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Franchisees Win with Lower Total Cost of Ownership and Increased Hotel Profitability
Capitalizes on Choice’s Proven Franchisee Success System
Lowers total cost of hotel operations
Dedicated to driving incremental topline reservation delivery to hotel owners’ properties
Nearly Doubles Available Resources
Nearly doubles the resources available to spend on marketing
This would drive direct bookings to franchisees’ hotels and lower the cost of customer acquisition
Establishes an Even Larger Rewards Member Base
Member base would be on par with the top two global programs in hospitality
Drives more business to franchisees through lower cost direct booking channels, lower customer acquisition commissions and fees, and lower hotel operating costs and technology-driven labor efficiencies
Enables franchisees to continue to determine their own commercial and pricing strategy
Improves the Value of Franchisees’ Real Estate Assets
Would enhance applicable cap rates and cash flows resulting from affiliation with the proforma company
Offers Guests a Broad Portfolio of Brands Across Segments
Reduces friction
Promotes Increased Investment and Innovation...
…in proprietary technology systems, processes, and training at the hotel and corporate level
This would drive returns for franchisees
Creates An Opportunity to Replicate the Tremendous Success of Choice’s Recent Acquisition Of Radisson
During the integration of the nearly 600 Radisson Americas hotels into the Choice platform, Radisson franchisees have already meaningfully benefited from increased guest traffic to direct and digital channels, improvement in conversion rates, and access to more corporate accounts, among other benefits
Shareholders Win with Superior Value Creation
Represents a Substantial Premium
26% premium to Wyndham’s 30-day volume-weighted average closing price ending on October 16, 2023
11% premium to the 52-week high
30% premium to Wyndham’s latest closing price
Anticipates Meaningful Annual Run-Rate Synergies
Estimated at approximately $150 million, through the rationalization of operational redundancies, duplicate public company costs, and topline growth potential
Enables Wyndham Shareholders to Benefit From:
Choice’s historically 3x higher EBITDA multiple on a go-forward basis and receive deferred tax treatment on their stock consideration
Two seats on the combined company’s board and the opportunity to participate in the significant upside potential
Cash / stock consideration mechanism enables Wyndham shareholders to choose between immediate upfront proceeds or long-term value creation, subject to a customary proration mechanism
Creates Additional Capacity to Further Support Choice’s Revenue Intense Strategy
Ultimately helping drive growth across organic revenue levers
Generates Predictable High Free Cash Flow
Asset-light, fee-for-service model provides resiliency through all economic cycles, enabling additional investments for future growth
Guests Win with More Lodging Options and Value
Creates a Combined Rewards Program
On par with the top two global programs in hospitality
Will offer best-in-class program benefits through partnerships and compelling hotel redemption options
Builds a Global Network of Brands And Hotels that Meets the Needs of the Value-Driven Traveler Across Geographies, Stay Occasions, and Price Points
Supported by a seamless reservation system that provides guests with a more effective and efficient booking and shopping experience
More Tailored Recommendations
Improved data analytics would enable the combined company to personalize communications and tailor recommendations to best meet the needs of the up to 160 million combined rewards program members
Associates Win with Expanded Opportunities and Increased Stability
Offers the ability to retain and attract best-in-class talent to one of the world’s premier hotel companies focused on employee well-being, bringing together a wide range of experience and deep industry expertise
Provides more opportunities for advancement and career growth as part of a larger, more diversified organization
Combines two performance-driven cultures with a continued emphasis on associate development and growth
