What a difference a few months can make. Not to mention a new strategic plan.
Since last September, when Red Lion Hotels Corporation first pitched its brand to potential franchisees at the Lodging Conference in Phoenix, the company reports it has seen significant financial growth and furthered its reach and its brand in both tiers of the marketplace.
According to John Taffin, executive vice president of Hotel Operations for the Red Lion Hotels Corporation, new technology initiatives launched in July of last year were directly responsible to this success over the last year. “Developing our website facilitated the ability for customers to make reservations online which directly resulted in a 23% growth in the third quarter and over a 30% growth in the fourth,” he said.
These figures along with earnings released by the company last week, provide a collective portfolio of revenues and an impressive contribution to offer prospective franchisees. Franchisees have access to a database with internet access, which can provide counsel to the properties and can inform them of brand to profitability statistics.
They’ve also implemented a unique arrangement according to Taffin, by which channel managers, who oversee twelve properties and district managers who are appointed to each hotel can now manage inventory and track supply and demand minute by minute, taking advantage of rate gains or occupancy gains.
In addition, Red Lion Hotels Corporation announced last week the promotion of Bill Heaney, previously serving as the vice president of sales to the position of vice president of brand development, as part of its continued strategy to further its reach and strengthen its identity as a unique brand for its franchisees.
“Bill has been very involved in the franchising side of our company during the past few months,” said Arthur M. Coffey, president and chief executive officer. “His new position will be critical for us as we execute our growth strategy to expand the Red Lion brand into 100 markets over the next five years,” he continued.
As part of the re-positioning of its brand from West Coast Hospitality Corp. to Red Lion Hotels Corp, which is symbolic of the more narrow focus on the Red Lion Brand, they changed their logo last September.
The company originally acquired Red Lion from Hilton Hotels Corp in 2001, under its West Coast-branded hotels and began to convert those hotels into the Red Lion Brand. These hotels had up to 400 rooms and meeting space
According to Coffey, “We’ve been trying to bring the brand back to what is was historically, which was larger, and we’re making sure we have full-service [amenities] in each property, as well as pretty good meeting space,” Coffey said.
Today, about two thirds of the 67 Red Lion hotels are owned, and the rest are franchised.
Red Lion’s properties feature approximately 200 rooms on average, with hotels of up to 300 rooms in larger markets and as few as 150 in smaller locations, Coffey said. With the new plans for development, the hotels will feature up to 400 rooms in larger markets and 200 rooms in secondary ones.
“During 2005 through 2006, $40 million dollars is being spent to revitalize the product which includes physical changes to its image and design,” according to Taffin.
The company says it also changed its image from “institutional” to “upscale residential” which will have a significant effect on the look in the guest rooms and in the properties in general. Stained wood furniture, beds with plush pillow top mattresses, new tile with tub surrounds will be put in the bathrooms along with granite vanities, new lighting and a framed mirror which will replace wall to wall mirrors are planned for the guest rooms.
Technology requests have been implemented according to Taffin. Free hi-speed wireless Internet access in all guest rooms was installed and completed during 2004 through 2005. Red Lion developed its own proprietary brand which a guest accesses at log in time and can retain for their convenience when traveling to the other hotel franchises.
These strategic improvements have positioned Red Lion to compete head to head with the first tier market and the best properties in the second tier market.
