Northcott agrees to sell Midwest-based midscale brand
Wyndham Hotel Group plans to acquire the AmericInn midscale brand and its management company from Northcott Hospitality for $170 million. If approved, the deal would add 200 existing properties and 23 in the pipeline to Wyndham’s portfolio of 8,000-plus hotels.
The Minnesota-based brand, which is managed by Three Rivers Hospitality, consists of mostly franchised hotels totaling about 11,600 keys in 21 states. Those properties are located primarily in the Midwest, the Ohio Valley and the mountain states.
The move will boost Wyndham’s midscale portfolio—which consists of more than 1,500 hotels worldwide—while also ramping up its footprint in the Midwest. In keeping with its asset-light strategy, Wyndham says it plans to divest AmericInn’s 10 owned hotels following the acquisition.
“AmericInn grows our North American system in the heartland where we see great opportunity for continued growth,” says Geoff Ballotti, Wyndham Hotel Group’s president and ceo. “With the global middle class expected to more than double in the next 10 years, we know investing in the midscale segment allows us to offer great experiences and value at price points that travelers need and where they want to be.”
The flag will mark Wyndham’s 20th following last month’s launch of The Trademark Hotel Collection, a soft brand of upper-midscale-and-above independent hotels. Late last year, the company also acquired Fën Hotels and its Dazzler Hotels and Esplendor Boutique lifestyle brands, expanding its presence in Latin America.
“By joining [the company], our AmericInn brand and our owners have the unique opportunity to leverage Wyndham’s tremendous distribution and sales and marketing capabilities, taking the brand to the next level,” says Paul Kirwin, president and ceo for Minnesota-based Northcott Hospitality.
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