Red Lion Hotels says tracking for 33%-35% franchise divisional profit margin
RLH Corporation announced the company has executed 34 mid and upscale hotel franchise agreements in 2018. The Company's Red Lion Hotel brand alone has 18 franchise agreements so far in 2018, growing the brand by over 62 percent to 47 full-service hotels nationally, with an average room count of over 200 and a robust pipeline. This momentum is in support of the company's franchise divisional profit guidance for the year of $18M to $19M, $2M above the company's original guidance. The company is tracking on guidance of 33 to 35% franchise divisional profit margin in 2018 and posted 39% for Q3, the highest thus far."2018 marks the continued resurgence of Red Lion Hotels as a core upper-midscale full-service brand for the Company and unrelenting strength in all our mid and upscale hotel brands," said RLH Corporation President of Global Development Paul Sacco. "Our mid and upscale brands now have over 100 open hotels and we continue to see solid growth across all brands." "Halfway through Q4 2018, our pipeline shows tremendous strength and momentum as we continue our resilient focus on the Company's franchise division," continued Sacco. "We have seen a strong interest in our mid and upscale hotel brands across the country in prime locations with access to top local attractions, reinforcing our position as the basecamp for leisure and business travelers in North America."