Sonesta International Hotels Corp. is acquiring hospitality group RLH Corp., with the $90 million all-cash deal set to catapult Sonesta's total U.S. footprint to approximately 1,200 hotels nationwide.
RLH Corp., which franchises the Hotel RL, Red Lion Hotels, Red Lion Inn & Suites, Signature Inn, GuestHouse Extended Stay, Americas Best Value Inn, Canadas Best Value Inn and Knights Inn brands, will add more than 900 properties to the Sonesta fold.
• Related: Preview 2021: Hotels
The deal is expected to close in the first half of 2021. Upon completion of the transaction, RLH will become a privately held company and will no longer be listed on the New York Stock Exchange.
The acquisition comes amid a period of significant expansion for Sonesta, which earlier this year added more than 200 former InterContinental Hotels Group (IHG) and Marriott International hotels to its portfolio. All of those properties are owned by hotel real estate owner Service Properties Trust, which holds a 34% stake in Sonesta.
"Sonesta started 2020 as a manager of 58 hotels under three Sonesta-specific brands in the U.S.," Sonesta president and CEO Carlos Flores said in a statement. "Upon the completion of hotel conversions previously announced, and the acquisition of RLH, Sonesta will become one of the largest hotel companies in the U.S."
The addition of the eight RLH flags will grow Sonesta's U.S. brand count to 13. Sonesta's stable includes the Royal Sonesta, Sonesta and Sonesta ES Suites brands, as well as its recently launched Sonesta Simply Suites and Sonesta Select flags.
Sonesta also has a presence in markets like Canada, Chile, Colombia, Ecuador, Egypt, Peru and St. Maarten.
Concurrent with its takeover of RLH, Sonesta has announced that 35-year hotel industry veteran Keith Pierce will be joining the company as executive vice president and president of franchise and development.
Most recently president and managing partner of hospitality investment firm Passionality Group, Pierce has also previously served as executive vice president of brand operations for North America at Wyndham Worldwide.