Choice Hotels International is buying Radisson
Hotel Group Americas – which includes operations and brands in the United
States, Canada, Latin America and the Caribbean – for $675 million.
The deal is expected to close in the second
half of this year.
Radisson Hotel Group Americas includes the
franchise agreements, operations and intellectual property of its properties in
the region – giving Choice Hotels nine brands, 624 hotels and more than 68,000
rooms.
Choice Hotels says the acquisition expands its
presence “in the upscale and core upper-midscale hospitality segments, particularly
in the West Coast and Midwest of the United States.” The company says it will
independently own and control the brands in the Americas and will work with
Radisson Hotel Group to “drive growth, continuity and success.”
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“Choice has a well-established history of
smart acquisitions in new segments where our world-class franchising engine can
spur future growth. This transaction brings together two highly complementary
businesses, enhancing our guest offerings in the core upper-midscale
hospitality segments, while extending our reach into the upper upscale and
upscale full-service segments and in higher revenue geographic markets,” says Patrick
Pacious, president and CEO of Choice Hotels.
Choice says the combination will also help it
to provide a product offering that capitalizes on trends such as remote work,
increasing retirements and road trips.
“We are confident that Choice Hotels is the
owner with the right long-term strategy, resources and management team to
successfully accelerate the growth of the Radisson business in the Americas,” says Federico J. González, CEO of Radisson Hotel
Group.
“Radisson Hotel Group will continue to
leverage the strength of operational excellence to set our business in EMEA and
APAC on a significant growth path with the aim of doubling the portfolio in
those markets by 2025. Together with Choice, we will work to ensure that
customers continue to experience the highest levels of service and a superior
brand experience."
Radisson Hotel Group Americas newest brand is Radisson Inn & Suites, opening this fall with features targeted to gamers and influencers.