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Red Lion Hotels reports improving performance with first-quarter loss

In the newly renovated Hotel RL by Red Lion lobby, hotel quests lounge in cocoons hanging from a pergola. The downtown hotel, along the north bank of the Spokane River, has been remade to be more inviting to guests and the community. (Colin Mulvany / The Spokesman-Review)
From staff reports

Spokane-based Red Lion Hotels Corporation lost $3.6 million in the first quarter, an improvement from its performance a year prior when it posted a loss of $4.8 million, the company said Monday.

Per diluted share, the loss was 22 cents versus 28 cents in the first quarter of 2016.

Total revenues for the quarter increased 22 percent to $40 million.

The fast-growing hospitality company operates and franchises upscale, midscale and economy hotels.

Red Lion’s earnings before interest, tax, depreciation and amortization – a measure of operating performance – was $1.5 million in the quarter, up from a quarterly loss of $700,000 a year ago.

The company reported franchise segment revenues of $10.9 million for the quarter, up from $3.3 million one year ago. That reflects Red Lion’s strategic transformation to a franchise fee-dominated business model and brands it acquired in the third quarter of 2016, the company said.

Red Lion executed 34 franchise agreements in the first quarter and opened 21 new franchised hotels.