The sale marks the return of publicly held Red Lion to the Southern California market. The company plans to spend approximately $10 million on extensive renovations to the property, which features 5,000 sf of meeting space, a swimming pool, a full service restaurant a lounge and a fitness center. President Alan X. Reay of Irvine-based Atlas Hospitality Group tells GlobeSt.com that the renovations are badly needed. Reay explains that the hotel, built in 1968, needs the renovations to compete with the spate of newer hotels in the area.

Reay says that with most of the major hotel flags already taken in Anaheim, many of the big hotel players likely would have passed on the Maingate deal because they are already established in the market. In addition, he says, the major flags today are looking at newer hotels when they consider the Anaheim market.

The Radisson Maingate is subject to a long-term lease that runs through 2107 if all extension options are exercised. The property owner is a privately held firm based in Beverly Hills.