Shares of hotel franchise operator Wyndham Hotels & Resorts, Inc. (NYSE:WH) were halted briefly on Tuesday after spiking higher. Gains followed a report from the Wall Street Journal that said Choice Hotels (NYSE:CHH) is seeking to buy Wyndham, a deal that would create one of the largest budget hotel owners in the U.S.
The companies aren't in serious talks right now, and it wasn't clear if Wyndham wants to do a deal. If not, Choice Hotels could appeal directly to Wyndham shareholders.
Wyndham operates Super 8, Days Inn, Travelodge, Microtel, Howard Johnson, La Quinta, Ramada, and a collection of other hotels, mostly in the economy and midscale market.
Choice Hotels runs Comfort Inn, Comfort Suites, Quality, and Clarion, among others. Each hotel operator has a market capitalization of nearly $6 billion. Both operate with franchising models.