SPOKANE, Wash., Oct. 13 /PRNewswire/ -- Red Lion Hotels
Corporation (NYSE: RLH) announced today that it has closed on a $14 million
loan from Wells Fargo Bank, National Association on Red Lion's 181-room
hotel in Bellevue, Washington. The loan provides for a five-year term and a
variable spread over LIBOR based on certain financial ratios. The current
pricing is 1.75% over LIBOR. Red Lion used part of the proceeds of the loan
to pay off its existing higher-rate loan in the approximate amount of $8.2
million and will use the remainder for general corporate purposes.

    Dan Adams, Vice President of Wells Fargo Bank, National Association,
said, "Red Lion Hotels Corporation is a valuable customer of ours. Red
Lion's financial performance and solid management along with the clear
value of Red Lion's Bellevue hotel justified the expansion of our excellent
existing relationship with the company."

    Anthony Dombrowik, Chief Financial Officer of Red Lion Hotels
Corporation, said, "Our ability to refinance this hotel on such favorable
terms in the current credit environment speaks volumes of the financial
strength of our company and of our relationship with Wells Fargo. We
appreciate their continued support of Red Lion's growth."

    About Red Lion Hotels Corporation:

    Red Lion Hotels Corporation is a hospitality and leisure company
primarily engaged in the ownership, operation and franchising of upscale
and midscale hotels under its Red Lion(R) brand. As of June 30, 2008, the
RLH hotel network was comprised of 50 hotels located in nine states and one
Canadian province, with 9,326 rooms and 448,626 square feet of meeting
space. The company also owns and operates an entertainment and event ticket
distribution business. For more information, please visit the company's
website at http://www.redlion.com.



     Contact:
     Red Lion Hotels Corporation
     Julie Langenheim, Investor Relations Manager
     (509) 777-6322

     Investor Relations:
     ICR Inc.
     William Schmitt
     (203) 682-8200