Choice Hotels International has completed the acquisition of the franchise business, operations and intellectual property of Radisson Hotels Americas for approximately $675 million from Radisson Hotel Group, including the real estate value of three owned hotels. The deal was announced in June.
The deal adds approximately 67,000 rooms to Choice’s portfolio, expanding its presence in the higher revenue upper upscale and upscale full-service segments, and bolstering its core upper-midscale hospitality segment, particularly in the West Coast and Midwest of the United States.
Radisson Hotels Americas comprises the Radisson franchise agreements, operations and intellectual property in the United States, Canada, Latin America and the Caribbean. The transaction adds nine brands, including Radisson Blu, Radisson, Radisson Individuals, Park Plaza, Radisson Red, Country Inn & Suites by Radisson, Park Inn by Radisson, Radisson Inn & Suites and Radisson Collection.
Choice Hotels will independently own and control the brands in the Americas and will work with Radisson Hotel Group to drive growth for the brands.
The close of this transaction is not anticipated to change Choice Hotels' current capital allocation strategy related to dividend payment policy and planned share repurchases.
Credit Suisse Securities (USA) served as financial advisor to Choice on the transaction, and Willkie Farr & Gallagher served as legal advisor. Baker McKenzie served as legal advisor to Radisson Hotel Group.