Wyndham buys AmericInn hotel chain for $170 million
AmericInn will become Wyndham’s 20th hotel brand. It has 200 mostly franchised hotels comprising 11,600 rooms in 21 states throughout the US.
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 but Wyndham hopes it will close by October.
The midscale segment is indeed 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.
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.
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