Red Lion buys 10 hotels

Red Lion Hotels Corp., Spokane, Washington, bought 10 hotels formerly leased from a subsidiary of iStar Financial, New York City, for US$37 million.

The transaction will reduce Red Lion’s annual lease obligations by approximately US$4.3 million.

“Eliminating our master lease with iStar Financial has been a critical initiative of our ongoing balance sheet restructuring and we are pleased to have negotiated a favorable buyout,” said Jon Eliassen, Red Lion president and CEO. “We now have complete flexibility to either sell or invest in these hotels, which we believe will be key to building long-term value for our shareholders.”