Choice Hotels International has announced the completion of Radisson Hotels Americas integration, 16 months post-acquisition.
Choice completed the $675m acquisition of Radisson Hotels Americas from Radisson Hotel Group in August 2022.
The deal covered Radisson Hotels Americas’ franchise agreements, operations and intellectual property in the US, Canada, Latin America and the Caribbean.
Efficient transition of 600 hotels to Choice’s franchise success system
600 Radisson Hotels Americas properties have successfully transitioned to Choice’s franchise success system and digital platforms.
Following the acquisition in August 2022, Choice Hotels President and CEO, Pat Pacious, attributed the rapid integration to the company’s unparalleled expertise and stated:
“Completing the integration in such a short amount of time is a testament to Choice’s experience and unrivalled expertise in acquiring and integrating hotel brands.”
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“With the Radisson Hotels Americas properties now integrated, we are well-positioned to further help reduce Choice franchisees’ costs, continue to boost their profitability and help drive their performance to the next level.”
Digital transformation and operational milestones ahead of schedule
The final phase involved migrating the properties onto choiceADVANTAGE and ChoiceMAX, Choice’s proprietary cloud-based systems.
Major previous milestones, such as migrating all Radisson Americas brands onto Choice’s central reservation system, were achieved ahead of schedule. This digitisation has yielded tangible benefits for Choice hotel owners and operators.
Key metrics were as follows:
- Total digital visits increased by 4%.
- Total digital bookings rose by 5%.
- App-only visits surged by 19%.
- App-only bookings increased by 18%.
- Legacy Radisson Americas brands experienced a 26% year-on-year (YoY) increase in digital bookings.
Operational and financial advantages for franchisees
Choice said that the integration resulted in notable improvements in areas including reduced guest acquisition costs and increased profitability for Choice hotel owners.
Revenue per available room (RevPAR) for Radisson Americas brands saw a 2.3% YoY increase, while the Radisson upscale brand exhibited an 8.6% YoY growth in RevPAR.
Strategic collaborations and expanded rewards programmes
The collaboration is claimed to have expanded the total number of managed corporate accounts to almost 1,000 and boosted the Choice Privileges rewards programme to more than 63m members. This growth is complemented by a reduction in fees and operational savings of between $35k and $40K, achieved through Choice’s Your Key to Profit programme.