Red Lion Hotels Corporation (RHLC) has acquired Vantage Hospitality Group for $23 million in cash and 690,000 common stock shares. In addition to transforming Red Lion into a national brand on a meaningful scale, the agreement expands the company’s portfolio to more than 1,100 properties and 73,200 guestrooms.
“RLHC has grown in scale tremendously through the Vantage acquisition,” says Brian Quinn, senior vice president and CFO of RLHC. “This venture is giving our franchisees the resources to tap into a much broader segment of travelers. We are excited to watch the growth of the company in the coming months.”
“Vantage has built a distinctive and highly successful platform over the last 16 years owing to a strong culture that emanates from its leaders. As such, Vantage’s current leadership and staff in Coral Springs [Florida] will become the hub for all RLHC select service brand operations,” says Greg Mount, president and CEO of RLHC. “We look forward to harnessing our collective strengths to drive growth for our franchisees, superior service for our guests and accretion for our shareholders.”
An additional aggregate pay of $7 million and 690,000 shares could also be acquired upon the achievement of certain performance goals set for the deal’s first and second anniversaries. Vantage brands include Vantage Hotels, Americas Best Value Inn, Canadas Best Value Inn, Lexington by Vantage, America’s Best Inns and Suites, Country Hearth Inns, Jameson Inns, Signature Inn, and three Palms Hotels & Resorts.
“We are excited to become part of the RLHC family of brands,” adds Roger Bloss, founder, president and CEO of Vantage. “Joining RLHC’s platform will provide our members with additional resources to grow their businesses and our guests with a broad array of brands to enjoy. Vantage’s COO, Bernie Moyle, and I are proud that we will be contributing to RLHC’s strategic growth plan and are excited about leading the select service brands initiative.”
The transaction is expected to close in the fourth quarter of this year.
