SPOKANE, WASHINGTON Red Lion Hotels Corp. has placed its Red Lion Hotel Fifth Avenue, Seattle, and its Red Lion Hotel Denver Southeast on the market. Asking prices have not been disclosed.
Proceeds from the sale would be used to restructure the company’s balance sheet, including paying down debt. “The completion of these transactions will create the financial flexibility to refinance and reposition our hotels as the market rebounds,” says CEO Jon Eliassen. “As we make further investments in the Red Lion brand, the company will be even better positioned to grow through franchising.”
Red Lion has tapped CSCA Capital Advisors to guide the company through a larger effort to selectively reduce its asset ownership.
The 297-key Red Lion Hotel on Fifth Avenue is located in downtown Seattle. The public sale process will be handled by Chris Burdett of CB Richard Ellis Hotels. Red Lion hopes to structure the transaction to keep the property in its managed portfolio, continuing under the Red Lion flag.
“The Red Lion Hotel is uniquely located in downtown Seattle, and with the market’s high barriers to entry and demand for institutional-grade assets in Seattle, I expect this listing to get significant and immediate attention,” Burdett says.
Red Lion Hotels announced during its November earnings call that the Denver property would be listed for sale and that the company prefers to maintain the hotel’s Red Lion affiliation, either as a managed or franchised property. Hospitality Real Estate Counselors in Denver has since listed the property.