Red Lion Hotels
Corporation has entered into an
agreement to acquire the leasehold interest in the 314 room Radisson Hotel
Maingate- Anaheim in Orange County, California.The hotel is subject to a
long-term lease which runs through 2107 if all extension options are
exercised. The transaction is expected to close by the middle of October
2007 subject to customary closing conditions.
The hotel is located on South Harbor Boulevard in Anaheim, California,
adjacent to the Disneyland Resort, Disney’s California Adventure, Downtown
Disney and the Anaheim Convention Center. Angel Stadium of Anaheim, the
Honda Center and other important area attractions are located minutes away.
The 314-room full service hotel currently features 5,000 square feet of
meeting space, swimming pool, full service restaurant, lounge and fitness
center. This transaction marks the company’s re-entry into the Southern
California market, where the Red Lion brand carries significant brand
Following closing of this transaction, the company plans to spend
approximately $10 million on extensive renovations to guest rooms and
public areas and reposition the hotel to meet Red Lion’s upscale brand
standards. The guest rooms will feature granite countertops, flat screen
televisions, pillow-top beds and new upscale furnishings. The public areas
and the exterior will be renovated and repositioned to provide guests a
contemporary and inviting experience.
Arthur M. Coffey, President and CEO of Red Lion Hotels Corporation,
said, “We are excited about the addition of this great hotel to our system.
Given the hotel’s prime location and with the planned renovations, it will
appeal to group, business and leisure travelers.” Mr. Coffey added, “This
hotel will be a key asset in the important Southern California market and
its location adjacent to Disneyland will provide wide exposure to the Red
Lion brand. I expect it will provide Red Lion a strong base for further
expansion in the region.”