RLH To Buy Knights Inn Brand From Wyndham Hotel For $27 Mln In Cash

(RTTNews) - RLH Corp. (RLH) said that it agreed to acquire the Knights Inn brand from Wyndham Hotel Group, LLC a subsidiary of Wyndham Worldwide (WYN), for an aggregate price of $27 million cash, subject to certain post-closing adjustments.

Knights Inn is a hotel brand focused on getting the essentials right - a restful stay in a convenient location at an affordable price with more than 350 economy segment hotels across North America and a pipeline of an additional approximately 47 hotels.

The transaction is expected to close in the second quarter of 2018, subject to customary closing conditions.

RLH Corporation expects the transaction to enhance franchise revenue and EBITDA growth and boost franchise profit margins as the company will be able to leverage existing technology and support systems. The transaction will be immediately accretive to the company's earnings and cash flow.