Toronto-based InnVest Hotels has divested its 50 per cent ownership stake in Choice Hotels Canada for $154 million (all figures Canadian) to Choice Hotels International, as the parent firm moves to expand and increase control of its international lodging holdings.

U.S.-based Choice Hotels International (CHH-N) is one of the world’s largest lodging franchisers, with nearly 7,500 hotels across 22 brands, representing nearly 650,000 rooms, in 46 countries and territories. 

"This milestone reflects our confidence in the Canadian market and the exceptional capabilities and legacy of success of our local team," Patrick Pacious, president and CEO of Choice Hotels International, said in the announcement.

"By consolidating operations in Canada and expanding Choice Hotels Canada's owner success system from the current eight hotel brands to our full portfolio of 22 brands, we are opening doors to remarkable opportunities for our franchisees and guests, while paving the way for accelerated growth across Canada."

The acquisition by Choice Hotels International  transitions its hotels from a master franchising model to a fully direct franchising model in Canada. In the announcement Wednesday morning, Choice said the “strategic move underscores Choice Hotels' deep commitment to the Canadian market . . .”

As of June 30, Choice Hotels' Canadian portfolio included 350 hotels and 30,000 rooms, though not all of those properties were included in the InnVest joint venture. Choice Hotels also has more than 2,500 rooms in its Canadian development pipeline — including its first Cambria Hotel, four Radisson hotels, and more than 20 Comfort, Quality, and Ascend Collection hotels.

InnVest to continue to operate 50 Choice hotels as franchisee

About 26,000 of the rooms had been held in the joint venture. While InnVest is exiting this aspect of its investment, the company will still continue to own and operate approximately 50 Choice hotels in Canada as the franchisee.

According to InnVest’s website, the company remains owner of approximately 100 hotels across Canada under a wide range of brands and banners. It runs the day-to-day operations of approximately 90 of those properties.

InnVest bills itself as Canada’s largest hotel owner and operator.

"This is an exciting moment for Choice Hotels Canada and our franchisees," Brian Leon, CEO of Choice Hotels Canada, said in the announcement. "With the full backing of Choice Hotels International, we are well-positioned to deliver even greater value to our franchisees and guests as we write the next chapter of our success story."

The transaction closed in July and was funded through available cash and the company's existing credit facility. Management expects the total Choice Hotels Canada business to generate approximately $31.6 million of fee revenue and $24.75 million in EBITDA for full-year 2025.

According to data provided by Choice Hotels, the company considers Canada a “highly attractive hospitality market.” The company projects average annual growth will exceed five per cent through 2030, reaching over $50 billion. The company has over nine million existing Choice customers and plans to expand its market share across all 22 brands.

Leon, an 18-year company veteran, will continue to lead the Canadian operations.

Choice Hotels' international growth

The investment accelerates Choice Hotels' continued growth outside of the United States. In Q2 2025, the company grew its net international rooms portfolio five per cent to over 140,000 rooms since June 30, 2024, driven by a 15 per cent increase in openings.

Major developments year-to-date include:

• strengthening the company's presence in Brazil by extending a master franchise agreement for over 10,000 rooms with Atlantica Hospitality International by 20 years;
• nearly tripling the room count in France through a direct franchise agreement with Zenitude Hotel-Residences; and
• signing strategic agreements with SSAW Hotels & Resorts in China, including a distribution agreement which is expected to add over 9,500 rooms in 2025 and a master franchising agreement, which is expected to add approximately 10,000 rooms over the next five years.