RLH Corporation (NYSE:RLH) announced that it has entered into non-binding sale agreement for its Red Lion Hotel Anaheim for $23 million in gross proceeds. The transaction, which is subject to customary contingencies, terms and closing conditions, is expected to close by year-end. The sale is part of the Company’s ongoing hotel asset disposition program.
Red Lion Hotel Anaheim is wholly owned by the Company and is not encumbered by a mortgage. Net proceeds, after broker fees and customary closing costs, will be used to repay corporate level debt and fund franchise growth opportunities. A transitionary franchise agreement is being negotiated for the hotel.
Greg Mount, Chief Executive Officer commented, “We’re pleased to announce the impending sale of Anaheim which leaves us with just four owned or leased assets. Market sentiment toward hotel investments have improved and we are eager to redeploy the proceeds from our sales into growing our core franchise business.”