Choice Hotels International Expands in Canada with Acquisition of Remaining 50% Stake in Choice Hotels Canada

Choice Hotels International has acquired the remaining 50% stake in Choice Hotels Canada from InnVest Hotels, transitioning to a fully direct franchising model. The move underscores the company's commitment to the Canadian market and confidence in its in-country leadership team. The acquisition marks a significant milestone in Choice's 70-year history in Canada and positions the company for accelerated growth.

Choice Hotels International, Inc. (NYSE: CHH), one of the world's largest lodging franchisors, has acquired 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, transitioning from a master franchising model to a fully direct franchising model [1].

The acquisition, valued at approximately $112 million and completed in July 2025, underscores Choice Hotels' deep commitment to the Canadian market and its franchisees. With this transaction, Choice Hotels Canada's portfolio will expand from 8 to 22 brands, including the addition of Cambria Hotel, Radisson hotels, and Comfort, Quality, and Ascend Collection hotels [1].

Patrick Pacious, President & CEO of Choice Hotels International, expressed confidence in the Canadian market and the exceptional capabilities of the local team. "This milestone reflects our confidence in the Canadian market and the exceptional capabilities and legacy of success of our local team," he said [1].

Brian Leon, CEO of Choice Hotels Canada and an 18-year company veteran, will continue to lead 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].

The acquisition positions Choice Hotels for accelerated growth in Canada, where the hospitality market is projected to grow at an average annual rate of over 5% through 2030, reaching over $50 billion [1]. Choice Hotels aims to expand its market share across all 22 brands, leveraging its strong foundation of over 9 million existing Choice customers and a robust network of franchisees [1].

The acquisition is part of Choice Hotels' broader strategy to accelerate international growth. In Q2 2025, the company grew its net international rooms portfolio by 5% to over 140,000 rooms, driven by a 15% increase in openings [2]. Key international developments include extending a master franchise agreement in Brazil for over 10,000 rooms, nearly tripling room count in France, and signing strategic agreements in China expected to add approximately 19,500 rooms over the next five years [2].

Choice Hotels reported mixed Q2 2025 results, with a 2.1% global room growth despite a 2.9% decline in domestic RevPAR. The company achieved record adjusted EBITDA of $165 million and maintained its full-year adjusted EBITDA guidance of $615-635 million [2]. The acquisition of the remaining 50% stake in Choice Hotels Canada is expected to generate approximately $23 million in fee revenue and $18 million in EBITDA for full-year 2025 [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
[2] https://www.stocktitan.net/news/CHH/choice-hotels-international-reports-second-quarter-2025-cmnt9bs0w0wn.html