Red Lion Hotels Corp. will sell its Hotel on Fifth Avenue in Seattle to an affiliate of Lowe Enterprises for $71 million, the Spokane-based hospitality company said today.
The deal, expected for close this quarter, will maintain the Red Lion brand on the 297-room property, but Lowe subsidiary Destination Hotels & Resorts will take over management responsibilities.
The agreement also provides for cross-promotion of Red Lion and Destination hotels.
Red Lion announced in January it would sell the Seattle property, preferrably to an owner who would retain the brand.
"This is exactly the type of agreement we were targeting," said Red Lion President Jon Eliassen, noting the deal will strengthen the company's balance sheet.
Red Lion will announce its earnings Thursday.
Destination Hotels operates more than 7,000 hotel and condominium rooms.