Choice Hotels International has completed its $675 million acquisition of the franchise business, operations and intellectual property of Radisson Hotels Americas from Radisson Hotel Group, the hotel giant announced on Thursday.
With the move, Choice Hotels adds approximately 67,000 rooms and expands its footprint in the higher revenue upper upscale and upscale full-service segments while strengthening its core upper-midscale hospitality segment, especially along the U.S. West Coast and in the Midwest.
As revealed in June when Choice Hotels and Radisson first agreed to the purchase, the transaction added 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. As part of the acquisition, Choice Hotels will independently own and control the brands in the Americas-including the U.S., Canada, Latin America and the Caribbean-and will work with Radisson to drive their 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," Choice Hotels President Patrick Pacious said in an earlier statement.
Choice Hotels doesn't anticipate the close of the deal to change its current capital allocation strategy related to dividend payment policy and planned share repurchases, the company said in a news release.
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