Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Red Lion Hotels CORP | v59470e8vk.htm |
| EX-99.2 - EX-99.2 - Red Lion Hotels CORP | v59470exv99w2.htm |
Exhibit 99.1
Contact: Pam Scott
Red Lion Hotels Corporation
509-777-6393 (d)
509-570-4610 (c)
Pam.Scott@redlion.com
www.RedLion.com
Red Lion Hotels Corporation
509-777-6393 (d)
509-570-4610 (c)
Pam.Scott@redlion.com
www.RedLion.com
Sale Closes on Red Lion Hotel Fifth Avenue Seattle
Lowe Enterprises Investors completes acquisition of the property
Spokane, WA, June 14, 2011 — Red Lion Hotels Corporation (NYSE: RLH) announced today that it
closed the previously announced sale of the Red Lion Hotel on Fifth Avenue in Seattle, WA. The
property was purchased for $71 million, or approximately $239,000 a key, by an affiliate of Lowe
Enterprises Investors (LEI).
At closing, LEI entered into a franchise agreement with Red Lion Hotels Franchising, Inc. to
continue to operate the property as a Red Lion hotel, managed by LEI affiliate, Destination Hotels
& Resorts. The company also entered into an affiliation agreement with a subsidiary of Destination
Hotels & Resorts to facilitate the cross-promotion of hotels between the companies.
“This transaction is very positive for Red Lion. It allows the Red Lion brand to continue on a
flagship hotel in downtown Seattle and allows us to deploy the hotel’s equity to recapitalize our
balance sheet and reinvest in our hotels and brand,” said Jon E. Eliassen, President and Chief
Executive Officer of Red Lion Hotels Corporation. “We know that the Red Lion Hotel Fifth Avenue
will continue to provide the highest level of service to our guests under the management of
Destination Hotels & Resorts.”
“The ability to add guest rooms and to expand the available meeting space creates the opportunity
to increase revenue. Meeting space, such as we plan, which will be designed with the most modern
technologies, high-end finishes and flexible configuration, will attract the abundant corporate
meeting business that already exists in the market. And given the hotel’s recent high quality
renovations and its attractive location, the Red Lion will have a competitive advantage over other
existing nearby options,” said Charlie Peck, president of Destination Hotels & Resorts. “The Red
Lion name carries with it a long tradition as a great brand in downtown Seattle.”
The 297-room property is centrally located in downtown Seattle, just a few blocks from Pike Place
Market and the Washington State Convention Center. Red Lion Hotels Corporation announced in
January 2011 it was listing the hotel for sale. Chris Burdett of CBRE Hotels in Seattle
represented Red Lion in the sale.
About Red Lion Hotels Corporation:
Red Lion Hotels Corporation is a hospitality and leisure Company primarily engaged in the
ownership, operation and franchising of midscale hotels under its Red Lion® brand. As of
March 31, 2011, the RLH hotel network was comprised of 45 hotels located in eight states and one
Canadian province, with 8,630 rooms and 429,797 square feet of meeting space. The Company also owns
and operates an entertainment and event ticket distribution business. For more information, please
visit the Company’s website at www.redlion.com.
About Lowe Enterprises Investors
Lowe Enterprises Investors (LEI) is owned by a strategic partnership of The Guardian Life Insurance
Company of America, Lowe Enterprises, Inc. and senior members of the LEI management team. LEI
provides real estate investment management services on behalf of a select list of institutional and
high net worth clients and partners through both individually managed and commingled fund
relationships. The firm has been responsible for $6 billion in real estate assets, including
commercial, hospitality and debt investments, since inception in the late 1980s. LEI has been a
leading value-added investor through multiple cycles, employing equity and structured debt in its
investment strategies. For more information about LEI, please visit: www.LoweInvestors.com
About Destination Hotels & Resorts
Destination Hotels & Resorts began in 1972 with the development and management of condominium
resorts. Since then, the company has been consistently ranked as one of the top 10 hospitality and
property management companies in the country (ranked by Hotel Business Magazine), with more than
7,100 employees, over 7,000 hotel rooms and condominium units, and more than $2.2 billion in assets
under management. Destination Hotels & Resorts is a wholly owned subsidiary of Los Angeles-based
Lowe Enterprises, a privately-held, national real estate organization active in commercial and
hospitality property investment, management and development. For more information, please visit
the company’s website, www.destinationhotels.com.
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