NEWTON, Mass., Dec. 30, 2020 /PRNewswire/ -- Sonesta
International Hotels Corporation (Sonesta) today announced that it
has entered into a definitive agreement to acquire RLH Corporation
(NYSE: RLH). RLH is the 10th-largest U.S.-based hotel franchise
company with more than 900 hotels. After the closing of the
transaction, Sonesta will become one of the largest hotel companies
in the U.S. with approximately 1,200 hotels in diversified brands
across multiple market segments. Sonesta also announced that upon
closing of this transaction, 35-year hotel industry veteran
Keith Pierce will be joining Sonesta
as Executive Vice President, President of Franchise &
Development.
Carlos Flores, President and
Chief Executive Officer of Sonesta, made the following statement
regarding today's announcement:
"Sonesta started 2020 as a manager
of 58 hotels under three Sonesta-specific brands in the U.S. Upon
the completion of hotel conversions previously announced and the
acquisition of RLH, Sonesta will become one of the largest hotel
companies in the U.S., with approximately 1,200 hotels under a
diverse set of 13 brands in multiple market segments. Whereas all
of Sonesta's hotels in the U.S. are currently self-managed, the
acquisition of RLH significantly accelerates Sonesta's hotel
franchising capabilities by adding a franchise platform with more
than 900 hotels. With the addition of Keith to our leadership team,
we also have an experienced executive ready to manage the RLH
business upon closing this transaction and we are well positioned
to grow Sonesta's franchising business in the future."
Keith Pierce joins Sonesta with
more than 35 years' experience across the hospitality industry. He
served most recently as President and Managing Partner of the
Passionality Group, a hospitality investment and management
advisory firm. Prior to that, he worked at Wyndham Worldwide, where
he was Executive Vice President, Brand Operations for North America, and before that, President of
Hotel Brand Operations for the Americas, and Group President for
Hotels at Wyndham's predecessor company, Cendant Corporation.
Keith Pierce made the following
statement regarding today's announcement:
"I am looking forward to welcoming
RLH franchisees to Sonesta at this dynamic and promising moment in
the company's growth. I also look forward to working closely with
the RLH franchising community and building on the strong foundation
RLH has created. I believe Sonesta is currently one of the
industry's most exciting, forward-looking hotel companies. I look
forward to helping propel the growth of Sonesta and working closely
with the leadership team to continue building a world class hotel
company."
The acquisition of RLH is currently expected to close in the
first half of 2021 and it is subject to customary closing
conditions, including the approval of RLH's shareholders. Sonesta
expects to fund this transaction with cash-on-hand and/or through
capital contributions from its shareholders. Hunton Andrews Kurth
LLP is serving as legal counsel to Sonesta for this
transaction.
About Sonesta
Sonesta is one of the fastest growing hospitality companies in
the U.S., celebrating an approximate 350% increase in its managed
hotel portfolio. Not including the transaction announced today, you
will soon find nearly 300 Sonesta branded hotels across seven
brands operating in the U.S., Canada, Chile, Colombia, Ecuador, Egypt, Peru,
and St. Maarten. Discover Sonesta
hotels, resorts, and suites in many of the most traveled U.S.
destinations, including Atlanta,
Austin, Boston, Chicago, Hilton
Head, Houston, Los Angeles, Miami, New
Orleans, Philadelphia,
Portland, San Francisco, San
Jose, San Juan,
Seattle, St. Louis, and Washington D.C. For more about Sonesta and its
locations, visit Sonesta.com or call +1.617.315.9200 or 800.Sonesta
(800.766.3782) in the U.S. and Canada. Follow us on social media
@SonestaHotels.
* High-resolution images are available
at www.sonesta.com/media for all Sonesta hotels.
Media Contacts:
Lorie Juliano
ljuliano@sonesta.com
office: 617.421.5429
mobile: 508.843.3769
Michael Frenkel
michael@mfcpr.com
(201) 317-7035
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SOURCE Sonesta International Hotels Corporation