Wyndham Hotels & Resorts’ board of directors has urged shareholders not to accept a takeover offer from US rival Choice Hotels International, which it described as “inadequate”.

Choice launched an unsolicited $7.8 billion bid to buy Wyndham in October, but this initial approach and a later improved offer from Choice have already been rejected by Wyndham’s board.

Wyndham’s board is now unanimously recommending that Choice’s offer should not be accepted by shareholders following a “comprehensive review” with the company’s financial and legal advisors.

Stephen Holmes, chairman of Wyndham’s board, said: “Choice has, once again, failed to address the major value gap and risks of their offer – which remains virtually unchanged from the terms outlined in their previous unsolicited proposal.

“The core issues we have articulated remain the same: a likely prolonged regulatory review period of up to 24 months with an uncertain outcome; the pure inadequacy of the offer from a valuation standpoint, including the significant equity component of Choice stock; and the lack of consideration for Wyndham’s superior, standalone growth prospects.”

Choice’s offer for Wyndham is worth around $85 per share, including $49.50 per share in cash and 0.324 shares of Choice stock.

But Holmes added: “We are confident Wyndham can deliver long-term shareholder value well in excess of the $85 per share offered by Choice by continuing to execute on our existing business plan.

“The board is steadfast in our recommendation that shareholders not tender their shares into this offer, and we remain fully committed to acting in the best interests of all Wyndham shareholders.”

Choice continues to promote the benefits of the deal, which it said would be a “win for both companies’ shareholders” by providing a lower cost of ownership for franchisees and increased hotel profitability.