Our Wenatchee Red Lion Hotel could be checking out.
The 149-room hotel on North Wenatchee Avenue is one of half a dozen Red Lion properties put on the market last week, according to staff writer Marc Stiles of the Puget Sound Business Journal.
The hotel is considered one of the company’s “non-strategic assets that need significant upgrades,” said Julie Shiflett, chief financial officer for the 55-property chain. The other Red Lion hotels put up for sale are in Kennewick, Kelso, Yakima and two in Idaho (Twin Falls and Pocatello).
The properties have a total of 890 rooms, or about 7 percent of Red Lion’s total of 12,441 rooms, wrote Stiles.
The sale of the hotels is part of a growth strategy, the Business Journal reported, to turn around a company that’s undergone big changes in recent years, including resignations of key officers earlier this year. CEO James Evans said the company will focus more on operating hotels in large metro centers.
So far this year, Red Lion has added 11 franchised properties with plans to add 20 more franchise properties in 2014. Over the last four quarters, wrote Stiles, Red Lion’s total net income was down $6.8 million, even though it posted $1.2 million in revenue last quarter.
See Stiles' full article here.
We hope to get more details on this sale early next week and keep you posted.