Skift

Is Choice + Wyndham a Good Idea?

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Sinopsis

Episode Notes A recent report in the Wall Street Journal said Choice Hotels International is considering buying Wyndham Hotels & Resorts. However, hotel industry analysts are skeptical, reports Senior Hospitality Editor Sean O’Neill. O’Neill writes a Choice Hotels-Wyndham merger could create the largest hotel franchisor in the U.S. But he cites two analysts who explained why it’s unlikely to happen in a Truist Securities research report. Choice Hotels would have to add more budget properties to its portfolio, which might undermine its strategy of boosting its collection of high-end properties. In addition, a merger might face pushback from antitrust authorities. The two companies combined already have a more than 50 percent share of the U.S. economy hotel market.  Still, O’Neill adds that a merger might make sense in some ways. He notes that bigger is better is a general rule in hotel marketing, franchising and management.  Next, Short-Term Rental Reporter Srividya Kalyanaraman profiles a&o hostels, a Berlin-