In order to expand its footprint in the domestic market,
Spokane, Wash.-based hotelier,
Red Lion Hotels Corporation
), recently inked two license development deals with franchisees
in California. As per the agreement, the company will unveil two
Red Lion-branded properties in Greater Los Angeles area.
Financial terms of the deal were not disclosed.
Red Lion has penned the first deal with LFA Hotels for
rebranding Ayres Grand Boutique Suites in Ontario. The 107-room
property is strategically positioned at 204 N Vineyard Avenue and
lies in proximity to downtown Los Angeles.
The company's second deal is with Best West LLC for converting
the former Holiday Inn Express Perris-East hotel in Perris. The
107-guestroom property will become Red Lion Inn & Suites
Perris post the refurbishment. This property, strategically
positioned at 480 S Redlands Ave, will be unveiled within the
next two months.
Management at Red Lion believes that the location of the
properties will complement and highlight its brand better.
California, a popular tourist destination for both domestic and
overseas visitors, makes tourism an important aspect of its
economy. Presently, Red Lion has seven properties in the state.
Further, with these additions, Red Lion will be able to enhance
its portfolio in the South California 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 then
earns a fee for managing/franchising the hotel. The company
expects to add at least 30 to 40 franchised hotels by 2014.
Some other hoteliers worth looking 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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