With the conversion of many of its hotels to the Red Lion brand, the WestCoast Hotels brand will be repositioned, bringing the chain back to its roots of distinctive properties. The WestCoast brand maintains a strong reputation in the western states, and under the moniker of WestCoast Signature Hotels the brand will continue and grow, while serving its customer base with the full array of support systems that will be enjoyed by the expanded Red Lion brand. However, some of the marketing focus of the WestCoast Signature Hotels will change to highlight the unique Signature product.

"In the next three to five years we expect to focus a significant amount of our growth in the Midwest and Eastern U.S.," explained Don Barbieri, Chairman, President and CEO of WestCoast Hospitality Corporation. "During our market research process it was determined that on a broader geographic scale the Red Lion brand is a better known name, especially as you move further East. In analyzing the two brands and associations that people have with the names, Red Lion is regarded as having a strong loyalty and reputation among its customers.  These customers relate to Red Lion's deep history in the hospitality business marked by delivery of the care, comfort and value that the chain has spent decades in nurturing. Also, despite the reduced concentration of larger, primary city properties in the brand today, many people continue to associate the brand with considerable hotels that it once had. The hotels we are adding will strengthen that association." The Red Lion brand now averages 160 rooms and just over 6,000 square feet of meeting space, while the hotels being converted average more than 200 rooms and almost 11,000 square feet of meeting space.

The Red Lion brand was founded in the 1960's and found success in focusing on 3- to 4- star hotels. The brand reached a peak of 59 hotels before being acquired in November 1996 by Doubletree for $1.2 billion. The number of hotels in the brand decreased during the ensuing four years, as Promus Hotel Corporation subsequently acquired it, then Hilton Hotels Corporation. During this time, many of the hotels were converted to the Doubletree brand. Red Lion began to re-emerge and flourish under Hilton ownership before being acquired in December 2001 by WestCoast Hospitality Corporation.

In the coming months, WestCoast Hospitality Corporation will be announcing the details of a number of new support programs for both the Red Lion and WestCoast Signature brands, including the launch of a new state-of-the-art Central Reservations System and the combination of the guest affinity programs.  The Company continues capital upgrade plans that focus on re-furbishing existing hotels within the Company's portfolio.

Barbieri stated, "We are making a commitment to our customers, franchisees and employees to be a progressive Company that delivers caring service and comfortable accommodations, with more locations from which they can choose. I believe Red Lion's history, and now its future, speaks very well to this commitment."

WestCoast Hospitality Corporation owns, manages and franchises hotels in 16 states. WestCoast Hotels and Red Lion Hotels and Inns focus on serving business, convention and leisure travelers in first, second and third tier markets.