Choice Hotels International acquires Radisson Hotel Group Americas (2023)

It uniteshighly complementary companies, with nine brands, 624 hotels and more than 68,000 rooms

It marks the latest step in Choice's strategy to expand its portfolio of hotel brands into high-turnover travel segments and locations

Expands Choice's customer reach to include some of the most recognized brands in the industry

Radisson Hotel Group will continue to grow and manage the Radisson businesses in EMEA and APAC, aiming to double the portfolio by 2025

ROCKVILLE, MD.InBRUSSEL,June 13, 2022/PRNewswire/ --Choice Hotels International, Inc.(NYSE: CHH) and Radisson Hotel Group today announced that Choice Hotels has entered into a definitive agreement to acquire the franchise business, operations and intellectual property of RadissonHotel Group Americas for approximately$675 million. The addition of Radisson's nine hotel brands in the Americas is the latest chapter in Choice's successful strategy to expand its growth capabilities, bringing the company's best-in-class franchise platform to neighboring hotel segments and a new group of hotel owners. The added 624 hotels with more than 68,000 rooms expand Choice Hotels' presence in the luxury and upper mid-range hospitality segments, particularly in the West Coast and Midwestthe United States.

The acquisition of some of the industry's most recognized brands expands Choice Hotels' customer reach in the luxury segment, as well as more business travelers and a broader demographic within Choice Hotels' core segment. The combination enhances Choice's ability to offer a more holistic product offering across all categories and continue to respond to consumer trends that are expected to drive future travel demand, such as telecommuting, rising pensions and road travel.

The transaction brings Choice Hotels industry leading RevPAR (Revenue per Available Room) growth performance to a new group of hotel franchisees and investors and provides new growth opportunities to expand Choice Hotels presence in additional locations.Canada,Latin AmericaInthe Caribbean. Consistent with Choice Hotels' long-term strategy to grow in higher revenue segments, Radisson brands typically have higher room counts and are in higher RevPAR markets, leading to higher royalty income per hotel.

Patrick Passions, President and CEO of Choice Hotels, said, "Choice has an established history of smart acquisitions in new areas where our world-class franchise engine can drive our future growth. This transaction brings together two highly complementary companies, reinforcing each other."

The transaction unlocks significant value potential for the Radisson brands in the Americas. Choice Hotels has deep exposure to the American franchisee community and will be strongly committed to the success of Radisson franchisees, many of whom already have franchise agreements with Choice Hotels.

Pacious continues, “Our long history of building mutually beneficial relationships with our franchisees has resulted in the best voluntary retention rate in the category and these franchisees are the source of the majority of our new hotel growth. Existing and New Owners Our hoteliers will benefit from the enhanced business capabilities of the combined companies, including our award-winning loyalty program, proprietary tools and emerging technologies that enable them to increase revenue, reduce their hotels' operating costs, reach new customers and respond to evolving trends in the sector."

Federico J. González, CEO of Radisson Hotel Group, said: “Since the introduction of our strategic transformation plan in 2017, the Radisson Hotel Group has been committed to the global success of the Radisson brands and expanding the overall footprint of our global operations . delivered strong results, doubling the number of rooms signed annually in EMEA and APAC, making Radisson Blu the number one premium brand for more than 10 years and making Radisson the fastest growing luxury brand in EMEA. We are confident that Choice Hotels is the owner with the right long-term strategy, resources and management team to successfully accelerate the growth of the Radisson business in the Americas. The Radisson Hotel Group will continue to leverage the power of operational excellence to build our EMEA and APAC business on a significant growth path, aiming to double the portfolio in these markets by 2025. Together with Choice, we will work to ensure customers continue to enjoy the highest level of service and a superior brand experience.”

Tom Boy, interim CEO of Radisson Hotel Group Americas, said: "Our partners are working hard to consolidate the strength of our brands, build a better commercial engine and deliver best-in-class solutions to franchisees and customers. We are thrilled that the Radisson family of brands in the Americas will join Choice Hotels. We believe this acquisition will drive growth in a highly competitive market and enable stronger performance for our franchisees."

transaction details

Choice Hotels will acquire the business, operations and intellectual property of the Radisson Hotels franchisethe United States,Canada,Latin AmericaInthe Caribbean, for about$675 million, including the real estate value of three private assets. The acquisition will be financed with cash and revolver grants. Radisson Hotel Group Americas comprises the franchise agreements, operations and intellectual property of Radisson Hotels inthe United States,Canada,Latin AmericaInthe Caribbean, and 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 Collection Brands. Choice Hotels will independently own and control the brands in the Americas and partner with Radisson Hotel Group to drive the growth, continuity and success of the brands. The transaction is not expected to change Choice Hotels' current capital allocation strategy of dividend distribution policy and planned share repurchases.

The transaction has been unanimously approved by the Board of Directors of Choice Hotels and is expected to close in the second half of 2022, subject to regulatory approval and customary closing requirements.

Credit Suisse Securities (VS) LLC is acting as financial advisor to Choice Hotels on the transaction andWilkie Farr& Gallagher is acting as legal counsel. Baker McKenzie serves as legal counsel to Radisson Hotel Group.

Over Choice Hotels^®

Choice Hotels International, Inc.(NYSE:CHH) is one of the largest lodging franchises in the world. With nearly 7,000 hotels, representing nearly 600,000 rooms, in 35 countries and territories as of March 31, 2022, the choice is^®The family of hotel brands offers business and leisure travelers a variety of high-quality accommodation options, from limited service to full-service hotels in luxury, mid-range, extended stay and economy segments. Award-winning choice privileges^®The loyalty program offers members benefits ranging from daily rewards to great experiences. For more information visitwww.choicehotels.com.

Over Radisson Hotel Group Americas

Radisson Hotel Group Americas represents the companies and brands of Radisson Hotelsthe United States,Canada,Latin AmericaInthe Caribbean. Het merkportfolio van Radisson Hotel Group Americas omvat Radisson Collection, Radisson Blu, Radisson, Radisson RED, Radisson Individuals, Radisson Inn & Suites,Park Plaza, Park Inn by Radisson and Country Inn & Suites by Radisson, brought together under the common name of Radisson Hotels Americas.

For more information visitwww.radissonhotelsamericas.com

About Radisson Hotel Group

The Radisson Hotel Group is one of the world's largest and most dynamic hotel groups with nine distinct brands, more than 1,700 hotels in operation and under development, more than 260,000 rooms, and a presence in more than 120 countries and territories. More than 100,000 team members worldwide work for the Radisson Hotel Group and the hotels licensed in its systems. The Group's overriding promise is Every Moment Matters with the signature Yes I Can! service ethics.

For more information visitwww.radissonhotelgroup.com

Forward-Looking Statements

Certain matters discussed in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Some, but not necessarily all, of these forward-looking statements can be identified through the use of forward-looking statements. language such as “expect,” “estimate,” “believe,” “anticipate,” “should,” “will,” “anticipate,” “plan,” “project,” “assume,” or similar forward-looking words. All statements other than historical events are forward-looking statements. These forward-looking statements are based on management's current beliefs, assumptions and expectations regarding future events, which in turn are based on information currently available to management. Such statements include, but are not limited to, statements regarding the parties' plans to complete the transaction and statements regarding the benefits of the transaction to the company, the acquired company and the franchisees, and statements regarding the plan; the objectives of the company. objectives, expectations, beliefs, business strategies, future events, business conditions, business trends and expectations regarding, among other things, the timing for completion of the transaction and certain post-closing matters, the financial impact of the transaction on the business and Company finances, the integration and adoption by the acquired properties of some or all of the Company's existing systems, including the stock option program, the expansion of the Company's geographic and hotel division, guest and franchisee/hotel owner benefits resulting from the acquisition and involving known and unknown risks that are difficult to predict. Such statements may also relate to forecasts of revenues, expenses, adjusted EBITDA, revenues, debt levels, ability to repay outstanding debt, dividend payments, repurchases of common stock and other financial and operational measures, including residential and hotel openings, RevPAR , the Company's ability to benefit from, among other things, a recovery in travel demand, the Company's liquidity, the impact of COVID-19 and economic conditions on our future business. You are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors.

Διάφοροι παράγοντες θα μπορούσαν να κάνουν τα πραγματικά αποτελέσματα, τις επιδόσεις ή τα επιτεύγματα της εταιρείας να διαφέρουν ουσιωδώς από αυτά που εκφράζονται ή προβλέπονται από τις δηλώσεις για το μέλλον. Τέτοιοι κίνδυνοι περιλαμβάνουν, αλλά δεν περιορίζονται σε, τη συνέχιση ή την αναζωπύρωση της πανδημίας COVID-19, συμπεριλαμβανομένων των νέων στελεχών ή παραλλαγών. ο ρυθμός, ο ρυθμός και η αποτελεσματικότητα του εμβολιασμού στον ευρύτερο πληθυσμό· αλλαγές στη ζήτηση και την εμπιστοσύνη των καταναλωτών, συμπεριλαμβανομένου του αντίκτυπου της πανδημίας COVID-19 στα ποσοστά ανεργίας, στις διακριτικές δαπάνες των καταναλωτών και στη ζήτηση για ταξίδια, παροδικές και ομαδικές επιχειρήσεις· ο αντίκτυπος του COVID-19 στην παγκόσμια βιομηχανία φιλοξενίας, ιδιαίτερα αλλά όχι αποκλειστικά στην ταξιδιωτική αγορά των Η.Π.Α. την επιτυχία των προσπαθειών μας μετριασμού ως απάντηση στην πανδημία COVID-19· την απόδοση των εμπορικών σημάτων και των κατηγοριών μας σε οποιαδήποτε ανάκαμψη από τη διαταραχή της πανδημίας COVID-19· το χρονοδιάγραμμα και το ποσό των μελλοντικών μερισμάτων και επαναγορών μετοχών· αλλαγές σε γενικές, εγχώριες και ξένες οικονομικές συνθήκες, συμπεριλαμβανομένης της πρόσβασης σε ρευστότητα και κεφάλαια ως αποτέλεσμα του COVID-19· μελλοντικές εγχώριες ή παγκόσμιες εστίες επιδημιών, πανδημιών ή μολυσματικών ασθενειών ή φόβος τέτοιων εστιών· αλλαγές στη νομοθεσία και τους κανονισμούς που ισχύουν για τους κλάδους ταξιδιών, καταλυμάτων ή franchising· διακυμάνσεις συναλλάγματος· απομειώσεις ή μειώσεις της αξίας των περιουσιακών στοιχείων της εταιρείας· λειτουργικοί κίνδυνοι που είναι συνηθισμένοι στους κλάδους ταξιδιών, καταλυμάτων ή franchising· αλλαγές στην επιθυμία των εμπορικών σημάτων μας όπως βλέπονται από τους ξενοδόχους και τους πελάτες· αλλαγές στους όρους ή τη λήξη των συμβολαίων μας με τους δικαιοδόχους και τις σχέσεις μας με τους δικαιοδόχους μας· την ικανότητά μας να συμβαδίζουμε με τις βελτιώσεις στην τεχνολογία που χρησιμοποιείται για συστήματα μάρκετινγκ και κρατήσεων και άλλα λειτουργικά συστήματα· την εμπορική αποδοχή των προϊόντων και των υπηρεσιών του τμήματος τεχνολογικών λύσεων Software-as-a-Service ("SaaS")· την ικανότητά μας να αναπτύξουμε το σύστημα franchise μας. έκθεση σε κινδύνους που σχετίζονται με τις δραστηριότητες ανάπτυξης, χρηματοδότησης και ιδιοκτησίας του ξενοδοχείου μας· έκθεση σε κινδύνους που σχετίζονται με τις επενδύσεις μας σε νέες επιχειρήσεις· διακυμάνσεις της προσφοράς και της ζήτησης για δωμάτια ξενοδοχείων· την ικανότητά μας να συνειδητοποιούμε τα αναμενόμενα οφέλη από τις εξαγορασθείσες επιχειρήσεις. απομειώσεις ή ζημίες που σχετίζονται με εξαγορασθείσες επιχειρήσεις· το επίπεδο αποδοχής εναλλακτικών στρατηγικών ανάπτυξης που μπορούμε να εφαρμόσουμε· κίνδυνοι για την ασφάλεια στον κυβερνοχώρο και την παραβίαση δεδομένων· δραστηριότητες ιδιοκτησίας και χρηματοδότησης· κλείσιμο ξενοδοχείων ή οικονομικές δυσκολίες των δικαιοδόχων μας. λειτουργικούς κινδύνους που σχετίζονται με τις διεθνείς δραστηριότητές μας, ειδικά σε περιοχές που πλήττονται περισσότερο από τον COVID-19. το αποτέλεσμα της δίκης· και την ικανότητά μας να διαχειριζόμαστε αποτελεσματικά το χρέος μας και να διασφαλίζουμε το χρέος μας. Αυτοί και άλλοι παράγοντες κινδύνου συζητούνται λεπτομερώς στις καταθέσεις της εταιρείας στην Επιτροπή Κεφαλαιαγοράς, συμπεριλαμβανομένης της Ετήσιας Έκθεσής μας για το Έντυπο 10-K. Δεν αναλαμβάνουμε καμία υποχρέωση να ενημερώνουμε δημόσια ή να αναθεωρούμε οποιαδήποτε μελλοντική δήλωση, είτε ως αποτέλεσμα νέων πληροφοριών, μελλοντικών γεγονότων ή άλλου είδους, εκτός εάν απαιτείται από τη νομοθεσία.

ΠΗΓΗ Choice Hotels International, Inc.