SPOKANE, Wash., WestCoast Hospitality Corporation WEH today announced that it has sold its ownership in the 245-room Red Lion River Inn in a sale and leaseback transaction. The Company will continue to operate the property as the Red Lion River Inn under a long- term lease from the new owner.

The Red Lion River Inn, located in Spokane, Washington, was built by WestCoast Hospitality Corporation in 1976. The sale will provide a pre-tax gain of $6.4 million to be recognized over the initial 15-year lease term. Proceeds from the sale are expected to be used to acquire a hotel property utilizing a 1031 exchange to mitigate the income tax liability resulting from the gain. The Company's operating lease for the Red Lion River Inn has an initial term of 15 years, with three five-year renewal options. The Company owns and operates three additional hotels in Spokane.

WestCoast Hospitality Corporation owns, manages, franchises and develops hotels under its Red Lion and WestCoast brands focusing on serving business, convention and leisure travelers in first, second and third tier markets. WestCoast provides entertainment services through TicketsWest, including event ticketing for venues in the United States and Canada, and aggregates content for travel and entertainment that is sold in real time at its website. The Entertainment division also includes WestCoast Entertainment, a Broadway and special event presenting company. G&B Real Estate Services, the real estate division of WestCoast Hospitality Corporation, develops, owns, manages and leases commercial and residential properties. Registered trademarks of WestCoast Hospitality Corporation and its affiliates protect the use of "WestCoast," "Red Lion," "TicketsWest" and "G&B" and various derivatives of those usages.

Stephen Barbieri
Investor Relations
509-323-7211
RLH