SPOKANE, Wash. - WestCoast Hospitality Corporation (NYSE: WEH) today announced that it has agreements in place to sell seven hotels and the Crescent and Paterson commercial buildings in Spokane, Washington.
The purchasers of the Red Lion ParkCenter Suites in Boise, Idaho, the Red Lion Inn Aberdeen, Washington, the Red Lion Inn Kalispell, Montana and the Red Lion Inn Bend South, in Bend, Oregon, have all completed due diligence and the company expects the sales of these properties to close in the third quarter. The company also has agreements to sell the Red Lion Hotel Hillsboro, Oregon, the Red Lion Inn Klamath Falls, Oregon, and the Budget Inn in Spokane, Washington. The purchasers for these hotels are currently conducting their due diligence investigations and, subject to satisfactory completion, the company expects sales to close in the third quarter.
On July 11, 2005, the company entered into an agreement with a purchaser for the Crescent and Paterson commercial buildings in Spokane, Washington. The purchaser is conducting its due diligence investigation and, subject to satisfactory completion, the company expects the sale of these commercial buildings to close by the end of the year.
The gross aggregate purchase price of these seven hotels and the Crescent and Paterson commercial buildings is approximately $48 million.
The company continues to market for sale through a listing agreement with Colliers International the WestCoast Ridpath Hotel in Spokane, Washington, the Red Lion Hotel, Idaho Falls, the Red Lion Hotel Yakima Gateway, in Washington, and the WestCoast Outlaw Hotel in Kalispell, Montana. Chris Burdett, Senior Vice President - Northwest, Colliers International Hotels, commented on the sales process, "We are truly impressed and are very pleased with the pace at which these assets have been placed in contract. It is a strong reflection of the WestCoast organization and of the overall desirability of lodging assets throughout the Northwest. Given the strong initial response, we expect to complete the sale of the properties within the twelve-month period we originally set, and are obviously well on our way to achieving that goal."
Arthur M. Coffey, President and Chief Executive Officer of WestCoast Hospitality Corporation, said "We are on target with our planned sales of non-core assets, and we are pleased with the prices we have been able to command in the market. Interest in our properties for sale has been brisk and we are confident we will successfully complete our sales plan by the end of 2005."
The company intends to use the proceeds of this sale of non-core assets to complete the revitalization of Red Lion Hotels throughout the company's 11 western states and British Columbia operating region -- one of the most significant facility improvement programs in company history. This investment will complete the planned renovations of 31 hotels, accelerating Red Lion Hotels' ongoing program to improve hotel quality by increasing customer comfort, freshening decor and modernizing with new technology.
About WestCoast Hospitality Corporation
WestCoast Hospitality Corporation is a hospitality and leisure company primarily engaged in the ownership, management, development and franchising of upper mid-scale, full service hotels under its Red Lion® and WestCoast® brands. In addition, through its entertainment division, which includes its TicketsWest.com, Inc. subsidiary, it engages in event ticket distribution and promotes and presents a variety of entertainment productions. G&B Real Estate Services, its real estate division, engages in traditional real estate-related services, including developing, managing and brokering sales and leases of commercial and multi-unit residential properties.
This press release contains forward-looking statements within the meaning of federal securities law, including statements concerning plans, objectives, goals, strategies, projections of future events or performance and underlying assumptions (many of which are based, in turn upon further assumptions). The forward-looking statements in this press release are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those expressed. Such risks and uncertainties include, among others, matters discussed in the Company's annual report on Form 10-K for the 2004 fiscal year and in other documents filed by the Company with the Securities and Exchange Commission.
Contact: Julie Langenheim
Title: Executive Services & Investor Relations Manager