Red Lion Hotels Corp (RLH) SEC Filing 10-Q Quarterly report for the period ending Wednesday, September 30, 2020

Exhibit 99.1

RLH CORPORATION REPORTS THIRD QUARTER 2020 RESULTS

Year-Over-Year Franchisee Retention Improved 33%

Launched GuestHouse Extended Stay Brand

DENVER, November 4, 2020 – Red Lion Hotels Corporation (“RLHC”, “Red Lion”, the “Company”) (NYSE: RLH), a hospitality company doing business as RLH Corporation that franchises midscale and economy hotels, today reported third quarter 2020 results and provided an update regarding financial and operational activities.

Third Quarter Financial Results

Red Lion reported a net loss of $(3.1) million, or $(0.12) per share compared to a net loss of $(3.7) million or $(0.15) per share the prior year period. Adjusted EBITDA was $1.5 million compared to $5.9 million for the same period in 2019. Core Adjusted EBITDA, which excludes company operated hotels and reflects Red Lion’s primary franchise business, was $1.2 million, compared to $1.9 million in the prior year third quarter.

Red Lion’s balance sheet remained strong with cash and cash equivalents totaling $34.1 million on September 30.

The 2020 financial results reflect reductions in revenue and Adjusted EBITDA from the sale of four company-owned hotels, franchise agreement terminations, as well as the effects of reduced travel due to COVID-19.

Red Lion CEO John Russell stated, “We are pleased with the performance of our brands in the third quarter as they outperformed their competitive sets on RevPAR index as reported by STR. With our franchisees concentrated in drive-to markets, our hotels benefitted from increased travel during the summer months as shelter-in-place restrictions lifted. To help our franchisees drive future profitability, we have continued to enhance our franchise support, including a new more user-friendly revenue-generating program, expanded marketing opportunities and local sales solutions. Activities such as these contributed to our improved year-over-year franchisee retention.”

Mr. Russell continued, “We are excited that our brand reputation scores have improved across all of our brands, with the strongest gains from Americas Best Value Inn, Canadas Best Value Inn, and Knights Inn. We are also pleased to have our ABVI brand ranked #2 by JD Power for all economy brands. We are focusing our efforts on ensuring the continued success of our franchisees while also maintaining financial discipline through cost controls initiated at the beginning of the year. We are encouraged by our progress particularly in light of the ongoing impact of the pandemic.”

Operating Summary

Through the end of the third quarter, RLHC signed 129 franchise agreements including adding 23 new franchised locations. Progress on ROAR initiatives and the introduction of additional franchise support tools and marketing programs continue to contribute to improved retention rates, with 33% and 26% fewer franchisees leaving the brand than in the prior year third quarter and year to date, respectively. During the quarter, RLHC relaunched GuestHouse International as GuestHouse Extended Stay, targeting efforts to meet demand for longer stays with an economy offering. The Company also launched new franchising initiatives for Americas Best Value Inn and Knights Inn geared toward capitalizing on elevated franchisee movement that typically accompanies industry disruptions such as the current COVID-19 crisis.

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