Red Lion Hotels Corp. will acquire Vantage Hospitality Group,
increasing its hotel portfolio from 113 to more than 1,100.
Red Lion has agreed to acquire Vantage for $23 million cash
and 690 shares of the company’s stock, which closed Monday at $6.96 per share.
An additional 690,000 shares and $7 million cash could be
earned depending on performance metrics in the first two years after the
transaction closes, according to Red Lion— that includes a minimum $1 million
cash payment on the first and second anniversaries.
The transaction is expected to close in the fourth quarter.
Red Lion said the acquisition will turn it into a “national
“The acquisition of Vantage Hospitality Group’s operations
establishes RLHC as one of the largest hotel franchisors adding approximately
1,000 hotel franchise, membership and licensing agreements to our growing brand
family,” Red Lion president and CEO Greg Mount said in a statement. “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 will become the hub for all RLHC
select service brand operations.”
Vantage owns the brands 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 3 Palms Hotels
Red Lion owns the brands Hotel RL, Red Lion Hotels, Red Lion
Inn & Suites, GuestHouse and Settle Inn.