Red Lion Announces New Property in Kent, Washington

Owners, Kent South Hospitality, Plan Extensive Renovations to Guest Rooms, Public Space, and the Hotel's Exterior

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. November 27, 2012

November 27, 2012 - Red Lion Hotels Corporation (NYSE: RLH) today announced the company has signed a franchise license agreement with the owners of a hotel in Kent, Washington, just 20 miles south of Seattle.

"The I-5 corridor through Washington and Oregon has a number of very strong markets for us and we are pleased to add another hotel in this region," saidRon Burgett, Executive Vice President of Lodging and Brand Development for Red Lion Hotels Corporation. "The owners of this property are planning more than $600,000 in renovations to the 60 guest rooms, public space and the exterior of the hotel."

The future Red Lion Inn & Suites Kent, 25100 74th Avenue South, is located between Seattle and Tacoma near the ShoWare Center arena, Emerald Downs, Kent Events Center and the Great Wall Shopping Mall. Nearby in Seattle is the University of Washington, White River Amphitheater and CenturyLink Field, the home of the Seattle Seahawks and Seattle Sounders. The 60 room hotel will offer free hot Roaring Start® Breakfast, free wireless, an indoor pool, an exercise room and meeting space that can accommodate approximately 40 people.

"We are very pleased to partner with Red Lion at our newly acquired hotel in Kent," said Paul Sandhu of Kent South Hospitality, owners of the hotel. "The brand is very well known in the region and we have seen their hotels operate in Yakima and Tri-cities where we also own hotels that directly compete with Red Lion. Once our renovations are complete, we feel the property will be great representation for the new Red Lion Inn & Suites brand rollout. We have always been impressed with the Red Lion brand and its strengths."

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 September 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.