Red Lion Hotels Corporation
Encyclopedia
Red Lion Hotels Corporation , formerly the WestCoast Hospitality until 2006, is a US corporation operating in the western United States and Canada through three subsidiaries: Red Lion Hotels, WestCoast Hotel Partners and TicketsWest.
In 1998 Goodale & Barbieri made an Initial Public Offering
and, the following year, changed its name to WestCoast Hospitality. In 2005 the company again changed its name, this time to Red Lion Hotels Corporation and, in 2006, divested from its property development operations by spinning-off that segment into an independent Goodale & Barbieri Company.
, Ramada
, and Quality Inn.
Business partners Tod McClaskey and Ed Pietz purchased the 89-room Thunderbird Motor Inn in Portland
, Oregon in 1959, the first property in what was initially called Thunderbird-Red Lion Inns. In 1984 McClaskey and Pietz sold the chain—which, at the time, had 57 properties—to Kohlberg, Kravis, Roberts & Co. for a reported $600 million.
In 1996 the chain was acquired by Doubletree
which rebranded most of the properties as Doubletree Hotels. At the time Doubletree merged with Promus Hotel Corporation
in 1999, only 19 hotels retained the Red Lion name.
Red Lion Hotels was sold to WestCoast Hospitality by Hilton
—which had previously acquired Promus—in 2001. By the time of the sale, the chain had rebounded to 42 hotels, 22 of which were franchises.
Seeking to revitalize some of its aging properties, in 2004 the company announced plans to sell 11 company-owned hotels to fund a $40 million "rejuvenation project" for the rest of the chain.
The following year WestCoast Hospitality changed its name to Red Lion Hotels Corporation, part of its effort to emphasize a renewed focus on the Red Lion brand.
Red Lion hotels are currently located in California
, Colorado
, Idaho
, Montana
, Nevada
, Oregon
, Utah
, Washington
and British Columbia
. This includes approximately 30 company-owned and 17 franchised properties. The majority of these are full-service properties, though there are a few limited-service locations.
In 2006 Red Lion Hotels announced plans to double the number of properties under the Red Lion brand within five years through acquisitions in Texas, California and Nevada and a gradual eastward expansion. However, by 2009 the chain had only managed to increase its holdings by two hotels. Between 2007 and 2008 parent company Red Lion Hotels Corporation lost one-third of its market value and
subsequently instituted a wage freeze and five percent pay reduction for salaried employees.
In a 2008 interview, CEO Anupam Narayan stated he expected the chain to lose six properties by the end of that year; franchises that did not commit to a required remodel program.
In 2004 Red Lion launched a major advertising campaign under the tag line "Stay Comfortable." Featuring a cartoon lion caricature, the campaign included full-page ads in daily newspapers in nine U.S. cities, as well as regional editions of USA Today
. Created by ISM Boston, the campaign was recognized with an Adrian Award by the Hospitality Sales and Marketing Association International (HSMAI).
In February 2008 Red Lion announced it had revamped and renamed "GuestAwards", its customer loyalty program. The newly debuted "Red Lion R&R Club" featured lower point redemption thresholds.
, the sole property in the division.
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.
, submitted an unsolicited acquisition offer of $9.50 per share to acquire Red Lion. 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."
History
The company's roots were founded in Spokane, Washington in 1937 under the name Goodale & Barbieri Company, a property management services and commercial development company. In 1976 the company began operating the River Inn in Spokane, its first hotel.In 1998 Goodale & Barbieri made an Initial Public Offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
and, the following year, changed its name to WestCoast Hospitality. In 2005 the company again changed its name, this time to Red Lion Hotels Corporation and, in 2006, divested from its property development operations by spinning-off that segment into an independent Goodale & Barbieri Company.
Operating units
Red Lion Hotel Corporation operates in three revenue-generating segments: the Hotel Segment, the Franchise Segment and the Entertainment Segment.Hotel Segment
Red Lion competes in the moderate-priced, full-service segment of the lodging industry, along with Holiday InnHoliday Inn
Holiday Inn is a brand of hotels, formally a economy motel chain, forming part of the British InterContinental Hotels Group . It is one of the world's largest hotel chains with 238,440 bedrooms and 1,301 hotels globally. There are currently 5 hotels in the pipeline...
, Ramada
Ramada
Ramada is a hotel chain owned and operated by Wyndham Worldwide.- History :The lodging chain was founded in 1953 by longtime Chicago restaurateur Marion W...
, and Quality Inn.
History
Business partners Tod McClaskey and Ed Pietz purchased the 89-room Thunderbird Motor Inn in Portland
Portland, Oregon
Portland is a city located in the Pacific Northwest, near the confluence of the Willamette and Columbia rivers in the U.S. state of Oregon. As of the 2010 Census, it had a population of 583,776, making it the 29th most populous city in the United States...
, Oregon in 1959, the first property in what was initially called Thunderbird-Red Lion Inns. In 1984 McClaskey and Pietz sold the chain—which, at the time, had 57 properties—to Kohlberg, Kravis, Roberts & Co. for a reported $600 million.
In 1996 the chain was acquired by Doubletree
Doubletree
.Doubletree by Hilton is a worldwide brand of upscale, full-service hotels and resorts trademarked by Hilton Worldwide. There are currently more than 220 locations with 55,000 rooms worldwide in the United States, Canada, Costa Rica, Peru, China, United Kingdom, Italy, Slovakia, Tanzania, Norway...
which rebranded most of the properties as Doubletree Hotels. At the time Doubletree merged with Promus Hotel Corporation
Promus Hotel Corporation
Promus Hotel Corporation was a hotel management and franchise company based in Memphis, Tennessee.- History :Promus Hotel Corporation's beginnings are tied to the original Holiday Inn company in Memphis, Tennessee. By 1974 Holiday Inn had diversified into several businesses that included a meat...
in 1999, only 19 hotels retained the Red Lion name.
Red Lion Hotels was sold to WestCoast Hospitality by Hilton
Hilton Hotels Corporation
Hilton Worldwide is a global hospitality company. It is owned by the Blackstone Group, a private equity firm. As of July 2011 Hilton brands encompass 3,750 hotels with over 600,000 rooms in 84 countries...
—which had previously acquired Promus—in 2001. By the time of the sale, the chain had rebounded to 42 hotels, 22 of which were franchises.
Seeking to revitalize some of its aging properties, in 2004 the company announced plans to sell 11 company-owned hotels to fund a $40 million "rejuvenation project" for the rest of the chain.
The following year WestCoast Hospitality changed its name to Red Lion Hotels Corporation, part of its effort to emphasize a renewed focus on the Red Lion brand.
Operations
Red Lion hotels are currently located in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
, Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
, Idaho
Idaho
Idaho is a state in the Rocky Mountain area of the United States. The state's largest city and capital is Boise. Residents are called "Idahoans". Idaho was admitted to the Union on July 3, 1890, as the 43rd state....
, Montana
Montana
Montana is a state in the Western United States. The western third of Montana contains numerous mountain ranges. Smaller, "island ranges" are found in the central third of the state, for a total of 77 named ranges of the Rocky Mountains. This geographical fact is reflected in the state's name,...
, Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
, Oregon
Oregon
Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...
, Utah
Utah
Utah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the...
, Washington
Washington State
Washington State may refer to:* Washington , often referred to as "Washington state" to differentiate it from Washington, D.C., the capital of the United States* Washington State University, a land-grant college in that state- See also :...
and British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
. This includes approximately 30 company-owned and 17 franchised properties. The majority of these are full-service properties, though there are a few limited-service locations.
In 2006 Red Lion Hotels announced plans to double the number of properties under the Red Lion brand within five years through acquisitions in Texas, California and Nevada and a gradual eastward expansion. However, by 2009 the chain had only managed to increase its holdings by two hotels. Between 2007 and 2008 parent company Red Lion Hotels Corporation lost one-third of its market value and
subsequently instituted a wage freeze and five percent pay reduction for salaried employees.
In a 2008 interview, CEO Anupam Narayan stated he expected the chain to lose six properties by the end of that year; franchises that did not commit to a required remodel program.
Marketing and promotions
In 2004 Red Lion launched a major advertising campaign under the tag line "Stay Comfortable." Featuring a cartoon lion caricature, the campaign included full-page ads in daily newspapers in nine U.S. cities, as well as regional editions of USA Today
USA Today
USA Today is a national American daily newspaper published by the Gannett Company. It was founded by Al Neuharth. The newspaper vies with The Wall Street Journal for the position of having the widest circulation of any newspaper in the United States, something it previously held since 2003...
. Created by ISM Boston, the campaign was recognized with an Adrian Award by the Hospitality Sales and Marketing Association International (HSMAI).
In February 2008 Red Lion announced it had revamped and renamed "GuestAwards", its customer loyalty program. The newly debuted "Red Lion R&R Club" featured lower point redemption thresholds.
West Coast Hotel Partners
West Coast Hotel Partners owns and operates the Cape Fox Lodge in Ketchikan, AlaskaKetchikan, Alaska
Ketchikan is a city in Ketchikan Gateway Borough, Alaska, United States, the southeasternmost sizable city in that state. With an estimated population of 7,368 in 2010 within the city limits, it is the fifth most populous city in the state....
, the sole property in the division.
Franchise Segment
The Franchise Segment licenses the Red Lion brand to third-party hotel owners. As of 2009 there were approximately 17 franchised Red Lion hotels.Entertainment Segment (TicketsWest)
The Entertainment Segment operates TicketsWest. Founded in 1987 as G&B Select-A-Seat, a computerized ticketing service, TicketsWest is a minor, regional competitor to TicketmasterTicketmaster
Ticketmaster Entertainment, Inc. is an independent American ticket sales and distribution company based in West Hollywood, California, USA, with operations in many countries around the world. In 2010 it merged with Live Nation to become Live Nation Entertainment...
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.
Controversies
In mid-2008 Columbia Pacific Opportunity Fund, an investment manager for the Baty family, the Seattle founders of Emeritus CorporationEmeritus Assisted Living
Emeritus Corporation Emeritus Senior Living is a provider of independent living, assisted living, Alzheimer’s/memory care, and skilled nursing for seniors living in Emeritus communities throughout the United States...
, submitted an unsolicited acquisition offer of $9.50 per share to acquire Red Lion. 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
Poison pill
A shareholder rights plan, colloquially known as a "poison pill", or simply "the pill" is a type of defensive tactic used by a corporation's board of directors against a takeover...
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."