The acquisition will add nearly 240 extended-stay hotels in 35 states to the Choice Hotels portfolio
Choice Hotels International announced that it has reached a definitive agreement to acquire the brand and franchise business of WoodSpring Suites from WoodSpring Hotels Holdings LLC, a portfolio company of Lindsay Goldberg, for approximately $231 million, subject to customary adjustments. The acquisition will add nearly 240 extended-stay hotels in 35 states to the Choice Hotels portfolio, creating an extended-stay portfolio of more than 350 properties with existing brands, MainStay Suites and Suburban Extended Stay.
Highlights:
- The acquisition of the WoodSpring Suites brand represents an asset light franchise business that complements Choice's existing extended-stay business with WoodSpring Suites' market leading capabilities.
- Choice plans to hire the WoodSpring Suites franchise business employees and strengthen the existing multi-unit developer and franchisee relationships that have contributed to the success of the brand.
- The transaction provides attractive returns and resilience through market cycles.
"We are pleased to announce our plans to welcome WoodSpring Suites to our portfolio of brands. Like Choice Hotels, WoodSpring Suites has demonstrated exceptional customer service, attractive franchisee return on investment, and tremendous growth," said Patrick Pacious, president and CEO of Choice Hotels. "Extended stay is a fast-growing segment, reporting some of the strongest gains in demand and has led the hospitality industry in annual RevPAR growth. The addition of the WoodSpring Suites brand will allow us to strengthen our scale within the attractive extended-stay segment, expand our runway for growth, and continue to create value for our customers, franchisees and shareholders."
WoodSpring Hotels is the nation's fastest growing value extended-stay hotel company, with nearly 240 properties in 35 states nationwide. Over the past few years, the company has successfully executed a brand relaunch and repositioning, resulting in WoodSpring Suites unit growth of more than 25 percent and franchise fee revenue growth of 45 percent in the last three years. More than 25 hotels are expected to open in 2018.
"Choice Hotels and WoodSpring Suites share the same values and dedication to customer service and franchisees," said Gary A. DeLapp, WoodSpring president and CEO. "We are thrilled that our brand will join the powerful value proposition that Choice Hotels offers and know our commitment to providing the best guest experience will remain a priority."
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He currently studies Communication, Media & Culture in Panteion University of Political & Social Studies of Athens.
