Loss at Red Lion for quarter, year
Red Lion Hotels Corp. Tuesday reported losses for the fourth quarter and full-year 2009 as an industry-wide downturn took its toll.
The Spokane-based chain of 45 hotels and its entertainment ticketing business lost $3.1 million, or 16 cents per share. That figure excludes an $8.5 million impairment taken on its hotel in southeastern Denver, which the company purchased and remodeled in 2008, just as demand for hotel rooms began to fall. A second impairment of $200,000 was taken on another property in Astoria, Ore.
Revenues fell 13.7 percent to $35.7 million.
The company lost $2.6 million, or 15 cents per share, during the fourth quarter of 2008.
For the year, Red Lion lost $1 million, or 5 cents per share, before the impairments. The company earned $2 million, or 11 cents per share, in 2008.
Revenue fell almost 12 percent for the year, to $165.4 million.
Declines were also reported on revenue per room and earnings before income tax and depreciation, but the declines were less than those for the hospitality industry as a whole.
Chief Executive Officer Jon Eliassen said the hospitality business will remain soft through most of 2010. To help build revenues, Red Lion will look for opportunities to recruit more franchise operators, including many that do not offer the full-service characteristic of its existing hotels.