Choice Hotels International has purchased InnVest Hotels’ remaining 50% share in Choice Hotels Canada, shifting to a fully direct franchising model in the country from the previous master franchising framework.
The deal was closed last month and had a value of around $112m. It was financed using Choice Hotels' on-hand cash and its existing credit line.
Choice Hotels International president and CEO Patrick Pacious said: "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 signifies a focus on the Canadian market and its franchisees.
Management anticipates that for the full year of 2025, the total Choice Hotels Canada business will generate around $23m in fee revenue and $18m in earnings before interest, taxes, depreciation, and amortisation (EBITDA).
Choice Hotels' Canadian portfolio comprised 350 hotels and 30,000 rooms, with an additional 2,500 rooms in the pipeline. The company noted that 26,000 of the 30,000 rooms were part of the Choice Hotels Canada joint venture.
This encompasses the introduction of its inaugural Cambria Hotel, expansion with four Radisson hotels, and more than 20 new Quality, Comfort, and Ascend Collection hotels.
Choice Hotels Canada CEO Brian Leon will continue to lead operations in Canada.
Leon said: "This is an exciting moment for Choice Hotels Canada and our franchisees.
"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."
InnVest Hotels, previously a joint venture partner and the largest franchisee of Choice Hotels in Canada, will continue to play a role by owning and operating 50 Comfort hotels across the country.
This acquisition is part of Choice Hotels' broader strategy to accelerate growth outside the US, which saw a 5% increase in the net international rooms portfolio to more than 140,000 rooms in Q2 2025.