January 14, 2010 in Business

No reason given for Red Lion CEO’s ouster

By The Spokesman-Review
 
Tags:Jon EliassenRed Lion Hotels
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The directors of Red Lion Hotels Corp. have removed Anupam Narayan as chief executive officer, replacing him with board member and long-time Avista Corp. executive Jon Eliassen.

In a statement released after the close of markets Thursday, the Spokane-based hotel chain said Narayan left Red Lion Wednesday. No reason was given for his departure.

Narayan, who joined Red Lion in 2004, had been CEO since February 2008. During his tenure, Red Lion reduced the number of properties from 52 to 45, in part by severing relationships with franchisees unable or unwilling to make upgrades sought by the company.

Red Lion also rebuffed a buyout proposal by a Seattle investment company offering $9.50 per share in June 2008. Shares closed Thursday at $4.85, although the company has reported profits for the last two quarters. The fourth quarter and 12-month report is due next month.

Columbia Pacific Opportunity Fund remains a large shareholder, but Eliassen said the Seattle company was not informed of the board’s plans, and had nothing to do with the decision.

Narayan could not be reached for comment.

Eliassen declined to discuss Narayan’s ouster, saying only that the directors thought a change was needed that would enable the company to pursue opportunities for expanding the Red Lion brand, primarily through franchising.

“It wasn’t a performance issue,” said Eliassen, who has been on the Red Lion board since 2003.

Members also have confidence in the abilities of the remaining management team to go forward, he said.

Chief Financial Office Tony Dombrowik said the downturn in the hospitality industry has created opportunities to attract property owners unhappy with revenues.

With a new sales-tracking system, he said, Red Lion can handle a significant expansion.

Eliassen, Avista’s former chief financial officer, is also chairman of Itron Corp.’s board of directors.

He was president of the Spokane Area Economic Development Council before it was folded into Greater Spokane Incorporated.

Eliassen was appointed on an interim basis and said he does not plan to serve beyond 2010.

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Four comments on this story so far. Add yours!

  • southie4573 on January 14 at 6:24 p.m.

    Sounds like a hostile takeover is coming soon.

  • oneandtwo on January 14 at 8:30 p.m.

    rebuffed a twice share value buyout? Someone was taking stupid pills.

    and swapping out an Avista clown for Abdullah Bin Dumbo?

    someone has shorted this guys brain sheets a time or two.

    I’d be a Red faced Lion too.

  • madscientist on January 14 at 9:26 p.m.

    mr. eliaseen has alot of power it seems. Deep ties in avista, red lion and itron.
    further investigation is required as there is more to this story then some stock prices. bigger things are involved here.
    spokesman review should investigate further before rushing quick bland stories to print.

  • zelda on January 14 at 10:09 p.m.

    Why don’t we just deed the whole city over to Avista already? Make it official.

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