#United States #hospitality #Choice Hotels #North Bethesda #Choice Hotels Canada

Choice Hotels International's Strategic Move in Canada

In a significant step aimed at enhancing its presence in the Canadian market, Choice Hotels International, Inc. (NYSE: CHH) has successfully acquired the remaining 50% stake of Choice Hotels Canada from InnVest Hotels, marking a pivotal transition from a master franchising model to a fully direct franchising approach. This acquisition, completed in July 2025 and valued at approximately $112 million, illustrates the company’s deep commitment to its Canadian operations. The investment is set to foster both growth and success for its franchise partners and enhances its alignment with local market dynamics.

A Legacy of Success in Canada

Choice Hotels has maintained a robust presence in Canada since its inception in 1955. The recent acquisition allows the company to move forward with total operational control, which the leadership views as a vital progression in its 70-year legacy within the nation. “This milestone emphasizes our unyielding confidence in the Canadian market,” asserted Patrick Pacious, President and CEO of Choice Hotels International. He highlights that by consolidating operations and expanding the owner success system to include all 22 of Choice Hotels' brands, the company is ready to unveil numerous opportunities for both franchisees and guests alike.

With a well-structured Canadian portfolio that includes over 350 hotels and 30,000 rooms, the company continues to expand its footprint significantly. Notably, there are more than 2,500 additional rooms planned, which includes new brands such as Cambria Hotel and various others under the banners of Comfort and Quality. This further demonstrates Choice Hotels’ commitment to growth in a promising Canadian hospitality market that has shown robust annual growth potential, projected to surpass 5% through 2030.

Future Prospects

Management forecasts that the Choice Hotels Canada operation aims to generate approximately $23 million in fee revenues with an $18 million EBITDA for the full year of 2025. This financial outlook is underpinned by the growing hospitality demands in Canada, where existing Choice customers exceed 9 million. Briefly enhancing their market share across all brands id earmarked as a crucial objective moving forward.

Continuity in leadership will be crucial during this transition, and Brian Leon, the current CEO of Choice Hotels Canada, will continue to spearhead the Canadian operations. His extensive experience with the company, having been part of it for 18 years, positions him well to guide this new strategic direction. As part of this collaboration, InnVest Hotels, which will retain ownership and operate 50 Comfort hotels throughout Canada, remains an essential partner in this journey.

Expanding Beyond Borders

This acquisition exemplifies Choice Hotels’ broader strategy for international expansion. As of the second quarter of 2025, the company has expanded its net international rooms portfolio by 5%, gaining over 140,000 rooms globally since June 2024. This expansion has been complemented by partnerships like the one with Atlantica Hospitality International in Brazil, along with significant growth in France and China. The overall goal is to widely disseminate Choice Hotels’ offerings making them accessible to a broader audience across global markets.

In conclusion, this strategic acquisition is poised to fuel rapid growth for Choice Hotels in Canada and beyond. With a solid foundation and extensive resources, the company is on track to capitalize on the opportunities presented in a thriving Canadian hospitality market while simultaneously driving its broader international expansion endeavors. The future looks bright for both Choice Hotels International and its franchise partners across the globe.

For more details, visit Choice Hotels Official Website.