Red Lion’s Revenue Increases, but Profit Drops 8 Percent

Red Lion Hotels Corp.’s profits fell 8.3 percent in the second quarter on a slight increase in revenue. Net income was $2.3 million, down from $2.5 million in the same quarter last year. Revenue was up 1.7 percent, to $49.8 million.

“We are pleased to report another quarter of RevPAR growth from our owned and leased hotels, especially in the face of increasingly difficult economic conditions,” President and CEO Anupam Narayan said. The company’s revenue per available room was up 3.2 percent.

“Looking forward to the rest of 2008, we share many of the same economic concerns as our competitors, including concerns about the downturn in the airline industry and high fuel prices. We were effective in managing operations in the second quarter to produce increased margins, and we will continue to be proactive in how we respond to these negative pressures on the lodging industry.” Narayan added.