CANADA | Choice Hotels Canada has acquired a 50 percent stake in the company back from InnVest Hotels, becoming a fully-direct model.
Choice Hotels International, Inc. has announced the acquisition of 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. This strategic move underscores Choice Hotels' deep commitment to the Canadian market and its franchisees and its confidence in the strength of the in-country leadership team.
With a legacy dating back to 1955, Choice Hotels Canada has played a pivotal role in the company's international growth. The acquisition marks a significant milestone in Choice's 70-year history in Canada and positions the company for accelerated growth.
"This milestone reflects our confidence in the Canadian market and the exceptional capabilities and legacy of success of our local team," expressed Patrick Pacious, President and CEO of Choice Hotels International.
"By consolidating operations in Canada and expanding Choice Hotels Canada's owner success system from the current eight 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 2025, was valued at approximately CAD 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 CAD 23 million of fee revenue and CAD 18 million in EBITDA for full-year 2025.
As of June 30, 2025, 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 is a highly attractive hospitality market, with projected average annual growth expected to exceed five percent through 2030, reaching over CAD 50 billion. With a strong foundation of over nine million existing Choice customers and a robust network of franchisees, Choice Hotels aims to expand its market share across all 22 brands.
Brian Leon, 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," added Leon.
"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."
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