Red Lion Hotels FDD – Franchise Information, Costs and Fees


Type of Business
The franchise offered in this disclosure document is for the rights to operate a Red Lion branded hotel.


Corporate Information
Sonesta RL Hotels Franchising Inc. is a corporation formed in the State of Washington on December 24, 1986, as Vance Hotels, Inc. On September 19, 2005, they changed their name to Red Lion Hotels Franchising, Inc., and, on September 23, 2021, they subsequently changed our name to Sonesta RL Hotels Franchising Inc. Their principal business address is Two Newton Place, 255 Washington Street, Suite 230, Newton, Massachusetts 02458.


Investment
The total investment necessary to open a newly constructed 125-room Red Lion Inn & Suites Hotel with a minimal food and beverage offering is estimated to range between $9,769,645 to $14,131,695. This estimate includes $61,945 to $86,945 that must be paid to the franchisor. The total investment necessary to convert an existing hotel into a 125-room Red Lion Inn & Suites Hotel with a minimal food and beverage offering is estimated to range between $651,495 to $2,909,195. This estimate includes $62,945 to $83,945 that must be paid to the franchisor. These amounts do not include the cost of purchasing or leasing land or any real estate taxes.
The total investment necessary to open a newly constructed 250-room Red Lion Hotel with a minimal food and beverage offering is estimated to range between $30,576,345 to $38,874,445. This estimate includes $101,945 to $126,945 that must be paid to us. The total investment necessary to convert an existing hotel into a 250-room Red Lion Hotel with a minimal food and beverage offering is estimated to range between $1,108,945 to $4,745,445. This estimate includes $102,945 to $123,945 that must be paid to the franchisor. These amounts do not include the cost of purchasing or leasing land or any real estate taxes.


View the 2022 Red Lion Hotels FDD