Choice Hotels International acquires Radisson Hotel Group Americas (2023)

Ahighly complementary businesses spanning nine brands, 624 hotels and more than 68,000 rooms

This is the latest step in Choice's strategy to expand its portfolio of soft hotel brands in higher-revenue segments and travel locations

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

Radisson Hotel Group will continue to grow, leading Radisson's businesses in EMEA and APAC, with the goal of doubling the portfolio by 2025

ROCKVILLE, MD.eBRUSSELS,13. June 2022/PRNewswire/ --Choice Hotels International, Inc.(NYSE: CHH) and Radisson Hotel Group announced today that Choice Hotels has entered into a definitive agreement to acquire the franchise business, operations and intellectual property of Radisson Hotel Group Americas for approximately €1,000$675 million. The addition of Radisson's nine hotel brands in America is the latest chapter in Choice's successful strategy to expand its growth opportunities by bringing the company's best franchise platform into adjacent hotel segments and a new group of hotel owners. The additional 624 hotels with more than 68,000 rooms expand Choice Hotels' presence in the upper and mid-upscale lodging 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 into the upscale segments, as well as more business travelers and a broader demographic within Choice's core leisure segment. The combination strengthens Choice's ability to offer a more holistic product offering across segments and continue to capitalize on consumer trends that are expected to drive future travel demand, such as: B. Remote work, rising pensions and road travel.

The transaction brings Choice's 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' footprint into additional locationsYou have,Latin Americait is atCaribbean. Consistent with Choice Hotels' long-term strategy to grow in higher-revenue segments, Radisson brands typically have more rooms and are located in markets with higher RevPAR, which generates higher per-hotel royalty income.

Patrick Pacious, President and CEO of Choice Hotels, said, “Choice has a strong history of smart acquisitions in new segments where our world-class franchise engine can fuel future growth. This transaction brings together two highly complementary businesses and enhances our offerings to customers in key mid-market hospitality segments while expanding our reach into the upscale and upscale full-service segments and higher-revenue geographic markets. We are confident that guests and franchisees will benefit significantly from the combination of these two exceptional brands."

The transaction unlocks significant value for the Radisson brands in America. Choice Hotels is intimately acquainted with the American franchisee community and will be committed to driving the success of Radisson franchisees, many of whom already have franchise agreements with Choice Hotels.

Pacious continued, “Our long history of building mutually beneficial relationships with our franchisees has resulted in a premium voluntary retention rate, and these franchisees are the source of the majority of our new hotel development. Our existing and new hotel owners will benefit from the expanded business execution capabilities of the combined companies, including our award-winning loyalty program, proprietary tools and new technologies that will enable them to do more business, lower their hotel operating costs, reach new customers and respond to evolving industry trends.

Federico J. González, CEO of Radisson Hotel Group, said: “Since the launch of our strategic transformation plan in 2017, Radisson Hotel Group has been committed to the global success of the Radisson brands and expanding the overall footprint of our global operations. We have achieved solid results, doubling the number of rooms booked per year in EMEA and APAC, confirming Radisson Blu as a top premium brand for over 10 years and establishing Radisson as the fastest growing premium brand in EMEA , confident that Choice Hotels is the owner with the right strategy, resources and a long-term management team to successfully accelerate the growth of Radisson's business in the Americas. Radisson Hotel Group will continue to leverage the strength of operational excellence to advance our EMEA and to place APAC businesses on a significant growth path with a goal of doubling the growth of our portfolio in these markets by 2025. At Choice, we will work to ensure customers continue to experience the highest level of service and a superior brand experience."

Tom Bóia, interim CEO of Radisson Hotel Group Americas, said, “Our people have worked hard to solidify the power of our brands, build a better business engine and provide the best solutions for franchisees and customers. We are excited about the Radisson family of brands in America, Choice Hotels will join. We believe this acquisition will fuel growth in a highly competitive market and enable our franchisees to perform better."

transaction details

Choice Hotels acquires the franchise, operations and intellectual property of Radisson Hotels inThe United States,You have,Latin Americait is atCaribbean, for about$675 million, including the real estate value of three of its own assets. The acquisition will be funded with cash and arms loans. Radisson Hotel Group Americas includes the franchises, operations and intellectual property of Radisson Hotels inThe United States,You have,Latin Americait is atCaribbeanand includes 10 Radisson Blu Hotels, 130 Radisson Hotels, 9 Radisson Individuals Hotels, 1 Park Plaza Hotel, 4 Radisson RED Hotels, 453 Country Inn & Suites by Radisson Hotels and 17 Park Inn by Radisson Hotels as well as Radisson Inn & Suites and Radisson Collection- Brands. Choice Hotels will independently own and control the brands in America and work 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 with respect to dividend payment policies and proposed share repurchases.

The transaction has been unanimously approved by Choice Hotels' board of directors and is expected to close in the second half of 2022, subject to regulatory approvals and customary closing requirements.

Obligationen der Credit Suisse (USA) LLC is acting as financial advisor to Choice Hotels andWillkie Farr& Gallagher is acting as legal counsel. Baker McKenzie serves as General Counsel for the Radisson Hotel Group.

Sobre a Choice Hotels^®

Choice Hotels International, Inc.(NYSE:CHH) is one of the world's largest hosting franchisors. With nearly 7,000 hotels with nearly 600,000 rooms in 35 countries and territories (as of March 31, 2022), Choice^®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 the luxury, mid-range, extended-stay and economy segments. Choice Privilege award winner^®The loyalty program offers members benefits ranging from daily rewards to exceptional experiences. For more information visitwww.choicehotels.com.

About Radisson Hotel Group Americas

Radisson Hotel Group Americas represents the operations and brands of Radisson Hotels inThe United States,You have,Latin Americait is atCaribbean. The Radisson Hotel Group Americas portfolio of brands includes Radisson Collection, Radisson Blu, Radisson, Radisson RED, Radisson Individuals, Radisson Inn & Suites,parking spot, Park Inn by Radisson and Country Inn & Suites by Radisson, combined under the umbrella name Radisson Hotels Americas.

For more information visitwww.radissonhotelsamericas.com

About the Radisson Hotel Group

The Radisson Hotel Group is one of the largest and most dynamic hotel groups in the world with nine different brands, more than 1,700 hotels in operation and 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 at hotels licensed to operate their systems. The group's overarching brand promise is Every Moment Matters with a Yes I Can! spirit of service.

For more information visitwww.radissonhotelgroup.com

forecast 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 terminology such as "expect", "estimate", "believe", "anticipate", "should", "will", "predict", "plan", "forecast", "assume" or similar future words. All statements that are not historical facts are forward-looking statements. These forward-looking statements are based on management's current beliefs, assumptions and expectations regarding future events, which 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 the benefits of the transaction to the Company, the acquired and franchised businesses, and statements regarding the Company's plans and objectives, expectations, beliefs, Business strategies, future events, business conditions, business trends and expectations regarding, among other things, the timing of closing of the transaction and certain post-closing matters, the financial impact of the transaction on the Company's operations and finances, the integration and acquisition of some or all of the existing ones Company's systems through acquired properties, including the Choice Privileges loyalty program, the hotel segment and the Company's geographic expansion, guest and franchisee/hotel owner benefits resulting from the acquisition, and include known and unknown knew risks that are difficult to predict. Such statements may also relate to the Company's projected income, expenses, Adjusted EBITDA, earnings, debt ratio, ability to service outstanding debt, payment of dividends, repurchases of common stock and other financial and operational measures, including occupancy and hotel hours of operation. RevPAR, the Company's ability to benefit from a recovery in travel demand, the Company's liquidity, the impact of COVID-19 and economic conditions on our future operations, among other things. We caution you 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.

A number of factors could cause the Company's actual results, performance or achievements to differ materially from those expressed or contemplated in the forward-looking statements. These risks include, but are not limited to, the continuation or resurgence of the COVID-19 pandemic, including in relation to new strains or variants; the rate, pace and effectiveness of vaccination in the general population; changes in consumer demand and consumer confidence, including the impact of the COVID-19 pandemic on unemployment rates, consumer spending and travel, short-term and group business demand; the impact of COVID-19 on the global hospitality industry, particularly but not exclusively the US travel market; the success of our mitigation efforts in response to the COVID-19 pandemic; the performance of our brands and categories as we recover from the disruption of the COVID-19 pandemic; the timing and amount of future dividends and share repurchases; changes in general domestic and international economic conditions, including access to liquidity and capital, as a result of COVID-19; future national or global outbreaks of epidemics, pandemics or communicable diseases, or fears of such outbreaks; changes in laws and regulations applicable to the travel, lodging or franchise industry; currency fluctuations; depreciation or impairment of company assets; operational risks common in the travel, lodging or franchise industry; changes in the desirability of our brands from the point of view of hotel operators and customers; changing the terms of or terminating our agreements with franchisees and our relationships with our franchisees; our ability to keep pace with improvements in technology used for marketing and reservation systems and other operating systems; commercial acceptance of the products and services of our Software-as-a-Service ("SaaS") technology solutions division; our ability to grow our franchise system; exposure to risks associated with the development, financing and ownership activities of our hotels; risks related to our investments in new businesses; fluctuations in the supply and demand for hotel rooms; our ability to realize anticipated benefits from acquired businesses; impairments or losses related to acquired businesses; the degree of acceptance of alternative growth strategies that we can implement; cybersecurity and data breach risks; ownership and financing activities; hotel closures or financial difficulties experienced by our franchisees; operational risks related to our international operations, particularly in areas currently most affected by COVID-19; the outcome of the litigation; and our ability to effectively manage our indebtedness and guarantee our indebtedness. These and other risk factors are discussed in detail in the Company's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

FONTE Choice Hotels International, Inc.