SEATTLE, June 16, 2015 (GLOBE NEWSWIRE) -- Columbia Pacific Opportunity Fund, LP (“Columbia Pacific”) and HNA Group Co., Limited (“HNA Group”) announced today that HNA Group, through one of its subsidiaries, has acquired 2,987,343 shares of the common stock of Red Lion Hotels Corporation (“RLHC”) directly from Columbia Pacific. Following this transaction, HNA Group will own 15.0% of the outstanding common stock of RLHC, and Columbia Pacific will continue to own 12.6%.
RLHC (NYSE:RLH) is a Pacific Northwest-based hospitality company with more than 130 locations in 31 states. The company is primarily engaged in the franchising, management and ownership of upscale, midscale and economy hotels under the Hotel RL, Red Lion Hotel, Red Lion Inn & Suites, GuestHouse International and Settle Inn brands.
In addition to its long term holdings of RLHC’s common shares, Columbia Pacific Advisors has invested approximately $20 million in the past six months in RLHC-managed hotel assets, including a joint venture in 12 Red Lion hotels alongside Shelbourne Capital LLC and the purchase of the Red Lion Hotel Woodlake in Sacramento. Additionally, Mr. Alex Washburn was recently elected to the RLHC Board of Directors at its Annual Meeting of Shareholders.
“We believe that HNA, as a major global hospitality company, is an ideal investor for RLHC,” said Mr. Washburn, co-founder of Columbia Pacific. “We remain one of the largest shareholders in RLHC and are excited to facilitate bringing this new investor to the company.”
The HNA Group noted that “this investment in RLHC evidences our growing interest in North American hotel brands and real estate. We are excited about the future of our partnership with them.”
As part of HNA Group’s investment in RLHC, the Company has agreed to appoint one representative of HNA Group to its Board of Directors following its customary director candidate vetting process.
“We were thrilled to hear of the transaction between Columbia Pacific and HNA Group and welcome the confidence in our company shown by an international hospitality industry leader,” said RLHC President & CEO Greg Mount.
About Columbia Pacific
Columbia Pacific Advisors, LLC manages more than $1 billion* across a variety of alternative investment strategies including private real estate, real estate debt, private equity, and special situation lending. The firm utilizes deep fundamental research designed to generate compelling, consistent risk-adjusted returns. The firm is headquartered in Seattle, WA. For more information, please visit www.columbiapacific.com.
*Regulatory assets under management as of 3/31/15.
About HNA Group
HNA Group is a holding company, based in Haikou and Beijing, China, whose diversified businesses span airport services, air transportation, real estate, hospitality, travel services, retail, financial services, media, information technology, logistics and transportation. For more information, please visit www.hnagroup.com/en/
Red Lion Hotels Corporation is a hospitality company primarily engaged in the franchising, management and ownership of upscale, midscale and economy hotels under the Hotel RL, Red Lion Hotel, Red Lion Inn & Suites, GuestHouse International and Settle Inn brands. Established in 1959, the company has 130 hotels system wide and also owns and operates an entertainment and event ticket distribution business. For more information, please visit the company's website at www.redlion.com.
Source:Columbia Pacific Advisors;HNA Group