Choice Hotels has entered into an agreement to acquire Radisson Hotel Group Americas for approximately $675 million.
The addition of Radisson’s nine hotel brands, made up of 624 hotels with over 68,000 rooms, expand Choice Hotels’ presence in the upscale and core upper-midscale hospitality segments.
“The acquisition of some of the industry’s most recognized brands extends Choice Hotels’ customer reach in the upscale segments, as well as to more business travelers and a broader demographic within Choice’s core leisure segment. The combination strengthens Choice’s ability to provide a more holistic product offering across segments and continue to capitalize on consumer trends expected to fuel future demand for travel such as remote work, increasing retirements, and road trips,” a Choice Hotels media release states.
Patrick Pacious, president/CEO of Choice Hotels, said, “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.”
Federico J. González, CEO of Radisson Hotel Group, said, “Since the introduction of our strategic transformation plan in 2017, Radisson Hotel Group has been committed to the global success of the Radisson brands and expanding the overall footprint of our global operations. 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. Together with Choice, we will work to ensure that customers continue to experience the highest levels of service and a superior brand experience.”
Choice Hotels will acquire the franchise business, operations, and intellectual property of Radisson Hotels in the United States, Canada, Latin America, and the Caribbean. This includes 10 Radisson Blu hotels, 130 Radisson hotels, nine Radisson Individuals, one Park Plaza hotel, four 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. Choice Hotels will independently own and control the brands in the Americas.
The transaction has been unanimously approved by Choice’s board of directors and is expected to close in the second half of 2022, pending regulatory approvals and customary closing requirements.