Choice Hotels International, Inc. (CHH), a lodging franchisor, announced Monday that it has entered into a definitive agreement to buy the franchise business, operations and intellectual property of Radisson Hotel Group Americas for around $675 million.
The acquisition will add Radisson’s nine brands, 624 hotels and over 68,000 rooms in the United States, Canada, Latin America and the Caribbean.
The transaction has been unanimously approved by Choice Hotels’ Board of Directors and is expected to close in the second half of 2022, pending regulatory approvals and customary closing requirements.
The deal includes the real estate value of three owned assets. The acquisition will be funded with cash on hand and revolver borrowings.
Radisson Hotel Group Americas comprises the franchise agreements, operations and intellectual property of Radisson Hotels in the United States, Canada, Latin America and the Caribbean. It includes 10 Radisson Blu hotels, 130 Radisson hotels, 453 Country Inn & Suites by Radisson, and 17 Park Inn by Radisson hotels, among others.
Following the acquisition, Choice Hotels will independently own and control the brands in the Americas and will work with the Radisson Hotel Group to drive the growth, continuity and success of the brands.
Choice Hotels said the acquisition is not anticipated to change its current capital allocation strategy related to dividend payment policy and planned share repurchases.
Credit Suisse Securities (USA) LLC is serving as financial advisor to Choice Hotels in the deal.
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