Choice Hotels International has acquired the remaining 50 percent stake in Choice Hotels Canada from long-time joint venture partner InnVest Hotels, thereby transitioning from a master franchising model to a fully direct franchising model in Canada. Choice Hotels Canada dates back to 1955.
"This milestone reflects our confidence in the Canadian market and the exceptional capabilities and legacy of success of our local team," Patrick Pacious, president & CEO of Choice Hotels International, said in a statement. "By consolidating operations in Canada and expanding Choice Hotels Canada's owner success system from the current 8 hotel brands to our full portfolio of 22 brands, we are opening doors to remarkable opportunities for our franchisees and guests, while paving the way for accelerated growth across Canada."
The transaction, completed in July, was valued at approximately $112 million and was funded through available cash and the company's existing credit facility. Management expects the total Choice Hotels Canada business to generate approximately $23 million of fee revenue and $18 million in earnings before interest, taxes, depreciation or amortization for full-year 2025.
As of June 30, Choice Hotels' Canadian portfolio included 350 hotels and 30,000 rooms, with more than 2,500 rooms in the pipeline—including its first Cambria Hotel, four Radisson hotels and more than 20 Comfort, Quality and Ascend Collection hotels.
Canada's projected average annual growth is expected to exceed 5 percent through 2030, reaching more than $50 billion. Choice Hotels aims to expand its market share across all 22 of its brands within the country, which has more than 9 million existing Choice customers and a network of franchisees.
Brian Leon, Toronto-based 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.
"This is an exciting moment for Choice Hotels Canada and our franchisees," Leon said. "With the full backing of Choice Hotels International, we are well-positioned to deliver even greater value to our franchisees and guests as we write the next chapter of our success story."