News for the Hospitality Executive
May 4, 2011 -- Red
Lion Hotels Corporation (NYSE: RLH) announced today that it has entered
into a definitive agreement to sell the Red Lion Hotel on Fifth Avenue
in Seattle, WA to an affiliate of Lowe Enterprises ("Lowe"), a leading
national real estate investment, development and management firm.
Lowe is also entering into a franchise agreement with Red Lion
Hotels Franchising, Inc. and the hotel will continue to be operated as
a Red Lion hotel, managed by Lowe's hospitality management subsidiary,
Destination Hotels & Resorts.
The company is selling the Red Lion Hotel on Fifth Avenue for $71 million. In addition to the franchise agreement, the company is entering into an affiliation agreement with a subsidiary of Destination Hotels & Resorts to facilitate the cross-promotion of hotels between the companies. The company currently anticipates that the closing will occur by the end of the second quarter.
"This is exactly the type of agreement we were targeting," said Jon E. Eliassen, President and Chief Executive Officer of Red Lion Hotels Corporation. "This sale gives us the opportunity to monetize a valuable asset and strengthen our balance sheet while at the same time maintaining the Red Lion brand in a key location in downtown Seattle. We are also very pleased to add a franchisee to our Red Lion system that is affiliated with such highly regarded companies as Lowe Enterprises and Destination Hotels & Resorts."
The 297-room Red Lion Hotel on Fifth Avenue is centrally located in downtown Seattle just a few blocks from Pike Place Market and the Washington State Convention Center. Red Lion Hotels Corporation announced in January 2011 it was listing the hotel for sale. Chris Burdett of CBRE Hotels in Seattle is representing Red Lion in the sale.
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 December 31, 2010, the RLH hotel network was comprised of 44 hotels located in eight states and one Canadian province, with 8,557 rooms and 425,397 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, www.redlion.com.
About Lowe Enterprises
Lowe Enterprises is a leading national real estate investment, development and management firm. Over the past 38 years, it has developed, acquired or managed more than $16 billion of real estate assets nationwide. Lowe is currently responsible for more than $5 billion of commercial, hospitality and residential assets. Lowe Enterprises Investors, the firm's investment management affiliate, has been responsible for $6 billion in real estate assets, including commercial, hospitality and debt investments, since inception in the late 1980s. In addition to its Los Angeles headquarters, Lowe Enterprises maintains regional offices in Southern California, Northern California, Denver and Washington, D.C.
About Destination Hotels & Resorts
Destination Hotels & Resorts began in 1972 with the development and management of condominium resorts. Since then, the company has been consistently ranked as one of the top 10 hospitality and property management companies in the country (ranked by Hotel Business Magazine), with more than 7,100 employees, over 7,000 hotel rooms and condominium units, and more than $2.2 billion in assets under management. Destination Hotels & Resorts is a wholly owned subsidiary of Los Angeles-based Lowe Enterprises, a privately-held, national real estate organization active in commercial and hospitality property investment, management and development. For more information, please visit the company's website, www.destinationhotels.com.
Red Lion Hotels Corporation
Hotels & Resorts Launches Kids Healthy Recipe Contest in Support of
National Nutrition Month in March; Program Supports Company’s
Commitment to Healthy Eating Through Kids Café Menus /
Interim Status, Red Lion Hotels Names Jon Eliassen President and Chief
Executive Officer / February 2011
Lion Hotels Plans Sale of Two Properties; the Red Lion Hotel Fifth
Avenue in Seattle and the Red Lion Hotel Denver Southeast / January
Destination Hotels & Resorts Properties Listed Among the Best of
the Best in North America by the Readers of Conde Nast Traveler;
Destination’s Stowe Mountain Lodge Makes the Top 100 in the World List /
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|
Enterprises Secures $100 Million Capital Investment for Terranea
Resort, Positioning it for Long Term Success; Lowe’s Subsidiary,
Destination Hotels & Resorts, Continues as Operator / October
|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|
Enterprises and its Partners Examining How to Restructure Terranea
Resort's $320 in Loans / August 2009