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Choice Hotels Canada Shifts to Direct Franchising Model for Growth

Choice Hotels Canada Shifts to Direct Franchising Model for Growth

Olivia Park
4 minutes read
News
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Strategic Acquisition by Choice Hotels Canada

Choice Hotels International just bought the remaining 50% stake in Choice Hotels Canada from InnVest Hotels. A big move. They're switching from a master franchising setup to handling things directly. That puts them closer to franchisees and the whole Canadian scene.

a trip of Expansion and Growth

Choice Hotels Canada started back in 1955. It's helped push the company's growth outside the U.S. ever since. This buyout is a key moment after 70 years. It sets them up to grow faster in Canada. Patrick Pacious, the president and CEO, said it best: “This milestone reflects our confidence in the Canadian market and the success of our local team.”

Benefits of the Direct Franchising Model

Now they can pull in more brands. From eight right now to twenty-two total. Franchisees get new options. Guests too. Plenty of room to grow services and build out.

Financial Implications

The deal cost about $112 million. They paid with cash on hand and credit lines. By late 2025, expect $23 million in fees and $18 million in EBITDA from the Canadian side.

Current Portfolio Snapshot

Mid-2025 numbers for Choice Hotels in Canada: 350 hotels, 30,000 rooms. Plus over 2,500 more rooms coming soon. They're adding spots like the first Cambria Hotel, plus several Radisson and Comfort ones.

Expanding Internationally

Choice isn't stopping at home or Canada. They're pushing overseas too. Q2 2025 saw a 5% jump in international rooms, hitting over 140,000 worldwide. Big wins include a renewed master deal in Brazil for more than 10,000 rooms. In France, they nearly tripled rooms with a direct franchise agreement. China? Deals with SSAW Hotels & Resorts could add over 19,500 rooms.

An Attractive Market

Canada's hospitality scene looks solid. Growth should top 5% a year through 2030, pushing the market past $50 billion. Choice has 9 million customers already, plus a strong franchise network. That lets them tap into the boom across all brands.

The Future of Choice Hotels Canada

Brian Leon runs Choice Hotels Canada. He's been there 18 years. He'll keep leading the way. InnVest stays in the mix, running 50 Comfort hotels across the country. It's still a team effort.

Franchisee Relationships and Growth Opportunities

The buyout aims to boost what franchisees get out of it. And make stays better for guests. Leon put it like this: “With the full backing of Choice Hotels International, we are well-positioned to deliver even greater value.” Headquarters support means smoother ops. Franchisees can focus on top-notch experiences.

Wider Implications for the Tourism Landscape

Choice's path points to a shift in hospitality. More direct franchising. More control for owners. Tourism's changing fast, especially with global travel picking up. These steps help stay ahead.

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Final Thoughts

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Frequently Asked Questions

What is Choice Hotels Canada's new franchising model?

Choice Hotels International has acquired the remaining 50% stake in Choice Hotels Canada from InnVest Hotels, shifting from a master franchising setup to a direct franchising model. This change allows them to handle operations directly, getting closer to franchisees and the Canadian market. The move is expected to accelerate growth and enable the introduction of more brands, expanding from eight to twenty-two total.

How much did Choice Hotels pay for the stake in Choice Hotels Canada?

The acquisition cost approximately $112 million, paid with cash on hand and credit lines. By late 2025, it is expected to generate $23 million in fees and $18 million in EBITDA from the Canadian operations. This financial move supports faster growth in the Canadian market.

How many hotels does Choice Hotels have in Canada?

As of mid-2025, Choice Hotels Canada operates 350 hotels with 30,000 rooms. Over 2,500 additional rooms are in development, including the first Cambria Hotel and several Radisson and Comfort properties. This portfolio positions them well for the growing Canadian hospitality market.

Who leads Choice Hotels Canada?

Brian Leon, with 18 years at the company, continues to lead Choice Hotels Canada. He emphasizes that with full backing from Choice Hotels International, they are positioned to deliver greater value to franchisees and guests. InnVest Hotels remains involved, operating 50 Comfort hotels across the country.

What are the growth prospects for Choice Hotels in Canada?

Canada's hospitality market is projected to grow over 5% annually through 2030, exceeding $50 billion. Choice Hotels Canada, with 9 million customers and a strong franchise network, is set to capitalize on this boom across all brands. The direct franchising model enhances services, improves guest experiences, and supports expansion.

Choice Hotels Canada Shifts to Direct Franchising Model | GetRentacar Blog