SPOKANE, Wash. and CORAL SPRINGS, Fla.—Red Lion Hotels Corporation, a growing hospitality company that operates and franchises upscale, midscale, and economy hotels, has announced it has entered into a definitive agreement to acquire the global brands and brand operations of Vantage Hospitality Group based in Coral Springs, Fla. for an initial aggregate price of $23 million in cash and 690,000 shares of the Company’s common stock, which closed today at $6.96 per share.
Additional aggregate compensation of up to $7 million in cash and an additional 690,000 shares may be earned contingent upon the achievement of certain performance metrics at the first and second anniversaries of the transaction. The additional consideration includes a $1 million minimum cash payment on the first and second anniversaries. RLHC expects the transaction to be earnings accretive in the twelve months immediately following the closing. The transaction is subject to customary closing conditions and expected to close in the fourth quarter 2016.
“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,” commented Greg Mount, president and chief executive officer of RLHC.
“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. We look forward to harnessing our collective strengths to drive growth for our franchisees, superior service for our guests and accretion for our shareholders.”
“We are excited to become part of the RLHC family of brands,” said Roger Bloss, founder, president and chief executive officer of Vantage. “Joining RLHC’s platform will provide our members with additional resources to grow their businesses and our guests with a broad array of brands to enjoy. Vantage’s COO, Bernie Moyle, and I are proud that we will be contributing to RLHC’s strategic growth plan and are excited about leading the select service brands initiative. RLHC and the Vantage team are a winning combination.”
