
Red Lion Hotels
Hospitality · Hotels & Extended Stay
- Active units
- 58
- Royalty
- 5.0%
Franchised, year-end 2023
of weekly Net Sales
About Red Lion Hotels
Red Lion Hotels Corporation is a hospitality company based in the United States. The company's headquarters is located in Denver, Colorado. Red Lion Hotels has a rich history that dates back to 1937 when it was founded in Spokane, Washington. Originally named Goodale & Barbieri Companies, the company began as a real estate development and property management firm. In the 1950s, it expanded into the hotel business and changed its name to Red Lion Hotels in 1976. The company primarily operates in the mid-scale and upscale segments of the hotel industry. It offers a range of products and services, including accommodations, dining options, meeting and event spaces, and various amenities such as fitness centers and swimming pools. Red Lion Hotels operates its own brand of hotels under the Red Lion, Hotel RL, America's Best Value Inn, and Signature Inn banners. Red Lion Hotels has a global presence, with properties located in various cities across the United States. It also has international locations in Canada and Colombia. The company has established partnerships and joint ventures with various industry players to expand its operations. Notably, it has a strategic alliance with Canada-based Colliers International Hotels to boost its presence in the Canadian market. In terms of market position, Red Lion Hotels holds a significant share in the hospitality industry. However, it faces strong competition from major hotel chains such as Hilton, Marriott, and InterContinental Hotels Group. Despite the competition, Red Lion Hotels has been able to carve a niche for itself by focusing on delivering quality service and unique experiences to its guests. Red Lion Hotels has undergone several changes and developments to fuel its growth. In 2017, the company acquired Vantage Hospitality Group, a leading hotel franchisor, which expanded its portfolio with the addition of brands like Americas Best Value Inn and Signature Inn. This acquisition significantly increased Red Lion Hotels' market reach and brought about synergies through improved distribution channels. As of the latest updates, Red Lion Hotels continues to strengthen its brand presence and expand its portfolio. The company has embraced technology and digital innovations to enhance the guest experience, such as mobile check-in and smart room features. Furthermore, it actively engages in marketing and promotional activities to attract customers and build customer loyalty. In conclusion, Red Lion Hotels Corporation is a prominent hospitality company based in the United States, offering a diverse range of accommodations and services. With its history dating back to the 1930s, the company has grown and adapted to the changing market dynamics. Through strategic partnerships and acquisitions, it has expanded its operations globally. Red Lion Hotels faces competition from major hotel chains but continues to differentiate itself through quality service and unique offerings. The company's current focus is on technological advancements and brand strengthening to meet the evolving needs of its customers.
Key terms
- Franchise fee
$40k
- Initial Fee installment option
May allow up to 75% of Initial Fee to be paid by Opening Date with a promissory note
- Development Incentive
Financial contribution typically $500–$2,500 per Guest Room; repayable if early termination/transfer
- Brand fund
3.0% of Net Sales
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2025 filing); filings on file: 2024, 2025.
Growth
- Total locations58
Franchised units open at year-end
- New openings6
Gross new units opened during the calendar year
- 1-year unit growth rate3.6%
Net unit growth versus prior year
- 3-year unit CAGR-0.9%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio6.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$17.1M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open2 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate5.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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