Red Lion Hotels Corporation (RLHC) acquired an adaptive reuse property located at Baltimore's Inner Harbor in Maryland. Currently under renovation, the 130-room hotel is expected to open in summer 2015 as the company's first Hotel RL.
RLHC used a portion of its cash on the balance sheet to purchase the future hotel, an adaptive reuse property which is already 70 percent completed. RLHC will initially fund the $15.7 million purchase price of the property along with $3.5 million in capital improvements to finish redevelopment and renovations. The company signed a non-binding letter of intent with Shelbourne Capital to form a joint venture to invest in the hotel. RLHC expects to contribute the hotel to the joint venture in exchange for an equity interest in the joint venture and a substantial amount of cash to be contributed by Shelbourne Capital and other outside investors. RLHC also expects that in early 2015 the joint venture would recapitalize a portion of its investment in the property through secured debt financing.
Located in downtown Baltimore, the future Hotel RL Baltimore Inner Harbor, 207 East Redwood Street, known locally as The Keyser Building, is a 10-story historic property with a cut-stone façade. The hotel is within walking distance of Camden Yards and M&T Bank Stadium and is two blocks from the famous Inner Harbor, which has water taxis that ferry passengers to Fells Point, Canton and Fort McHenry. The hotel will have 600 square feet of meeting space, an exercise room and a business center.