SILVER SPRING, Md. -- Choice Hotels International said it acquired
a controlling interest in Melbourne, Australia-based Flag Choice
Hotels, its franchising partner in Australia.
Under the agreement, Choice acquired a 55% controlling interest
in Flag Choice Hotels and was granted an option to purchase the
remaining 45% over a five-year period.
The total cost of the transaction was valued at $3.5
million.
Flag Choice Hotels franchises some 400 properties in Australia
and New Zealand under the Flag, Comfort, Quality and Clarion brands
and is the largest hotel franchiser in those countries.
Under the agreement, more than half of the Flag-branded
properties in Australia will convert to the Choice brands.
In addition, Choice will integrate Flag Choice Hotels' Melbourne
call center into its worldwide reservations network.
Choice Hotels International franchises more than 5,000 hotels
worldwide under the Comfort Inn, Comfort Suites, Quality, Clarion,
Sleep Inn, Econo Lodge, Rodeway Inn and MainStay Suites brands.
"By acquiring the controlling interest in Flag Choice Hotels, we
will be able to 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," said Charles A.
Ledsinger Jr., president and chief executive officer of Choice
Hotels International.