Red Lion's Q3 2014 results show adjusted EBITDA up third quarter in a row

Red Lion Hotels is the latest hotel company to release its third quarter 2014 results, with the company's comparable revenue from owned and leased hotels up 7.9 percent over last year to $35.9 million.

Red Lion attributes this growth to gains in revenue per available room (RevPAR), which rose 8.3 percent to $80.41, a figure that found its own assistance in a 3.7 percent increase in average daily rate (ADR) to $100.19 and a 340 basis-point increase in occupancy.

The company's franchise revenue actually dropped to $2.1 million, as opposed to $2.4 million during Q3 2013, due to the change in mix and location of franchise hotels. However, total company Adjusted EBITDA for the third quarter increased $2.1 million, compared to the prior year, while net income from continuing operations in the third quarter of 2014 was $4.9 million compared to $1.6 million in the same period a year ago. This improvement is sourced to a decline in corporate expenses, such as the absence of CEO transition costs that were recorded in 2013.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

Additionally, year to date, Red Lion signed 12 new franchise agreements and as of Sept. 30, 2014, the company sold three properties. As of that same period, the company had $28.5 million in cash and cash equivalents and no cash borrowings on its $10 million revolving line of credit. The company also had outstanding debt of $63 million, of which $2.4 million was current.

Red Lion recently launched its own full-service lifestyle brand with Hotel RL. The company plans to announce the first property addition to Hotel RL before the end of the year, and is also looking to convert more properties to the brand in 2015. While both Red Lion and hotel owners are expected to invest between $50 million and $100 million in these conversions, Red Lion will also be pressing joint venture and equity ownership opportunities with these properties on a selective basis.

Suggested Articles

The SureStay Plus by Best Western AC Luxe Angeles City is the company's seventh hotel in the country and second in Angeles City.

The direct hospitality lender sold its stake in the 182-suite Panama City Beach hotel to Wesley and Donna Spruill.

The Quay Perth hotel is an 80-room boutique property on the site of the former New Esplanade hotel in Western Australia's capital.