Choice Hotels Eyes Wyndham Hotels & Resorts: Report

Choice Hotels International Inc CHH is reportedly considering acquiring Wyndham Hotels & Resorts WH.
The parties are yet to engage in serious talks over the matter and it is also possible that the deal will not go through, reported the WSJ.
If approved, the transaction is expected to create one of the biggest budget hotel owners in the U.S.
Both the companies are valued at under $6 billion each.
With brands such as Quality Inn, Econo Lodge, Clarion and Comfort, Choice Hotels aims to grow in the upper-midscale and upscale segments.
The report further added Choice Hotels and Wyndham both operate with franchising models, and a deal would consolidate two smaller so-called hotel C corporations.
The report noted Wyndham’s 46% hotel rooms are in the economy sector, with about 44% in midscale and the remaining 10% in luxury.
Price Action: CHH shares closed lower by 4.56% at $113.40 on Tuesday.