Red Lion Buying 487-Key Radisson for $25M

DENVER-Red Lion Hotels Corp. said this week it has agreed to acquire a 478-key hotel property here for $25.3 million. The 53-hotel chain headquartered in Spokane, WA, has waived its due diligence inspection contingency and will close on the Radisson Hotel Denver Southeast later this quarter.

The Radisson Hotel Denver Southeast is located adjacent the region’s light rail system along Interstate 225, 20 minutes from downtown Denver and 25 minutes from Denver International Airport. The hotel features 25,000 sf of meeting space, a two-story parking garage, swimming pool, business center, and full food and beverage service, including a 120-seat restaurant and 50-seat lounge.

To finance the acquisition, Red Lion will draw down an unused $50-million line of credit. Immediately upon taking ownership, Red Lion plans to put its company name on the asset and begin n $8-milliom improvement program. Most of the money will be spent upgrading rooms and common areas.