Choice Acquires Controlling Interest In Australian Franchising Partner

SILVER SPRING, MD— Choice Hotels International acquired controlling interest in Melbourne-based Flag Choice Hotels, its franchising partner in Australia. Chuck Ledsinger, president/CEO of Choice, said the move will help Choice “implement a comprehensive business plan designed to improve franchise services, enhance marketing programs, and build a strong base for the Choice brands in the Pacific.” Under the terms of the agreement with Flag International Ltd., Choice has acquired a 55% controlling interest in Flag Choice Hotels (FCH) and was granted an option to purchase the remaining 45% over a five-year period from closing. Assuming the option is exercised, the total consideration for the transaction will be US$3.5 million. FCH currently franchises approximately 400 properties in Australia and New Zealand under the Flag, Comfort, Quality, and Clarion brands and is the largest hospitality franchisor in those countries. Concurrently with completion of the transaction, more than half of the Flag branded properties in Australia will convert to the Choice brands. As a result of the transaction, Choice will integrate FCHs Melbourne call center to its worldwide reservations network. Choice Hotels International franchises more than 5,000 hotels open or under development worldwide under the Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn and MainStay Suites brands.