Choice Hotels Completes Acquisition of Franchisor WoodSpring Suites
Choice Hotels International, Inc. (NYSE:CHH) announced today that it has completed its acquisition of WoodSpring Hotels LLC. The intent to buyout the franchising firm that oversees 240 extended-stay hotels was announced a month and a half ago.
Choice Hotels acquired the WoodSpring Suites brand, including franchise operations, marketing and development, for $231 million.
The chain represents an asset-light franchising model for Choice. WoodSpring joins Choice’s existing extended-stay hotel brands MainStay Suites and Suburban Extended Stay. Choice says that WoodSpring hotel units on average experienced a 21 percent growth in RevPAR over the last three years.
"I'm thrilled to officially welcome the WoodSpring Suites brand and its franchisees and owners to the Choice family. WoodSpring developers represent some of the best in the nation, and we look forward to introducing them to Choice's powerful platform of technology and resources, helping to create further return on their investments," said Patrick Pacious, president and CEO, Choice Hotels. "Choice has a strong pipeline for its new construction brands, including Cambria, Sleep Inn, MainStay, and Comfort, and this acquisition offers another new construction brand for our growth-oriented developer community. More importantly, the acquisition enables us to incorporate best practices from WoodSpring's proven model across our extended-stay brands, and further strengthens Choice's position as a leader in both hospitality and franchising."