Red Lion Hotel Corporation Announces CEO Resignation
November 08 2019 - 7:10AM
Red Lion Hotels Corporation (the “Company”) (NYSE: RLH), today
announced that its President and Chief Executive Officer, Greg
Mount, resigned his position with the Company, effective
immediately. Mr. Mount has also resigned from the Company’s Board
of Directors, effective immediately.
The Board of Directors will be engaging an
executive search firm as soon as possible to conduct a search for a
new chief executive officer. The board has appointed a search
committee, and Frederic F. (Jake) Brace, an independent director on
the Company’s board, has been appointed as the committee chair.
Until the Company appoints a new chief executive officer, a
management committee comprised of executives will oversee the
operations of the Company, reporting to the Board, with Jake Brace
as Board liaison to the management committee. The members of the
management committee include Gary Sims, EVP and Chief Operating
Officer, Julie Shiflett, EVP and Chief Financial Officer, and
Thomas L. McKeirnan, EVP and General Counsel.
Bob Wolfe, Chairman of the Board, stated, “The
board recognizes the operational performance of the Company has not
progressed as anticipated. Action was necessary, starting with a
search for a new CEO. The board is committed to creating
shareholder value. To that end, the Company is focused on
delivering superior value and service to our franchisees to stem
the pace of terminations, restructuring franchise sales efforts to
accelerate franchise growth, and right-sizing the cost structure of
the business to reflect RLH’s current size, revenue and
profitability requirements. The asset sales of the past few years
are largely complete. The Company now needs to put all its effort
into building around a strong business proposition for its
franchisees and delivering value to shareholders. This effort will
take time and will require the right leadership to navigate the
challenges and the opportunities that lie ahead. We are committed
to identifying and hiring a leader to lead Red Lion and enable it
to realize its potential for long-term profitable growth.”
Forward Looking Statements
This press release contains forward-looking
statements within the meaning of federal securities law, including
statements concerning plans, objectives, goals, strategies,
projections of future events or performance and underlying
assumptions (many of which are based, in turn, upon further
assumptions). The forward-looking statements in this press release
are inherently subject to a variety of risks and uncertainties that
could cause actual results to differ materially from those
expressed. Such risks and uncertainties include, among others,
economic cycles; international conflicts; changes in future demand
and supply for hotel rooms; competitive conditions in the lodging
industry; relationships with franchisees and properties; impact of
government regulations; ability to obtain financing; changes in
energy, healthcare, insurance and other operating expenses; ability
to sell non-core assets; ability to locate lessees for rental
property; dependency upon the ability and experience of executive
officers and ability to retain or replace such officers as well as
other matters discussed in the Company's annual report on Form 10-K
for the year ended December 31, 2018, and in other documents
filed by the Company with the Securities and Exchange
Commission. The Company undertakes no intent or obligation to
publicly update or revise any forward-looking statements.
About RLH CorporationRLH
Corporation is an innovative hotel company focused on the
franchising of upscale, midscale and economy hotels. The company
maximizes return on invested capital for hotel owners across North
America through relevant brands, industry-leading technology and
forward-thinking services. For more information, please visit the
company's website at www.rlhco.com.
Social
Mediawww.Facebook.com/myhellorewardswww.Twitter.com/myhellorewardswww.Instagram.com/myhellorewardswww.Linkedin.com/company/rlhco
Investor Relations ContactNikki SacksInvestor
Relations 203-682-8263investorrelations@rlhco.com
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