Choice Hotels Acquires Remaining Stake in Canadian JV, Goes Fully Franchised

Choice Hotels International has acquired the remaining 50% stake in Choice Hotels Canada from InnVest Hotels, transitioning from a master franchising model to a fully direct franchising model. This move underscores the company's commitment to the Canadian market and its franchisees. Choice Hotels Canada has a legacy dating back to 1955 and has played a pivotal role in the company's international growth.

Choice Hotels International, Inc. (NYSE: CHH), one of the world's largest lodging franchisors, has announced the acquisition of the remaining 50% stake in Choice Hotels Canada from long-time joint venture partner InnVest Hotels. This strategic move marks a significant milestone in the company's 70-year history in Canada and positions it for accelerated growth in the market [1].

The acquisition, valued at approximately $112 million, was funded through available cash and the company's existing credit facility. It allows Choice Hotels to transition from a master franchising model to a fully direct franchising model in Canada. This move underscores the company's deep commitment to the Canadian market and its franchisees, as well as its confidence in the strength of the in-country leadership team [1].

With a legacy dating back to 1955, Choice Hotels Canada has played a pivotal role in the company's international growth. The acquisition will expand the owner success system from the current 8 hotel brands to the full portfolio of 22 brands, opening doors to remarkable opportunities for franchisees and guests. As of June 30, 2025, Choice Hotels' Canadian portfolio included 350 hotels and 30,000 rooms, with more than 2,500 rooms in the pipeline [1].

The transaction is expected to generate approximately $23 million of fee revenue and $18 million in EBITDA for full-year 2025. Brian Leon, CEO of Choice Hotels Canada and an 18-year company veteran, will continue to lead the Canadian operations. InnVest Hotels, the largest franchisee of Choice Hotels in Canada, will remain a key partner, owning and operating 50 Comfort hotels nationwide [1].

This acquisition is part of Choice Hotels' ongoing global expansion strategy. In Q2 2025, the company grew its net international rooms portfolio by 5% to over 140,000 rooms since June 30, 2024, driven by a 15% increase in openings. Major developments year-to-date include strengthening the company's presence in Brazil, France, and China [1].

Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world, with nearly 7,500 hotels representing nearly 650,000 rooms in 46 countries and territories. The company's wide-ranging portfolio of 22 brands enables it to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders [1].

References:
[1] https://www.prnewswire.com/news-releases/choice-hotels-international-continues-global-expansion-through-consolidation-of-investment-in-choice-hotels-canada-302522649.html