Red Lion Completes Red Lion Kalispell Center

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. October 14, 2008

KALISPELL, MT, June 26, 2006. Red Lion Hotels Corporation (NYSE: RLH) has taken another major step in the significant capital improvement program of its hotels with the extensive renovation, expansion and re-branding of the WestCoast Kalispell Center Hotel, now known as the Red Lion Hotel Kalispell.

As the Red Lion brand's new flagship hotel in Montana, the downtown property celebrates the beauty and flavor of the Flathead Valley region -- the popular vacation destination and gateway to Glacier National Park -- and its historic western town setting. This project was completed as part of Red Lion Hotels Corporation's plan to renovate and upgrade its owned and leased hotels throughout the western United States to enhance the guest experience.

The expansion and renovation of the Red Lion Hotel Kalispell - which began last October - includes:

--The addition of 38 new guest rooms and the renovation of the original 132 guest rooms;

--New public spaces including the vaulted-ceiling lobby and its new wood- burning rock fireplace;

--Timber beams and granite and slate finishes throughout;

--Copper, rock and slate with earth-tone colors to reflect the warmth and ambiance of Montana and the natural surroundings of the area, and 10,000 square feet of remodeled meeting space accommodating up to 1,000 guests.

The hotel offers a solarium indoor pool and an outdoor whirlpool as part of its new courtyard. The hotel's Northwest Bounty Company Restaurant featuring Red Lion's "Americana Classics Culinary Series" is also located on the property

The former WestCoast Kalispell Center Hotel rebranded as a Red Lion Hotel following a $5 million renovation.

The official grand opening ceremony of the Red Lion Hotel Kalispell will take place today, June 26th at 1 p.m., with Mayor Pam Kennedy of Kalispell and Joe Unterreiner, President, Kalispell Area Chamber of Commerce, cutting the ribbon and other dignitaries from the community in attendance. Red Lion Hotels Corporation executives to attend include Arthur M. Coffey, President and CEO; John Taffin, Executive Vice President, Hotel Operations; Tom McKeirnan, Sr. Vice President and Corporate Counsel; and Tom Maier, Vice President, Operations.

Commenting on the completion of the Red Lion Hotel Kalispell, Arthur M. Coffey said, "Kalispell is a growing tourism and business destination and the perfect location to showcase the Red Lion brand's high quality of accommodations and service."

Mayor Kennedy said, "By investing in this hotel, Red Lion Hotels Corporation has shown its commitment to the successful future of our downtown Kalispell community. The Red Lion Hotel Kalispell will help drive economic vibrancy in our region by providing excellent lodging, meeting and dining for members of our community and for visitors to our region for years to come."

As a model for the brand's recently introduced "Stay Comfortable" experience -- which provides guests with a high level of comfort, service, and extensive upgrades and improvements throughout the hotel -- the Red Lion Hotel Kalispell offers a unique combination of location, accommodations, meeting space, retail, entertainment and dining options. For example, free high-speed wireless Internet access is standard in all guestrooms and throughout the hotel. Also, the hotel's seasonal recreational hotel packages offer a variety of local activities, including trips to Glacier National Park, guided fishing trips and boating on Flathead Lake, golf outings, snowshoeing, snowmobiling and skiing in the mountains.

The Red Lion Kalispell Center Hotel is an anchor to the Kalispell Center Mall. The Kalispell Center Mall is currently undergoing many improvements and additions to provide the Flathead Valley community with diverse retail, entertainment and dining options in downtown Kalispell.