Why Wyndham Hotels & Resorts Stock Jumped Today
Shares of Wyndham Hotels & Resorts (NYSE: WH) were up 11% as of 10:27 a.m. ET on Tuesday. The stock jumped following another acquisition proposal by Choice Hotels International for $90 per share in cash and stock.
Previous offers by Choice were rejected by Wyndham, but will the latest proposal prevail? Slow revenue growth has kept Wyndham shares in check over the last few years. The shares are currently up 7% year to date.
The hotel industry is highly fragmented, which has spurred merger and acquisition activity in recent years. To deliver better growth for investors, hotel brands are looking to merge with other hotel operators to expand their customer base, hotel offerings, and loyalty programs, and lower costs to achieve higher profits.
Source Fool.com
