Spokane, Washington-based Red Lion Hotels Corporation (RLH) is on the verge of rebranding a hotel named Cedar Inn & Suites Kennewick, in Kennewick, Washington. In this regard, Red Lion and Sandhu NW Hospitality LLC have entered into a franchise license contract. Financial terms of the deal are not yet disclosed.
The 61-guestroom property is slated to be converted into Red Lion Inn & Suites Kennewick in April. Strategically positioned in the North Young Street, the property is adjacent to Three Rivers Convention Center and Toyota Center and in proximity to the Southridge Sports Complex. The hotel offers various facilities, such as, an indoor pool, and meeting space to its visitors. Moreover, the property is a perfect fit for sport persons as well as business professionals.
Management at Red Lion believes that the location of the property will complement and highlight its brand better. Presently, Red Lion has three properties – Red Lion Hotel Pasco Washington, The Red Lion Hotel Richland Hanford House and Red Lion Hotel Columbia Center – operating in the Tri-Cities. Further, with this addition, Red Lion will be able to further enhance its portfolio in that area.
Earlier, in Nov 2012, Red Lion was engaged in a franchise license agreement with the Sandhu NW Hospitality LLC for rebranding a hotel in Kent, Washington. Post renovation, the 60-guestroom property will become Red Lion Inn & Suites Kent. This property addition will aid Red Lion to compete in the mid-scale market.
Another hotel company, Intercontinental Hotels Group plc.’s (IHG) subsidiary, Holiday Inn also has a strong presence in the Tri-Cities. Intercontinental Hotels currently carries a Zacks Rank #2 (Buy).
Red Lion currently carries a Zacks Rank #4 (Sell). Some other hoteliers, which are going to perform well, moving ahead, include Home Inns & Hotels Management Inc. (HMIN), and Choice Hotels International Inc. (CHH). While Home Inns & Hotels Management carries a Zacks Rank #1 (Strong Buy), Choice Hotels has a Zacks Rank #2 (Buy).
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