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  Red Lion Hotels Signs Franchise Agreements with Owner,
Positive Investments, for Two Hotels in New Mexico

SPOKANE, Wash., Sept. 20, 2011-- Red Lion Hotels Corporation (NYSE: RLH) announced the company has signed franchise license agreements with the owner of two New Mexico hotels.  The two properties are among a group of hotels owned by Positive Investments, Inc., which is also the owner of the Red Lion Hotel Oakland International Airport in Oakland, California.

"These hotels operate under strong management already known to Red Lion," said Rich Carlson, Senior Vice President of Lodging Development for Red Lion Hotels Corporation. "We are committed to growing the Red Lion brand in the West and we are very excited to enter the New Mexico market with an experienced owner like Positive Investments."

The future Red Lion Hotel Farmington is located in the Four Corners region of New Mexico. The 192 room full service hotel, located at 700 Scott Avenue, was formerly the Best Western Inn & Suites of Farmington.

The other property will be the Red Lion Hotel Gallup, located on the historic Route 66, about 130 miles west of Albuquerque.  Gallup is a regional trade and transportation center, close to the Navajo Reservation.  The 126 room full service hotel, located at 3009 West Highway 66, was formerly the Best Western Inn & Suites of Gallup.

Both hotels have begun the conversion process and are expected to open as Red Lion Hotels this fall.

"These two full service hotels have historically had a strong reputation and customer base in the region," says Rao R. Yalamanchili, who owns Positive Investments, Inc., along with Srinivas Yalamanchili. "Now, together with the strength and support of the Red Lion brand, we are excited to take the hotels to the next level in quality and guest satisfaction."

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 hotels under its Red Lion® brand.  As of June 30, 2011, the RLH hotel network was comprised of 44 hotels located in eight states and one Canadian province, with 8,457 rooms and 424,387 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.
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Contact: 

Pam Scott
Red Lion Hotels Corporation
509-777-6393 (d)
509-570-4610 (c)
[email protected]
www.RedLion.com

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See Also: Red Lion Hotels Names Julie Shiflett as Executive Vice President and Chief Financial Officer / September 2011

Removing Interim Status, Red Lion Hotels Names Jon Eliassen President and Chief Executive Officer / February 2011

Red Lion Hotels Plans Sale of Two Properties; the Red Lion Hotel Fifth Avenue in Seattle and the Red Lion Hotel Denver Southeast / January 2011

Red Lion Hotels Enters into Two New Franchise Agreement in Northern California / November 2010

Red Lion Hotels Corporation Hires Dan Jackson as Senior Vice President and Chief Financial Officer / November 2010

Red Lion Hotels Expands Board of Directors; Appoints Melvin L. Keating to Board / July 2010

Red Lion Hotels Appoints Richard P. Carlson as Vice President - Lodging Development / March 2010

Directors of Red Lion Hotels Remove Anupam Narayan as Chief Executive Officer; No Reason Given / January 2010
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