Red Lion Hotels reported a $2.5 million loss for the fourth quarter and announced layoffs, pay cuts and other cost-cutting moves to get through what is expected to be a rough 2009.
"We were affected by the deteriorating economic environment throughout the quarter, and expect the economy and the hotel industry will continue to be challenged in 2009," said CEO Anupam Narayan.
"In response, we are aggressively implementing further cost-cutting steps at our hotels and at the corporate office. These include a reduction in workforce, consolidation of management teams at hotels, a company-wide hiring freeze, a 5% wage cut for all salaried employees and other adjustments to our operations. Through these measures, we expect to reduce our overall annual expenses by $10-12 million."
At the same time, Narayan said the company will ramp up its sales and marketing efforts to attract corporate business, groups, meetings and banquets.
For the full year, Red Lion reported income of $1.9 million, down 6% from 2007, when it earned $5.2 million.
Revenue per available room was down 8.3% in the fourth quarter and 0.5% for the year. Daily rates held, increasing 0.2% for the quarter and 1.7% for the year.