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SPOKANE, WA, September 28, 2007 – Red Lion Hotels Corporation (NYSE:RLH) today announced that its Board of Directors has authorized a common stock repurchase program that enables the Company to purchase up to $10 million of its common stock.
"This program reflects our Board's confidence in the Company and allows the Company to opportunistically repurchase stock based on market conditions. It also complements our existing capital allocation alternatives" said Arthur M. Coffey, Red Lion's President and Chief Executive Officer.
"Our significant financial capacity, including availability under our revolving credit facility, existing cash on hand and recurring cash flow, gives us the flexibility to implement this program at the same time as we are taking advantage of opportunities to grow the Red Lion brand," commented Anupam Narayan, Red Lion's Chief Financial Officer and Chief Investment Officer.
Any stock repurchases will be made from time to time through open market purchases, block purchases or privately negotiated transactions deemed appropriate by the Company. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements and other market conditions. The Company is not obligated to repurchase any shares of stock under the plan, and the Company may terminate the stock repurchase plan at any time.
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 and upscale, full service hotels under its Red Lion® brand. As of June 30, 2007 the RLH hotel network was comprised of 52 hotels located in eight states and one Canadian province, with 9,079 rooms and 467,529 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.
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; 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 quarterly report on Form 10-Q for the quarter ended June 30, 2007 and in other documents filed by the company with the Securities and Exchange Commission.
Contact:
Red Lion Hotels Corporation
Julie Langenheim, Investor Relations Manager
(509) 777-6322
CCG Investor Relations
Crocker Coulson, President
Elaine Ketchmere, VP Financial Writing
(310) 477-9800
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