Red Lion Sells Denver Hotel and Signs Franchise Agreement with New Owner
SPOKANE, Wash., Oct. 24, 2012 /PRNewswire/ -- Red Lion Hotels Corporation (NYSE: RLH) today announced the company has closed on a $13 million sale of the Red Lion Hotel Denver Southeast in Colorado. Pandey Hotel Denver LLC, a wholly owned subsidiary of Pandey Hotel Corporation, the US division of CP Group New Zealand, purchased the hotel and upon closing entered into a franchise agreement with the company for a 190-room Red Lion Inn & Suites.
"We are gratified that an international hotel company has recognized the value of a Red Lion franchise," said Jon E. Eliassen, President and Chief Executive Officer of Red Lion Hotels Corporation. "We have sold four hotels since June 2011, all of which have produced new franchise agreements. The sale of our Denver hotel helps us reduce debt and invest in our owned hotels in a manner which is meaningful to both guests and shareholders."
"Red Lion presented an excellent opportunity to move into the Denver market," said John Andrews, the Asset Manager for Pandey Hotel Corporation. "We have some very aggressive plans for the renovation and improvement of the property. Our in-house design and development group is in the final planning stages and we plan to start work immediately."
CP Group New Zealand owns commercial, hotel and residential real estate in New Zealand, the Fiji Islands and the U.S. The US division, Pandey Hotel Corporation, also owns the Doubletree Hotel in Cocoa Beach, Florida, the Baymont Inn & Suites in Las Vegas, Nevada, and the former Ramada Inn in Orlando, Florida.
The Red Lion Hotel Denver Southeast is located in the southeast metro Denver area adjacent to the light rail line. The hotel borders Cherry Creek State Park and has scenic views of the Rocky Mountains and downtown Denver.
Red Lion Hotels Corporation announced in January 2012 it was listing the hotel for sale. The property was listed with CBRE Hotels representative Chris Burdett, the agent responsible for the successful sale of Red Lion Hotel on Fifth Avenue in Seattle and the Red Lion Colonial Hotel in Helena, Montana.
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, 2012, the RLH hotel network was comprised of 47 hotels located in nine states and one Canadian province, with 8,872 rooms and 443,587 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.
SOURCE Red Lion Hotels Corporation