Choice Hotels to acquire Radisson Hotel Group for $675 million

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Choice Hotels to acquire Radisson Hotel Group for $675 million

Choice Hotels International Inc. CHH, said Monday it has agreed to acquire Radisson Hotel Group Americas for $675 million in a deal expected to close in the second half. The acquisition includes the franchise business, operations, and IP of Radisson Hotels in the U.S., Latin America and the Caribbean, including the real estate of three owned assets. The deal will be funded with cash on hand and revolver borrowings. The deal includes 10 Radisson Blu hotels, 130 Radisson hotels, 9 Radisson Individuals, 1 Park Plaza hotel, 4 Radisson RED hotels, 453 Country Inn Suites by Radisson and 17 Park Inn by Radisson hotels, as well as the Radisson Inn Suites and Radisson Collection brands. The company said 624 hotels with over 68,000 rooms will expand Choice Hotels' presence in the upscale and mid-sized hospitality segments, particularly in the West Coast and Midwest of the United States. Choice Hotels shares have fallen 23% in the year to date, while the S&P 500 SPX has fallen 18%.