Choice Hotels and Radisson Americas: A Transformative Acquisition Reshaping the Hospitality Landscape

The 2022 acquisition of Radisson Hotels Americas by Choice Hotels International marked one of the most consequential transactions in the North American hospitality industry in recent years. Completed on August 11, 2022, for approximately $675 million, the deal united two highly complementary businesses, added nine brands and over 67,000 rooms to Choice's portfolio, and fundamentally repositioned the company for growth in the upscale and upper-upscale segments. More than two years after the transaction closed, its full impact on Choice's brand architecture, financial performance, and competitive standing is becoming clear. 

The Transaction: Structure and Rationale

Choice Hotels International, headquartered in North Bethesda, Maryland, entered into a definitive agreement on June 13, 2022, to acquire the franchise business, operations, and intellectual property of Radisson Hotel Group Americas from Radisson Hotel Group, which is headquartered in Brussels. The acquisition price of approximately $675 million included the real estate value of three owned hotels and covered Radisson's operations in the United States, Canada, Latin America, and the Caribbean. Importantly, Radisson Hotel Group retained ownership of the Radisson brands outside the Americas, continuing to operate and manage the business in Europe, the Middle East, Africa, and Asia-Pacific with the aim of doubling its portfolio by 2025.

The strategic logic behind the acquisition rested on several pillars. First, the two companies possessed highly complementary brand portfolios. Choice had historically been strongest in the midscale and economy segments, while Radisson Americas brought significant presence in the upscale and upper-upscale full-service tiers. Second, the deal expanded Choice's footprint in higher-revenue geographic markets, particularly the West Coast and Midwest of the United States, as well as in Canada, Latin America, and the Caribbean. Third, Radisson brands typically feature larger room counts and are located in higher RevPAR (revenue per available room) markets, which translates into higher royalty revenue per hotel for the franchisor.

Patrick Pacious, President and Chief Executive Officer of Choice Hotels, described the transaction as bringing 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".

The Nine Brands Added to Choice's Portfolio

The acquisition added nine Radisson brands to Choice's portfolio in the Americas: Radisson Blu®, Radisson®, Radisson Individuals®, Park Plaza®, Radisson RED®, Country Inn & Suites by Radisson®, Park Inn by Radisson®, Radisson Inn & Suites®, and Radisson Collection®. These brands span from the upper-upscale and luxury tiers down to the upper-midscale segment, providing Choice with a comprehensive product ladder that can serve travelers across a wide spectrum of needs and price points.

Notably, the Radisson brands in the Americas are now owned and controlled by Choice Hotels, while outside the Americas the same brands remain under the ownership of Radisson Hotel Group, an unaffiliated company headquartered in Belgium. This geographic bifurcation creates an unusual arrangement in which two separate companies operate the same brand names in different regions of the world.

Integration: Speed, Synergies, and Financial Impact

The integration of Radisson Hotels Americas into Choice's systems proceeded at a rapid pace. By December 2023—just 16 months after the acquisition closed—Choice announced the completion of the integration, having transitioned nearly 600 hotels to its franchise success system and digital platforms. The full integration of the Choice and Radisson platforms at the beginning of the fourth quarter of 2023 unlocked opportunities for ancillary incremental revenue streams and drove additional profitability.

The financial results have been impressive. Choice achieved approximately $85 million in annual recurring synergies through the successful completion of the integration, exceeding its prior target by 6%. The Radisson Americas business, which had generated negative $12 million of Adjusted EBITDA in 2021, was projected to contribute approximately $80 million in 2024—a remarkable turnaround that demonstrates Choice's ability to successfully integrate and grow acquired businesses.

The integration also delivered meaningful benefits to Radisson franchisees. These hotel owners realized lower OTA (online travel agency) commissions, increased guest traffic to direct and digital channels, improved booking conversion rates, and access to a broader base of corporate accounts. For Radisson hotels that adopted Choice's "Your Key to Profit" program, annual operating savings potential of up to $35,000–$40,000 was identified.

Since the digital integration in August 2023, Choice witnessed a more than 30% surge in stays via domestic, direct online channels for Radisson Americas brands, with particularly robust growth for the Country Inn & Suites brand. The performance uptick post-integration attracted increased commitments to new hotel developments. In the second quarter of 2024, Choice reported a 40% year-over-year rise in new applications for domestic franchise agreements for the Country Inn & Suites by Radisson brand.

Repositioning and Brand Evolution

Beyond the operational integration, Choice Hotels has invested significantly in repositioning the Radisson brands for growth in the competitive upscale and upper-upscale segments. In October 2024, Choice announced the relaunch of Radisson Individuals in the Americas as an upper-upscale soft brand focused on full-service, boutique, and independent hotels that stand apart for their distinctive local character and superior guest service.

The relaunch built on Choice's legacy as a pioneer of the soft brand segment—the company had previously developed Ascend Hotel Collection, the industry's first soft brand. Radisson Individuals is one of the fastest-growing soft brands globally, with more than 30 properties opened around the world since 2020, 15 of which are franchised by Choice in the Americas. The brand emphasizes three key areas: "vivid setting" through bold designs that bring local culture to life; "characterful encounters" through curated experiences including full-service bars and restaurants inspired by regional flavors; and the "explorer's compass" approach to service, with hotel staff serving as trusted guides to both must-see attractions and hidden gems.

In January 2025, Choice introduced reimagined visual identities, including new logos, for Radisson, Radisson Blu, and Radisson Individuals in the Americas. These new looks draw from the brands' renowned legacy of world-class hospitality while embracing Choice's vision to shake up the hotel industry's upscale and upper-upscale segments. The company also announced plans for a $15 million renovation of the Radisson Blu Mall of America, turning it into an anchor hotel that embodies the reimagined Radisson Blu brand.

Indy Adenaw, Senior Vice President and General Manager of Upscale Brands at Choice Hotels, emphasized the company's commitment: "Since our integration of the Radisson brands, we've sharpened their brand propositions to captivate travelers who are looking for a hotel stay that stands above the rest. This year will mark just the beginning of our efforts to translate that vision into something customers can experience and enjoy on property".

Choice also relaunched the Park Inn by Radisson brand as a "premium value" brand situated between the midscale and economy tiers, further demonstrating its commitment to activating the full potential of the acquired portfolio.

Loyalty Program Integration

A critical element of the integration involved merging the loyalty programs. In mid-2023, Radisson Rewards Americas was fully integrated into Choice Privileges, Choice's award-winning loyalty program. Members of Radisson Rewards Americas were given the opportunity to exchange their points into Choice Privileges at a 2:1 ratio—every two Radisson Rewards Americas points resulted in one Choice Privileges point.

The combined loyalty program now offers members access to more than 1,000 upscale, upper-upscale, and luxury hotels around the world, with more than 200 additional properties in the pipeline. The integration brought improved benefits to Choice Privileges status holders, including complimentary breakfast for top-tier members at select Radisson brands.

Competitive Positioning and Industry Context

The acquisition of Radisson Americas significantly enhanced Choice Hotels' competitive position against larger industry players such as Marriott International and Hilton. The combined company's expected total revenue and annual Adjusted EBITDA for 2024 were approximately $3.1 billion and $1.4 billion, respectively, including run-rate cost synergies of approximately $150 million.

With the addition of the Radisson brands, Choice's portfolio expanded to include properties serving millions of unique guests annually and 168 million rewards members staying across a portfolio of 16,360 hotels and 1.43 million rooms. This scale positions Choice as a more formidable competitor in a global lodging market that was valued at $411 billion in 2022 and is expected to reach $744 billion in 2028.

The acquisition also fits into a broader trend of consolidation in the hospitality industry. The deal between Choice and Radisson Americas was the first major branded transaction of its kind following the lifting of pandemic-era travel restrictions. Choice subsequently pursued a hostile $8 billion takeover attempt of Wyndham Hotels & Resorts, which ultimately was abandoned, but the ambition signaled by both the Radisson acquisition and the Wyndham pursuit suggests that Choice is positioning itself as a consolidator in the midscale and economy segments.

Industry analysts noted that a tie-up between Choice and Radisson made strategic sense due to their relatively similar portfolios of brands within the economy and midscale space, along with new competition from giants Marriott and Hilton, which have recently pivoted into lower-echelon chain scales where they had never been before.

The Road Ahead

Choice Hotels is now focused on the second phase of value creation from the Radisson acquisition, aiming to expand the Radisson Americas portfolio in the Americas region. The company's renewed emphasis on the upscale and upper-upscale segments through the repositioning of Radisson, Radisson Blu, and Radisson Individuals reflects a strategic bet that these higher-revenue tiers will drive future growth as consumer demand for premium travel experiences continues to rise.

The ongoing developments—new visual identities, elevated food and beverage concepts, enhanced guest room designs, and premium amenities—represent significant investments in translating the Radisson brand vision into tangible on-property experiences. As Indy Adenaw noted, Choice is "committed to further strengthening and distinguishing these brands within an increasingly competitive landscape so that owners can be confident they're gaining a truly great value from their investment".

The acquisition of Radisson Hotels Americas has proven to be a transformative transaction for Choice Hotels International, one that has expanded its brand portfolio, enhanced its competitive positioning, delivered substantial financial synergies, and opened new avenues for growth in the most attractive segments of the hospitality industry. The full realization of its potential is still unfolding.