Choice Hotels International is growing and going upscale with the announcement that it has reached a deal to buy Radisson Hotel Group Americas for $870 million.
The acquisition will see Radisson's nine hotel brands join the Choice Hotels portfolio, adding a total of 624 hotels and 68,000 rooms - representing about 10% growth for Choice in both metrics.
Choice will now own all of Radisson America's brands, including Radisson, Radisson Blu, Radisson RED, Radisson Individuals, Park Plaza, Park Inn, and Country Inn & Suites.
"Choice has a well-established history of smart acquisitions in new segments where our world-class franchising engine can spur future growth," said Choice president and CEO Patrick Pacious in a statement.
"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,"
Prior to the proposed transaction, Choice operated 7,000 hotels with 600,000 rooms in 35 countries and territories. It's board has unanimously approved the deal, which is expected to close in the second half of the year following regulatory procedures.
Choice aims to attract more corporate travellers with the acquisition, and says the deal will also bring "new growth opportunities to expand Choice Hotels' presence to additional locations in Canada, Latin America, and the Caribbean."
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