Red Lion Hotels Corp. has agreed to sell the Red Lion Colonial Hotel in Helena, MT, to Helena Colonial L.L.C. The purchase price for the sale is $5.6m and the close date is scheduled for July 31.
The buyer plans to ink a franchise license agreement with Red Lion Hotels Franchising Inc. and maintain the Red Lion brand on the hotel.
‘The sale of our hotel property in Helena fits with our strategy of selling certain non-core assets to pay down debt, invest in our brand and increase shareholder value,’ said Jon E. Eliassen, president and chief executive officer of Red Lion Hotels Corp. ‘The buyer has informed us that it intends to invest substantial additional capital in the property, and we anticipate that the hotel's enhanced appeal will be attractive to our Red Lion guests in Helena.’
The 149-room Red Lion Colonial Hotel has 15,500 square feet of meeting space, the largest group space in the market, and underwent a major renovation in 2006. It is located approximately one mile from the Montana State Capitol building. Helena Colonial L.L.C. is using Stockman Bank, based in Montana, to finance the acquisition.
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