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Red Lion Hotels Continues Expansion in New Mexico with
the Addition of the 126-room Red Lion Hotel Grants
Formerly the Best Western Inn & Suites of Grants

Spokane, WA, October 10, 2011 – Red Lion Hotels Corporation (NYSE: RLH) announced the company has signed a franchise license agreement for a hotel in Grants, NM; the third in the past month.
 
The property is owned by Positive Investments, Inc., which owns the two recently announced Red Lion Hotels in Farmington and Gallup, NM, as well as the Red Lion Hotel Oakland International Airport in Oakland, California.
 
“We are gratified to see Positive Investments continue to align itself with the Red Lion brand,” said Rich Carlson, Senior Vice President of Lodging Development for Red Lion Hotels Corporation.  “Red Lion is committed to continuing to expand in New Mexico and throughout the Southwest through franchising.”
 
The Red Lion Hotel Grants is located on the historic Route 66, about 80 miles west of Albuquerque.  Grants is known for its proximity to ancient Anasazi ruins and for its outdoor recreation in the Zuni Mountains. The 126-room limited service hotel located at 1501 E. Santa Fe Avenue was formerly the Best Western Inn & Suites of Grants.

The hotel has begun the conversion process and is expected to open as Red Lion Hotel this fall, along with the two previously announced New Mexico properties.

“We are excited to expand our relationship with Red Lion to another hotel as we believe the addition of the Red Lion flag will further improve our guest appeal and product offering at this property,” says Rao R. Yalamanchili, who owns Positive Investments, Inc., along with Srinivas Yalamanchili.

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)
Pam.Scott@redlion.com
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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