Thursday, December 14, 2023
In a landmark announcement, the renowned hotel franchising giant, Choice Hotels International, Inc., declared the successful completion of assimilating the Radisson Hotels Americas division. This significant accomplishment, achieved in just 16 months since the August 2022 acquisition, marks the transition of nearly 600 hotels into Choice’s acclaimed franchise system and advanced digital infrastructure.
Pat Pacious, the President and CEO of Choice Hotels, expressed his pride in the swift and efficient integration, highlighting it as evidence of Choice’s unparalleled proficiency in merging and enhancing hotel brands. The incorporation of Radisson Hotels Americas into Choice’s network signals a new phase of growth, promising to elevate franchisee profitability, reduce operational costs, and boost overall performance.
A critical aspect of this integration was the migration of the Radisson Americas properties to Choice’s cutting-edge, cloud-based platforms, choiceADVANTAGE and ChoiceMAX. This move, completed ahead of schedule, followed earlier milestones, including the successful transfer of all Radisson Americas brands like Radisson Blu, Radisson, and Country Inn & Suites to Choice’s central reservation system, enabling bookings through ChoiceHotels.com.
The union of these businesses has already begun yielding substantial benefits. Notably, since the digital integration, there’s been a marked increase in traffic, bookings, and revenue on ChoiceHotels .com and its mobile app. Comparing year-over-year figures from August to November, the results are impressive:
Specifically, the former Radisson Americas brands witnessed a 26% rise in digital bookings and a 21% increase in digital revenue, lessening their dependence on costlier third-party channels. The Country Inn & Suites brand experienced a 36% boost in digital bookings.
Moreover, the legacy Radisson Americas brands showed a 2.3% year-over-year increase in revenue per available room (RevPAR), with the Radisson upscale brand achieving an 8.6% rise. This growth included a 200 basis points rise in occupancy rates and a 6.5% hike in average daily rates (ADR).
The merger also expanded the company’s reach in corporate accounts, now managing nearly 1,000 national and global accounts, along with 600 specialty accounts in various sectors. Additionally, the integration of Radisson Rewards Americas into the Choice Privileges rewards program expanded its membership to over 63 million, enhancing guest loyalty and direct booking rates, thereby lowering acquisition costs for franchisees.
Furthermore, Choice’s integration strategies have led to significant fee reductions for legacy Radisson properties, with renegotiated terms with major distribution partners and potential annual operating savings of approximately $35,000 to $40,000 for hotels participating in the Your Key to Profit program.
Pacious concluded by emphasizing the mutual benefits of this integration for all involved—strengthening the entire Choice hotel network, benefiting franchisees, and enhancing guest experiences across the board.
Tags: choice hotels, radisson, usa
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