Red Lion Hotels acquires two economy hotel brands
Hospitality group Red Lion is to significantly expand its portfolio of US hotels with a deal to acquire the GuestHouse International and Settle Inn and Suites brands from Boomerang Hotels.
The deal, worth an initial $8.5 million, with the potential of an additional payment of $1.5 million, will boost the number of Red Lion properties from 57 to 130 hotels across 30 states.
Most of the 73 franchised hotels will keep their current branding, Red Lion said.
The GuestHouse International brand was established in 1982 and Settle Inn was formed a decade later.
The two companies merged in 2006, but maintained separate branding.
"The addition of these established hotel brands in the attractive and growing economy segment provides us a national footprint and immediately delivers substantial economies of scale," said Greg Mount, CEO of Red Lion Hotels.
"We think this will drive value for our franchise owners and our shareholders. With five brands in three hotel segments, we will have a broader base to both expand with our existing franchisees, as well as attract new ones," Mount added.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025