Red Lion Hotels Announces Sale of its Hotel in Helena, Montana for $5.6M
Red Lion Hotels Corporation (NYSE: RLH) announced today it has entered into an agreement to sell the Red Lion Colonial Hotel in Helena, Mont., to Helena Colonial L.L.C. The purchase price for the sale is $5.6 million and the close date is scheduled for July 31, 2012. The buyer has indicated that it intends after closing to enter into a franchise license agreement with Red Lion Hotels Franchising Inc. and maintain the Red Lion brand on the hotel.
"The sale of our hotel property in Helena fits with our strategy of selling certain non-core assets to pay down debt, invest in our brand and increase shareholder value," said Jon E. Eliassen, President and Chief Executive Officer of Red Lion Hotels Corporation. "The buyer has informed us that it intends to invest substantial additional capital in the property, and we anticipate that the hotel's enhanced appeal will be attractive to our Red Lion guests in Helena."
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.