price Action: Wyndham Hotels & Resorts shares were up 5.60% at $69.31 Tuesday afternoon, according to Benzinga Pro.

Photo: Dennis Sylvester Hurd from Flickr.