Red Lion Hotels Corporation (NYSE: RLH) today announced the company is expanding its system into Arizonawith the signing of a new franchise agreement with the owners of a hotel in Tempe, located in the greater Phoenixarea. "We had identifiedPhoenixas a key market for expansion to meet the travel needs of our customers," saidRon Burgett, Executive Vice President of Lodging andBrand DevelopmentforRed Lion Hotels Corporation. "This property is well located inTempenearArizona State University, which appeals to both our sports and our leisure guests."

The Hampton Inn & Suites Phoenix/Tempe-ASU, located at1429 N. Scottsdale Rd., is scheduled to convert to aRed Lion Inn & Suitesby the end of May. The 162-room limited service hotel is just one mile fromArizona State Universityand one of the top attractions in thePhoenixarea, theMill Avenue Districtin downtownTempewith dining, shopping, entertainment and events. Old Town Scottsdale is nearby, as isPhoenix International Airport. The property has two outdoor swimming pools, a 15-person whirlpool with a rock waterfall, plus a tennis court and a putting green. Guests will receive free internet access and a free hot breakfast served daily.

"We considered several hotel brands before selectingRed Lion," saidBill SpresserofVRE Holdings LLC, owners of the hotel. "We selectedRed Lionfor the level of service they are offering."

About RLH Corporation

RLH Corporation is an innovative hotel company focused on the franchising of upscale, midscale and economy hotels. The company maximizes return on invested capital for hotel owners across North America through relevant brands, industry-leading technology and forward-thinking services. For more information, please visit the company's website at www.rlhco.com.