Red Lion Hotels has announced the sales of two key pieces of real estate.
The company sold WestCoast Outlaw Hotel in Kalispell, Mont., for $3.9 million. The hotel was the last of 11 non-core hotel properties that the firm has been selling off over the past several years. Profits from the sales were invested back into renovations at other Red Lion hotels and used on branding efforts, company officials reported.
Red Lion is also selling the Lincoln and Grant office and retail buildings in Spokane to Barbieri Real Estate Co. for $13.3 million. The sale is expected to close by the end of September. The payment will include cash, common stock in Red Lion Hotel Corp., assumption of debt and units in Red Lion Hotels Limited Partnership. Company officials said the payment structure will allow Red Lion to defer taxes on the gains from the sale.
The real estate transactions were discussed in the company’s earnings report. Red Lion reported a net income of $2.2 million, or 11 cents per share, on revenues of $49 million during the second quarter. During the second quarter of 2006, the company reported $2.1 million in net income.
The company also announced that revenue per available room at its owned and leased hotels increased 14.3 percent during the second quarter, compared with the same time period last year. In addition, the average daily rate rose 6.4 percent to $88.51. Occupancy during that time period rose to 66.5 percent.