Sonesta Set to Acquire Red Lion Portfolio
When the $90 million deal closes, Sonesta says it will be one of largest hospitality operators in US
Sonesta International Hotels has announced a definitive agreement to acquire RLH Corporation, which operates eight hospitality brands, including Red Lion Hotels, Red Lion Inn & Suites and GuestHouse Extended Stay. When the $90 million deal closes, Sonesta will add about 900 Red Lion properties to its portfolio.
Carlos Flores, CEO of Sonesta, said the company had started 2020 as a manager of just 58 hotels under three brands.
Throughout the year, Sonesta has grown its footprint to about 200 hotels. In August, the company announced the rebranding of over 100 IHG properties following the decision by Service Properties Trust – which owns a 34 percent stake in Sonesta – to terminate its agreement with IHG.
Later in the year, a similar reflagging was announced for properties in SVC’s Marriott portfolio.
The addition of the Red Lion properties brings Sonesta’s total to about 1,200 properties in multiple brands across several market segments.
The acquisition of RLH is currently expected to close in the first half of 2021 and is subject to customary closing conditions, including the approval of RLH’s shareholders. Sonesta expects to fund the transaction with cash-on-hand and/or through capital contributions from its shareholders.
