Choice Hotels International, Inc. CHH is expanding beyond traditional lodging with an agreement to acquire Harvest Hosts, a membership-based RV travel platform.
Choice Hotels will acquire 100% of Harvest Hosts from Stripes and other shareholders in an all-cash transaction valued at approximately $130 million. The deal will be funded with cash on hand and borrowings under the company’s revolving credit facility. It is expected to close by Oct. 1, 2026, subject to customary conditions, and is not expected to materially affect Choice Hotels’ 2026 financial results.
Harvest Hosts Expands CHH’s Outdoor Travel Footprint
Harvest Hosts operates a differentiated, asset-light subscription platform connecting RV travelers with more than 11,200 host locations, including wineries, farms, breweries, museums and other attractions. Members pay an annual fee for access to overnight stays without traditional nightly camping charges, providing travelers with distinctive destinations while generating traffic for local businesses.
The acquisition gives Choice Hotels exposure to a complementary travel segment without requiring traditional hotel development. It also creates an opportunity to connect Harvest Hosts’ RV community with CHH’s hotel portfolio, particularly as many travelers combine road trips with hotel stays.
The transaction also broadens the reach of Choice Privileges, which had grown to approximately 77 million members by the second quarter of 2026. Management has been focused on making the program more relevant to how its customers travel, with newer members already generating higher average revenues than comparable members acquired a year earlier.
Deal Aligns With CHH’s Capital-Light Growth Strategy
The acquisition is consistent with Choice Hotels’ broader emphasis on capital-efficient expansion. Management has been shifting back toward its core asset-light model, with future growth expected to come primarily through franchising rather than hotel ownership. Choice Hotels also ended the second quarter with $475 million in liquidity and net leverage of 3.1 times adjusted EBITDA, giving the company flexibility to pursue targeted growth opportunities.
Overall, Harvest Hosts broadens Choice Hotels’ presence beyond conventional lodging and gives the company another avenue to capture spending from road-trip and outdoor travelers while expanding the reach of its broader travel ecosystem.
Shares of CHH have declined 8.9% in the past three months compared with the Zacks Hotels and Motels industry’s 5% fall. Near-term concerns include softer U.S. RevPAR trends, limited visibility into later-year demand and broader macroeconomic uncertainty. Management also expects some moderation in RevPAR trends later in the year. Nonetheless, Choice Hotels remains well positioned for longer-term growth, supported by improving net rooms trends, a strong conversion pipeline and continued momentum in extended-stay and higher-revenue brands.
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CHH’s Zacks Rank & Key Picks
Choice Hotels currently carries a Zacks Rank #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).