The Radisson Hotel Group Americas was going to be acquired by Choice Hotels. I wanted to let you know that the deal has closed.

Even though consolidation in the hotel industry isn't good for consumers, maybe this isn't so bad.

Choice acquires Radisson Americas for $675 million

The acquisition of the Radisson Hotel Group Americas was completed by Choice Hotels. The deal closed less than a month after it was announced.

The Radisson Americas franchise business, operations, and intellectual property were acquired. Over 67,000 rooms will be added to Choice's portfolio across the United States, Canada, the Caribbean, and Latin America. Three owned properties were included in the transaction.

This will greatly expand Choice's presence in the upscale and upper-midscale segment in the West Coast and Midwest of the United States. Choice thinks this will allow the brand to offer a more complete product offering.

Patrick Pacious described the acquisition in June.

“Choice has a well-established history of smart acquisitions in new segments where our world-class franchising engine can spur future growth. This transaction brings 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. We are confident that guests and franchisees will significantly benefit by combining these two exceptional sets of brands.”

“Our long track record of establishing mutually beneficial relationships with our franchisees has resulted in a best-in-class voluntary retention rate, and those franchisees are the source of a majority of our new hotel development. Our existing and new hotel owners will benefit from the improved business delivery capabilities of the combined companies, including our award-winning loyalty program, proprietary tools and emerging technologies that will enable them to capture more business, lower their hotel operating costs, reach new customers and respond to evolving industry trends.”

Choice has completed its Radisson Americas acquisition

The interesting implications of this acquisition

Jin Jiang is a Chinese state-owned tourism and hotel company. There were some issues with the company's ownership structure. The Radisson rewards loyalty program was split into two in the summer of 2021

The reason for this was intriguing. The United States government requires companies to limit the amount of information they give to the Chinese government.

The Radisson loyalty program in the Americas was separated from the rest of the program.

Since Choice only bought the Radisson brand in the Americas, the implications here are very strange. We don't know what the future of the loyalty program will look like even though the deal has closed. Will Radisson properties in the Americas be integrated into Choice Privileges or will they remain a Radisson program?

Radisson properties in the Americas would participate in Choice Privileges if the Radisson brands were integrated into the program.

Bottom line

The Radisson Hotel Group Americas has been acquired by Choice Hotels. Choice will be able to expand its business in the Americas and the Radisson properties will be able to operate more freely given the China connection.

I am curious to see how the loyalty program will evolve now that the deal is closed.

What do you think about Choice's purchase of Radisson Americas?