<SEC-DOCUMENT>0001193125-24-066620.txt : 20240507
<SEC-HEADER>0001193125-24-066620.hdr.sgml : 20240507
<ACCEPTANCE-DATETIME>20240313122256
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-24-066620
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20240313

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHOICE HOTELS INTERNATIONAL INC /DE
		CENTRAL INDEX KEY:			0001046311
		STANDARD INDUSTRIAL CLASSIFICATION:	HOTELS & MOTELS [7011]
		ORGANIZATION NAME:           	05 Real Estate & Construction
		IRS NUMBER:				521209792
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		915 MEETING STREET
		STREET 2:		SUITE 600
		CITY:			NORTH BETHESDA
		STATE:			MD
		ZIP:			20852
		BUSINESS PHONE:		3015925000

	MAIL ADDRESS:	
		STREET 1:		915 MEETING STREET
		STREET 2:		SUITE 600
		CITY:			NORTH BETHESDA
		STATE:			MD
		ZIP:			20852

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CHOICE HOTELS FRANCHISING INC
		DATE OF NAME CHANGE:	19971118

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CHOICE HOTELS INTERNATIONAL INC/
		DATE OF NAME CHANGE:	19971022
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<TITLE>CORRESP</TITLE>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March&nbsp;13, 2024 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of
Corporation Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Office of Mergers and Acquisitions </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100
F Street, NE </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, DC 20549 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Attention: Christina
Chalk&nbsp;&amp; Laura McKenzie </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>Re:</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B>Choice Hotels International, Inc. </B></P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><B>Wyndham Hotels&nbsp;&amp; Resorts, Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><B>Schedule <FONT STYLE="white-space:nowrap">TO-T/A</FONT> filed on March&nbsp;11, 2024 and filed by Choice Hotels </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><B>International, Inc. </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><B>File <FONT STYLE="white-space:nowrap">No.&nbsp;5-90832</FONT> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ladies and Gentlemen: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On behalf of Choice Hotels International,
Inc. (&#147;<U>we</U>,&#148; &#147;<U>our</U>,&#148; or the &#147;<U>Company</U>&#148;), we submit this letter in response to the comment letter, dated March&nbsp;11, 2024 (the &#147;<U>Comment Letter</U>&#148;), from the staff (the
&#147;<U>Staff</U>&#148;) of the Securities and Exchange Commission (the &#147;<U>SEC</U>&#148;) relating to the above-referenced Amendment No.&nbsp;3 to the Schedule <FONT STYLE="white-space:nowrap">TO-T</FONT> (the &#147;<U>Third
Amendment</U>&#148;), initially filed by the Company on December&nbsp;12, 2023 (as amended, the &#147;<U>Schedule TO</U>&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Staff&#146;s comment
is set forth below in italicized text, and our response to the Staff&#146;s comment is set out immediately under the restated comment. Unless otherwise indicated, defined terms used herein have the meanings set forth in the Third Amendment. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Schedule <FONT STYLE="white-space:nowrap">TO-T/A</FONT> filed March&nbsp;11, 2024 </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>General </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><I>Please file a revised Schedule <FONT STYLE="white-space:nowrap">TO-T/A</FONT> reporting the results of the
offer, as required by Rule <FONT STYLE="white-space:nowrap">14d-3(b)(2).</FONT> We note that you state in the press release attached as Exhibit (a)(5)(B) to the Schedule <FONT STYLE="white-space:nowrap">TO-T/A</FONT> that &#147;support from Wyndham
stockholders tendering into the exchange offer was significant considering the number of investors structurally prevented from participating at this stage&#148; but do not disclose the number or percentage of shares tendered, as required by the
Rule.</I> </P></TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><B>Response:</B> The Company acknowledges the Staff&#146;s comment and respectfully submits that the Third
Amendment satisfies the requirement under Rule <FONT STYLE="white-space:nowrap">14d-3(b)(2)</FONT> that the bidder &#147;file a final amendment on Schedule TO reporting promptly the results of the tender offer&#148; because the Company disclosed in
the Third Amendment that the Offer expired on March&nbsp;8, that no shares of Wyndham Hotels&nbsp;&amp; Resorts, Inc. (&#147;<U>Wyndham</U>&#148;) common stock were purchased pursuant to the Offer (including the specific reasons that no purchases
were made) and that the Company instructed the exchange agent to return tendered shares to stockholders. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">1 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Rule <FONT STYLE="white-space:nowrap">14d-3(b)(2)</FONT> only requires that the bidder
disclose the &#147;results of the tender offer&#148; and does not, unlike other tender offer rules, expressly require that such disclosure include the number or percentage of shares tendered prior to expiration. While the Company acknowledges that
bidders in consummated tender offers generally disclose this information, such disclosure is relevant with respect to consummated offers because those bidders could not reasonably disclose the results of such offers without including the number of
shares purchased. The Company similarly disclosed the number of shares purchased pursuant to the Offer by disclosing in the Third Amendment that no shares of Wyndham common stock were purchased. The Company reviewed a number of third-party tender
offers that were terminated or otherwise expired, and the Company&#146;s approach in the Third Amendment is consistent with the disclosure in a majority of those precedents. The Third Amendment is also consistent with the Staff&#146;s own guidance
on the disclosure required in announcements of terminated tender offers, which does not include a requirement that offerors include the number or percentage of shares tendered as of termination.<SUP STYLE="font-size:75%; vertical-align:top">1</SUP>
Had the Staff intended that the specific number of shares tendered prior to termination be included in a termination announcement, we would have expected that the guidance would have contained similar language to the Rules referenced below which
contain such a requirement. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In contrast to Rule <FONT STYLE="white-space:nowrap">14d-3(b)(2),</FONT> certain other tender offer rules
specifically state when offerors must disclose the number of shares tendered as of a relevant date. For example, Rule <FONT STYLE="white-space:nowrap">14e-1(d)</FONT> specifically requires that any offeror seeking to extend a tender offer issue
notice of such extension, &#147;which notice shall include disclosure of the approximate number of securities deposited to date.&#148; Similarly, Rule <FONT STYLE="white-space:nowrap">14d-11(d)</FONT> specifically requires that a bidder electing to
provide a subsequent offering period must announce the results of the tender offer, &#147;including the approximate number and percentage of securities deposited to date.&#148; In the SEC&#146;s adopting release related to Rule <FONT
STYLE="white-space:nowrap">14d-11,</FONT> the Staff stated, &#147;The new rule includes a requirement that bidders announce the results of the initial offering period (including the number and percentage of securities tendered) before 9:00 a.m. on
the next business day following the close of the initial offering period. We believe an announcement is necessary to inform remaining security holders whether the offer was successful and whether or not a
<FONT STYLE="white-space:nowrap">back-end</FONT> merger is imminent.&#148;<SUP STYLE="font-size:75%; vertical-align:top">2</SUP> The number and percentage of securities tendered to date may be a material consideration for stockholders where a
subsequent offering period is provided or when an existing offering period has been extended because such information might influence stockholders&#146; decisions regarding whether to tender (or, in the case of an extension, whether to withdraw
shares already tendered). However, these considerations are not relevant to </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:11%">&nbsp;</P>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:75%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Compliance and Disclosure Interpretations Question 101.03 (March 17, 2023) specifically addresses the
disclosure required in press releases announcing the termination of a tender offer, and states that the failure to include &#147;the specific basis for termination&#148; in such an announcement may constitute a material omission under
Section&nbsp;14(e). As acknowledged by the Staff, the Third Amendment complies with this guidance. </P></TD></TR></TABLE>
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<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:75%; vertical-align:top">2</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Regulation of Takeovers and Securityholder Communications, Release
<FONT STYLE="white-space:nowrap">No.&nbsp;33-7760,</FONT> October&nbsp;22, 1999. </P></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">- 2 - </P>

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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">
stockholders where an offer has been terminated or withdrawn, since stockholders have no further decision to make regarding whether they will tender or withdraw shares pursuant to the tender
offer &#150; making the number or percentage of shares tendered immaterial. In the case of the Offer, there cannot be any reasonable confusion regarding whether the Offer was successfully closed or whether a merger was imminent because the Company
clearly stated that the Offer expired, that no shares of Wyndham stock would be purchased, and that it had instructed the exchange agent to return tendered shares to stockholders. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In light of these differing circumstances and the fact that neither Rule <FONT STYLE="white-space:nowrap">14d-3(b)(2)</FONT> nor the
Staff&#146;s recent guidance on terminated offers include an express requirement that the offeror includes the number or percentage of shares tendered, the Company does not believe it is required or necessary to include the number or percentage of
shares tendered to report the results the Offer. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">For the foregoing reasons, the Company believes that the Third Amendment satisfies the
requirements of Rule <FONT STYLE="white-space:nowrap">14d-3(b)(2).</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">*&#8195;&#8195;*&#8195;&#8195; *&#8195;&#8195;* </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Should you have any questions related to the foregoing, please do not hesitate to contact me at (212)
<FONT STYLE="white-space:nowrap">728-8620</FONT> or <U>dscalzo@willkie.com</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Respectfully submitted, </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Danielle Scalzo</P></TD></TR>
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<TD VALIGN="top">Danielle Scalzo</TD></TR>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">cc:</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Adam M. Turteltaub, Willkie Farr&nbsp;&amp; Gallagher LLP </P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Simone Wu, Senior Vice President, General Counsel, Corporate Secretary&nbsp;&amp; External </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Affairs, Choice Hotels International, Inc. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">- 3 - </P>

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