Vancouver, Wash. – Red Lion Hotel Brand Brought Back by Popular Demand Promus Hotel Corporation today announced that it plans to reinvigorate and expand its Red Lion Hotels & Inns brand.

Promus will relaunch the two/three-star brand in the fall with approximately 30 hotels in eight northwestern and western states--20 existing Red Lion hotels and 10 to 15 converted properties. Promus expects to have 100 Red Lion Hotels & Inns in operation by 2003, concentrating expansion in the western U.S. and Pacific Northwest. "While growth will continue via new management contracts the focus will be on franchising the well established Red Lion name to owners of existing mid-priced full-service hotels, which will be a first for the Red Lion Chain," said James Dina, Red Lion Hotels & Inns chief operating officer, who will be responsible for the brand's expansion. Promus acquired the brand in its merger with Doubletree Hotels in 1997.

"Red Lion is one of the most popular and recognized hotel brands in the West and Pacific Northwest, and has a highly enthusiastic and loyal guest following," said Dina. "We currently have 20 hotels operating under the Red Lion flag, including the newly added Red Lion Hotel - Denver. Promus has targeted 10 to 15 Doubletree properties for conversion to the Red Lion brand by this fall. These hotels will be better suited as mid-priced, Red Lion properties."

The corporate staff of Red Lion Hotels Inc. will be located in its former headquarters city, Vancouver, Washington, at the Western Promus National Reservation Center. "We couldn't be happier about returning to our home in Vancouver," said Dina.

Typical Red Lion hotels will be mid-sized, full-service properties, averaging 150 to 250 rooms, and generally will offer food and beverage service, meeting space and catering. The properties will be well-located, existing properties with comfortable, home-style decor and styling. Average daily rate, depending on location, will be approximately $65. As part of the conversion process the reflagged Doubletree hotels will undergo an approximate $5 million renovation program to meet new standards and are expected to open under the Red Lion flag by late September.

"Our mantra is Care, Comfort and Value," said Dina. "We are focusing on the values and amenities that made Red Lion famous. We will provide distinctive, clean, crisp mid-priced hotels with a level of service and friendliness not usually associated with this price-point. Virtually anyone can provide a room, but it is extremely difficult to provide warm, friendly service. Our major point of differentiation will be friendliness, a trait for which Red Lion is legendary."

Red Lion will launch a new frequent guest program and provide frequent flyer points. "We have nearly 150,000 members in our database and will upgrade our best customers to the Premier Level when we reintroduce the brand this fall. Our frequent guest programs were immensely popular, and we intend to give our guests what they want." Dina noted that the company currently is negotiating with airline companies and will kick off the programs later this year.

Dina said that popularity, practicality and profitability were the primary considerations in reinvigorating the brand. "Our guests kept asking us to keep the brand alive, and we listened," he commented. "In some cases, we found that it is not practical for some of our owners to undertake expensive upgrades to meet Doubletree's new four-star standards," he said. "Red Lion will provide Doubletree and other hotel brand owners with a well-regarded franchise alternative with lower capital requirements that provides them with an opportunity to increase asset value."

Red Lion, a wholly-owned affiliate, will have access to all of Promus' functional departments, such as accounting, property management systems, human resources, purchasing, information technology and development. The brand will use Promus' industry leading reservation systems and Global Distribution System links on a private-label basis. "Although we initially will be a small brand, we will have all the systems and synergies that only a major hotel company can provide," Dina said. "This support will aid us in providing comprehensive support to the hotel owners of our brand."

Founded in the early 1970s, Red Lion quickly became a popular family and business hotel brand in the Pacific Northwest with the majority of its properties located along the Interstate 5 corridor. The current portfolio of Red Lions include 20 properties with over 3,000 rooms located in: Glendale and Sacramento, California; Denver, Colorado; Lewiston, Idaho; Elko and Winnemucca, Nevada; Kalispell and Missoula, Montana; Astoria, Bend (two hotels), Coos Bay, Eugene, Klamath Falls and Portland, Oregon; Austin and Houston, Texas; Aberdeen and Yakima, Washington; and Jackson Hole, Wyoming.

Promus will convert approximately 10 company-owned hotels, currently branded as Doubletrees, to the Red Lion brand. Red Lion is discussing with various other owners the possibility of converting 3 to 5 additional Doubletree hotels in the region. "At this time, our strength will be in converting existing hotels, rather than in new construction," Dina said. "We have a great name to build upon. Our goal is to maintain the brand's standards and reputation as we grow."

Promus Hotel Corporation is one of the world's premier lodging companies with system-wide annual revenues of approximately $5 billion. The company owns, operates or franchises more than 1,300 hotels with more than 192,000 rooms throughout the United States, Canada, Mexico and Latin America. Promus is the franchisor and operator of the Doubletree Hotels and Guests Suites, Embassy Suites, Homewood Suites, Club Hotels by Doubletree, Hampton Inn, Hampton Inn and Suites, Embassy Vacation Resorts, Hampton Vacation Resorts and Red Lion Hotels & Inns brands.