PHOENIX / Doubletree Hotels today announced the first hotels to be reflagged to the Doubletree brand, following the company's November 8, 1996 acquisition of Red Lion Hotels for $1.2 billion. Four properties, located in San Antonio, San Diego's Mission Valley, Salt Lake City and Sonoma County in northern California, are the first of between 40 and 45 hotels to be converted to Doubletrees by year-end.

"These properties exemplify the reasons why the Red Lion acquisition was a perfect match with Doubletree," said Richard M. Kelleher, Doubletree president and chief executive officer. "Both Red Lion and Doubletree are first-class, full-service hotels that cater to the frequent business traveler as well as the leisure Guest. The recently acquired Red Lion properties are well located and in excellent physical condition, offering substantial meeting space, excellent food and beverage facilities and a

number of upscale amenities. The acquisitions also expand our growing portfolio, primarily into new markets, in the west and more specifically in the Pacific Northwest."

The company said it plans to reflag approximately 15 Red Lion hotels to the Doubletree brand each quarter through the end of the year. "Converting the former Red Lions to Doubletrees will benefit our Guests because of Doubletree's national distribution and greater financial strength," Kelleher said.

"The Doubletree brand's high recognition among consumers and reservations system will allow the former Red Lion hotels to attract more Guests, including national accounts, which will bring more business to their respective communities and more profitability for the hotels," Kelleher added.

Kelleher noted that all of the newly converted properties will immediately begin distributing two freshly baked chocolate chip cookies to Guests upon check-in. The cookies are the hotel chain's marketing icon and symbolize the hotel's commitment to warm, caring service. In 1996, Doubletree gave away more than 10 million cookies to Guests.

The four newly flagged hotels add 1,352 rooms to the Doubletree brand. When completed, the entire Red Lion conversion will expand the Doubletree brand to more than 150 hotels in the U.S., Mexico and the Caribbean.

No major renovations were required for the reflagging, and all employees were retained at each property. Estimated total capital cost to convert the Red Lion hotels to the Doubletree brand will be between $10 and $15 million, primarily for new signage and amenities.

Doubletree Hotels Corporation, headquartered in Phoenix, is one of the largest U.S. hotel management companies. Doubletree properties currently extend into three market segments: Doubletree Hotels – upscale, first-class, full-service hotels; Doubletree Guest Suites – first-class, full-service all-suite hotels; and Club Hotels by Doubletree – mid-market hotels targeted to the frequent business traveler. The combined company has more than 240 hotels with approximately 56,000 rooms in 39 states, the District of Columbia, Mexico and the Caribbean.

David Trumble
Director, External Communications
602-957-5753
Doubletree Corporation