WestCoast $40 Million Investment to Revitalize Red Lion

WestCoast Hospitality
Corporation today announced it will invest $40 million to revitalize Red
Lion Hotels throughout the company’s 12-state and British Columbia
operating region—one of the most significant facility improvement
programs in company history. The investment will enhance 31 hotels, accelerating WestCoast’s ongoing
program to improve hotel quality by increasing customer comfort,
freshening decor and modernizing with new technology.

“WestCoast continues to strengthen its hotel business,” said Arthur
Coffey, President and Chief Executive Officer of WestCoast Hospitality
Corporation. “This investment builds on the $11 million we have invested
since the beginning of this year in areas where customers’ quality
expectations are continuing to grow.”

To support the $40 million investment, WestCoast will sell 10 hotels and
other non-core properties and use the proceeds to make improvements to all
Red Lion Hotels it owns over the next 18 months. “Seven of the properties
being sold are in markets where WestCoast has multiple hotels, allowing us
to focus our investment and marketing on the properties which will best
represent our brand and have the greatest growth potential,” said Coffey.

The investment plan reflects the management team’s strategy to maximize
hotel performance and support long-term Red Lion brand growth, said
Coffey. “With the hotel industry rebounding from a protracted economic
slump, we are taking action now to be in the best position possible to
meet the future growth potential.”

Mr. Coffey, along with John Taffin, Executive Vice President Hotel
Operations, and Anupam Narayan, Executive Vice President and Chief
Investment Officer, will be participating in the Friedman Billings Ramsey
11th Annual Investor Conference on Tuesday, November 30, 2004. As part of
this conference, the team will be conducting a presentation in which they
will discuss the company’s investment plan. The presentation will be at
5:00 p.m. Eastern Time and can be accessed by the public via webcast at
the following website address: http://wsw.com/webcast/fbr7/weh .
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