Recently, Sonesta International Hotel Group announced that it will acquire the parent company of the hotel group Red Lion Hotels (RLH) for US$90 million.
The acquisition is an all-cash transaction, and the transaction is expected to be completed in the first half of 2021. Since then, Sonesta's total business in the United States will cover approximately 1,200 hotels across the country; and after the transaction is completed, RLH will become a private company and will no longer be listed on the New York Stock Exchange.
It is reported that Red Lion Hotels/RLH will authorize franchising of RL Hotels, Red Lion Hotels, Red Lion Inn & Suites, Signature Inn, GuestHouse Extended Stay, Americas Best Value Inn, Canadas Best Value Inn, Knights Inn and other brands Right, this move will add more than 900 hotels to the Sonesta Group.
The acquisition was made during a period of Sonesta's significant expansion. Earlier this year, Sonesta added more than 200 former InterContinental Hotels Group (IHG) and Marriott International hotels to its portfolio. All of these properties are owned by the hotel real estate owner Service Asset Trust Group, which holds 34% of Sonesta. In addition to the United States, Sonesta also has operations in markets such as Canada, Chile, Colombia, Ecuador, Egypt, Peru and Saint Martin.
The addition of eight RLH logos will increase the total number of Sonesta brands in the United States to 13. Sonesta's stable includes the Royal Sonesta, Sonesta and Sonesta ES Suites brands, as well as the recently launched Sonesta Simply Suites and Sonesta Select logos.
Sonesta President and CEO Carlos Flores (Carlos Flores) said in a statement: "Sonesta will be the manager of 58 hotels in three Sonesta brands in the United States starting in 2020. The acquisition of RLH has been completed this time. After that, Sonesta will become one of the largest hotel companies in the United States."
While announcing the acquisition of RLH, Sonesta announced that Keith Pierce, who has 35 years of experience in the hotel industry, will join the company as executive vice president and president of franchise and development. In addition, Pierce also served as the president and managing partner of Passionality Group, a hotel investment company. He previously served as Executive Vice President of North American Brand Operations at Wyndham Worldwide.
