In a bid to beef up its portfolio in the domestic market,
Spokane, Wash.-based hotelier,
Red Lion Hotels Corporation
) is set to introduce a Red Lion Inn & Suites-branded
property in Walla Walla, Wash. In this regard, the hotelier inked
a license agreement with a franchisee. The financial terms of the
deal were not disclosed.
The 80-guestroom hotel - Red Lion Inn & Suites Walla Walla
- is slated to be opened by the end of this year once it is
renovated. Strategically positioned in downtown Walla Walla, the
property is adjacent to Whitman College campus and other
historical attractions. The property is owned and managed by BHG
Hotels which also owns Red Lion Hotel Portland Airport in
Being located in a dynamic market like Walla Walla, which is
the centre of Washington Wine Country, the new property is
expected to garner travelers on a regular basis. The property
will enable Red Lion to enhance its portfolio in the Washington
market where it currently boasts 17 properties. The deal also
paved the way for the owners of the hotel to reap the benefits
from Red Lion's much greater scale and brand name. This will help
the company to compete in the mid-scale market.
Red Lion is highly concentrating on increasing its franchise
activities. The franchising business is capital efficient as the
owner/developer partners provide the capital and the company
earns a fee for managing/franchising the hotel. The company
expects to include around 30 to 40 franchised hotels by 2014.
Some other hoteliers worth considering at the current level
Hyatt Hotels Corporation
China Lodging Group, Limited
Marriott Vacations Worldwide Corp.
). All these companies carry a Zacks Rank #2 (Buy).
HYATT HOTELS CP (H): Free Stock Analysis
CHINA LODGING (HTHT): Free Stock Analysis
RED LION HOTELS (RLH): Free Stock Analysis
MARRIOT VAC WW (VAC): Free Stock Analysis
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