Choice Hotels To Buy Radisson Hotel Group Americas For $675M
Choice Hotels International has inked a deal to acquire Radisson Hotel Group Americas for about $675M, including all of its franchise business, operations and intellectual property.
Altogether, Choice is set to receive 624 hotels with over 68,000 rooms in the United States, Canada, Latin America and the Caribbean. After the sale, Choice will own and control the nine Radisson brands in the Americas and work with the Radisson Hotel Group to drive their growth.
Radisson is retaining the rest of its portfolio in the rest of the world.
As of the end of Q1 2022, Choice held nearly 7,000 hotels, representing nearly 600,000 rooms, in 35 countries and territories. The deal, which has been approved by Choice's board of directors, is expected to close during the second half of this year.
The acquired properties will expand Choice's footprint in the upscale and upper-midscale hospitality segments, particularly on the West Coast and in the Midwest in the U.S., according to Choice.
The deal includes 453 Country Inn & Suites by Radisson, 130 Radisson hotels, 17 Park Inn by Radisson hotels, 10 Radisson Blu hotels, nine Radisson Individuals, four Radisson RED hotels and one Park Plaza hotel, as well as the Radisson Inn & Suites and Radisson Collection brands.
The transaction comes amid the recovery of the hospitality industry. In May, U.S. hotel gross operating profit per available room was higher than the same month in 2019 for a second consecutive month, according to STR.
“As the top-line metrics continue to progress toward full recovery, it is no surprise that the bottom-line metrics are coming in better than pre-pandemic times,” STR Director of Financial Performance Raquel Ortiz said in a statement.