Red Lion Hotels Corp (RLH) SEC Filing 10-K Annual report for the fiscal year ending Tuesday, December 31, 2019

Net loss attributable to RLH Corporation for the fourth quarter of 2019 was $(8.1) million or $(0.32) per share compared to $(7.4) million or $(0.30) per share in the prior year period. In the fourth quarter of 2019, the Company recorded an $8.7 million impairment charge related to its Americas Best Value Inn and Knights Inn brand names, which was partially offset by a $7.1 million gain on the sale of two joint venture hotels. In 2018, the Company recorded a $3.5 million impairment charge related to its Guesthouse brand name.

Adjusted EBITDA for the quarter was $1.0 million, compared to $2.3 million for the prior year period.

In the core franchised hotel segment, fourth quarter revenues grew 2.6% year-over-year to $15.3 million; Adjusted Core EBITDA was $1.6 million, compared to $1.4 million in the prior year period.

Completed the sale of two joint venture owned hotels, Red Lion Hotel Atlanta Airport and Hotel RL Salt Lake City receiving approximately $16.7 million in net proceeds, after closing costs, property level debt repayments, and distributions to joint venture partners.

Net loss attributable to RLH Corporation was $(19.0) million or $(0.76) per share compared to net income of $1.3 million or $0.05 per diluted share in 2018. In 2019, the Company recorded a $14.1 million impairment charge related to its Washington DC hotel, and Americas Best Value Inn and Knights Inn brand names, which was partially offset by a $7.1 million gain on the sale, primarily from two joint venture owned hotels. In 2018, the Company recorded a $10.6 million impairment charge, and $42.0 million in gains on asset sales, primarily from owned hotels.

Adjusted EBITDA for 2019 was $11.6 million, compared to $15.8 million for the prior year period.

In the core franchise segment, revenues grew 10% year-over-year to $59.2 million. Adjusted Core EBITDA for 2019 was $4.2 million versus $0.6 million in 2018.

For the year, the Company executed 169 franchise agreements comprised of 27 midscale hotels and 142 economy hotels, compared to 167 contracts signed in the prior year. Of the 169 contracts signed this year, 43 are for new locations, compared to 61 new locations in the prior year.