Red Lion Hotels Corporation is being acquired by Sonesta International Hotels Corp in an all-cash deal worth $90 million.
The transaction has been approved by the RLH Board of Directors, and the deal represents a 30% premium on the current share price.
"We are excited about unlocking shareholder value through this all-cash transaction with Sonesta," said R. Carter Pate, Chairman of RLH.
"After conducting a thorough review of strategic alternatives, the board believes today’s announcement is in the best interest of all of Red Lion’s shareholders."
As long as it gets the green light from RLH shareholders, the transaction is expected to close in the first half of 2021.
A special meeting to vote on the transaction is planned but no date has been disclosed yet.
RLH will then become a privately-held company.
RLH Corporation operates several brands under franchising agreements including Hotel RL, Red Lion Hotels, Red Lion Inn & Suites, Signature Inn, GuestHouse Extended Stay, Americas Best Value Inn, Canada’s Best Value Inn and Knights Inn.
Written by Ray Montgomery, US Editor
