Spokane, Wash.-based Red Lion Hotels Corporation (RLHC) is buying Vantage Hospitality Group, a Coral Springs, Fla.-based franchisor of upscale, midscale, and economy hotels, in a deal valued at a total of $27.8 million, with $23 million in cash, and approximately $4.8 million in stock, subject to change depending on the close date.
Vantage Hospitality’s 10 brands include Signature Inn, America’s Best Value Inn, Canada’s Best Value Inn, and Value Inn Worldwide, among others. The privately owned company was founded in 1999 and has 1,000 hotel properties, or 59,000 rooms, throughout the U.S. and Canada.
For Red Lion, which currently has five brands (Hotel RL, Red Lion Hotels, Red Lion Inn & Suites, GuestHouse, and Settle Inn) and 124 hotel properties, the move is a strategic scale up at a good price. Vantage’s current leadership and staff will also “become the hub for all RLHC select-service brand operations,” Red Lion president and CEO Greg Mount said in a statement.
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