China’s HNA Group Co. has acquired a 15% stake in Red Lion Hotels Corp. from Columbia Pacific Opportunity Fund, which continues to own 12.6% of RLHC’s outstanding common stock.
The Pacific Northwest-based RLHC currently manages, owns or franchises more than 130 Hotel RL, Red Lion Hotel, Red Lion Inn & Suites, GuestHouse International or Settle Inn branded hotels in 31 U.S. states.
“We believe that HNA, as a major global hospitality company, is an ideal investor for RLHC,” said Alex Washburn, co-founder of Columbia Pacific and a member of RLHC’s board of directors. “We remain one of the largest shareholders in RLHC and are excited to facilitate bringing this new investor to the company.”
The HNA Group noted that “this investment in RLHC evidences our growing interest in North American hotel brands and real estate. We are excited about the future of our partnership with them.”
As part of HNA Group’s investment, RLHC has agreed to appoint one representative of HNA Group to its board of directors following its customary director-candidate vetting process.
“We were thrilled to hear of the transaction between Columbia Pacific and HNA Group and welcome the confidence in our company shown by an international hospitality industry leader,” said RLHC President and CEO Greg Mount.