Red Lion Hotels Corp. reported third quarter earnings today
as well as the resignation of the company president and CEO, Greg Mount,
effective immediately. Mount, who started in his position in January 2014, also
has given up his seat on the board of directors. The board will begin an
executive search as soon as possible.
The company posted $32.9 million in revenues during the
quarter, an 8.7 percent decline compared one year ago. Red Lion also revised
its 2019 guidance for adjusted EBITDA from a range of $20.5 million to $22.5
million down to a range of $11.5 million to $13.5 million, "reflecting
under-performance of company-owned hotels, elevated terminations in the core
franchise business year to date and increase in bad debt expense and related collection
costs for a large customer."
The company operates in the upscale, midscale and economy
segments with brands including Red Lion Hotels, RL, Knights Inn and Lexington.