Ohio and other states are hosts to business acquisition transactions on a regular basis. Publicly-traded and privately-owned companies are involved in purchasing other enterprises as well as merging with them. When publicly traded securities are involved, the government will scrutinize the transaction for irregularities and anti-trust aspects. Business law attorneys are an integral mainstay of these transactions, contributing their experience to help further a smooth and successful transition for all concerned.
Buying, selling and merging of hotel interests is a common phenomenon. Recently, Choice Hotels International announced it will buy Woodspring Suites for $231 million. Choice will thereby receive the added component of 240 more properties located in 35 states. The purchase will strengthen Choice’s extended-stay capabilities. Woodspring has been growing its numbers of extended stay properties in the past two years, and scheduled an additional 45 hotels for opening in 2018.
The CEO of Choice Hotels stated that the company was interested in growing into the extended stay segment of the market due to its steady increases in consumer demand. He indicated that extended stay has led the hospitality industry in annual revenue per available room. The purchase will require regulatory approval.
The transaction is an example of where a company is improving its position in a product or service that it already provides. The company’s involvement in extended-stay properties is not as developed as its other activities, and this purchase gives it an opportunity to solidify its position in a growing segment of the market. When analyzing an acquisition or merger in Ohio or elsewhere, such issues are critical to understanding the dynamics of the move and are important to assessing the financial wisdom of it. The business law attorney who is experienced in such transactions is an important facilitator of the legal requirements, and a vital liaison with governmental regulators.
Source: businesstravelnews.com, “Choice Hotels Will Buy Wood Spring Suites: Business Travel News“, Julie Sickel, Dec. 18, 2017