Images courtesy of Choice Hotels.
Choice Hotels International will acquire Radisson Hotel Group Americas, bringing together nine brands, 624 hotels and more than 68,000 rooms under its umbrella.
The $675 million deal marks the latest step in Choice’s strategy to grow its portfolio of asset-light hotel brands in higher-income travel segments and locations.
High end boost
The agreement encompasses the franchise business, operations and intellectual property of Radisson Hotel Group Americas, strengthening Choice Hotels’ presence in the upscale and upscale hotel segments, particularly in the West Coast and Midwest states. -United. It also gives the group access to more business travelers and a broader demographic within Choice’s core leisure segment.
Choice believes the combination strengthens its ability to provide a more holistic product offering across all segments and continues to capitalize on consumer trends that are expected to drive future travel demand, such as remote working, increased departures at retirement and road trips. It is also considering international expansion in Canada, Latin America and the Caribbean.
Patrick Pacious, President and CEO of Choice Hotels, said, “Choice has a well-established history of smart acquisitions in new segments where our world-class franchise engine can drive future growth. This transaction brings together two highly complementary businesses, enhancing our offerings to guests in key upscale hotel segments, while expanding our reach into upscale and upscale full-service segments and higher-income geographic markets. We are confident that customers and franchisees will greatly benefit from the combination of these two exceptional sets of brands. »
He continued, “Our long history of building mutually beneficial relationships with our franchisees has resulted in a top-notch voluntary retention rate, and these franchisees are behind the majority of our new hotel developments. Our existing and new hotel owners will benefit from the combined companies’ enhanced service delivery capabilities, including our award-winning loyalty program, proprietary tools and emerging technologies that will enable them to capture more business, reduce hoteliers, reach new customers and respond to changing industry trends.
Long term strategy
According to Federico J. González, CEO of Radisson Hotel Group: “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 the expansion of the global footprint. of our global operations. We achieved solid results, doubling the number of rooms signed per year in EMEA and APAC, confirming Radisson Blu as the largest premium brand for over 10 years and establishing Radisson as the fastest growing premium brand in EMEA.
“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 Radisson’s business in the Americas. Radisson Hotel Group will continue to leverage the strength of operational excellence to set our businesses in EMEA and APAC on a significant growth trajectory with the goal of doubling the portfolio in these markets by 2025. In collaboration with Choice , we will work to ensure customers continue to experience the highest levels of service and a superior brand experience. »
Tom Buoy, Acting CEO of Radisson Hotel Group Americas, added, “Our associates have worked hard to solidify the power of our brands, build a better business engine, and deliver the best solutions to franchisees and customers. We are very pleased to have the Radisson family of brands in the Americas join Choice Hotels. We believe this acquisition will drive growth in a highly competitive market and enable better performance for our franchisees.