Choice Hotels International has agreed to acquire Radisson Hotel Group Americas in a transaction valued at approximately $675m.
The deal includes acquisition of RHG’s franchise business, operations and intellectual property in US, Canada, the Caribbean and Latin America.
It is inclusive of the real estate value of three owned assets.
The transaction amount will be funded in cash on hand and as revolver borrowings.
RHG Americas comprises of 624 hotels including one Park Plaza, ten Radisson Blu, four Radisson RED, 130 Radisson, nine Radisson Individuals, 453 Country Inn & Suites by Radisson and 17 Park Inn by Radisson, Radisson Inn & Suites and Radisson Collection.
Under this deal, Choice will own and control all RHG brands in the Americas.
According to Choice Hotels, this transaction will not change its current capital allocation strategy related to planned share repurchases and dividend payment policy.
Approved by the Choice Hotels’ Board of Directors, the deal is anticipated to close in the second half of 2022, along with other customary closing requirements and pending regulatory approvals.
RHG’s legal advisor for the transaction is Baker McKenzie, while Choice Hotels’ legal advisor is Willkie Farr & Gallagher and financial advisor is Credit Suisse Securities.
RHG CEO Federico González said: “We have achieved strong results, doubling the number of rooms signed per year in EMEA and APAC, confirming Radisson Blu as the largest upper-upscale brand for over ten years and establishing Radisson as the upscale brand with the largest growth in EMEA.
“Radisson Hotel Group will continue to leverage the strength of operational excellence to set our business in EMEA and APAC on a significant growth path with the aim of doubling the portfolio in those markets by 2025.”