RLH Completes Sale of Red Lion Hotel Anaheim for $21.5 Million

USA, Denver, Colorado. May 11, 2020

RLH Corporation (NYSE:RLH) announced that it has closed on the sale of its Red Lion Hotel Anaheim for $21.5 million in gross proceeds.

Red Lion Hotel Anaheim was wholly owned by the Company and unencumbered by a mortgage. Proceeds after broker fees and customary closing costs will be used to repay the $10 million credit facility. The remaining funds of $10.8 million will be used to fund franchise growth opportunities and for general business purposes.

This transaction marks the final closing of four hotels announced in September 2019 as under contract to be sold. The net proceeds from these four assets after closing costs, the repayment of property level mortgage and corporate debt, and distributions to its joint venture partners was $22.9 million.

Subsequent to the sales of these hotels, the Company's outstanding debt is comprised of hotel property level debt of $5.6 million on the Olympia, Washington hotel, which is held in a joint venture.

The Company is currently in the process of marketing its Olympia, Washington and Baltimore, Maryland hotels. The Company continues to anticipate cumulative net proceeds in the range of $32 million to $36 million from the combined 2019 and 2020 asset sales.


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Hotel Revenue Management continues to evolve at a blistering pace. Driven by technological innovation and new distribution channels, there are some dynamic opportunities for expansion in this fast-growing field. The technology is primarily designed to help revenue managers further refine their operations and pricing models to maximize hotel profit. For example, hotels can't be all things to all people, so a key strategy is to precisely identify their target audience. By employing geo-targeting techniques and analyzing behavior such as previous bookings, on-property purchases and online shopping practices, there is an increased capability to define guest demographics. By segmenting customers in more specific ways, hotels are able to create more personalized experiences which, in turn, allow managers to optimize their room rates. It is also an effective way to fulfill the unique needs and preferences of the individual. Another methodology is to consistently monitor the competition's pricing strategies. There are software tools that analyze a competitor's current rates, and then allow a hotel to make its own pricing adjustments. It is also a useful means to conduct forecasting models. Other technologies that are being integrated into a revenue manager's toolkit include Artificial Intelligence in the form of automated algorithms, and Voice Recognition (VR) for data inquiries, rate changes, and booking behavior. Predictive and analytic software programs are also being leveraged to provide more forward-looking data, instead of the usual reliance on historical performance. These metrics allow managers to be more proactive - rather than reactive - with their revenue strategy. The October issue of the Hotel Business Review will examine these developments and report on how some leading hotels are executing their revenue management strategies.