RLHC (Red Lion Hotels Corporation) (NYSE:RLH) announced today that a subsidiary of the company will enter into a joint venture with an affiliate of Shelbourne Capital to acquire The Quincy hotel in downtown Washington, D.C. for an undisclosed amount. A definitive agreement has been signed and the transaction is expected to close on the 99 room boutique hotel by mid-October, subject to customary closing conditions. RLHC will enter into a long term agreement to manage the property as a Hotel RL.
"This transaction gives RLHC the opportunity to place our new Hotel RL brand squarely in the center of the Dupont Circle Neighborhood of Washington, D.C., just a few blocks from The White House," said RLHC Senior Vice President of Corporate Development Angela Landgraf. "With this announcement following the opening of the first Hotel RL in Baltimore's Inner Harbor on August first, the Hotel RL brand is staking its claim in the top U.S. markets. Hotel RL is generating strong interest from investors, the hotel industry and most importantly our guests."
RLHC will use a portion of its cash on the balance sheet to purchase its equity stake in the joint venture. This capital, combined with other investor equity and anticipated debt financing, will be used to complete the purchase of the property and invest approximately $2.0 million in renovations to convert the property to a Hotel RL.
"We are focused on continuing our national expansion efforts and Washington DC represents a key market opportunity," said RLHC President & CEO Greg Mount. "The Quincy Hotel has a long rich history and we look forward to continuing to provide Washington DC guests a great destination and exciting hotel experience."
Washington, D.C., is one of the top tourist destinations in the world, ranking number 63 out of 150 of the most visited cities worldwide. The Quincy Hotel Washington D.C., 1823 L St NW, has 99 guest rooms in a 10 story building and a restaurant and lounge on the main floor. Located in the famed K Street corridor of the Golden Triangle District, just two blocks from the Farragut North and Farragut West Metro stations, the hotel offers easy access to nearby cultural attractions, historical landmarks, museums, and tourist destinations. The property is a short walk from the Washington Mall with the Washington Monument, Lincoln Memorial and the Smithsonian Museums.
RLHC previously opened its first Hotel RL, the Hotel RL Baltimore Inner Harbor, on Aug. 1. Three more Hotel RL locations are set to open in the first half of 2016 in Salt Lake City, Utah, and Spokane and Olympia, Washington.
Logos, product and company names mentioned are the property of their respective owners.