SPOKANE, Wash. — RLH Corporation has entered into a definitive agreement to acquire the Knights Inn brand from Wyndham Hotel Group, LLC — a subsidiary of Wyndham Worldwide — for an aggregate price of $27 million.
The Knights Inn brand of economy hotels boasts 350 hotels across North America, with an additional 47 in the pipeline.
RLH Corporation expects the transaction to enhance franchise revenue and EBITDA growth and boost franchise profit margins as the company will be able to leverage existing technology and support systems.
“The acquisition of Knights Inn enhances RLH Corporation’s position as one of the 10 largest hotel franchisors in the world,” says Greg Mount, president and CEO, RLH Corporation. “In the first quarter of 2018, we announced the sale of five hotels and committed to enhancing the company’s aggressive organic growth with acquisitions that could be accomplished primarily with our existing cost base and resources. This acquisition will increase our franchise units by over 30 per cent and we will continue to grow the brand aggressively as we have demonstrated with our other brands.”
The transaction, which is subject to certain post-closing adjustments, is expected to close in the second quarter of 2018.