Choice Hotels International, Inc. · NYSE:CHH
Choice Hotels International — Merger or Acquisition (October 2023)
22 slides from Choice Hotels International's merger presentation, Oct 17, 2023
Slide 1: A Company Built for the Value-Driven Traveler
Exhibit 99.1 October 17, 2023 A COMPANY BUILT FOR THE VALUE-DRIVEN TRAVELER C h o i c e | W y n d h a m
Slide 2: Forward-looking statements
Forward-looking statements Information set forth herein includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology,
Slide 3: Non-GAAP financial measurements and other definitions
Non-GAAP financial measurements and other definitions The company evaluates its operations utilizing, among others, the performance metric adjusted EBITDA, which is a non-GAAP financial measurement. This measure should not be considered as an alternative to any measure of performance or liquidity as
Slide 4: Additional information
Additional information This communication does not constitute an offer to buy or solicitation of an offer to sell any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the
Slide 5: Choice & Wyndham: Ideally positioned to realize a significant market opportunity
C h o i c e & W y n d h a m – Ideally positioned to realize a significant market opportunity and enhance value for all stakeholders Offers Compelling Combines Two Complementary Enhances Opportunity for Creates a Leading Hotel Enhances Competitive Financial Benefits Hotel Franchising Companies, Franc
Slide 6: Highly attractive proposal for both Wyndham and Choice shareholders
Highly attractive proposal for both Wyndham and Choice shareholders • $90.00 per share, including: • $49.50 per share in cash providing immediate value certainty, and 0.324 per share in Choice stock for Terms each Wyndham share • A cash or stock election mechanism, which provides Wyndham shareholder
Slide 7: A compelling premium proposal for Wyndham shareholders
A compelling premium proposal for Wyndham shareholders With additional upside opportunity for pro-forma shareholders in the combined company SUBSTANTIAL PREMIUM TO CURRENT TRADING LEVELS $90.00 per share $49.50 per share in cash and 0.324 per share in Choice stock for each Wyndham share, offering Wy
Slide 8: Despite alignment on core terms, Wyndham decided to end discussions with Choice
Despite Alignment on Core Terms and Strategic Rationale, Wyndham Decided to End Discussions with Choice August 21, 2023: Best and Final Offer April 2023 April 28, 2023: Initial Offer Ongoing Engagement May 15, 2023: Offer #2 Offer Price: $85 Offer Price: $90 Choice Choice offered to enter into a Off
Slide 9: Creates an asset-light franchise business with a shared history of value creation
Creates an asset-light franchise business with a shared history of C h o i c e & W y n d h a m value creation for franchisees, guests, and shareholders… ~16,360 >2,700 60 Million Open Hotels Hotels in Choice Privileges Globally Global Pipeline Rewards Members ~97% 112 99 Million Of U.S. Hotels Are C
Slide 10: With a strong financial foundation and diversified business mix
…With a strong financial foundation and diversified C h o i c e & W y n d h a m business mix $2.8 Billion $1.13 Billion 2022A Total Revenue 2022A EBITDA (pre-synergy) Economy Business 20% 30% Upscale+ Business Chain 7% APAC & 2 Geography 2 Leisure EMEA Scale Mix 1 Mix 8% International 10% Leisure Am
Slide 11: Positioned to continue capturing large and growing market for value-driven travelers
Positioned to continue capturing large and growing market for value-driven leisure and business travelers, supported by long-term industry tailwinds Significant opportunity for greater penetration Supported by long-term macroeconomic trends and continued growth within domestic upscale and fundamenta
Slide 12: Transaction additive to revenue intense strategy
Transaction additive to revenue intense strategy… • Choice’s proven franchisee success system is dedicated to Enhanced platform to attract driving incremental topline reservation delivery to hotel and retain higher revenue- owners and lowering total cost of operations, while still allowing franchise
Slide 13: Domestic portfolio strategy
Domestic portfolio strategy Accelerates revenue-accretive growth in four attractive premium segments Unlocks earnings growth of existing economy segment through brand equity improvement Economy Segment Representing Four Premium Segments Representing + Less Than 25% of Domestic Royalties More Than 75
Slide 14: Brings together diversified brands, technologies, platforms, and segments
Brings together diversified brands, technologies, platforms, and segments to accelerate Choice’s revenue intense strategy C h o i c e W y n d h a m C o m b i n e d C o m p a n y + = Global network of brands and hotels built on International Upscale Upper Midscale Choice’s proven franchisee success s
Slide 15: Enhances franchisee return on investment
• Increased Proprietary Channel Contribution, driving more Enhances customers through the lowest cost direct booking channels franchisee return on • Optimized third-party distribution and vendor relationships investment will reduce costs Improved and Efficient 1 • Customer Acquisition Rewards member
Slide 16: Economies of scale in marketing and reservation spend drive value for franchisees
Economies of scale in marketing and reservation spend drive additional value creation for franchisees In Business For $1.2 Billion Nearly 2x Yourself But Not By Combined Marketing & Combined Marketing & Yourself Reservation Spend Reservation Spend Used in 2022 Rewards Program Technology Investment N
Slide 17: Builds on Choice's proven franchisee success system
Builds on Choice’s proven franchisee success system Premier customer Proprietary technology Best-in-class franchisee delivery engine built by hotel experts for resources & support hotel owners Lower-cost customer acquisition Low cost-to-build hotel prototypes improve through high-performing franchis
Slide 18: Creates a leading hotel platform better positioned to capture market opportunity
Guest Access • Access to a greater set of hotels, locations, and price points for a growing value-driven market • Unparalleled selection of accommodations with a Creates a leading hotel platform better carefully curated collection of properties positioned to capture a • Added redemption options for
Slide 19: Leverages demonstrated history of success
Leverages demonstrated history of In less than a year since acquisition, Choice: success • Drove a turnaround of Radisson Hotel Group Americas Americas' results with expected revenue contribution and cost savings ahead of Proven Playbook original expectations. Recent integration of nearly 600 Enabli
Slide 20: Enhances competitive position against larger industry players
Enhances competitive position against larger industry players Industry includes lodging peers, online distributors, and alternative accommodations providers 1 GLOBAL ROOMS Marketing Spend (in 000s) US$ Millions Combined company’s robust pipeline of 322,000 new rooms will further enhance position aga
Slide 21: Path to completion
Path to completion Choice strongly believes that the transaction is pro-competitive and will benefit all stakeholders, including Wyndham’s and Choice’s franchisees, shareholders, associates, and guests To be funded by Engaged Moelis & Company Choice is confident that combination of cash on LLC, Well
Slide 22: A Value Creating, Premium Proposal
A Value Creating, Premium Proposal Offers Compelling Financial Benefits for Creates a Leading Hotel Platform Better both Choice and Wyndham Shareholders Positioned to Capture a Large and Growing Market Opportunity Combines Two Complementary Hotel Franchising Companies, Accelerating Opportunities for
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