WestCoast Reinvestment Plan on Target
Corporation today announced that it has agreements in place to
sell seven hotels and the Crescent and Paterson commercial buildings in
Spokane, Washington.The purchasers of the Red Lion ParkCenter Suites in Boise, Idaho, the Red
Lion Inn Aberdeen, Washington, the Red Lion Inn Kalispell, Montana and the Red
Lion Inn Bend South, in Bend, Oregon, have all completed due diligence and the
company expects the sales of these properties to close in the third quarter.
The company also has agreements to sell the Red Lion Hotel Hillsboro, Oregon,
the Red Lion Inn Klamath Falls, Oregon, and the Budget Inn in Spokane,
Washington. The purchasers for these hotels are currently conducting their
due diligence investigations and, subject to satisfactory completion, the
company expects sales to close in the third quarter.
On July 11, 2005, the company entered into an agreement with a purchaser
for the Crescent and Paterson commercial buildings in Spokane, Washington.
The purchaser is conducting its due diligence investigation and, subject to
satisfactory completion, the company expects the sale of these commercial
buildings to close by the end of the year.
The gross aggregate purchase price of these seven hotels and the Crescent
and Paterson commercial buildings is approximately $48 million.
The company continues to market for sale through a listing agreement with
Colliers International the WestCoast Ridpath Hotel in Spokane, Washington, the
Red Lion Hotel, Idaho Falls, the Red Lion Hotel Yakima Gateway, in Washington,
and the WestCoast Outlaw Hotel in Kalispell, Montana. Chris Burdett, Senior
Vice President—Northwest, Colliers International Hotels, commented on the
sales process, “We are truly impressed and are very pleased with the pace at
which these assets have been placed in contract. It is a strong reflection of
the WestCoast organization and of the overall desirability of lodging assets
throughout the Northwest. Given the strong initial response, we expect to
complete the sale of the properties within the twelve-month period we
originally set, and are obviously well on our way to achieving that goal. “
Arthur M. Coffey, President and Chief Executive Officer of WestCoast
Hospitality Corporation, said “We are on target with our planned sales of
non-core assets, and we are pleased with the prices we have been able to
command in the market. Interest in our properties for sale has been brisk and
we are confident we will successfully complete our sales plan by the end of
The company intends to use the proceeds of this sale of non-core assets to
complete the revitalization of Red Lion Hotels throughout the company’s
11 western states and British Columbia operating region—one of the most
significant facility improvement programs in company history. This investment
will complete the planned renovations of 31 hotels, accelerating Red Lion
Hotels’ ongoing program to improve hotel quality by increasing customer
comfort, freshening decor and modernizing with new technology.