Choice Hotels completes integration of Radisson Hotels Americas just 16 months after acquisition

Choice Hotels International, Inc., one of the world's largest and most successful lodging franchisors, announced that it has completed the integration of the Radisson Hotels Americas business, transferring nearly 600 hotels to Choice's successful world-class franchise system and digital platforms.

The milestone comes just 16 months after Choice acquired the Radisson Hotels Americas brands in August 2022.

"Completing the integration in such a short time is a testament to Choice's unmatched experience and knowledge in acquiring and integrating hotel brands," he said. said Choice Hotels President and CEO Pat Pacious. "With Radisson Hotels Americas properties now integrated, we are well positioned to further help reduce costs for Choice franchisees." costs, continue to increase your profitability and help drive your performance to the next level."

The migration of hundreds of Radisson Americas hotels to ChoiceADVANTAGE and ChoiceMAX, the company's proprietary cloud-based systems, was the final step in the integration process. This followed the achievement of several important milestones ahead of schedule earlier this year. In July, less than a year since the acquisition, all Radisson Americas brands, including Radisson Blu, Radisson and Country Inn & Suites: Migrated to Choice's central reservation system, making them bookable on ChoiceHotels.com.

Even before the integration was complete, the combined business began delivering significant benefits to Choice hotel owners and operators, helping to reduce guest acquisition costs and increase profitability, and creating tremendous value opportunities across the portfolio. of company brands:

Since the digital migration, total traffic, reservations and booked revenue on ChoiceHotels.com and the mobile app have increased significantly compared to what they were on the Choice and Radisson Americas websites and apps before the combined migration. Year over year, August to November:
Total digital visits increase 4%
Total digital bookings increase 5%
Total digital booked revenue increases 3%
App-only visits increased 19%
App-only bookings increased 18%
App-only reserved revenue increased 13%

Radisson Americas' legacy brands have seen a 26% year-over-year increase in digital bookings and a 21% year-over-year increase in digital booking revenue, reducing their reliance on more expensive bookings from third-party channels. Digital reservations for Country Inn & The suite brand has increased by 36%.

Year to date through November, revenue per available room (RevPAR) for Radisson Americas legacy brands increased 2.3% year over year. Luxury brand Radisson's RevPAR increased 8.6% year over year, with a 200 basis point increase in occupancy rate and a 6.5% increase in average daily rate (ADR).

The combination of Radisson Americas with Choice also increased the total number of corporate accounts managed domestically and globally to nearly 1,000, in addition to 600 specialty accounts in government, transportation, wholesale and more.

The integration of Radisson Rewards Americas expanded the total number of Choice Privileges rewards program members to more than 63 million. CP members are more likely to stay a second time and book directly, resulting in lower acquisition costs for franchisees.

Choice helped Radisson's traditional properties achieve significant rate reductions through integration synergies, successfully negotiating new terms with key third-party distribution partners and unlocking annual operational savings potential of up to ~$35k - $40k for Radisson hotels that used Choice's Your Key to Profit program. 

"With more hotels in the Choice family and with all Radisson Americas properties now fully integrated, our entire system is becoming stronger together," he said. Pacious said. "It's a win-win for all of Choice's great hotel brands, for our franchisees and for the millions of guests we serve every day."

Funete: Choice Hotels International, Inc.