Choice Hotels International is reportedly keen to buy Wyndham Hotels & Resorts.
The Wall Street Journal reported informal talks have taken place.
It says if Wyndham shows little interest, Choice may go directly to Wyndham’s shareholders with an offer, according to the source.
A merger would create a major hospitality player in the US and globally.
“We don’t comment on rumors. We are focused on business as usual,” Wyndham said in a statement.
Combined, the companies have a market cap of nearly $12 billion.
Wyndham operates 24 hotel brands and Choice has 22, with some overlap in the economy and midscale categories.
Wyndham brands include Days Inn, Super 8, Travelodge, La Quinta, Wyndham Garden and the all-inclusive Wyndham Alltra.
