Choice Hotels International to acquire Radisson Hotel Group Americas

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Published on 13/06/22 - Updated on 14/06/22

Choice Hotels International

The $675 million acquisition will see the integration of nine brands, 624 hotels and over 68,000 rooms into the franchisor’s portfolio in the United States, Canada, Latin America and the Caribbean. The transaction was unanimously approved by Choice Hotels' Board of Directors and is expected to be finalised in the second half of 2022.

The two parties have entered into a formal agreement for Choice Hotels to acquire the franchise business, operations and intellectual property of Radisson Hotel Group Americas.

The move will permit Choice Hotels International to continue its growth in the upscale and upper-midscale hospitality segments, particularly in the West Coast and Midwest of the United States. Beyond the franchisor’s core leisure segment, the introduction of Radisson properties will broaden its demographic reach to include more upscale and business travellers.

It will further allow Choice to increase its royalty revenue per hotel. The franchisor’s long-term strategy is to grow in higher revenue segments, Radisson brands’ larger room count and general presence high RevPAR markets will boost these ambitions.

Following the acquisition, Choice Hotels will independently own and control the group’s brands in the Americas but will work with the Radisson Hotel Group to drive their growth, continuity and success. Radisson Hotel Group Americas’ portfolio includes 10 Radisson Blu hotels, 130 Radisson hotels, 9 Radisson Individuals, 1 Park Plaza hotel, 4 Radisson RED hotels, 453 Country Inn & Suites by Radisson and 17 Park Inn by Radisson hotels, as well as the Radisson Inn & Suites and Radisson Collection brands.

Our associates have been working hard to solidify the power of our brands, build a better commercial engine and offer best-in-class solutions to franchisees and customers. We are very pleased that the Radisson family of brands in the Americas will join Choice Hotels. We believe that this acquisition will drive growth in a highly competitive market and enable stronger performance for our franchisees.

Tom Buoy, interim CEO of Radisson Hotel Group Americas

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. 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.

Federico J. González, CEO of Radisson Hotel Group

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. We are confident that guests and franchisees will significantly benefit by combining these two exceptional sets of brands.

Patrick Pacious, President and Chief Executive Officer of Choice Hotels

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