Choice Hotels International’s pending acquisition of Radisson Hotel Group Americas makes sense, according to hotel industry experts and analysts.
Choice announced Monday it had entered into an agreement with Radisson Hotel Group to buy its Americas division, adding 624 hotels with 68,900 rooms to its portfolio for $675 million. The deal would grow Choice’s presence in the upscale and upper-midscale segments in U.S. West Coast and Midwest markets.
There was speculation ahead of the deal that Radisson Americas would be acquired at some point, said C. Patrick Scholes, managing director of lodging and leisure equity research at Truist. The company had been through a number of ownership changes and turnover in executives.
At the same time, executives at big hotel brands such as Choice and Wyndham Hotels & Resorts have been vocal about seeking acquisition opportunities, Scholes said.
Radisson also has been lacking a big guest reward program comparable to other brands, “which in…