SPOKANE, WA, September 28, 2005 Red Lion Hotels Corporation (NYSE:RLH) today announced that it has completed the sales of five hotel properties and has purchase agreements in place for two hotels and the Crescent Court commercial complex. It also announced that it has accepted letters of intent for the purchase of two hotels.
The transactions are part of the Red Lion's reinvestment plan, announced in November 2004, which identified 11 non-core hotel properties and a commercial office building that would be sold in order to fund a $40 million facility improvement program designed to rejuvenate and revitalize the Red Lion brand. This program is one of the largest in the company's history and involves the renovation of 31 company-owned Red Lion hotels. There are 60 owned, managed and franchised Red Lion Hotels located in 11 western states and British Columbia. Red Lion announced last week its aggressive growth plan to expand Red Lion Hotels into over 100 markets in the next five years. In support of this plan and to clearly emphasize its focus on the Red Lion brand, the company recently changed its name from WestCoast Hospitality Corporation to Red Lion Hotels Corporation and changed its ticker symbol on the New York Stock Exchange from "WEH" to "RLH." It also introduced a new logo and brand image which can be seen at www.redlion.com.
The five completed hotel transactions included the Red Lion ParkCenter Suites in Boise, ID, Red Lion Inn Klamath Falls, Oregon, Red Lion Inn Bend South in Bend, Oregon, Red Lion Inn Aberdeen, Washington and the Budget Inn in Spokane, Washington. The buyers for the Red Lion Inn Kalispell, Montana and the Crescent Court commercial complex in Spokane, Washington have waived all contingencies under their purchase agreements and the company expects these sales to be closed in the next 60 days. Upon closing of these two non-contingent transactions, the aggregate gross proceeds for these seven properties will be approximately $45 million.
Of the properties with letters of intent in place, the company expects to complete the sale of the Red Lion Hotel Yakima Gateway in Yakima, Washington and the Red Lion Hotel on the Falls in Idaho Falls in the fourth quarter of 2005 subject to the satisfactory completion of due diligence. Also subject to satisfactory completion of due diligence, the company anticipates that the Red Lion Hotel Hillsboro, Oregon will be completed in the first quarter of 2006.
Colliers International Hotels continues to list for sale the WestCoast Outlaw Hotel in Kalispell, Montana and the WestCoast Ridpath Hotel in Spokane, Washington. Chris Burdett, Senior Vice President Northwest, Colliers International Hotels, commented "There is interest from potential buyers for the two remaining properties and we expect to receive attractive offers for both of them."
Commenting on the progress of the reinvestment plan, Arthur M. Coffey, President and Chief Executive Officer, said, "We continue to execute on our plan to divest our non-strategic assets. I am pleased with the quality of the transactions we have closed and offers we have received, and, given our substantial progress to date, I am confident we will complete the sale of the two remaining properties."
About Red Lion Hotels Corporation
Red Lion Hotels Corporation (NYSE: RLH), formerly called WestCoast Hospitality Corporation (NYSE: WEH), 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® brand. 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, economic cycles; international conflicts; changes in future demand and supply for hotel rooms; competitive conditions in the lodging industry; relationships with franchisees and properties; impact of government regulations; ability to obtain financing; changes in energy, healthcare, insurance and other operating expenses; ability to sell non-core assets; ability to locate lessees for rental property and managing and leasing properties owned by third parties; dependency upon the ability and experience of executive officers and ability to retain or replace such officers as well as other 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.
Red Lion Hotels Corporation
Julie Langenheim, Investor Relations Manager
CCG Investor Relations
Crocker Coulson, President
(310) 231-8600 ext 103