WestCoast Buying Red Lion Chain from Hilton

SPOKANE, WA-Beverly Hills, CA-based Hilton Hotels Corp. has agreed to sell its Red Lion chain of hotels and five Doubletree hotels to Spokane-based WestCoast Hospitality. The deal would cover 42 Red Lion hotels and five Doubletree hotels.

Hilton and WestCoast say final terms will be announced at closing, expected by year end. The companies said they decided to announce their agreement early because they will be “disclosing the proposed transaction in connection with pursuing potential franchises.” Lehman Brothers Inc. is acting as financial advisor to WestCoast in this transaction.

Of the 42 Red Lion properties, eight are owned by Hilton and 11 are leased. One hotel is operated by Red Lion under a management agreement, and the remaining 22 are franchise agreements. Hilton acquired the Red Lion brand as part of its November 1999 acquisition of Promus Hotel Corp.