Hospitality firm Red Lion Hotels (RLH) has acquired ten US hotels formerly leased from a subsidiary of iStar for $37m as part of a global agreement with iStar Financial and Hilton Hotels.
The company also assigned its sub-lease with Hilton Hotels to an affiliate of iStar Financial in conjunction with the transaction.
According to RLH, the transaction will reduce the company’s lease obligations by about $4.3m per year.
The hotels are the Red Lion Hotel Boise Downtowner, Red Lion Inn Missoula, Red Lion Inn Bend, Red Lion Hotel Coos Bay, Red Lion Hotel Eugene, Red Lion Hotel Medford, Red Lion Hotel Pendleton, Red Lion Hotel Kelso/Longview, Red Lion Hotel Wenatchee and Red Lion Hotel Sacramento at Arden Village.
The Red Lion Hotel Vancouver at the Quay in Washington was excluded from the transaction.