FeaturedfinanceSkift··1 min·For: Owner, Investor, GM
Choice Hotels Pays $24 Million to Exit Sercotel Acquisition
Choice Hotels paid $24.3 million to terminate its planned acquisition of Spain-based Sercotel to avoid unwanted exposure to hotel leases. The move preserves Choice's asset-light business model amid broader efforts to recycle capital through owned asset sales.
Key Takeaways
- 1Choice Hotels paid a $24.3 million exit fee on September 16 to terminate the purchase agreement.
- 2Leadership opted to exit after Sercotel's business model shifted toward leased hotels rather than franchise and management contracts.
- 3Choice is focusing on an asset-light strategy, recently generating $34 million by selling two owned hotels while retaining franchise deals.
Source: Skift
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