The Wyndham Hotel Group is poised to expand its presence in the midscale segment with the acquisition of AmericInn.
The hotel giant announced Tuesday that it plans to acquire the Minnesota-based hotel brand and its management company, Three Rivers Hospitality, from Northcott Hospitality for $170 million.
The deal remains subject to regulatory and government approval as well as the satisfaction of other customary closing conditions.
AmericInn boasts a portfolio of approximately 200 hotels spanning 21 U.S. states. A majority of the properties are franchised and located in the Midwest, Ohio Valley and Mountain states. The brand has already established a significant footprint in Minnesota, Wisconsin, Iowa, Michigan and North Dakota.
AmericInn's current U.S. pipeline consists of 23 hotels.
Wyndham said it will explore options to divest AmericInn's owned portfolio of 10 hotels once the acquisition is complete.
"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," Wyndham Hotel Group's president and CEO Geoff Ballotti said in a statement. "AmericInn's guest-centric culture aligns perfectly with our values, making it a fantastic tuck-in brand for us."
"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," Ballotti concluded.
Wyndham's portfolio currently comprises more than 8,000 hotels globally, including 1,500 midscale properties. AmericInn would be Wyndham's 20th brand.
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In his own statement, Northcott Hospitality president and CEO Paul Kirwin said the acquisition will take AmericInn to the "next level," pointing out that owners will benefit from "Wyndham's tremendous distribution and sales and marketing capabilities."
"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," said Kirwin.
Wyndham's latest acquisition comes just weeks after the group launched its 19th brand: The Trademark Hotel Collection.
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