Red Lion Hotels

Red Lion Hotels
Industry Hotel
Founded 1959
Number of locations
 39
Area served
 United States
Parent Red Lion Hotels Corporation
Website Red Lion Hotels

Red Lion Hotels is a full-service, midscale hotel brand owned by Red Lion Hotels Corporation.

Red Lion competes in the moderate-priced, full-service segment of the lodging industry, along with Holiday Inn, Ramada, and Quality Inn. Its complementary brand, Red Lion Inn & Suites competes in the moderate-priced limited-service segment of the lodging industry, along with Holiday Inn Express, Fairfield Inn, and Hampton Inn. They have 53 hotels in their system with 12,344 total rooms, and 712,687 square feet of meeting space.[1]

History

Business partners Tod McClaskey and Ed Pietz purchased the 89-room Thunderbird Motor Inn in Portland, Oregon in 1959, the first property in what was initially called Thunderbird-Red Lion Inns. In 1984 McClaskey and Pietz sold the chain—which, at the time, had 57 properties—to Kohlberg, Kravis, Roberts & Co. for a reported $600 million.[2]

The brand's ownership has changed several times throughout its history. In 1996 the chain was acquired by Doubletree which rebranded most of the properties as Doubletree Hotels. At the time Doubletree merged with Promus Hotel Corporation in 1999, only 19 hotels retained the Red Lion name.[3]

Red Lion Hotels was sold to WestCoast Hospitality by Hilton—which had previously acquired Promus—in 2001. By the time of the sale, the chain had rebounded to 42 hotels, 22 of which were franchises.[4]

Seeking to revitalize some of its aging properties, in 2004 the company announced plans to sell 11 company-owned hotels to fund a $40 million "rejuvenation project" for the rest of the chain.[5] The following year WestCoast Hospitality changed its name to Red Lion Hotels Corporation, part of its effort to emphasize a renewed focus on the Red Lion brand.

Operations

Red Lion hotels are currently located in Arizona, California, Colorado, Idaho, Michigan, Montana, Nevada, New Mexico, Oregon, Utah, Washington and British Columbia.[6] This includes approximately 30 company-owned and 17 franchised properties. The majority of these are full-service properties, though there are a growing number of limited-service locations. In 2006 Red Lion Hotels announced plans to double the number of properties under the Red Lion brand within five years[7] through acquisitions in Texas, California and Nevada and a gradual eastward expansion. However, by 2009 the chain had only managed to increase its holdings by two hotels. Between 2007 and 2008 parent company Red Lion Hotels Corporation lost one-third of its market value and[8] subsequently instituted a wage freeze and five percent pay reduction for salaried employees.[9] In a 2008 interview, CEO Anupam Narayan stated he expected the chain to lose six properties by the end of that year; franchises that did not commit to a required remodel program.[10] In early 2014 Red Lion Hotels Corp shifted the company focus away from the financial struggles of the market to the operation of the hotels under the Red Lion banner. This was due to a stabilization in the hospitality market following the economic downturn of 2007. The new CEO of the company coming from over 25 years in the hospitality industry wanted to focus more on providing a high quality brand for guests of the corporation.

Marketing and promotions

In 2004 Red Lion launched a major advertising campaign under the tag line "Stay Comfortable." Featuring a cartoon lion caricature, the campaign included full-page ads in daily newspapers in nine U.S. cities, as well as regional editions of USA Today.[11] Created by ISM Boston, the campaign was recognized with an Adrian Award by the Hospitality Sales and Marketing Association International (HSMAI).

In February 2008 Red Lion announced it had revamped and renamed "GuestAwards", its customer loyalty program. The newly debuted "Red Lion R&R Club" featured lower point redemption thresholds.[12] In May 2014, the company announced it was changing its rewards program, and no longer issuing points. They began announcing in August 2013 their rewards program, called "Hello Rewards." The announcement info offered little in details, but claims to be the "most innovative rewards program yet" that will provide "a personalized experience with every reservation and hotel stay."[13]

References

  1. ↑ "The Riverside Hotel in Boise Joins the Leo Hotel Collection". shareholder.com.
  2. ↑ "Tod E. McClaskey, 91; Red Lion Hotel Chain's Co-Founder". latimes.
  3. ↑ Red Lion to Roar Again?, Portland Business Journal, November 29, 1999, Accessed March 3, 2009.
  4. ↑ http://phx.corporate-ir.net/phoenix.zhtml?c=88577&p=irol-newsArticleOther&ID=217844&highlight=
  5. ↑ Red Lion Makes Progress in Hotel Sale , Puget Sound Business Journal, September 28, 2005, Accessed March 3, 2009
  6. ↑ http://redlion.rdln.com/HotelLocator/HotelDirectory.aspx
  7. ↑ http://lhonline.com/mag/red_lion_primes/
  8. ↑ http://masshightech.bizjournals.com/seattle/stories/2008/05/26/focus12.html
  9. ↑ "In brief: Red Lion Hotels reports losses for '08 - Spokesman.com - Feb. 12, 2009". Spokesman.com.
  10. ↑ Anupam Narayan, CEO Red Lion Hotels Corp, Says "The Hotel Industry is Just a Fun Business", Spokane Spokesman-Review, March 30, 2008, Accessed March 3, 2009.
  11. ↑ "New Campaign from Red Lion Hotels brings the Lion to Life". shareholder.com.
  12. ↑ "Red Lion Hotels Corporation Launches Revamped Loyalty Program with Commitment to Brand Promise of 'Stay Comfortable'". shareholder.com.
  13. ↑ personalized experience with every reservation and hotel stay
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