Choice Hotels Acquires RV Travel Platform for $130 Million
Choice Hotels International announced its acquisition of Harvest Hosts for $130 million to tap into the RV travel market and cross-sell services to its existing loyalty members. The company maintained its full-year 2026 adjusted EBITDA guidance of $635-$650 million and announced share buybacks of $175-$225 million, with post-deal leverage expected at approximately 3.4x EBITDA. An analyst assigned a "Buy" rating with a midpoint price target of $122.68, representing around 20% upside potential.
Choice Hotels' $130 million purchase of Harvest Hosts represents a strategic expansion into the recreational vehicle lodging sector, allowing the company to access data on RV travelers and integrate services with its existing membership base. The deal signals confidence in the RV market's growth potential while maintaining the company's financial targets for the year ahead.
The acquisition supports Choice Hotels' broader portfolio strategy, with nearly all of its development pipeline concentrated in higher-revenue market segments. The transaction is structured to avoid disrupting shareholder returns, as the company committed to continued share repurchases ranging from $175 million to $225 million despite the capital deployment.
This acquisition may benefit RV travelers by potentially offering enhanced booking services and loyalty rewards through Choice Hotels' established network, while creating opportunities for property owners in the RV hospitality space. The deal could reshape how alternative lodging sectors compete for leisure travelers, though broader impacts depend on execution and whether integration generates meaningful cross-selling opportunities that ultimately improve customer experience or market accessibility.