Wyndham buy still on cards

Speculation is growing that Six Continents, formerly Bass Hotels and Resorts, may be moving closer to a possible takeover of US hotel chain Wyndham International.

It has been speculated since May that Six Continents is keen to buy the Dallas-based company (Caterer, 24 May, page 8). Wyndham is said to have decided to remain in exclusive talks with the British group.

City analysts said that Six Continents, which owns Holiday Inn and Inter-Continental, would want to use Wyndham to expand in the lucrative US market.

Wyndham operates luxury hotels in the USA, Canada, Mexico, the Caribbean and Europe, including the 267-bedroom Great Eastern in London, run as a joint venture with Conran Holdings.

One analyst said: "I suspect they are talking. It would make sense. A deal would give Bass another pile of assets to put its Holiday Inn brand up against."

It has been estimated that Wyndham would come with a price tag of about $4b (£2.78b).

Source: Caterer & Hotelkeeper magazine, 23-29 August 2001