Choice Hotels International’s $675 million acquisition of Radisson Hotel Group Americas from Radisson Hotel Group expands its reach into more upscale markets. Choice Hotels added 624 Radisson hotels with more than 68,000 rooms in the United States, Canada, Latin America and the Caribbean to its portfolio.
Some of Choice Hotels’ more well-known brands include Comfort Inn, Quality Inn, Econo Lodge and Clarion. The deal, which was funded with cash and revolver borrowings, included franchise agreements, operations and intellectual property for nine Radisson brands in the Americas.
The hotel brands acquired include the Radisson Blu, Radisson, Radisson Individuals, Park Plaza, Radisson RED, Country Inn & Suites by Radisson, Park Inn by Radisson, Radisson Inn & Suites and Radisson Collection. Under the deal, Choice Hotels owns and controls the brands in the 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,” said Federico J. González, CEO of Radisson Hotel Group, in a statement when the deal was announced.
A Broader Demographic
The acquisition of Radisson’s hotel brands in the Americas is the latest move by Choice International to expand its growth opportunities by bringing the company’s franchising platform to adjacent hotel segments and a new set of hotel owners. In addition, the deal extends Choice’s customer reach to more business travelers and a broader demographic within the hospitality company’s core leisure segment.
“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,” Patrick Pacious, president and CEO of Choice, said in a statement when the deal closed last year.
For more Deals of the Year coverage, see Mergers and Acquisitions Names the 2023 Middle-Market Deals of the Year.