The facility will expand the company’s relationships with financial institutions for future acquisitions and provides investment flexibility for growth initiatives.
Funds from the term loan will be used to support the acquisition of Knights Inn. Proceeds from the five hotels still being marketed for sale will be applied to reducing the 20-year amortizing loan balance.
“Entering a credit agreement with Deutsche Bank, Capital One and Raymond James represents a new factor in our strategic growth plans,” said RLH President and CEO Greg Mount. “We believe that the relationships we are building with these banks advance our ability to quickly act on future acquisition opportunities and support our enhanced focus on aggressively growing our franchise business.”
Red Lion Hotels focuses on the franchising, management and ownership of upscale, midscale and economy hotels.