But today is about the future, and Burgett is eager to lay the groundwork for expansion. Flanking hi

As executive VP of brand development, Burgett was hired to accelerate the legacy chain s stagnant franchise base at a time when shareholders were calling for an outright sale to unlock value through any means necessary.
But today is about the future, and Burgett is eager to lay the groundwork for expansion. Flanking his sides are projection screens displaying a map that looks utterly and comfortably familiar to the 150 or so franchisees and owners ramada inn hotel directory in attendance. They show the Western United States, with red markers highlighting Red Lion Hotels Corporation s existing footprint and target markets.
This has been the hotel company s playing field for 50 years. Founded along the Spokane River in the city that shares the same name, the legacy chain has carved its footprint around airports and capitals and universities in the likes of Washington, ramada inn hotel directory California and, at one time, nine other states hugging the Western seaboard.
As he starts talking about the aggressive road forward, he pulls up a map of the contiguous U.S. Here the red markers span coast to coast. It s a conspicuous departure from the company s previously bridled growth outlook, and attendees, who interrupt Burgett s speech with claps and whoops of excitement, are clearly on board.
The new outlook represents a long time coming, says President and CEO Jon E. Eliassen, speaking ramada inn hotel directory from his office ramada inn hotel directory at the company s headquarters, which sits adjacent to the conference host Red Lion Hotel at the Park.
But while the demand was there, Red Lion was not ready to support it. First, executives had to wrap their arms around the existing portfolio an effort that was kicked into high gear during March 2012 when several shareholders raised their concerns during an earnings call and a major shareholder issued ramada inn hotel directory a public ramada inn hotel directory letter urging the board to explore ramada inn hotel directory strategic alternatives to unlock value.
While the ensuing exercise did not result in a major overhaul of operations or ownership, ramada inn hotel directory Eliassen and his team regrouped and began evaluating each and every asset. Non-core hotels were sold out of the system, while a handful of other key owned assets were put up for sale but retained their Red Lion flag.
The company also has paid down on several leases and has refinancing agreements in place with its lenders to resolve its outstanding commercial mortgage-backed securities debt that comes due in July.
It also has a more concise portfolio. We used to be out here, the CEO explains, holding his arms out wide to either side. Now we re here, he says, moving them together in front of him. We re more focused.
What was once simply Red Lion now comprises three different brands: the full-service Red Lion Hotels, the limited-service Red Lion Inn Suites and the soft-branded Leo Hotel Collection, which targets the upscale segment as opposed ramada inn hotel directory to the luxury, higher-end of the market ramada inn hotel directory occupied by other collections.
Once we were able to control the ownership of the hotels by buying out the leases on the properties and selling off some of the properties that didn t fit, we were able to gain that clarity and could do it, he says.
The segmentation resolves the nagging complaint of consistency that s plagued the chain for years, the chief executive explained. The guestrooms all had a similar feel in the past, but the hotel amenities varied considerably.
Brand segmentation has gone very well for us early on, Burgett says a day before addressing attendees on stage. It allowed us to get into and continue to expand the brand into limited service, which is not traditionally what Red Lion has been known for.
Las Vegas is critical to us, Harry Sladich, executive VP of sales, ramada inn hotel directory marketing and distribution and revenue management told attendees during a general session. We need to be in that market, and we weren t in that market. It makes the brand more relevant when we re in markets like Las Vegas.
I m really proud of the team and the employees, Eliassen says, looking close to the doting grandfather he is in his personal life. It s a testament to the employees we have, the leadership we have in the company. That s everyone in housekeeping all the way to GM and the executive officers. It s just a great team of people that s really focused on hospitality.
Franchising will remain our strongest objective at least for the next three years. We see this is what the growth vehicle is for the company, says Burgett. The goal is to grow to 30 franchises by year end, up from its existing 24. We re clearly going to hit that number.
Eliassen reiterates that while franchising might fuel the growth engine moving forward, Red Lion will continue to maintain an owned portfolio. That s a stark point of differentiation from the asset-light ramada inn hotel directory trend sweeping much of the hotel industry, and the CEO knows it.
Because we own hotels, we also have the right relationships with vendors, he explains. We re operating hotels, we know what needs to go into a hotel. It s easier for us to manage the feel of a hotel room, it s easier for us to develop training programs. It s much easier to develop those kinds of corporate philosophies and that type of culture when you actually own those hotels.
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