Red Lion Hotels & Inns has retained the services of two investment bankers to assist in the sale of the company's real estate holdings, including the Red Lion Hotel of Salt Lake City.
Red Lion was purchased in 1985 by the takeover firm of Kohlberg Kravis Roberts & Co.The hospitality company on Monday retained Morgan Stanley Realty and Montgomery Securities to assist with the sale.
Red Lion, the largest regional hotel chain in the West, operates a total of 13,000 rooms in 10 states, one-third of which are in California. In 1988, Red Lion's assets were worth $675 million, and revenues hit $334 million with a gross operating profit of $106 million.
Red Lion's Salt Lake hotel employs 350 people, but management officials said the real estate transaction should not affect the local operation.
The Elko, Nev., Red Lion Inn and Casino is privately owned and will not be affected by the sale.