Red Lion Hotels Corp (RLH) SEC Filing 10-Q Quarterly report for the period ending Sunday, March 31, 2019

Despite the reduction of $14.5 million in EBITDA from the sale of nine company owned hotels in 2018, the Company’s Adjusted EBITDA for 2018 was down less than $10 million, from $25.7 million in 2017 to $15.8 million in 2018.

Net income for 2018 was $2.0 million or $0.08 per diluted share compared to net income of $0.6 million or $0.02 per diluted share in the prior year period. Net loss for the quarter was $7.3 million or ($0.30) per share compared to net income of $1.5 million or $0.06 per diluted share in the prior year period.

Royalty fees increased 27% in the year to $22.3 million and 36% in the quarter to $5.7 million reflecting the Company’s organic growth and the benefit of the Knights Inn acquisition.

Achieved 23% unit growth expanding franchised hotel network to 1,327 hotels with nearly 86,000 rooms.

Executed a total of 167 franchise agreements for the year and 58 franchise agreements in the fourth quarter.

Internalized and streamlined the management of the Company’s website, redlion.com, reducing our ongoing website management costs by $1.8 million annualized.

Enhanced Hello Rewards program to include other features such as Hello Bucks and Hello Rates.

Acquired Knights Inn for $27 million. The acquisition added more than 350 select service segment hotels across North America.

Sold nine hotels which generated gross proceeds of more than $116 million.

Subsequent to quarter end, launched its wholly-owned subsidiary RLabs, a lodging technology innovator that will leverage the Company’s ground breaking RevPak platform, creating additional asset light revenue streams.