Choice Hotels International Inc (CHH)

Shares of Choice Hotals International, Inc. (CHH) dropped by 6.83% from $124.90 to $116.37 in the trading on Tuesday, October 17, 2023. The reason why CHH stock down is due to the news that Choice Hotels International proposed a $7.8 billion acquisition of the company at $90 per share. The offer includes $49.50 in cash and 0.324 shares of Choice common stock for each Wyndham share. Wyndham rejected this offer, and its shareholders can choose between cash, stock, or a mix of both. Rising demand for affordable travel, possibly due to inflation and recessionary pressures, benefits chains like Choice and Wyndham. Wyndham operates numerous lodging brands, while Choice Hotels franchises about 7,400 hotels, offering options for midrange to upscale budgets. This news caused a decline in CHH stock price on Tuesday.