Choice Hotels Ends $7 Billion Takeover Bid for Wyndham

Choice Hotels Ends $7 Billion Takeover Bid for Wyndham

By Author

Published on March 13, 2024

In a significant move within the hotel industry, Choice Hotels International has terminated its nearly year-long attempt to acquire Wyndham Hotels & Resorts, marking the end of a proposed merger valued at approximately $7 billion. The decision came after Choice faced repeated rejections from Wyndham and failed to secure adequate support from its rival's shareholders for its hostile bid. Initially proposed in April last year and made public in October with a cash-and-stock offer of $89 per share, the merger would have positioned the combined entity as a powerhouse in the US budget hotel sector, directly competing against upscale hotel chains that have recently entered the budget market.

Based in Rockville, Maryland, Choice Hotels boasts nearly 7,500 properties in 46 countries, offering a mix of upper-midscale and upscale accommodations through brands like Radisson, Country Inn & Suites, and Cambria Hotels. Wyndham, headquartered in Parsippany, New Jersey, operates about 9,100 hotels across more than 95 countries, with a portfolio of budget brands including Travelodge, Ramada, Days Inn, and Microtel.

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The merger's potential brought to light concerns over antitrust risks and financial stability, with Wyndham highlighting the anticipated combined company's debt load and a slowdown in Choice's business as critical issues. Despite these challenges, Choice's bid did garner some support from Wyndham's shareholders, although less than 20%, insufficient for Choice to see a clear path toward completing the transaction.

With the bid now withdrawn, Choice Hotels has announced it will concentrate on its independent strategy, including an increase in the company's share buyback authorization by five million shares, or approximately $600 million. This move signifies a shift back to growth and development independently of the failed merger attempt.

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In response to Choice's withdrawal, Wyndham expressed confidence in its standalone strategy and growth prospects, underpinned by a management team with a proven track record. Analysts have reacted to the development, with some suggesting that ending the takeover bid could ultimately benefit Choice, allowing the company to focus on its core business and growth opportunities.

As the hotel industry continues to evolve, this aborted takeover bid highlights the complex dynamics at play in mergers and acquisitions, particularly in sectors with significant competition and regulatory scrutiny. Both Choice Hotels and Wyndham Hotels & Resorts now move forward independently, focusing on growth strategies that promise to enhance their positions in the competitive hotel market.


Hilton Predicts 2025 as the 'Year of the Travel Maximizer'

Hilton Predicts 2025 as the 'Year of the Travel Maximizer'

By Nithyakala Neelakandan

Published on October 6, 2024

Hilton's Annual Trends Report predicts that 2025 will be the "Year of the Travel Maximizer," as travelers are seeking to combine relaxation and adventure to make the most of their time and money. After the "Year of the Great Recharge" in 2024, where sleep retreats, mindful drinking, and wellness-themed rooms gained popularity, Hilton's new report highlights emerging trends that will shape the travel landscape in 2025.

Hilton President and CEO Chris Nassetta stated, "Our 2025 Trends Report uncovers what has been simmering for years – the intersection of work and play; of relaxation and adventure; of being alone but together. Travelers don’t just want to choose their own adventure – they want to maximize every moment of their time away."

The report is based on extensive global research, including input from 13,000 travelers across 13 countries, feedback from over 4,100 Hilton team members, and interviews with Hilton travel experts. Key findings from the report reveal several trends that will influence travel behaviors in 2025:

Adventure and Relaxation Blend

Go Getaways: Nearly 70% of global travelers enjoy being active during their trips, with one in five leisure travelers planning outdoor adventures in 2025. This indicates a desire to incorporate physical activities into their vacations.

Sleep Retreats & Hurkle-Durkling: While many travelers seek adventure, some also indulge in rest. About one in five global travelers participate in "Hurkle-Durkling," a Scottish term for lounging in bed all day while on vacation. Over a quarter of travelers will book wellness treatments, such as spa services, to improve their sleep quality during trips.

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Nostalgia and Cultural Immersion

Time Travel: Nostalgia plays a role in travel decisions, as 58% of travelers who journey with their children revisit destinations from their own childhood.

Slow Travel: One in four leisure travelers plan to engage in "Slow Travel" in 2025. This means taking the time to immerse themselves in a destination, experiencing the culture like a local by staying for an extended period.

Technology and Disconnecting

High-Tech Travel: Travelers continue to appreciate technology that makes their experiences smoother. Around 63% of travelers value having the option of a digital room key, allowing them to bypass the front desk and head straight to their room.

Digital Detox: Despite the growing importance of technology, 24% of travelers say they are more inclined to disconnect from social media during vacations compared to the past, suggesting a shift towards more mindful and present travel experiences.

Companions on the Rise

Pet-Friendly Travel: Solo travelers, known as "MeMooners," are embracing pet-friendly travel. Approximately 25% of these travelers bring their pets along for leisure trips, compared to the average leisure traveler at 19%.

Frolleagues: The trend of "Frolleagues" (friends who are also colleagues) traveling together is on the rise, with nearly 30% of travelers enjoying leisure adventures with work friends.

Generational and Solo Travel Trends

Gen Alpha Effect: Children’s preferences play a big role in family vacation planning, as 70% of respondents with children choose their destinations based on what their kids want.

MeMooners: Solo travelers are increasingly seeking enriching travel experiences. In 2025, 64% of solo travelers will consider a good book as their favorite travel partner, highlighting a desire for both exploration and solitude.

Culinary Travel and Drinking Trends

Foodie Exploration: Food plays a central role in travel experiences. Nearly one in five global travelers seek new culinary experiences, and half of them make restaurant reservations before booking their flights.

Tempo Drinking: A trend towards mindful drinking, or "Tempo Drinking," is growing. One in four travelers has reduced or stopped their alcohol consumption in the past year, highlighting a move towards wellness-oriented travel.

Inner and Outer Explorations

Soft Travel: More than one in five travelers plan trips for self-discovery or mental health, reflecting the trend of "Soft Travel," which promotes simplicity and spontaneity.

Sports Surge: From 2019 to 2024, Hilton’s sports-related sales revenue tripled, driven primarily by youth and amateur sports, highlighting the growing influence of sporting events on travel choices.

Hilton is adapting to meet these emerging needs by expanding its portfolio with luxury hotels and partnering with hospitality brands like AutoCamp to create diverse travel experiences. These initiatives are aimed at providing travelers with more choices to fulfill their evolving travel aspirations.

For more information about Hilton's 2025 Trends Report, visit stories.hilton.com/2025trends.


Adani’s April Moon Retail to Acquire 74% Stake in Cococart Ventures for ₹200 Crore

Adani’s April Moon Retail to Acquire 74% Stake in Cococart Ventures for ₹200 Crore

By Nishang Narayan

Published on October 1, 2024

April Moon Retail Private Limited (AMRPL), a joint venture between Adani Airport Holdings Limited (AAHL), has entered into an agreement to acquire a 74% stake in Cococart Ventures Private Limited (CVPL) for ₹200 crore (approximately USD 24 million). This acquisition solidifies Adani's growing presence in India's omnichannel retail market, particularly in the travel retail space.

The acquisition was formalized on September 27, 2024, through the execution of a Share Purchase Agreement (SPA), Joint Venture Agreement (JVA), and Share Subscription Agreement (SSA). According to the agreement, AMRPL will acquire 36.96% of CVPL’s equity shares through the SPA, while subscribing to an additional 37.04% through the SSA, resulting in a total 74% stake in the company.

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This strategic acquisition aligns with Adani's broader vision of expanding its retail footprint across key markets in India. Cococart Ventures, known for its omnichannel retail approach, caters to the rising demand for premium travel-related products and services. The collaboration is expected to boost CVPL's growth, leveraging Adani’s extensive resources and network, particularly in the airport retail sector.

The deal represents a significant move for Adani Group, as it continues to diversify its business interests beyond infrastructure and energy, entering deeper into the retail and consumer segments.

The acquisition of Cococart Ventures is expected to enhance the Adani Group’s retail strategy, enabling it to better serve India's burgeoning consumer market while expanding its offerings in travel and omnichannel retail.

For more details about Adani Airport Holdings, visit their website.


Swiggy Gets SEBI Nod for $1.25 Billion IPO

Swiggy Gets SEBI Nod for $1.25 Billion IPO

By Nishang Narayan

Published on September 28, 2024

Swiggy, the Bengaluru-based food and grocery delivery platform, has received approval from the Securities and Exchange Board of India (SEBI) for its $1.25 billion initial public offering (IPO). The company had confidentially filed draft papers with the regulator in April this year. With this approval, Swiggy will now submit an Updated Draft Red Herring Prospectus (UDRHP), following which the public will have 21 days to provide feedback before the IPO proceeds.

The IPO aims to raise INR 3,750 crore (USD 450 million) in fresh capital, accompanied by an Offer-for-Sale (OFS) component of up to INR 6,664 crore (USD 800 million). Major investors such as Prosus, Swiggy's largest shareholder holding 33% of the company, and SoftBank are expected to sell portions of their stakes through the OFS.

Swiggy's backers also include prominent names such as Accel, Elevation Capital, Meituan, Tencent, Norwest Venture Partners, DST Global, Coatue, Invesco, and GIC. Bankers hinted that the IPO size could potentially be increased before its official launch.

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In the first three quarters of FY24, Swiggy reported INR 5,476 crore in revenue, with a loss of INR 1,600 crore. Comparatively, Swiggy’s main competitor, Zomato, posted revenue of INR 12,114 crore for the fiscal year ending March 31, 2024, and achieved a net profit of INR 351 crore during the same period. Zomato raised INR 9,375 crore through its IPO in July 2021, and its stock has since surged 192 percent over the past year, outperforming the Nifty's 32 percent gain.

Swiggy declined to comment on queries from ET regarding the approval or details of the IPO.

Introduced by SEBI in 2022, the 'pre-filing' route allows companies to file preliminary IPO papers confidentially, providing them greater flexibility in determining the issue size. Swiggy is now positioned to adjust the number of fresh shares by up to 50% until the UDRHP is filed.

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