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This under-the-radar hotel chain is one to watch in 2021

Dec. 31, 2020
4 min read
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This under-the-radar hotel chain is one to watch in 2021
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This year has changed much about what we'd come to hold true about the travel industry over the last several years.

Airlines have shrunk dramatically and added point-to-point flights to meet flyers where they want to go: primarily warm-weather beach destinations and mountain destinations in the west where space isn't hard to come by.

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Hotel chains have been forced to rethink the guest experience. And, many closed temporarily for many months while others will never reopen.

Across the board, though, travel companies have faced a cash crunch as they've never experienced before, and that's had some interesting consequences -- some with particular relevance to the points-and-miles world.

One direct result of the coronavirus pandemic is that one former lightweight hotel chain (at least in the U.S.), Sonesta International Hotels Group, now deserves your attention. But why should you care about this relatively unknown hotel chain?

Because the Boston-based hotel company announced Dec. 30 it is acquiring RLH Corp., the parent company of Red Lion Hotels and Americas Best Value Inn budget chains in a deal valued at $90 million. Sonesta gets nearly 1,000 hotels across North America, which would make it one of the largest hotel companies in the U.S. with approximately 1,200 properties.

A Red Lion Hotel in Houston. (Photo by Brett Hondow/Shutterstock)

Sonesta began 2020 managing 58 hotels under three brands in the U.S: Sonesta, Sonesta ES Suites and Sonesta Simply Suites. Upon the completion of hotel conversions previously announced and the acquisition of RLH, Sonesta will become one of the largest hotel companies in the U.S., with approximately 1,200 hotels under 13 brands in multiple market segments. When this deal is completed, RLH will move ahead of Hyatt, which currently has more than 950 hotels in its portfolio.

Some chains have fallen behind on certain revenue payments to hotel owners due to the coronavirus pandemic, and at least one ownership group has taken drastic action by transitioning over 100 formerly IHG-branded properties and planning to do the same with almost 100 Marriott-branded hotels to the Sonesta family.

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Service Properties Trust (SVC), which owns hundreds of hotels across North America, reflagged the 103 former IHG properties as Sonesta hotels in November 2020, and is poised to reflag 98 Marriott-branded properties at the end of January 2021, as reported by hotelmanagement.net.

SVC owns a total of 122 Marriott-branded properties, and it plans to sell 24 of those, leaving 98 hotels, which are distributed among the Marriott, SpringHill Suites, TownePlace Suites, Residence Inn and Courtyard brands.

According to hotelmanagement.net, the new Sonesta properties will fall under its Royal Sonesta, Sonesta, Sonesta Select and Sonesta ES Suites brands.

By the end of the first fiscal quarter of 2021, Sonesta expects to have more than 1,200 hotels across the United States, thanks in no small part to its taking over of the former IHG properties, the forthcoming transition of the 98 Marriott hotels and the RLH acquisition of Red Lion Hotels and Americas Best Value Inn.

With Sonesta growing its footprint significantly in the U.S., it's going to be hard to ignore this often-overlooked chain. With its takeover of dozens of former RLH, IHG and Marriott properties, Sonesta will not only have a presence in the ubiquitous select-service market but also the higher-end space, thanks to its takeover of several formerly Kimpton and InterContinental hotels.

And despite being a relatively small player in the hotel industry, Sonesta has a loyalty program called Travel Pass, complete with elite-status tiers and the ability to earn and redeem points for stays.

With Sonesta expanding big time in North America -- and the U.S. specifically -- chances are you'll soon find yourself booking a night at one of its newly acquired properties across the country, whether you're staying for a night off the interstate or a multi-night stay at a luxurious city-center hotel.

Additional reporting by Benét J. Wilson

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  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.
Apply for American Express® Gold Card
at American Express's secure site
Terms & restrictions apply. See rates & fees
Best for dining at restaurants
TPG Editor‘s Rating
4 / 5
Go to review

Rewards Rate

4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
4XEarn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
3XEarn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
2XEarn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
1XEarn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.
  • Annual Fee

    $325
  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.