Choice Hotels International on Monday announced it had reached a deal to buy Radisson Hotel Group Americas for $675 million.
The deal will see Radisson’s nine hotel brands go under the Choice Hotels banner, adding a total of 624 hotels and 68,000 rooms to Choice’s portfolio. Choice will now independently own and control all of Radisson America’s brands, including Radisson Blu, Radisson, Radisson Individuals, the Park Plaza hotel, Radisson RED hotels, and more.
While Choice’s board has unanimously approved the deal, it still has to undergo some regulatory procedures. Choice said it expects the deal to fully close in the second half of 2022.
In its announcement, the Maryland-based Choice said that the deal expands its “presence in the upscale and core upper-midscale hospitality segments, particularly in the West Coast and Midwest of the United States.”
It also said that it would expand its reach in corporate and “upscale” travel and provide “new growth opportunities to expand Choice Hotels' presence to additional locations in Canada, Latin America, and the Caribbean.”
"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,” Patrick Pacious, Choice president and CEO said in a statement.
Prior to the deal, Choice operated 7,000 hotels with 600,000 rooms in 35 countries and territories as of March 31, 2022.