Choice Hotels International has entered into a definitive agreement to acquire the franchise business, operations, and intellectual property of Radisson Hotel Group Americas. With all nine of Radisson’s hotel brands in the Americas, the $675 million deal will grow Choice’s footprint in the upscale and core upper-midscale segments by 624 hotels and more than 68,000 guestrooms, particularly in the Midwest and West Coast.
“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 have achieved strong results, doubling the number of rooms signed per year in EMEA and APAC, confirming Radisson Blu as the largest upper-upscale brand for over 10 years and establishing Radisson as the upscale brand with the largest growth in EMEA,” says Radisson CEO Federico J. González. “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.”
“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,” adds Tom Buoy, interim CEO of Radisson Hotel Group Americas. “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.”
“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,” says Patrick Pacious, Choice Hotels president and CEO. “We are confident that guests and franchisees will significantly benefit by combining these two exceptional sets of brands.”
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