CHOICE HOTELS INTERNATIONAL has streamlined its business by integrating the Radisson Hotels Americas portfolio into its franchisee system. The company expects more than 10 percent adjusted EBITDA growth in 2024.
“Choice exceeded synergy targets, achieving around $80 million in recurring synergies,” the company said. “The company successfully turned around Radisson Hotels Americas in 2022 and is poised to surpass projected EBITDA contributions, exceeding $60 million in 2023 and growing beyond $80 million in 2024.”
The company anticipates more cost and revenue opportunities in the future.
“Newly added hotels within a brand yield an average of 20 percent higher royalty revenue compared to exiting hotels,” it said. “The company achieved an average of over four hotel openings per week, totaling 107 openings as of June 30, 2023. This marks a 39 percent increase compared to the same period in 2022, fueled by a 45 percent rise in conversion hotel openings and a 24 percent increase in new construction hotel openings.”
In the first half of 2023, the company experienced year-over-year growth in hotel openings across all segments. Openings in the upscale segment increased by 83 percent, the midscale segment by 42 percent, the extended stay segment by 50 percent, and the economy segment by 11 percent.
During Asian Hospitality’s exclusive Leadership Series interview filmed during the company’s annual conference in April, Pat Pacious, president and CEO of Choice Hotels International, said the company had been working closely with Radisson Hotel Group on the transition.
“The sellers of the brands in the Americas, they picked us. They chose Choice Hotels because of the stewardship we’ve shown with our existing brands, and also our ability to grow brands,” Pacious said. “We are in partnership with them on the sort of global brand standards and logos and those types of things to maintain some consistency at that level, but allowing for the development in this particular market. If brands need to shift somewhat to attract the right developer. It gives both of us the flexibility to do that.”
Pacious also discussed the organization's partnership with AAHOA, expressed opposition to proposed fair franchising legislation in New Jersey, and emphasized the continued significance of Asian hoteliers to the company.
Meanwhile, The Wall Street Journal recently reported that Choice is actively considering the acquisition of Wyndham Hotels. The report came during Wyndham's celebration of its fifth anniversary as a publicly traded hotel company.
