The plan was withdrawn in response to the "strongly negative" market reaction, Wyndham Chairman and Chief Executive Stephen Holmes said in a statement.
He said the company would continue to actively manage its business to maximize cash flow from operations and strengthen its financial position.
Wyndham has "adequate liquidity to meet the operating needs of the business," he said.
Wyndham shares fell $1.76 to $4.18 on Friday on the New York Stock Exchange after prominent hedge fund manager Leon Cooperman criticized the proposed offering.
Cooperman, the billionaire founder of Omega Advisors, had said on the company's quarterly conference call with analysts that the possibility that Wyndham would issue stock at prices below previous buybacks was "ridiculous."
"You don't want to look a year from now, having bought back stock at $30 and issued stock at $5 or $6, and then see business stabilize or improve in 2010," Cooperman said on the call. "It's ridiculous."