DENVER—RLH Corporation announced on Monday that it closed its acquisition of the Knights Inn brand from Wyndham Hotel Group, a subsidiary of Wyndham Worldwide. First announced in April 2018, the deal will add approximately 350 economy segment franchise contracts across North America and a pipeline of additional contracts to RLH Corporation’s portfolio. The company expects the transaction will be immediately accretive to its earnings and cash flow.
This acquisition is another step in RLH Corporation’s transformation into an asset-light franchised hotel company. As part of that strategy, the company listed 11 of its 18 owned properties for sale last October. RLH Corporation has since sold five of those properties earlier this year, including Red Lion Hotels in Boise, Idaho, Pasco Wash., and Richland, Wash. as well as two California hotels for a combined total of $47.3 million.
“We are enthusiastic to have closed the acquisition of Knights Inn,” Greg Mount, president and CEO of RLH Corporation, said. “Our team is working closely with all Knights Inn hotels to ensure a smooth integration into our systems. We will continue to focus on accelerating the growth of the Knights Inn brand along with all RLH Corporation brands. We are committed to delivering additional value and opportunities to all of our hoteliers and associates, as well as earnings accretion to our shareholders.”