Wells Fargo Provides Refinancing Loan for Red Lion in Bellevue, WA

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. October 14, 2008

SPOKANE, WA, October 13, 2008. Red Lion Hotels Corporation (NYSE: RLH) announced today that it has closed on a $14 million loan from Wells Fargo Bank, National Association on Red Lion's 181-room hotel in Bellevue, Washington. The loan provides for a five-year term and a variable spread over LIBOR based on certain financial ratios. The current pricing is 1.75% over LIBOR. Red Lion used part of the proceeds of the loan to pay off its existing higher-rate loan in the approximate amount of $8.2 million and will use the remainder for general corporate purposes.

Dan Adams, Vice President of Wells Fargo Bank, National Association, said, "Red Lion Hotels Corporation is a valuable customer of ours. Red Lion's financial performance and solid management along with the clear value of Red Lion's Bellevue hotel justified the expansion of our excellent existing relationship with the company."

Anthony Dombrowik, Chief Financial Officer of Red Lion Hotels Corporation, said, "Our ability to refinance this hotel on such favorable terms in the current credit environment speaks volumes of the financial strength of our company and of our relationship with Wells Fargo. We appreciate their continued support of Red Lion's growth."