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Acquisition Highlights
Choice Hotels International, Inc., a prominent player in the global franchising landscape, has recently acquired the remaining 50% stake in Choice Hotels Canada from its long-standing joint venture partner, InnVest Hotels. This transition from a master franchising model to a direct franchising approach signals a strong commitment to the Canadian market and emphasizes the confidence in its local leadership team.
The Legacy of Choice Hotels in Canada
With roots tracing back to 1955, Choice Hotels Canada has been an integral part of the company’s international growth journey. This acquisition represents a significant milestone in its 70-year Canadian history, setting the stage for further expansion.
CEO Insights
Patrick Pacious, President & CEO of Choice Hotels International, expressed enthusiasm about the acquisition, stating, “This milestone reflects our confidence in the Canadian market and the exceptional capabilities and legacy of success of our local team.” Consolidating operations in Canada allows the expansion of the owner success system from 8 hotel brands to a full portfolio of 22 brands, unlocking numerous opportunities for franchisees and guests alike.
Transaction Details
Valued at approximately $112 million, this transaction was successfully completed in July 2025, funded through available cash and existing credit facilities. The expectation is that the entire Choice Hotels Canada business will generate around $23 million in fee revenue and $18 million in EBITDA for the full year of 2025.
Current Portfolio
As of mid-2025, the Canadian portfolio of Choice Hotels features 350 hotels with a remarkable 30,000 rooms, alongside more than 2,500 rooms in the pipeline. This includes ambitious plans for the first Cambria Hotel, four Radisson hotels, and over 20 Comfort, Quality, and Ascend Collection hotels.
Market Opportunities in Canada
Canada presents an appealing hospitality market, with projections indicating an average annual growth rate of over 5% until 2030, potentially surpassing $50 billion. The established base of over 9 million Choice customers and a robust franchise network positions Choice Hotels favorably to broaden its market share across all 22 brands.
Leadership in Canadian Operations
Brian Leon, the CEO of Choice Hotels Canada and an 18-year veteran of the company, will maintain leadership of the Canadian operations. InnVest Hotels remains a key partner, operating and owning 50 Comfort hotels nationwide.
Exciting Future Prospects
According to Brian Leon, “This is an exciting moment for Choice Hotels Canada and our franchisees.” With the comprehensive backing of Choice Hotels International, the company is geared up to enhance value for franchisees and guests, marking the beginning of a new chapter in their success story.
Global Expansion Strategy
This pivotal investment also propels Choice Hotels’ ongoing growth trajectory outside the United States. In the second quarter of 2025, the company’s international rooms portfolio grew by an impressive 5%, totaling over 140,000 rooms since June 30, 2024. This surge in growth is largely attributed to a 15% increase in new openings.
Recent Developments Worldwide
Major advancements during the year include bolstering the company’s presence in Brazil through a 20-year extension of a master franchise agreement adding over 10,000 rooms with Atlantica Hospitality International, nearly tripling room count in France via a direct franchise deal with Zenitude Hotel-Residences, and strategic agreements in China with SSAW Hotels & Resorts to introduce more than 19,500 rooms over the next five years.
This expansion into new territories reflects a dynamic approach to global growth, creating new opportunities for travelers while enhancing the brand’s overall visibility.
Takeaway
In summary, the evolution of Choice Hotels International with its acquisition of Choice Hotels Canada bolsters its position in the market and fosters future growth. With the ability to provide personalized services, transparency in operations, and an extensive range of hotel options, LocalsRide.com reflects these market trends and endeavors to offer you the best travel experiences. Whether it’s a taxi, limousine, or a simple cab ride to your favorite destination, you can find exactly what you need at competitive prices while enjoying the convenience of booking through LocalsRide.
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