ROCKVILLE, Md. — Choice Hotels International has entered a definitive agreement to acquire the brand and franchise business of WoodSpring Suites from WoodSpring Hotels Holdings LLC for approximately $231 million.
“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,” says 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.”
The acquisition will add approximately 240 extended-stay hotels across the U.S. to the Choice Hotels portfolio, creating an extended-stay portfolio of more than 350.
Choice plans to hire the WoodSpring Suites franchise business employees and strengthen the brand’s existing multi-unit developer and franchisee relationships.
Following the transaction, which is expected to close in the first quarter of 2018, WoodSpring Hotels Holdings LLC will be renamed and retain its hotel management operations. The deal remains subject to regulatory approval, the concurrent closing of the sale of WoodSpring’s owned hotels to a third party and satisfaction of customary closing conditions.