Red Lion Hotels

Red Lion Hotels is a North American hotel brand positioned primarily in the moderate-priced, full-service segment of the lodging industry. Its complementary Red Lion Inn & Suites format has served the moderate-priced limited-service market. The brand is associated particularly strongly with the Pacific Northwest, although its hotels have operated across a broader area of the United States and in British Columbia, Canada. The business began in 1959 when Portland-area partners Tod McClaskey and Ed Pietz purchased the 89-room Thunderbird Motor Inn in Portland, Oregon. McClaskey brought operating experience from an earlier hospitality business, while Pietz had a construction background. They expanded through construction and acquisitions in the western United States. The early company used Thunderbird for many motel properties and Red Lion for larger, full-service hotels. The Red Lion name emerged after the partners encountered an existing Thunderbird property in Medford, Oregon. By 1984 the company had grown to 52 properties and was sold to Kohlberg Kravis Roberts & Co. The transaction made the chain one of the largest privately owned hotel groups west of the Mississippi River. Red Lion later became a public company, but its ownership changed again in the 1990s. Doubletree Corporation acquired Red Lion in 1996 in a cash-and-stock transaction. Because Doubletree sought to strengthen its upscale presence, many of Red Lion's larger properties were converted to the Doubletree flag, leaving a substantially smaller Red Lion system. Promus Hotel Corporation, which acquired Doubletree in 1997, recognized Red Lion's strong regional awareness and announced a plan in 1999 to rebuild the brand in the midscale market and expand through franchising. Hilton's acquisition of Promus interrupted that strategy. Hilton subsequently sold Red Lion to WestCoast Hospitality in 2001. WestCoast later changed its corporate name to Red Lion Hotels Corporation, signaling a renewed emphasis on the brand. The brand's later development included efforts to renovate selected company-owned hotels, expand franchising, improve loyalty marketing, and sharpen the guest proposition. Red Lion promoted itself as a comfortable, value-oriented alternative to larger full-service chains, with hotels often offering restaurants, meeting facilities, and regional character. Expansion plans announced in the mid-2000s were only partly realized, and the company faced pressure from the 2007–09 economic downturn, including property exits, cost reductions, and a wage freeze and salary reductions reported in 2008. Red Lion Hotels Corporation subsequently operated a mixture of company-owned and franchised hotels. In 2014 management described a renewed emphasis on hotel operations and guest quality as the lodging market stabilized. The corporation was acquired by Sonesta International Hotels Corporation in 2020, bringing Red Lion into Sonesta's private hotel portfolio. The Red Lion name continues to identify a midscale lodging offering within the wider Sonesta system, although the number and composition of participating properties can change through ownership transfers, reflagging, franchise activity, and hotel closures.

Red Lion Hotels traces its origins to 1959, when Tod McClaskey and Ed Pietz acquired the Thunderbird Motor Inn in Portland, Oregon. The property stood near the Willamette River and became the starting point for a western hotel business. The partners combined operating and construction experience to build and acquire additional motels and hotels across the western United States. The early organization used Thunderbird and Red Lion as related identities. Thunderbird was associated largely with motel properties, while Red Lion was used for larger full-service hotels. The Red Lion name was adopted after the partners encountered an existing Thunderbird hotel in Medford, Oregon. This naming distinction allowed the company to continue expanding without relying exclusively on the Thunderbird identity. By the time the founders sold the company in 1984, the chain had reached 52 properties and operated across eight states. Kohlberg Kravis Roberts acquired the company in 1984. Tod McClaskey remained chief executive until retiring in 1989. KKR later took Red Lion Hotels public in July 1995 under the RL ticker. In 1996 Doubletree Corporation agreed to acquire Red Lion in a transaction valued at approximately $1.2 billion, according to contemporary descriptions. The deal closed on November 8, 1996. Doubletree evaluated properties individually and converted many of the larger or more upscale hotels to the Doubletree brand. Only a reduced group remained under the Red Lion name. Promus Hotel Corporation acquired Doubletree in 1997. Promus believed Red Lion retained substantial recognition in the Pacific Northwest and developed a plan to restore the brand as a midscale hotel chain. The plan included returning selected properties to Red Lion and opening the brand to franchisees. Hilton's announced acquisition of Promus in 1999 changed the strategic context. Hilton already had other midscale offerings and ultimately decided to sell Red Lion rather than continue developing it as a central brand in its portfolio. WestCoast Hospitality acquired the brand in 2001. The chain had recovered to approximately 42 hotels at the time, including a significant franchised component. In 2004 WestCoast announced a program to sell 11 company-owned hotels and use proceeds to fund approximately $40 million in renovations and improvements at other properties. In 2005 the parent company changed its name to Red Lion Hotels Corporation, reinforcing its corporate association with the hotel flag. During the 2000s, Red Lion sought to expand through acquisitions, franchising, and geographic growth beyond its Pacific Northwest base. A 2006 plan called for substantial system growth, including possible expansion into Texas, California, and Nevada. The plan did not reach its stated scale. The 2007–09 downturn placed additional pressure on hotel values and demand. The parent company reduced costs, including a wage freeze and a reported five-percent salary reduction for salaried employees in 2008. Management also expected some properties to leave the system if they did not complete required renovations. Marketing and loyalty initiatives remained important to the brand. The 2004 Stay Comfortable campaign used a cartoon lion and received recognition from the Hospitality Sales and Marketing Association International. Red Lion also revised its guest-rewards structure, introducing the Red Lion R&R Club in 2008 and later promoting Hello Rewards. In 2014 the company stated that it would move away from issuing points and focus on a different personalized guest experience. As the lodging market improved after the financial crisis, management said in 2014 that the company was refocusing on hotel operations and service quality. Red Lion continued operating a mixture of full-service and limited-service hotels, including the Red Lion Inn & Suites format. The company was acquired by Sonesta International Hotels Corporation in 2020. Since that transaction, Red Lion has operated as a brand within Sonesta's broader hotel portfolio, with individual properties subject to changes in ownership, management, franchising, renovation, and reflagging.

• 2020

  Acquisition by Sonesta

  [2]Sonesta International Hotels Corporation acquisition coveragehotelnewsresource.com

  Sonesta International Hotels Corporation acquired Red Lion Hotels Corporation.

• 2005

  Parent renamed Red Lion Hotels Corporation

  [1]Red Lion Hotelsen.wikipedia.org

  WestCoast Hospitality changed its corporate name to Red Lion Hotels Corporation.

• 2001

  Acquisition by WestCoast Hospitality

  [1]Red Lion Hotelsen.wikipedia.org

  Hilton sold the Red Lion brand to WestCoast Hospitality.

• 1999

  Planned brand relaunch

  [1]Red Lion Hotelsen.wikipedia.org

  Promus announced a plan to rebuild Red Lion as a franchised midscale brand.

• 1996

  Acquisition by Doubletree

  [1]Red Lion Hotelsen.wikipedia.org

  Doubletree completed its acquisition of Red Lion, after which many properties were reflagged as Doubletree hotels.

• 1995

  Initial public offering

  [1]Red Lion Hotelsen.wikipedia.org

  Red Lion Hotels became publicly traded under the RL ticker.

• 1984

  Sale to Kohlberg Kravis Roberts

  [1]Red Lion Hotelsen.wikipedia.org

  The 52-property chain was sold to Kohlberg Kravis Roberts.

• 1959

  Founding in the Portland area

  [1]Red Lion Hotelsen.wikipedia.org

  Tod McClaskey and Ed Pietz acquired the Thunderbird Motor Inn, establishing the business that later developed the Red Lion hotel brand.

Moderate-priced, comfortable lodging with an emphasis on full-service amenities, meeting space, regional hospitality, and value-oriented stays.

• Full-service midscale hotels · 1959

  Red Lion Hotels

  The core Red Lion format consists of moderate-priced, full-service hotels. Properties generally target leisure and business travelers and may provide restaurants, lounges, meeting rooms, event facilities, and other conventional full-service amenities. The portfolio has historically included both company-owned and franchised hotels in the United States and Canada.

• Limited-service midscale hotels

  Red Lion Inn & Suites

  Red Lion Inn & Suites is the brand's complementary limited-service format. It serves travelers seeking a more streamlined midscale stay than the full-service Red Lion hotel, with a focus on accommodation and selected guest conveniences rather than a complete restaurant and events operation.

• 2013Hello Rewards

  United States · Canada

  Red Lion promoted Hello Rewards as a redesigned loyalty experience intended to provide a more personalized relationship with guests and reservations.

  Outcome. The company later announced that it would no longer issue points, changing the structure of its rewards proposition.

  Source
• 2004Stay Comfortable

  United States

  Red Lion used a cartoon lion character and the Stay Comfortable slogan in newspaper and USA Today advertising across several U.S. markets. The campaign was developed by ISM Boston.

  Outcome. The campaign received an Adrian Award from the Hospitality Sales and Marketing Association International.

  Source

• 2014

  Refocus on hotel operationsStrategy

  Background

  Management described the lodging market as stabilizing after the economic downturn and sought to move attention toward property operations and guest quality.

  Action taken

  Red Lion Hotels Corporation shifted its stated emphasis toward operating hotels under the Red Lion banner and improving the guest offering.

  Aftermath

  The strategy reinforced Red Lion as the central identity of the company's hotel operations.

  Source

• 2004

  Fund a property rejuvenation programStrategy

  Background

  WestCoast Hospitality sought to improve aging company-owned hotels and strengthen the remaining system.

  Action taken

  The company announced the sale of 11 company-owned hotels to fund renovations and improvements at other properties.

  Aftermath

  The program was presented as a way to refresh the chain and support its renewed brand focus.

  Announced rejuvenation investment. 40 million USD (2004)

  Source

• 1999

  Relaunch Red Lion as a midscale brandStrategy

  Background

  Promus identified strong consumer recognition for Red Lion in the Pacific Northwest despite the reduced system size.

  Action taken

  Promus planned to return selected hotels to the Red Lion flag and expand through franchising.

  Aftermath

  Hilton's acquisition of Promus interrupted the plan, and Hilton later sold the brand to WestCoast Hospitality.

  Source

• 1996

  Acquire Red Lion through DoubletreeM&A

  Background

  Doubletree sought to strengthen its upscale hotel presence and compete with major full-service lodging companies.

  Action taken

  Doubletree Corporation acquired Red Lion Hotels in a cash-and-stock transaction.

  Aftermath

  Many Red Lion properties were converted to Doubletree, reducing the number of hotels operating under the Red Lion name.

  Reported transaction value. 1.2 billion USD (Agreement announced September 13, 1996; transaction closed November 8, 1996)

  Source

• 1984

  Sell the hotel chain to Kohlberg Kravis RobertsM&A

  Background

  The founders had expanded the company to 52 properties and decided to sell the growing chain.

  Action taken

  Tod McClaskey and Ed Pietz sold the business to Kohlberg Kravis Roberts.

  Aftermath

  The transaction placed Red Lion under private-equity ownership and was followed by a later public listing.

  Reported transaction value. 600 million USD (1984)

  Source

• 2020

  Sonesta acquires Red Lion Hotels Corporation[2]Sonesta International Hotels Corporation acquisition coveragehotelnewsresource.com

  M&A

  Sonesta International Hotels Corporation acquired Red Lion Hotels Corporation, adding its brands and hotel operations to the Sonesta portfolio.

• 2014

  Red Lion changes its rewards-program strategy[1]Red Lion Hotelsen.wikipedia.org

  Other

  The company promoted Hello Rewards and later announced that it would discontinue points issuance, following the earlier Red Lion R&R Club program.

• 2005

  Red Lion Hotels Corporation changes corporate name[1]Red Lion Hotelsen.wikipedia.org

  Other

  WestCoast Hospitality adopted the Red Lion Hotels Corporation name as part of a strategy to place greater emphasis on the Red Lion brand.

• 2004

  Red Lion launches Stay Comfortable campaign[1]Red Lion Hotelsen.wikipedia.org

  Campaign

  The brand introduced a national and regional advertising campaign built around the Stay Comfortable slogan and a cartoon lion character. The campaign received an HSMAI Adrian Award.

• 2001

  Hilton sells Red Lion to WestCoast Hospitality[1]Red Lion Hotelsen.wikipedia.org

  M&A

  After acquiring Promus, Hilton divested Red Lion, which was purchased by Spokane-based WestCoast Hospitality.

• 1999

  Promus announces Red Lion brand revival[1]Red Lion Hotelsen.wikipedia.org

  Campaign

  Promus planned to rebuild Red Lion as a midscale brand, including franchising and the conversion of selected properties back to the Red Lion name.

• 1996

  Doubletree agrees to acquire Red Lion Hotels[1]Red Lion Hotelsen.wikipedia.org

  M&A

  Doubletree Corporation announced a cash-and-stock acquisition of Red Lion, which closed later that year and led to extensive property reflagging.

• 1995

  Red Lion Hotels Corporation becomes a public company[1]Red Lion Hotelsen.wikipedia.org

  Other

  Kohlberg Kravis Roberts took Red Lion Hotels public, with shares trading under the RL ticker.

1. 1Red Lion Hotelsen.wikipedia.org
2. 2Sonesta International Hotels Corporation acquisition coveragehotelnewsresource.com