SPOKANE, WA—Red Lion Hotels Corporation (RLHC) closed its acquisition of Vantage Hospitality Group, Inc., based in Coral Springs, FL, on Sept. 30, a month ahead of schedule.
As a result of the acquisition, the company acquired approximately 1,000 franchise hotel agreements nationwide and added over 59,000 rooms. The acquisition has accelerated RLHC’s transformation into an asset-light franchised hotel company. RLHC expects the transaction to be earnings accretive in the next 12 months.
“We are excited to have accelerated the closing of Vantage,” commented Greg Mount, president and CEO. “Our newly combined teams are diligently working on a smooth integration to capitalize on the strengths of both platforms. With a firm foundation and a deep dedicated team focused on select-service, we can now intensify our efforts on accelerating the growth of our midscale and upscale brands, Red Lion and Hotel RL. The pipeline for legacy RLHC brands, including Hotel RL remains strong, and we look forward to delivering additional value and opportunities to all of our hoteliers and associates, as well as earnings accretion to our shareholders.”
Shortly before the close, Mount told Hotel Business that reaction to the acquisition had been very good from both the public markets and internal customers. “I think it does a couple of things for us: It creates a scale and ubiquity, and extends us from coast to coast, up into Canada and some parts of Asia, but it also gives us a really great platform and a beachfront foothold in the economy space, and the ability to really leverage and utilize the expertise of the Vantage time to continue to grow in that sector,” he said at the time. “Based on that, it allows us to focus on our upscale and midscale brands as well.”