SEATTLE, Wash. — RLHC's agreement to buy Knights Inn from Wyndham will almost double their presence in Canada. RLHC has over 30 properties here, and the Knights Inn brand will add almost 30 more in five provinces, said president and CEO Greg Mount.
On April 4, RLHC entered into the definitive agreement to acquire the Knights Inn brand from Wyndham Hotel Group, LLC, a subsidiary of Wyndham Worldwide for an initial aggregated price of $27 million cash. The transaction is expected to close in the second quarter of 2018, subject to customary closing conditions.
Knights Inn has more than 350 economy segment hotels with an additional 47 conversions underway. This acquisition demonstrates RLHC's rapid growth since Mount joined the brand four years ago. Now RLHC will have nearly 1,500 hotels across the U.S. and Canada, up from 55 hotels across eight states just four years ago.
Canadian Lodging News asked Mount how the deal will affect Canada.
were the major reasons why RLH Corporation wanted to buy Knights Inn?
A: Knights Inn was a great purchase for us at a
great price. The brand increases our presence throughout the U.S. and Canada,
increasing our franchise units by over 30 per cent. The demographic of the
Knights Inn consumer fits well within our family of brands and continues our
growth in the economy segment.
Canadian presence one of the reasons?
A: Yes – Knights Inn will significantly increase
our presence in Canada. There are nearly 30 Knights Inn properties across five provinces.
many RLHC hotels are there in Canada?
A: We have over 30 properties in Canada. Canadas
Best Value Inn, Lexington and Red Lion Inn & Suites are in Canada. The Red Lion Inn & Suites is in Victoria, B.C.
Knights Inns fit into the existing RLH Corporation portfolio? In Canada it used to be marketed as a first step
towards being a Howard Johnson owner.
A: Similarly, this will be an entry brand in our
family of brands. Knights Inn is located throughout the U.S. and Canada.
Q: What are the advantages
for Knights Inn owners?
A: Advantages include a customized version of RevPAK, proven to
increase revenue and RevPAR with our other brands. Our world class technology,
as you know, will also play an important role, updating many of these hotels
where it makes sense. Additionally, Knights Inn will also feature our unique
Hello Rewards guest recognition program, giving guests personal touches and
extra perks across all our hotel brands.
will the transition take place?
RLH Corporation leaders will be touring North
America to answer questions and engage with Knights Inn owners in Town Hall
Meetings this month. For those unable to attend, there will be webinar versions
as well. Additionally, since the announcement we have been connecting with
owners by phone and in-person. We are committed to ensuring a smooth transition
and continuing to grow the brand.