Red Lion Hotels Announces Sale of its Sacramento Hotel; Adds New Sacramento Franchise
Date : 09/04/2012 @ 4:14PM
Source : PR Newswire
Stock : Red Lions Hotels Corp. (RLH)
Quote : * 6.64
-0.06 (-0.90%) @ 4:16PM
*The price per share on the date of the announcement of the sale was $7.30. A decline in pps.
SPOKANE, Wash., Sept. 4, 2012 /PRNewswire/ -- Red Lion Hotels Corporation (NYSE: RLH) announced today it has sold for $9.0 million
the Red Lion Hotel Sacramento at Arden Village. This hotel was previously leased to the buyer. As part of the transaction, the franchise agreement at that location will terminate and a new franchise will be added in Sacramento.
"This transaction supports our strategy to reduce debt, expand our franchise system and improve the competitive position of our hotels," said Jon E. Eliassen, President and Chief Executive Officer of Red Lion Hotels Corporation. "We sold our property in Sacramento and added a new franchise hotel with extensive meeting and banquet facilities that make it a much better fit in that market for the Red Lion brand going forward."
In November 2011, the company acquired ownership of the Red Lion Hotel Sacramento at Arden Village as part of an agreement with iStar Financial Inc. to purchase 10 previously leased hotels. The company has been leasing the property to a company owned by Kumar Sharma, which has now purchased the hotel from Red Lion. As part of the transaction, Sharma's subsidiary, Shri Vinayaka Hotel Inc., has signed a new franchise license agreement with Red Lion Hotels for the former Woodlake Hotel Sacramento, a property he also owns.
"Our new franchised property in Sacramento is in a wonderful location and is a great fit for our customers," said Ron Burgett, Executive Vice President of Lodging and Brand Development for Red Lion Hotels. "And, we are especially pleased to carry forward our business relationship with Mr. Sharma."
The new franchise, the Red Lion Hotel Woodlake Conference Center Sacramento
, is located at 500 Leisure Lane on the scenic shores of a private lake, just three miles from the Sacramento city center. The full service hotel offers 306 guest rooms, 60,000 square feet of meeting space, a fitness center and an outdoor pool. The Lakeside Bar and Grille in the lobby of the hotel is known for its views and for its Mediterranean and California Fresh cuisine. The property is a popular wedding and meeting venue.
"Red Lion is well-recognized in Northern California," said Kumar Sharma of Shri Vinayaka Hotel, Inc. "We are looking forward to our continued franchise relationship with Red Lion and all of the benefits we expect to have from converting an independent hotel to a trusted brand."