Choice Hotels relaunches Radisson Individuals as part of its portfolio of brands, adding a distinctive proposition to the upper upscale segment

Rhea-AI Summary

Choice Hotels International (NYSE: CHH) has relaunched Radisson Individuals in the Americas as an upper upscale soft brand for full-service, boutique, and independent hotels. This move strengthens Choice's portfolio in the upper upscale tier, capitalizing on rising consumer demand for unique hotel experiences. The brand focuses on three key areas: vivid settings, characterful encounters, and explorer's compass, offering distinctive local character and superior guest service.

Since 2020, over 30 Radisson Individuals properties have opened globally, with 15 franchised by Choice in the Americas. The relaunch is part of Choice's strategic expansion in the upscale and upper upscale segments, following its acquisition of Radisson Hotels Americas in 2022. Choice reports a 32% year-over-year increase in reservations through direct online channels for Radisson Americas brands since their digital integration in June 2023.

Positive

• Relaunch of Radisson Individuals strengthens Choice's portfolio in the growing upper upscale segment
• 32% year-over-year increase in reservations through direct online channels for Radisson Americas brands
• Expansion of Choice's upscale and upper upscale offerings, including Radisson, Radisson Blu, Radisson Red, Ascend Hotel Collection, and Cambria
• Access to 67 million Choice Privileges rewards members for Radisson Individuals properties

Negative

• None.

Insights

Hospitality Industry Analyst

Choice Hotels' relaunch of Radisson Individuals as an upper upscale soft brand is a strategic move to capitalize on the growing demand for unique, locally-inspired hotel experiences. This initiative strengthens Choice's position in the upscale and upper upscale segments, diversifying its portfolio and potentially increasing revenue streams.

The relaunch leverages Choice's expertise in soft brands, particularly its success with Ascend Hotel Collection. By focusing on full-service, boutique and independent hotels, Choice is tapping into a lucrative market segment that appeals to travelers seeking distinctive local character and superior service.

Key benefits for Choice include:

• Expanded presence in the upper upscale tier
• Increased appeal to 67 million Choice Privileges members
• Potential for higher RevPAR (Revenue Per Available Room) from upscale properties
• Attracting independent hotel owners to the Choice system

For investors, this move signals Choice's commitment to growth and adaptation to evolving consumer preferences, potentially leading to increased market share and profitability in the long term.

Market Research Analyst

The relaunch of Radisson Individuals aligns with several key market trends:

• Experiential travel: Growing demand for unique, locally-inspired accommodations
• Upscale segment growth: Increasing consumer interest in higher-end hotel experiences
• Soft brand expansion: Continued popularity of soft brands among hotel owners and guests

Choice's strategy addresses these trends while leveraging its strengths in distribution and loyalty programs. The company reports a 32% year-over-year increase in direct online reservations for Radisson brands, indicating strong potential for Radisson Individuals.

This move also positions Choice to compete more effectively with other major hotel groups in the upscale and upper upscale segments. By offering a differentiated product that combines local character with the benefits of a global brand, Choice could attract both developers and consumers seeking alternatives to traditional chain hotels.

Overall, this strategic expansion could lead to increased market share and revenue growth for Choice Hotels in the medium to long term, making it a potentially positive development for investors.

Relaunch marks the latest major investment in the Radisson Hotels Americas brands since Choice's acquisition in 2022

NORTH BETHESDA, Md., Oct. 3, 2024 /PRNewswire/ -- Choice Hotels International, Inc. (NYSE: CHH) today announces the relaunch of Radisson Individuals in the Americas region as an upper upscale soft brand focused on full-service, boutique and independent hotels that stand apart for their distinctive local character and superior guest service. This latest major investment in the Radisson Hotels Americas brands since their acquisition in 2022 builds on Choice's legacy as a pioneer of the soft brand segment and strengthens its portfolio with an offering that serves a fast-growing segment of travelers who value an immersive, one-of-a-kind hotel experience. Choice is now extending the brand to owners for the first time, marking another step in the company's expansion in the upper upscale tier at a time of rising consumer demand in this space.

"Choice is a different company today than we were just a few years ago. We've seen tremendous excitement for our upscale and upper upscale brands including Radisson, Radisson Blu, Radisson Red, Ascend Hotel Collection and Cambria. That's a testament to the strategic investments we've made to provide a strong value proposition to developers interested in growing within these segments," said Patrick Pacious, president and chief executive officer of Choice Hotels International. "With Radisson Individuals, we have a great new opportunity for developers and owners of full-service boutique hotels to benefit from Choice's powerful distribution engine. Our 67 million Choice Privileges rewards members now enjoy access to 1,000 upscale, upper upscale and luxury hotels around the world, with more than 200 other properties in the pipeline. We are thrilled to welcome Radisson Individuals to this collection."

Radisson Individuals is one of the fastest growing soft brands globally. Since 2020, more than 30 properties have opened around the world, 15 of which are franchised by Choice in the Americas. With a newfound strength under Choice and its expertise developing Ascend, the industry's first soft brand, Radisson Individuals hotels are strongly positioned to serve current travelers' tastes. Through enhanced signature features, Radisson Individuals spark the thrill of exploration, immersing guests in the distinct character of their surroundings, all while upholding a steadfast dedication to excellent service.

Each hotel offers a guest experience that leans into three key areas:

• Vivid setting: Hotels will bring the local culture to life through bold designs. They will feature a striking front desk and traditional architecture and artwork in rooms and common hotel spaces.
• Characterful encounters: Hotels will curate experiences that immerse guests in their destination, including a full-service bar and restaurant inspired by the region's flavors, and upscale amenities such as a pool, spa and fitness center, making the hotel an inspiring and relaxing first step into its guests' destination.
• Explorer's compass: Hotels will offer consistently outstanding service that guests expect from a Radisson property. Hotel staff will serve as trusted guides to guests seeking both must-see attractions and hidden gems.

"Increasingly, we see many travelers place a high value on unconventional hotel experiences that truly steep them in the beauty and magic of their destination without sacrificing top-notch service. With Radisson Individuals, we are seizing on major potential to fill that white space in the market with an upscale experience that Choice is uniquely positioned to deliver," said Indy Adenaw, senior vice president and general manager for upscale brands.

The launch of Radisson Individuals marks a major milestone in Choice's rapid expansion in the upscale and upper-upscale segments. Since 2022, the franchisor has become the company to watch with new brand positionings introduced for both Radisson and Radisson Blu hotels earlier this year and the continued growth for Cambria Hotels. Following its digital integration of Radisson Americas brands through June of this year, Choice has driven a 32 percent year-over-year increase in reservations through direct online channels for those brands. Now, with a sharpened proposition for Radisson Individuals, Choice Hotels is poised to offer developers upper and upper upscale brands that stand out in a sea of sameness, draw repeat stays from guests and drive more return on their investments.

"We're looking forward to expanding Radisson Individual's footprint within the Americas," said Mark Shalala, senior vice president, development, upscale brands & real estate. "When you combine Radisson's impressive 89% brand recognition, with Choice's powerful distribution engine and reliable, AI-infused, state-of-the-art, proven operations tools, this is a fantastic opportunity for developers and owners who want to maintain their hotels' unique character but be a part of a winning system."

Radisson Individuals participates in Choice Privileges, the award-winning rewards program that enables more than 67 million members to earn and redeem points for reward nights at over 7,000 hotels across a diverse portfolio of brands in 45 countries and territories worldwide. With the Choice Privileges Mastercard, members can earn more points faster, including on everyday purchases such as gas and groceries. 

Developers can learn more about Radisson Individuals here.

Radisson Individuals®: Explorers Welcome
Radisson Individuals brings together independent and boutique hotels that spark our guests' innate curiosity for the untold stories our hotels and their destinations have to offer. Franchised in the Americas by Choice Hotels International, who launched the first soft brand over fifteen years ago, Radisson Individuals spark the thrill of exploration with vivid characteristics reflective of the locale, while upholding its steadfast dedication to service excellence. Radisson Individuals offers upper upscale on-site services such as restaurants and bars, wellness facilities and free Wi-Fi, ensuring guests feel inspired and welcomed as they embark on their journey. For more information, visit: https://www.choicehotels.com/radisson-individuals

About Choice Hotels® 
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world. The one to watch in upscale and a leader in midscale and extended stay, Choice® has nearly 7,500 hotels, representing more than 630,000 rooms, in 45 countries and territories. A diverse portfolio of 22 brands that range from full-service upper upscale properties to midscale, extended stay and economy enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.

Addendum
This is not an offering. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with applicable state authorities. A copy of the Franchise Disclosure Document can be obtained through contacting Choice Hotels International at 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852 or by email at: development@choicehotels.com.

© 2024 Choice Hotels International, Inc. All Rights Reserved

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SOURCE Choice Hotels International, Inc.

FAQ

What is the focus of the relaunched Radisson Individuals brand by Choice Hotels (CHH)?

Radisson Individuals is relaunched as an upper upscale soft brand focusing on full-service, boutique, and independent hotels that offer distinctive local character and superior guest service.

How many Radisson Individuals properties have opened since 2020?

Over 30 Radisson Individuals properties have opened globally since 2020, with 15 franchised by Choice Hotels in the Americas.

What increase in reservations has Choice Hotels (CHH) seen for Radisson Americas brands?

Choice Hotels has reported a 32% year-over-year increase in reservations through direct online channels for Radisson Americas brands since their digital integration in June 2023.

What are the three key areas of focus for Radisson Individuals hotels?

Radisson Individuals hotels focus on three key areas: vivid settings, characterful encounters, and explorer's compass, offering unique local experiences and excellent service.