SPOKANE, Wash., Jan. 22 /PRNewswire-FirstCall/ -- Red Lion Hotels
Corporation (NYSE: RLH) today announced that its Board of Directors has
adopted a stockholder rights plan. The Board adopted the plan to ensure that
all the Company's stockholders are treated fairly at a time when the Company's
shares are trading at a historic low. The plan is designed to deter
opportunistic tactics that could deprive the Company's stockholders from
realizing full and fair value on their investment and is similar to plans
adopted by numerous publicly traded companies, including plans recently
adopted by other companies in the lodging sector. Prior to adopting the plan,
the Board consulted with outside advisors and evaluated the impact of the
current disruption in the equity markets and the challenging economic
environment facing lodging companies.
The Company will distribute one right for each share of the Company's
common stock held by stockholders of record as of the close of business on
February 2, 2009. Initially, these rights will not be exercisable and will
trade with the shares of the Company's common stock. Under the plan, these
rights will generally be exercisable only if a person or group becomes an
"acquiring person" by acquiring beneficial ownership of 20 percent or more of
the Company's common stock or commencing a tender or exchange offer for 20
percent or more of the Company's common stock. The rights plan will continue
in effect for two years, unless earlier redeemed or amended by the Company.
The issuance of the rights will have no dilutive effect and will not impact
reported earnings per share for the Company.
The full text of the stockholder rights plan will be filed with the
Securities and Exchange Commission on a Form 8-K.
About Red Lion Hotels Corporation:
Red Lion Hotels Corporation is a hospitality and leisure company primarily
engaged in the ownership, operation and franchising of upscale and midscale
hotels under its Red Lion(R) brand. As of September 30, 2008, the RLH hotel
network was comprised of 47 hotels located in nine states and one Canadian
province, with 8,910 rooms and 437,626 square feet of meeting space. The
company also owns and operates an entertainment and event ticket distribution
business. For more information, please visit the company's website at
http://www.redlion.com.
This press release contains forward-looking statements within the meaning
of federal securities law, including statements concerning plans, objectives,
goals, strategies, projections of future events or performance and underlying
assumptions (many of which are based, in turn, upon further assumptions). The
forward-looking statements in this press release are inherently subject to a
variety of risks and uncertainties that could cause actual results to differ
materially from those expressed. Such risks and uncertainties include, among
others, economic cycles; international conflicts; changes in future demand and
supply for hotel rooms; competitive conditions in the lodging industry;
relationships with franchisees and properties; impact of government
regulations; ability to obtain financing; changes in energy, healthcare,
insurance and other operating expenses; ability to sell non-core assets;
ability to locate lessees for rental property; dependency upon the ability and
experience of executive officers and ability to retain or replace such
officers as well as other matters discussed in the company's annual report on
Form 10-K for the year ended December 31, 2007 and in other documents filed by
the company with the Securities and Exchange Commission.
Contact:
Red Lion Hotels Corporation
Anthony Dombrowik, Senior Vice President, Chief Financial Officer
(509) 459-6100
Investor Relations:
ICR Inc.
William Schmitt
(203) 682-8200
SOURCE Red Lion Hotels Corporation