Choice Hotels shifts to fully direct franchise model in Canada
International news
Choice Hotels International has purchased InnVest Hotels’ remaining 50% share in Choice Hotels Canada, shifting to a fully direct franchising model in the country from the previous master franchising framework.
The deal was closed last month and had a value of around $112m. It was financed using Choice Hotels’ on-hand cash and its existing credit line.
Choice Hotels International president and CEO Patrick Pacious said: “By consolidating operations in Canada and expanding Choice Hotels Canada’s owner success system from the current eight hotel brands to our full portfolio of 22 brands, we are opening doors to remarkable opportunities for our franchisees and guests, while paving the way for accelerated growth across Canada.”
Choice Hotels’ Canadian portfolio comprised 350 hotels and 30,000 rooms, with an additional 2,500 rooms in the pipeline. The company noted that 26,000 of the 30,000 rooms were part of the Choice Hotels Canada joint venture.