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WestCoast looks at buying Medford Red Lion Mail Tribune / Roy Musitelli Red Lion employees John Cole and Carolyn Summers said they learned of Red Lion's possible new owners a couple weeks ago. As part of a nonbinding agreement made in October, WestCoast Hospitality Corp. will buy 42 Red Lion and DoubleTree properties from Hilton Hotels Corp. by the end of the year. By GREG STILES Mail Tribune Medford's Red Lion Hotel may have a new identity within a few months. WestCoast Hospitality Corp. began discussions with Hilton Hotels Corp. - Red Lion's corporate parent - in May, with an eye on doubling its property holdings and strengthening its Northwest market share. The 186-room hotel sandwiched between Riverside Avenue and Bear Creek at Fourth Street is among 42 Red Lion and DoubleTree properties in six states that would nearly double Spokane-based WestCoast Hospitality holdings. The companies penciled a non-binding agreement on Oct. 18 and WestCoast is now examining the properties in 34 markets, including Medford. Financial details will be divulged when the transaction closes sometime near the end of the year. If the deal is inked, WestCoast would have 93 hotels in 15 states. Hilton has approximately 2,000 properties under 12 names worldwide. "I don't think Red Lion was the right brand for Hilton," said Denney Rutherford, professor of hotel and restaurant administration at Washington State University in Pullman. "It was picked up at the same time as DoubleTree from Promus Hotels, and it didn't seem to be the right fit. "They reflagged a bunch of hotels, but I think all it did was confuse the market. Red Lions generally are a different market segment than DoubleTree." But Rutherford noted that in the present economy, he's not sure Hilton is cutting losses as much as potential revenue. "Frankly, if it was my hotel company (the Red Lion chain) is the one I would hold on to. The mid-level hotels are doing just fine. It's the upper level, high-end ones hurting. But it's a good move for WestCoast to expand without sinking money into new construction in their market area." Among WestCoast's holdings are Valley River Inn in Eugene and the Benson, Riverplace and Paramount hotels in Portland. The firm also manages the Ashland Springs Hotel. "We typically aren't on highway locations," said Stephen Barbieri, chief communications officer for WestCoast. "We're predominantly in urban city-centers and smaller communities. We definitely try to have to the dominant hotel in the community." Donald K. Barbieri, WestCoast chairman/president and CEO, said during the company's third-quarter conference call on Oct. 30 that the company's diverse hotel holdings have helped in tough economic times. "That balance softened the impact of the Sept. 11 events on our company and has allowed us to continue to seek opportunities that expand our presence into new markets and facilitate the growth of our brand," Barbieri said. "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." But by which name will the Medford property be known? From late 1996 until June 1999 the Medford hotel carried the DoubleTree banner as most Red Lions underwent a name change. Hilton acquired the hotel in late 1999 and the name changed back to Red Lion that year. "WestCoast has wisely kept names of a lot of hotels it's bought," Rutherford said. "Changing names is something that needs to be done slowly. I think a lot of Red Lion customers are comfortable with Red Lion and what it means to them. "It's expensive to change names, because you're not only changing the name outside but everything that says Red Lion on it from logoed silverware in the dining room to napkins." Reach reporter Greg Stiles at 776-4463 or e-mail [email protected] Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.