In a press release, Choice announced the purchase of Radisson Hotel Group Americas for roughly $675 million, expected to close by the second half of 2022.
Choice to Take Over Hotels in U.S., Canada, Latin America and Caribbean
Under the agreement, Choice Hotels will inherit 624 properties from Radisson’s North American operations, including hotels in the United States, Canada, Latin America and the Caribbean. The portfolio includes 10 Radisson Blu hotels, 130 Radisson hotels, 453 Country Inn & Suites hotels, and 17 Park Inn by Radisson properties.
Choice will inherit the franchise business, operations and intellectual property of Radisson Hotels in the Americas, independently owning and controlling the brands. In turn, the company will work with Radisson to ensure the brands continue to grow and succeed.
In turn, Radisson will change their business strategy to focus on growth in the Asia-Pacific Region, along with Europe, the Middle East and Africa. Radisson has a stated goal of doubling their international footprint by 2025.
“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,” Patrick Pacious, president and CEO of Choice Hotels, said in a press release. “We are confident that guests and franchisees will significantly benefit by combining these two exceptional sets of brands.”
The deal was unanimously approved by the Choice Hotels Board of Directors and is expected to close later this year. It is unclear when the hotels will transition into the Choice Privileges loyalty program.
Divesture Suggested After Loyalty Program Split
Radisson leaving the Americas comes after the company split their loyalty program in two parts. In April 2021, the company created separate programs for the North American and International markets. The separate programs allowed users to collect points based on where they were staying and convert them at a one-to-one ratio for points usable in either the Americas or other parts of the world.
Source: frugal travel guy