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AH February 2024

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www.asianhospitality.com

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FEBRUARY 2024 ASIAN HOSPITALITY

hoice Hotels International has named

its eight nominees for the board

of directors for Wyndham Hotels

& Resorts to be voted on in Wyndham’s

2024 shareholder meeting. The nominees,

including Jay Shah, executive chairman at

Hersha Hospitality Trust, are expected to

support Choice’s bid to acquire Wyndham

despite multiple rejections by the latter.

In response, Wyndham said it will

evaluate the nominees as part of its due

diligence, but it also said the nominees were

“hand-picked to push through their offer.”

Along with Shah, Choice’s nominees are:

Barbara Bennett, founder and principal

executive of business consulting firm

Bennett West LLC.

Emanuel Pearlman, founder, chairman

and CEO of investment management

and financial consulting firm Liberation

Investment Group.

Fiona Dias, digital commerce consultant

who served as the chief strategy officer of

online shopping service ShopRunner from

2011 to 2014.

James Nelson, CEO of real estate

investment trust Global Net Lease, Inc.

Nana Mensah, founder, chairman and

CEO of food packaging and processing

equipment exporter 'XPORTS Inc.

Susan Schnabel, founder and co-

managing partner of buyout fund advisor

aPriori Capital Partners.

William Grounds, principal of his

advisory business Burraneer Capital

Advisors LLC.

"These nominees are proven leaders

with wide-ranging expertise across relevant

industries, including deep proficiency in

the hospitality and franchising sectors,”

said Stewart Bainum, chairman of Choice's

board of directors.

Choice, which previously accused

Wyndham of spreading misinformation

about the deal’s likelihood to pass the

Federal Trade Commission’s approval for

the deal, said its nominees “understand the

nuances of the franchising model and the

increasing pressure franchisees face from

rising operating costs, larger hotel chains

and dominant online travel agencies.”

"With this slate of independent, highly

qualified candidates for election to the

Wyndham board, Wyndham shareholders

will have an opportunity to be represented

by a board that will fulfill its fiduciary duty

to act in the shareholders' best interests and

consider any and all paths to create value,”

said Patrick Pacious, Choice president and

CEO.

Shah only made a brief statement on

his naming as a nominee, saying “given

where we are in the process I can’t go into

detail about my candidacy or the proposed

merger at this time.”

Wyndham, AAHOA not moved

Wyndham’s board acknowledged receipt of

the list of Choice’s nominees but said it still

recommended that shareholders not tender

their shares toward the merger.

"This action is yet another attempt by

Choice to advance its inadequate and

risk-laden hostile exchange offer, which the

Wyndham board unanimously determined

is not in the best interests of shareholders,”

the board said. "Choice's proxy contest is a

blatant scheme to mislead shareholders into

packing the Wyndham board with nominees

hand-picked to push through their offer.”

In its original proposal, made public in

October, Choice said it sought to acquire

all the outstanding shares of Wyndham at

a price of $90 per share and shareholders

would have received $49.50 in cash and

0.324 shares of Choice common stock for

each Wyndham share they own. Choice

claimed that is a 30 percent premium to

Wyndham’s 30-day volume-weighted

average closing price ending on Oct. 16,

an 11 percent premium to Wyndham’s 52-

week high, and a 30 percent premium to

Wyndham’s latest closing price.

Wyndham’s board unanimously

rejected Choice’s proposal, calling it

unsolicited, “highly conditional” and not

in the best interest of shareholders. On

Nov. 14, however, Choice sent a letter to

the Wyndham board with an “enhanced

proposal” intended to address Wyndham’s

concerns about clearing federal regulations.

On Dec. 12, Choice launched its public

exchange offer to acquire Wyndham and

on Dec. 19 the Wyndham board officially

rejected the offer and urged shareholders

not to tender shares for the deal.

In response to Shah’s nomination and

statements supporting the deal by Mike

Leven, AAHOA co-founder, the association

released a statement saying Leven and

Shah’s opinions did not represent AAHOA’s

official position on the acquisition.

“AAHOA remains highly concerned

about the significant impact this proposed

merger will have on the industry, and we

strive to always represent the best interests

of our members,” said Laura Lee Blake,

AAHOA president and CEO.

Wyndham has not yet set a date for its 2024

shareholder meeting, a spokesperson said.

Choice names nominees for

Wyndham’s board

Hersha Hospitality Trust’s Jay Shah is among them, AAHOA reiterates its concerns

about the proposed acquisition

Choice Hotels International continued its efforts to acquire Wyndham Hotels & Resorts in January by

naming eight nominees for the Wyndham board of directors. However, the current board said Choice

has not adequately addressed its concerns about the proposed acquisition of the company and the

nominees for the board are meant to rubber stamp the deal.

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