SPOKANE, Wash.—Red Lion Hotels Corporation announced it has sold for $9.0 million the Red Lion Hotel Sacramento at Arden Village. This hotel was previously leased to the buyer. As part of the transaction, the franchise agreement at that location will terminate and a new franchise will be added in Sacramento.
“This transaction supports our strategy to reduce debt, expand our franchise system and improve the competitive position of our hotels,” said Jon E. Eliassen, President and chief executive officer of Red Lion Hotels Corporation, in an announcement. “We sold our property in Sacramento and added a new franchise hotel with extensive meeting and banquet facilities that make it a much better fit in that market for the Red Lion brand going forward.”
In November 2011, the company acquired ownership of the Red Lion Hotel Sacramento at Arden Village as part of an agreement with iStar Financial Inc. to purchase 10 previously leased hotels. The company has been leasing the property to a company owned by Kumar Sharma, which has now purchased the hotel from Red Lion. As part of the transaction, Sharma’s subsidiary, Shri Vinayaka Hotel Inc., has signed a new franchise license agreement with Red Lion Hotels for the former Woodlake Hotel Sacramento, a property he also owns.
“Our new franchised property in Sacramento is in a wonderful location and is a great fit for our customers,” said Ron Burgett, executive vice president of lodging and brand Development for Red Lion Hotels. “And, we are especially pleased to carry forward our business relationship with Mr. Sharma.”
The new franchise, the Red Lion Hotel Woodlake Conference Center Sacramento is a full service hotel that offers 306 guest rooms, 60,000 square feet of meeting space, a fitness center, and an outdoor pool.