Spokane, Washington-based
Red Lion Hotels Corporation
(
RLH
) recently opened a new franchise in Cathedral City, California
to lure its guests during winter. As part of a brand
revitalization program, the Red Lion brand has been separated
into Red Lion Hotels and Red Lion Inns & Suites. The new
signage and logo are also intended to clearly demarcate the
services and offerings of each of its brands and thus be more
informative for guests.
The addition of the 97-room Cathedral City property falls
under the 'Inns & Suites' category. It is quite significant
to the hotelier as it will become the first Inn & Suites
property with a new emblem.
This property is located adjacent to southeast of Palm Springs
and is owned and managed by Washington-based Sang and Connie Chae
of WR Management Co. The new property is strategically
located in a dynamic market like California and hence is expected
garner travelers on a regular basis. According to California
Travel Association, with thriving international arrivals, the
region is arguably one of the most visited places by overseas
visitors.
Additionally, the hotel offers an outdoor pool and sundeck.
Along with several other amenities, the property is notably
surrounded by more than 100 golf courses in the region.
Red Lion, which owns, operates and franchises mid-scale full,
select and limited service hotels, has been considering expansion
options for quite some time. Earlier, toward the end of November,
this leisure company inked a franchise license agreement with the
owners of a hotel located in Kent, Washington.
Once refurbished, this 60-guestroom Kent property will be
unveiled as Red Lion Inn & Suites. Prior to this, back in
September, Red Lion inked a franchise license agreement with the
owners of a hotel located at the Denver International
Airport.
Red Lion, which carries a Zacks #3 Rank (short term Hold
rating), has expanded in many cities just like its peers
Starwood Hotels & Resorts Worldwide Inc.
(
HOT
) and
Hyatt Hotel Corp.
(
H
). We believe that Red Lion will benefit from the excellent
positioning of the property, with its location complementing the
brand better.
HYATT HOTELS CP (H): Free Stock Analysis
Report
STARWOOD HOTELS (HOT): Free Stock Analysis
Report
RED LION HOTELS (RLH): Free Stock Analysis
Report
To read this article on Zacks.com click here.
Zacks Investment
Research