News for the Hospitality Executive |
SPOKANE,
Wash., Sept. 11, 2012 -- Red Lion
Hotels Corporation (NYSE: RLH) today provided an update on its review
of strategic alternatives.
As previously announced in March 2012, the board of directors of Red Lion Hotels retained BofA Merrill Lynch as its financial advisor in connection with its exploration of strategic alternatives, including, among others, a potential sale of the company or a strategic combination with a third party. The board formed a Strategic Alternatives Committee, comprised solely of independent directors, to oversee the process. In the months since the process began, the company executed a comprehensive review process designed to look at all options or any offers to maximize value for shareholders. The company's advisors contacted more than 75 potentially interested strategic industry and financial partners, including those which had expressed interest directly to the company or were referred to the company by shareholders. The company received a limited number of non-binding indications of interest, but did not ultimately receive any offers. After taking into account the recommendation of the Strategic Alternatives Committee, the board has suspended the formal strategic alternatives process. "The board of directors of Red Lion Hotels is committed to pursuing all opportunities to maximize value for our shareholders and initiated the strategic alternatives process to achieve that objective," said Jon E. Eliassen, President and Chief Executive Officer of Red Lion Hotels Corporation. "Led by the board's Strategic Alternatives Committee and with the assistance of outside financial advisors, the company undertook a comprehensive review and considered a wide range of alternatives, including a potential sale of the company." Eliassen continued, "Although the company did not receive any offers, the board remains open to considering all opportunities to maximize value for shareholders. The company's present focus is on executing its current business plan. This includes the sale of non-core assets and reduction of debt." The company has recently announced progress on this initiative including:
Eliassen concluded, "We are also marketing several other non-core assets and we are in discussions with a number of current property owners to potentially franchise additional hotels. We remain committed to executing our current business plan and considering all strategies to maximize shareholder value. We are confident that we are taking the right steps to further strengthen the company's balance sheet." Upcoming Changes to Red Lion Hotels Board of Directors "I have had the privilege of serving Red Lion, a company I am truly passionate about, for almost 44 years," said Donald Barbieri. "Red Lion has had a large impact on the communities we serve and I have taken great pride in serving my fellow shareholders, the companies' associates and our customers. I remain committed to Red Lion's success and will work closely with the management team and board of directors to ensure a smooth transition upon my retirement at the end of December." About Red Lion Hotels Corporation Forward Looking Statements |
Contact:
Pam Scott Red Lion Hotels Corporation 509-777-6393 [email protected] www.RedLion.com |