RLH Corp. closed on the sale of its Red Lion Hotel Anaheim (Calif.) Resort for $21.5 million in gross proceeds. The company is in the process of marketing two other hotels, the Hotel RL Baltimore and the Hotel RL Olympia (Wash.).
The Anaheim resort was wholly owned by RLH Corp. and unencumbered by a mortgage. After broker fees and customary closing costs, proceeds from the sale will be used to repay a $10 million credit facility. RLH Corp. plans to use the remaining $10.8 million to fund franchise growth opportunities and for general business purposes.
The transaction marks the final closing of four that the company had announced in September 2019 as under contract. Net proceeds from these four sales—after closing costs, the repayment of property level mortgage and corporate debt and distributions to RLH’s joint venture partners—was $22.9 million. Subsequent to the sale of the Red Lion Hotel Anaheim Resort, RLH’s outstanding debt is comprised of hotel property-level debt of $5.6 million on its Olympia hotel, which is held in a JV. RLH expects cumulative net proceeds in the range of $32 million to $36 million from combined 2019 and 2020 sales.