Red Lion Hotels FDD Summary


Type of Business
The franchise offered in this disclosure document is for the rights to own and/or operate a Red Lion hotel business.


Corporate Information
Red Lion 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. Their principal business address is 201 W. North River Drive, Spokane, WA 99201. They do business under the following primary trademarks, among others: RED LION®, RED LION INN®, and RED LION INN & SUITES®.


Investment
The total investment necessary to begin operation of a 125 room Red Lion Inn & Suites franchise with a minimal food and beverage offering is estimated to range between $7,521,650 to $11,264,700 for new development and $635,250 to $2,583,000 for conversion hotels including the product improvement plan fee of $5,000 that must be paid to the franchisor. These amounts also include an application fee of $40,000 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 begin operation of a 250 room full service Red Lion Hotel franchise, including meeting space and catering service, is estimated to range between $30,816,250 to $38,713,000 for new development and $960,250 to $4,088,000 for conversion hotels, including the product improvement plan fee of $5,000 that must be paid to the franchisor. In the case of new development and conversion hotels, these  amounts include an application fee of $75,000 that must be paid to the franchisor. These amounts do not include the cost of purchasing or leasing land or any real estate taxes.


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