Red Lion's hotel portfolio consists of eight owned Red Lion hotel properties, 11 leased Red Lion hotel properties, 22 franchised Red Lion hotel properties, one owned Doubletree hotel property located in Pasco, Washington, (279 rooms), and one leased Doubletree hotel property located in Boise, Idaho, (182 rooms).  The Red Lion hotels total 6,052 rooms, and are located primarily in the Western U.S., including Washington, Oregon, California, Montana, Colorado, Idaho, Arizona, Nevada, Wyoming, Missouri, Nebraska and Minnesota.

As a result of the acquisition, WestCoast adds critical mass by doubling the total number of rooms in its hotel portfolio, from 8,600 rooms in 46 hotels located in 9 states to more than 15,000 rooms in 89 hotels located in 13 states.
    
Donald Barbieri, Chairman, President and CEO of WestCoast Hospitality Corporation, commented, "The Red Lion acquisition will bring us into 34 new markets and we expect to increase our market share with the combined sales efforts of the two chains.  We are fortunate to be bringing a talented group of associates into the WestCoast family of hotels."  WestCoast's presence will expand into such key markets as San Diego and Sacramento, California; Colorado Springs and Denver, Colorado; St. Paul, Minnesota; Omaha, Nebraska; and Springfield, Missouri.
    
Financing for the acquisition was provided by the WestCoast Hospitality Corporation Credit Facility and redeemable non-convertible preferred stock through Hilton Hotels Corporation.  WestCoast expects the transaction to be immediately accretive and will provide pro forma financials in its Fourth Quarter 2001 earnings release.  On an after-tax basis, Hilton expects the transaction to result in a nominal book gain.
    
WestCoast Hospitality Corporation, headquartered in Spokane, Washington, owns, operates, franchises, acquires, develops, renovates and re-brands full service hotel properties under its proprietary brand, WestCoast(R).  Formerly known as Cavanaughs Hospitality Corporation, the Company completed its initial public offering in 1998, and converted its Cavanaughs Hotels to the WestCoast brand in 2000, after the acquisition of WestCoast Hotels, Inc.  Prior to the Red Lion acquisition, WestCoast's hotel portfolio consisted of approximately 46 three and four diamond hotel properties located in 9 states, all of which service business, convention and leisure travelers.  WestCoast Hospitality Corporation also provides entertainment ticketing through its TicketsWest ticketing network, with operations in many of the markets served by its hotels.  WestCoast believes the combination of entertainment with hotels provides customers with a one stop shopping approach that many consumers are looking for today.
    
Hilton Hotels Corporation is recognized internationally as a preeminent hospitality company, which develops, owns, manages or franchises approximately 2,000 hotels, resorts and vacation ownership properties.  Its portfolio includes many of the world's best known and most highly regarded hotel brands, including Hilton(R), Conrad(TM), Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Harrison Conference Centers(R), Hilton Garden Inn(R), Hilton Grand Vacations Company(R) and Homewood Suites(R)
by Hilton.

Red Lion Hotels, Inns and Inns & Suites are well known and respected for serving the needs of business and leisure travelers.  Founded in 1959, Red Lion earned a reputation as the hotel brand of choice in the Northwest and Western United States.  In 1996, Red Lion was sold to Doubletree and subsequently became part of Promus Hotel Corporation when those two companies merged in 1997.  Hilton acquired Promus in November 1999.

Lehman Brothers Inc. acted as financial advisor to WestCoast.
    
This press release contains "forward-looking statements" within the meaning of federal securities law, including statements concerning business strategies and their intended results, and similar statements concerning anticipated future events and expectations that are not historical facts.