Red Lion Hotels Announces Sale of its Hotel in Helena, Montana

SPOKANE, Wash., July 26, 2012 // PRNewswire // -- Red Lion Hotels Corporation (NYSE: RLH) announced today it has entered into an agreement to sell the Red Lion Colonial Hotel in Helena, Mont., to Helena Colonial L.L.C. The purchase price for the sale is $5.6 million and the close date is scheduled for July 31, 2012. The buyer has indicated that it intends after closing to enter into a franchise license agreement with Red Lion Hotels Franchising Inc. and maintain the Red Lion brand on the hotel.

"The sale of our hotel property in Helena fits with our strategy of selling certain non-core assets to pay down debt, invest in our brand and increase shareholder value," said Jon E. Eliassen, President and Chief Executive Officer of Red Lion Hotels Corporation. "The buyer has informed us that it intends to invest substantial additional capital in the property, and we anticipate that the hotel's enhanced appeal will be attractive to our Red Lion guests in Helena."

The 149-room Red Lion Colonial Hotel has 15,500 square feet of meeting space, the largest group space in the market, and underwent a major renovation in 2006. It is located approximately one mile from the Montana State Capitol building. Helena Colonial L.L.C. is using Stockman Bank, based in Montana, to finance the acquisition.

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 March 31, 2012, the RLH hotel network was comprised of 48 hotels located in nine states and one Canadian province, with 9,010 rooms and 452,387 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.

Contact:

Pam Scott
Red Lion Hotels Corporation
509-777-6393 (d)
509-570-4610 (c)
Pam.Scott@redlion.com
www.RedLion.com

SOURCE Red Lion Hotels Corporation

###

Share this Story:

Comments:

comments powered by Disqus

Franchise News Room »


News By Industry »


Featured Opportunities

ProSource
ProSource is America's largest wholesale home improvement franchise; a truly unique B2B franchise model. Our owners enjoy strong cash flow with...
Ziggi's Coffee
There's nothing quite like the perfect cup of coffee. It wakes you up and gets you on the right path. Now, you've got the chance to build a lifestyle...
Coolgreens
Put down the burger, the pizza or the nachos. Those categories are saturated and it is next to impossible to find real estate.
Bacon Bros. Public House
Bacon Bros. Public House prides itself on quality, locally sourced ingredients in addition to our award winning entrees, in-house smoked meats and...
American Family Care
The demand for health care services increases every year. People want and need access to health care on their terms - which usually means immediately!

Subscribe to Franchising.com Express

A Franchise Update Media Production
Franchise Update Media | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2017. All Rights Reserved.

In Loving Memory Of Timothy Gardner (1987-2014)