Red Lion Hotels Corporation

Red Lion Hotels Corporation
Public
Traded as NYSE: RLH
Industry Hospitality, Hotels
Founded Spokane, Washington, United States (1937)
Headquarters Spokane, Washington, United States
Area served
 United States, Canada
Key people
 Greg Mount (President & CEO)
Revenue Increase USD 145 Million (2014)
Decrease USD 2.3 Million (2014)
Total assets Increase USD 223.35 Million (2014)
Total equity Increase USD 140.84 Million (2014)
Number of employees
 1,622 (2014)
Website www.redlion.com/rlhc

Red Lion Hotels Corporation is a US hospitality corporation that primarily engages in the franchising, management and ownership of upscale, midscale and economy hotels. The company also operates an entertainment and event ticket distribution division, TicketsWest.

History

Establishment and diversification

The company originated as a property management and commercial development company when it was founded in Spokane, Washington in 1937 under the name Goodale & Barbieri Company. In 1976, Goodale & Barbieri acquired the River Inn in Spokane, launching the company into the hotel business.[1] The Cavanaughs brand name was later created in 1980 for its hotel operations. By 1987, the company established a computerized event ticketing company, G&B Select A Seat, which is now known as TicketsWest.

1990s–2000s: IPO, acquisitions, and rebranding

Red Lion Hotels Corporation headquarters

Preparing for an Initial Public Offering, Goodale & Barbieri Company adopted its hotel brand into its corporate identity in 1997, changing its name to Cavanaughs Hospitality Corporation. The IPO was completed in April 1998, and Cavanaughs began trading under the ticker CVH.[2] By the end of 1999,[3] Cavanaughs announced it would acquire its regional rival, Seattle-based WestCoast Hotels, Inc. with transaction closing on January 7, 2000.[4] On March 1, 2000, the combined company began trading under the new ticker, WEH.[5] Recognizing the broader geographic reach of the WestCoast name, Cavanaughs also changed its name to WestCoast Hospitality Corporation with the launch of its new stock ticker and announced plans to rebrand its hotels into the WestCoast name.[6]

In addition to the expanded hotel portfolio following the acquisition of WestCoast, the company also announced plans to franchise properties under its brand.[7]

By 2001, the company grew again; this time by announcing it would acquire the Red Lion Hotels and Inns brand and properties (along with several other DoubleTree properties) from Hilton Hotels.[8] Capitalizing on the Red Lion brand, a majority of the company's WestCoast Hotels properties were rebranded to the Red Lion name within the two years following the acquisition. In September 2005, further realizing the revitalization of the Red Lion name, WestCoast Hospitality Corporation assumed its present-day name, Red Lion Hotels Corporation.

In 2006, RLHC divested its property development operations by spinning-off that segment into an independent entity, G&B Real Estate Companies.

2010s: Further expansion

Red Lion Hotels Corporation further expanded its hotel operations. In October 2014, RLHC announced a new upscale conversion brand, Hotel RL. In April 2015, RLHC purchased GuestHouse International and Settle Inn.

Red Lion brands

Hotels

Red Lion Hotels Corporation operates five hotel brands, each covering a different market segment:

Upscale

Midscale

Select-service lodging

Economy lodging

Extended-stay lodging

Franchising

The Franchise Segment licenses the Red Lion brand to third-party hotel owners. As of 2009 there were approximately 17 franchised Red Lion hotels. Hotel owners can franchise as either a full service Red Lion Hotel, which offer restaurant and banquet meeting space; a limited service Red Lion Inn & Suites; or under the Leo Hotel Collection, for unique, boutique or historic hotels.[9] The Las Vegas Hotel & Casino was the first hotel to join the Leo Collection in February 2013.[10]

Entertainment Segment (TicketsWest)

Founded in 1987 as G&B Select-A-Seat, a computerized ticketing service, TicketsWest is a minor, regional competitor to Ticketmaster and provides ticket sales and distribution services to concert and sports venues in several western United States. In 2007 it accounted for approximately 8% of company revenues.[11]

Controversies

In mid-2008 Columbia Pacific Opportunity Fund, an investment manager for the Baty family, the Seattle founders of Emeritus Corporation, submitted an unsolicited acquisition offer of $9.50 per share to acquire Red Lion.[12] At the time, Columbia Pacific held 12.7 percent of Red Lion.

By October Columbia Pacific had withdrawn its offer and, shortly thereafter, the Red Lion board of directors enacted a poison pill plan, drawing the ire of Columbia Pacific who stated its belief that Red Lion should be liquidated because company-owned assets were in "excess of Red Lion's market capitalization."[13]

Later that year, after the share price increased significantly, Red Lion removed its poison pill.

References

  1. ↑ Red Lion Hotels Corporate: Staking its Claim , Welcome Magazine, November 2008, Accessed March 3, 2009.
  2. ↑ Off to a Strong Start: Cavanaughs Hospitality begins trading on NYSE
  3. ↑ Cavanaughs Hospitality Corporation and WestCoast Hotels, Inc. Agree to Form One Hotel Company
  4. ↑ Cavanaughs Hospitality Corporation Closes On Transaction With Westcoast Hotels, Inc.
  5. ↑ Cavanaughs Hospitality Corporation Begins Trading Under New Symbol, Weh; Changes Name To Westcoast Hospitality Corporation
  6. ↑ WestCoast Hospitality Corporation
  7. ↑ WestCoast readies to expand
  8. ↑ Hilton Signs Letter Of Intent To Sell Red Lion Chain And Selected Doubletree Locations To Westcoast Hospitality
  9. ↑ "Red Lion Hotels Announces Brand in Development, The Leo Hotel Collection". shareholder.com.
  10. ↑ "LVH - Las Vegas Hotel & Casino First to Join New Leo Hotel Collection". shareholder.com.
  11. ↑ "Red Lion Hotels Corporation - Annual Report". shareholder.com.
  12. ↑ Seattle firm drops bid for Red Lion Hotels , Seattle Times, October 17, 2008, Accessed March 5, 2009.
  13. ↑ "Red Lion Faces Shareholder Criticism". istockanalyst.com.
This article is issued from Wikipedia - version of the Sunday, January 17, 2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.