Wyndham Buys AmericInn Hotel Chain for $170 Million

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Wyndham is buying AmericInn for $170 million. AmericInn/Northcott Hospitality

Skift Take: Wyndham's version of a great American idea? Buying AmericInn. (Sorry, we couldn't help ourselves.)

— Deanna Ting

Wyndham Hotel Group is adding to its collection of midscale hotel brands with the $170-million acquisition of Minnesota-based AmericInn hotel brand and its management company, Three Rivers Hospitality, from Northcott Hospitality. AmericInn will become the company’s 20th hotel brand, adding to Wyndham’s portfolio of 1,500 midscale hotels.

AmericInn has 200 mostly franchised hotels comprising 11,600 rooms in 21 states throughout the U.S., primarily in the Midwestern U.S., Ohio Valley, Minnesota, Wisconsin, Iowa, Michigan, and North Dakota. It currently has 23 properties in its pipeline, and owns a total of 10 hotels. Wyndham will seek to eventually sell those 10 hotels in alignment with the company’s asset-light strategy. The deal is subject to regulatory and government approval and other customary closing conditions.

The midscale segment is an incredibly active one for the U.S. hotel industry. Last month, Wyndham announced the debut of its own upper-midscale soft-brand collection for independent hotels, called The Trademark Hotel Collection, and last year it acquired boutique lifestyle brands Fen Hotels, Dazzler Hotels, and Esplendor Boutique Hotels.

Other hotel companies have also invested heavily into the space most recently, including Red Lion Hotel Corporation’s (RLHC) rejuvenation of the Signature Inn brand, Trump Hotels’ new American Idea midscale brand, and the controversial Reverb by Hard Rock hotel brand, which RLHC says is a copy of its own Hotel RL brand. Most recently, Hilton also opened its very first Tru by Hilton brand in Oklahoma City. According to travel research firm STR, the Tru by Hilton brand is the single fastest new development brand in the history of the hotel industry.

No doubt Wyndham’s acquisition of AmericInn bolsters its own strength in the midscale and value-driven hotel segment, where the company owns a number of brands. They include Microtel Inn & Suites by Wyndham, Ramada, Baymont Inn & Suites, Days Inn, Super 8, Howard Johnson, and Travelodge.

According to Northcott’s website, AmericInn is currently undergoing a $75-million system-wide renovation initiative. Last year was the company’s most profitable year in its nearly 35-year history, with record revenues of $220 million and revenue per available room (RevPAR) growth of 1.2 percent. Average daily rate across the hotel brand’s portfolio last year was an all-time high of $94, and the company debuted its first-ever television commercial last year as well.

Northcott’s Three Rivers Hospitality management company currently provides hotel management services to 21 AmericInn properties, representing some 1,400 rooms. Northcott is a privately-held company whose other hospitality brands include franchisees of Houlihans, Perkins Restaurant & Bakery, and Nelscott Development Servics, and firm that handles construction and design development for hotels.

In a statement, Wyndham Hotel Group president and CEO Geoff Ballotti said, “AmericInn’s unwavering dedication to first-rate quality and service, proven by its consistently high ratings and guest satisfaction scores grows our North American system in the heartland where we see great opportunity for continued growth. AmericInn’s guest-centric culture aligns perfectly with our values, making it a fantastic tuck-in brand for us. And 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.”

“By joining a renowned company with more hotels globally than any other, 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,” said Paul Kirwin president and CEO of Northcott Hospitality. “For our guests, this move gives them access to some of the most amazing and attainable travel experiences around the world through Wyndham’s unrivaled loyalty program, Wyndham Rewards.”

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