RLH Secures Non-Binding Sale Agreements for Three Hotels
03 Setembro 2019 - 5:30PM
RLH Corporation
(NYSE:RLH) announced that it
has entered into non-binding sale agreements for its Red Lion Hotel
Atlanta Airport, Hotel RL Washington D.C. and Hotel RL in
Salt Lake City for an aggregate $64 million in gross
proceeds. The transactions, which are subject to due diligence,
financing contingencies and customary closing conditions, are
expected to close by year-end. The sales are part of the Company’s
ongoing hotel asset disposition program.
Each of these properties are held in joint
ventures, of which the Company owns 55%. Net proceeds to the
Company will be used to repay property level and corporate level
debt. The Red Lion Hotel Atlanta will not be retaining the
Red Lion flag. It is anticipated that the Hotel RL Washington
D.C. and the Hotel RL Salt Lake City will retain their Red Lion
flag during a transition period, to be determined, as the new
property owners pursue a change in use. In addition to these
three agreements, the Company is continuing its process to secure
the sale of the Red Lion Hotel Anaheim.
Greg Mount, Chief Executive Officer commented on
the transactions, “We’re pleased to announce the impending sale of
three of our joint venture properties, including Salt Lake City
which is not currently being formally marketed. These transactions
are a continuation of our real estate marketing and disposition
program as we focus on our franchise and branding strategy. We are
encouraged by the renewed interest in our remaining owned hotels
and will continue to work to successfully close on those assets in
a manner that maximizes their value.”
The Company is increasing its previously
communicated expectation for net sales proceeds to $35 to $45
million from $30 to $40 million. The net proceeds range
reflects RLH’s portion of the funds received upon completion of the
sales for all of its owned hotels. While the Company is diligently
pursuing the sales of its owned hotel assets, it can make no
guarantees that the transactions will close.
To learn more about franchising with RLH
Corporation, visit franchise.rlhco.com. We don’t wait for the
future. We create it.
Forward Looking Statements
This press release contains forward-looking
statements within the meaning of federal securities law, including
statements concerning plans, objectives, goals, strategies,
projections of future events or performance and underlying
assumptions (many of which are based, in turn, upon further
assumptions). The forward-looking statements in this press release
are inherently subject to a variety of risks and uncertainties that
could cause actual results to differ materially from those
expressed. Such risks and uncertainties include, among others,
economic cycles; international conflicts; changes in future demand
and supply for hotel rooms; competitive conditions in the lodging
industry; relationships with franchisees and properties; impact of
government regulations; ability to obtain financing; changes in
energy, healthcare, insurance and other operating expenses; ability
to sell non-core assets; ability to locate lessees for rental
property; dependency upon the ability and experience of executive
officers and ability to retain or replace such officers as well as
other matters discussed in the Company's annual report on Form 10-K
for the year ended December 31, 2018, and in other documents
filed by the Company with the Securities and Exchange
Commission. The Company undertakes no intent or obligation to
publicly update or revise any forward-looking statements.
About RLH CorporationRLH
Corporation is an innovative hotel company focused on the
franchising of upscale, midscale and economy hotels. The company
maximizes return on invested capital for hotel owners across North
America through relevant brands, industry-leading technology and
forward-thinking services. For more information, please visit the
company's website at www.rlhco.com.
Social
Media:www.Facebook.com/myhellorewards www.Twitter.com/myhellorewards www.Instagram.com/myhellorewards www.Linkedin.com/company/rlhco
Investor Relations Contact: Evelyn
InfurnaInvestor Relations
203-682-8265investorrelations@rlhco.com
Red Lion Hotels (NYSE:RLH)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Red Lion Hotels (NYSE:RLH)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024