SPOKANE, Wash., April 11, 2006 Red Lion Hotels Corporation (NYSE: RLH) today announced that it has entered in to an agreement to spin off its real estate management business to Tom Barbieri and David Peterson in a tax-free reorganization. Mr. Barbieri and Mr. Peterson will be re-establishing the business as Goodale & Barbieri Company, and the transaction will be completed by the end of April.
"We think this is a great opportunity to give the real estate management business the independence it needs to flourish, and to continue our effort to narrowly focus on our core hotel business," said Arthur Coffey, President and Chief Executive Officer of Red Lion Hotel Corporation, headquartered in Spokane. "Tom and David have been integral over the years in building that business, and to have them owning and operating it will provide great continuity for our employees and clients."
"This is really exciting for David and me, and for the 100 people who will work for Goodale & Barbieri Company. My father founded the company's real estate business in 1937, so it's going back to my family's roots, only with more experience and a stronger understanding of the opportunities throughout the market." said Barbieri, who will be President of Goodale & Barbieri Company.
Goodale & Barbieri Company will continue to manage Red Lion Corporation's office and retail real estate assets, including Lincoln Plaza in Spokane and the Kalispell Center in Montana. Goodale & Barbieri Company will also continue to provide traditional real estate-related services, including developing, managing and brokering sales and leases of commercial and multi-unit residential properties in Washington, Oregon, Idaho and Montana. As a division of Red Lion Hotels, the real estate division currently manages projects with more than 1.7 million square feet of office and retail space, and more than 2,000 housing units.
About Red Lion Hotels Corporation
Red Lion Hotels Corporation is a hospitality and leisure company primarily engaged in the ownership, management, development and franchising of mid-scale and 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.
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 2005 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
Goodale & Barbieri Company
Thomas Barbieri, President