DENVER — RLH Corporation has closed on the sale of its Red Lion Hotel Anaheim in California for $21.5 million in gross proceeds. Red Lion Hotel Anaheim was wholly owned by the company and unencumbered by a mortgage. Proceeds after broker fees and customary closing costs will be used to repay the $10 million credit facility. The remaining funds of $10.8 million will be used to fund franchise growth opportunities and for general business purposes.
This transaction marks the final closing of four hotels announced in September 2019 as under contract to be sold, and is part of the company’s ongoing hotel asset disposition program. The net proceeds from these four assets after closing costs, the repayment of property level mortgage and corporate debt, and distributions to its joint venture partners was $22.9 million.
Subsequent to the sales of these hotels, the company’s outstanding debt comprised hotel property level debt of $5.6 million on the Olympia, Wash., hotel, which is held in a joint venture.
The company is currently in the process of marketing its Olympia, Wash., and Baltimore, Md., hotels. RLH Corporation continues to anticipate cumulative net proceeds in the range of $32 million to $36 million from the combined 2019 and 2020 asset sales.