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Choice Hotels Acquires Full Stake in Canadian Operations for $112 million – Image Credit Choice Hotels
Choice Hotels International has acquired the remaining 50% stake in Choice Hotels Canada, transitioning to a direct franchising model in the country.
Choice Hotels International has completed the acquisition of the remaining 50% stake in Choice Hotels Canada from InnVest Hotels. This acquisition, valued at approximately $112 million, marks a shift from a master franchising model to a direct franchising model in Canada. The transaction was finalized in July 2025 and was funded through available cash and the company’s existing credit facility.
As of June 30, 2025, Choice Hotels’ Canadian portfolio includes 350 hotels and 30,000 rooms, with an additional 2,500 rooms in development. The pipeline includes the first Cambria Hotel in Canada, four Radisson hotels, and over 20 Comfort, Quality, and Ascend Collection hotels. The company anticipates generating approximately $23 million in fee revenue and $18 million in EBITDA from its Canadian operations for the full year 2025.
The acquisition allows Choice Hotels to expand its owner success system from eight hotel brands to its full portfolio of 22 brands in Canada. This move is part of a broader strategy to increase market share and accelerate growth in the Canadian hospitality market, which is projected to grow at an average annual rate exceeding 5% through 2030.
Brian Leon will continue to lead the Canadian operations as CEO of Choice Hotels Canada. InnVest Hotels, the largest franchisee of Choice Hotels in Canada, will remain a key partner, owning and operating 50 Comfort hotels nationwide.
Global Developments
Globally, Choice Hotels has been expanding its international presence. In the second quarter of 2025, the company increased its net international rooms portfolio by 5% to over 140,000 rooms. This growth was driven by a 15% increase in openings and strategic agreements in various regions, including Brazil, France, and China.
In Brazil, Choice Hotels extended a master franchise agreement with Atlantica Hospitality International, covering over 10,000 rooms for an additional 20 years. In France, the company nearly tripled its room count through a direct franchise agreement with Zenitude Hotel-Residences. In China, Choice Hotels signed agreements with SSAW Hotels & Resorts, which are expected to add over 9,500 rooms in 2025 and approximately 10,000 rooms over the next five years.
