Choice Paid $24 Million to Walk Away From Buying Spain’s Sercotel
AI Summary
Choice paid $24 million to terminate its planned acquisition of Spain’s Sercotel. The article says the hotel purchase could have exposed Choice to rent obligations even during periods of weak bookings, unlike its franchise-based revenue model.
Choice earns a cut of its franchisees’ room sales. Buying Sercotel would have left it owing rent even when bookings slowed.
Markets Deals Real Estate Travel Choice Hotels Sercotel acquisition termination Spain hotel property franchise model rent obligations