Red Lion posts loss, cuts debt in 2012
Spokane-based Red Lion Hotels Corp. reported Thursday a net loss of $14.7 million for 2012 compared with a loss of $7.1 million in 2011. But the hospitality company also reported improvement in total revenue and conversions of properties into branded franchises.
Total loss per share in 2012 came to 76 cents, compared with a loss of 38 cents per share in 2011.
CEO and President Jon Eliassen said the loss stemmed from impairments and losses incurred on sales of some hotels during 2012. Sales in Helena, Sacramento and Denver totaled $9.4 million in impairments.
Those sales are part of an ongoing strategy, Eliassen added, to convert hotels to franchises.
“During the year we continued selling some of our assets and we signed six franchise agreements,” Eliassen said.
Total revenue from owned and leased hotels came to $126.6 million, up $5.5 million from the year before, Eliassen said.
Comparable 2012 revenue per available room increased 5.5 percent to $41.20. Driving that growth, Eliassen said, was a 5.5 percent increase in average daily rate to $84.90 for the year.
The company also reduced liabilities from around $100 million in 2011 to roughly $80 million for 2012.
“That’s important,” he said, adding, “the main thing is we’re significantly reducing the amount of debt on our balance sheet. That leaves Red Lion stronger than it was a year ago.”
In guidance for the rest of 2013, the company expects revenue per available room to increase 1 to 3 percent over 2012. The company also said it expects to invest $10 million to $12 million in capital improvements in 2013.