On August 6, 2025, Choice Hotels International unveiled its full takeover of Choice Hotels Canada, acquiring the remaining 50% stake from InnVest Hotels for approximately $112 million. Finalized in July 2025, this strategic move shifts the company from a master franchise model to a direct franchising structure, unlocking new growth potential across Canada¹.
The deal is expected to drive $23 million in franchise fee revenue and generate $18 million in EBITDA by the end of 2025¹. With 350 hotels and roughly 30,000 rooms under its Canadian portfolio—and 2,500 additional rooms in development—the company gains full operational control and planning flexibility for future expansion².
Why This Move Matters for Canada’s Tourism Sector
A prime moment to scale: Transitioning to a direct franchise model allows Choice to introduce its complete suite of 22 hotel brands, including premium options like Cambria Hotels, Radisson, Ascend Collection, Comfort, and Quality Inn—up from just eight brands previously available in Canada².
This rapid brand expansion broadens traveler options while positioning Canada as a key market in Choice’s global roadmap. With tourism projected to grow annually by over 5% through 2030, reaching $50 billion, this acquisition aligns Choice’s strategy with Canadian hospitality trends².
Strategic and Financial Highlights
| Metric | Details |
|---|---|
| Acquisition Price | ~$112 million, funded with cash and existing credit lines² |
| Expected 2025 Performance | $23M fee revenue; $18M EBITDA¹ |
| Canadian Properties | 350 hotels (30,000 rooms) plus 2,500 rooms pipeline² |
| Brand Portfolio Expansion | From 8 to 22 global Choice brands available in Canada² |
This expansion supports resilience in extended-stay segments, while the broader brand presence addresses diverse traveler profiles—from budget to upscale—across Canadian provinces.
Operational Shifts: From Master to Direct Franchising
Under the original master-franchise arrangement established in the mid-1990s, Choice Hotels operated indirectly via local partners. Now, Choice Hotels International fully manages Canadian franchising—enhancing control over brand standards, marketing campaigns, and franchisee support.
Strengthening its operational backbone in Canada, the company benefits from improved alignment with Choice Privileges, its loyalty program, offering seamless benefits across a larger, more diverse network².
Broader Global Growth and Reach
This Canadian consolidation is part of Choice Hotels’ ongoing international expansion, which saw a 5% increase in net international rooms year-over-year, reaching over 140,000 rooms by Q2 2025². Strategic agreements have added thousands of rooms across Brazil, France, and China, underscoring Choice’s global ambition².
Canada now joins this growth trajectory as a core pillar—supporting continued rollout of new brands and development projects across urban and leisure destinations.
What This Means for Travelers and Franchisees
- More hotel choices nationwide: from economy to upscale, appealing to family vacations, business stays, and upscale travelers alike.
- Greater brand consistency and quality: direct ownership allows faster implementation of standards and loyalty benefits across multiple regions.
- Expanded loyalty rewards: travelers benefit from seamless Choice Privileges access across the entire Canadian network.
- Developer opportunity: franchisees will now enjoy simplified support and access to Choice’s full-brand portfolio, boosting investment confidence in the Canadian hospitality space.
Brian Leon, CEO of Choice Hotels Canada, will continue leading operations, maintaining leadership continuity while leveraging Choice’s global infrastructure².
What the Data Says
Choice Hotels’ global results reinforce the strategic importance of this acquisition:
- Domestic RevPAR in the U.S. softened in Q2 2025, making international expansion—including the Canadian deal—pivotal to resilience in a challenging domestic market³.
- The extended-stay segment showed strength, supporting broader portfolio diversification.
- With the Canadian acquisition, Choice Hotels reinforces its footprint in regions less impacted by U.S. tourism headwinds, diversifying its growth engine.
Final Thought: Setting the Stage for Future Growth
Choice Hotels International’s full acquisition of Choice Hotels Canada signals a turning point—transitioning from a joint venture to a fully integrated regional business. With immediate financial benefit, brand expansion, and operational control, Choice is positioning Canada as a flagship market for its global ambitions.
For Canadian tourism—already on a growth trajectory—the expanded hotel network and upgraded hospitality brands will enhance visitor choice, support regional economic development, and prepare the sector for increasingly sophisticated traveler expectations.
For more travel news like this, keep reading Global Travel Wire
