SPOKANE — Red Lion Hotel Corp. will sell most of its remaining hotels to concentrate on expanding its franchise business.
Red Lion has hired a commercial real estate firm to sell 11 hotels in which the company is a joint venture partner in the properties. Three additional hotels will be sold over the next 12 to 18 months, as their profit levels increase.
Red Lion’s President and CEO Greg Mount announced the sale plans in a Thursday news release. The company is moving toward an “asset light” business model to reduce its debt and focus on franchising hotels in the U.S. and Canada, he said.
The 11 Red Lion hotels for sale have an estimated market value between $165 million and $175 million, according to company estimates.
“The successful sale of these hotels should allow RLH Corporation to accelerate its evolution toward operating primarily as a franchise company,” Mount said.
In October, Red Lion completed the $6 million sale of its TicketsWest and WestCoast Entertainment subsidiaries to a California competitor.
Red Lion on Thursday also reported third-quarter net earnings of $2.8 million, or 11 cents per share, on revenues of $51 million. The results compared to net income of $2.3 million, or 11 cents per share, on revenues of $43.7 million during the third quarter of 2016.
Red Lion has executed 120 license agreements this year, with another 20 upscale properties under contract to open in the next 18 months, officials said. Four of those properties will be Hotel RL branded properties, featuring communal spaces with Wi-Fi, charging stations for electronic devices and check-in via kiosk or mobile app.
Red Lion recently moved its corporate headquarters from Spokane to Denver. The company maintains a regional office here.
