Industry Update
Press Release28 April 2015

RLHC Completes Mortgage Refinancing and Forms Joint Venture for Hotel RL Baltimore

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Hotel RL

RLHC (Red Lion Hotels Corporation) (NYSE:RLH) announced today that its subsidiary, RL Baltimore, LLC, has entered into a $13.3 million mortgage loan from PFP Holding Company IV LLC, an affiliate of Prime Finance, to refinance the purchase capital for its previously acquired Hotel RL Baltimore Inner Harbor. Subsequent to the loan agreement, RLHC completed a joint venture agreement selling an initial 21 percent equity stake in RLS Balt Venture LLC, the parent to RL Baltimore, LLC, to Shelbourne Falcon Charm City Investors LLC ("Shelbourne"). The loan and the joint venture agreement recapitalize the original purchase of the property by RL Baltimore and provide additional funds to complete the final renovations for this adaptive reuse project, which is on schedule to open in early August 2015.

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RLHC maintains a 79 percent interest in RLS Balt Venture LLC, with the remaining 21 percent purchased for $2 million byShelbourne, an entity led by Shelbourne Capital LLC and including Falcon Investors, LLC, among other institutional real estate investors. Approximately $10.1 million in loan proceeds were funded initially with another $3.2 million available to complete the renovation of the hotel. RLHC expects to complete a second equity sale as Shelbourne has the option during the remainder of 2015 to purchase an additional 24 percent interest in RLS Balt Venture LLC for approximately $2.3 million.

"This is phase one of the dual-phase recapitalization of Hotel RL Baltimore," said RLHC President & CEO Greg Mount. "This first investment by Shelbourne Capital and Falcon Investors is a testament to their continued commitment and support for this project and for the strategic direction of RLHC. When the hotel opens in August, it will be the first East Coast location and the first Hotel RL to open this year."

"This redevelopment project is among the most promising in the region," said Jason Ladavac of Shelbourne Capital. "The Hotel RL branding concept is ideal for Baltimore's Inner Harbor. The location is in a top metro area and is a great fit for RLHC's newest upscale concept, Hotel RL. We are pleased to continue to partner with RLHC in attractive hotel investments as the company pursues its rapid expansion to establish a national footprint."

RLHC purchased the 70 percent completed adaptive reuse project in December 2014. This location will become the first Hotel RL to open since the upscale conversion brand was introduced in fall 2014. Three Red Lion Hotels in Olympia, Salt Lake Cityand Spokane are also undergoing renovations to convert to Hotel RL and are scheduled to open under the banner in the first quarter of 2016.

Located in downtown Baltimore, the Hotel RL Baltimore Inner Harbor, 207 East Redwood Street, is known locally as The Keyser Building, a 10-story historic property with a cut-stone façade. Hotel RL Baltimore is within walking distance of Camden Yards and M&T Bank Stadium and is two blocks from the famous Inner Harbor, which has water taxis that ferry passengers toFells Point, Canton and Fort McHenry. As part of the renovation, the signature design elements of Hotel RL will be incorporated into the property and the hotel will have 600 square feet of technologically advanced meeting space, an exercise room and a business center.

Related Brand

Hotel RL

In October 2014, RLHC launched Hotel RL, its new full-service conversion brand targeted for the top 80 U.S. urban markets. Inspired by the spirit of the Pacific Northwest and designed for consumers with a millennial mindset, Hotel RL is centered on the concept that a hotel should be a town square where visitors and locals meet to collaborate.
brand information
Other Brands by RLH
3 Palms
America’s Best Inns & Suites
Americas Best Value Inn
Canadas Best Value Inn
Country Hearth Inn & Suites
GuestHouse International
Jameson Inns
Knights Inn
Lexington Inns and Hotels
Red Lion
Red Lion Inns & Suites
Settle Inn
Signature Inn

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.

Contact
Pam Scott
Red Lion Hotels Corporation
Phone: 509-777-6393
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