1052595--3/31/2006--Red_Lion_Hotels

related topics

{condition, economic, financial}

{investment, property, distribution}

{loan, real, estate}

{acquisition, growth, future}

{operation, natural, condition}

{personnel, key, retain}

{stock, price, operating}

{cost, regulation, environmental}

{loss, insurance, financial}

{regulation, change, law}

{cost, contract, operation}

{customer, product, revenue}

{capital, credit, financial}

{regulation, government, change}

{competitive, industry, competition}

{financial, litigation, operation}

If we are unable to compete successfully, our business may be materially harmed. Due to the geographic concentration of the hotels in our system, our results of operations and financial condition are subject to fluctuations in regional economic conditions. Our expenses may remain constant even if revenues decline. Our inability to sell real estate if and when desired may adversely affect our financial condition. If we are unable to effectively integrate new hotels into our operations, our results of operations and financial condition may suffer. If our franchisees terminate or fail to renew their relationship with our company, our franchise revenue will decline. We may be unsuccessful in identifying and completing acquisition opportunities, which could limit our ability to implement our long-term growth strategy and result in significant expenses. Hotel acquisitions could fail to perform in accordance with our expectations, and our hotel development, redevelopment and renovation projects might be more costly than we anticipate. Risks associated with real estate ownership may adversely affect revenue or increase expenses. Our properties are subject to risks relating to acts of God, terrorist activity and war and any such event could materially adversely affect our operating results. If we fail to comply with privacy regulations, we could be subject to fines or other restrictions on our business. Due to the shareholdings of our Chairman together with other members of the Barbieri family, we may be limited in our ability to undertake a change of control transaction requiring shareholder approval. We may have disputes with the owners of the hotels that we manage or franchise. We are subject to governmental regulations affecting the lodging industry; the costs of complying with governmental regulations, or our failure to comply with such regulations, could affect our financial condition and results of operations. Our business is seasonal in nature, and we are likely to experience fluctuations in our results of operations and financial condition. Failure to retain senior management could adversely affect our business. If we are unable to locate lessees for our office and retail space our revenues and cash flow may be adversely affected. We are subject to risks associated with managing and leasing commercial properties owned by third parties. The performance of our entertainment division is particularly subject to fluctuations in economic conditions. We face risks relating to litigation. We may experience material losses in excess of insurance coverage. We are subject to environmental risks that could be costly.

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1052595--3/31/2006--Red_Lion_Hotels_CORP