BEVERLY HILLS, Calif., and SPOKANE, Wash., Jan. 2, 2002 - WestCoast
Hospitality Corporation (NYSE: WEH), owner, manager and franchisor of full-service
hotel properties in the Western United States, announced today its acquisition
of all of the capital stock of Red Lion Hotels, Inc. from Hilton Hotels
Corporation (NYSE: HLT), one of the world's premier owners and operators
of hotel properties. The total consideration paid was approximately
$50.6 million.
Red Lion's hotel portfolio consists of eight owned Red Lion hotel properties,
11 leased Red Lion hotel properties, 22 franchised Red Lion hotel properties,
one owned Doubletree hotel property located in Pasco, Washington, (279
rooms), and one leased Doubletree hotel property located in Boise, Idaho,
(182 rooms). The Red Lion hotels total 6,052 rooms, and are located
primarily in the Western U.S., including Washington, Oregon, California,
Montana, Colorado, Idaho, Arizona, Nevada, Wyoming, Missouri, Nebraska
and Minnesota.
As a result of the acquisition, WestCoast adds critical mass by doubling
the total number of rooms in its hotel portfolio, from 8,600 rooms in 46
hotels located in 9 states to more than 15,000 rooms in 89 hotels located
in 13 states.
Donald Barbieri, Chairman, President and CEO of WestCoast Hospitality
Corporation, commented, "The Red Lion acquisition will bring us into 34
new markets and we expect to increase our market share with the combined
sales efforts of the two chains. We are fortunate to be bringing
a talented group of associates into the WestCoast family of hotels."
WestCoast's presence will expand into such key markets as San Diego and
Sacramento, California; Colorado Springs and Denver, Colorado; St. Paul,
Minnesota; Omaha, Nebraska; and Springfield, Missouri.
Financing for the acquisition was provided by the WestCoast Hospitality
Corporation Credit Facility and redeemable non-convertible preferred stock
through Hilton Hotels Corporation. WestCoast expects the transaction
to be immediately accretive and will provide pro forma financials in its
Fourth Quarter 2001 earnings release. On an after-tax basis, Hilton
expects the transaction to result in a nominal book gain.
WestCoast Hospitality Corporation, headquartered in Spokane, Washington,
owns, operates, franchises, acquires, develops, renovates and re-brands
full service hotel properties under its proprietary brand, WestCoast(R).
Formerly known as Cavanaughs Hospitality Corporation, the Company completed
its initial public offering in 1998, and converted its Cavanaughs Hotels
to the WestCoast brand in 2000, after the acquisition of WestCoast Hotels,
Inc. Prior to the Red Lion acquisition, WestCoast's hotel portfolio
consisted of approximately 46 three and four diamond hotel properties located
in 9 states, all of which service business, convention and leisure travelers.
WestCoast Hospitality Corporation also provides entertainment ticketing
through its TicketsWest ticketing network, with operations in many of the
markets served by its hotels. WestCoast believes the combination
of entertainment with hotels provides customers with a one stop shopping
approach that many consumers are looking for today.
Hilton Hotels Corporation is recognized internationally as a preeminent
hospitality company, which develops, owns, manages or franchises approximately
2,000 hotels, resorts and vacation ownership properties. Its portfolio
includes many of the world's best known and most highly regarded hotel
brands, including Hilton(R), Conrad(TM), Doubletree(R), Embassy Suites
Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Harrison Conference
Centers(R), Hilton Garden Inn(R), Hilton Grand Vacations Company(R) and
Homewood Suites(R)
by Hilton.
Red Lion Hotels, Inns and Inns & Suites are well known and respected
for serving the needs of business and leisure travelers. Founded
in 1959, Red Lion earned a reputation as the hotel brand of choice in the
Northwest and Western United States. In 1996, Red Lion was sold to
Doubletree and subsequently became part of Promus Hotel Corporation when
those two companies merged in 1997. Hilton acquired Promus in November
1999.
Lehman Brothers Inc. acted as financial advisor to WestCoast.
This press release contains "forward-looking statements" within the
meaning of federal securities law, including statements concerning business
strategies and their intended results, and similar statements concerning
anticipated future events and expectations that are not historical facts. |