This quarterly report on Form 10-Q includes forward-looking statements,
including statements concerning operational and financial impacts of the
COVID-19 pandemic. We have based these statements on our current expectations,
assumptions, and projections about future events. When words such as
"anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "seek,"
"should," "will" and similar expressions or their negatives are used in this
quarterly report, these are forward-looking statements. Many possible events or
factors, including the effects of the COVID-19 pandemic and those discussed in
"Risk Factors" under Item 1A below and under Item 1A of our annual report on
Form 10-K for the year ended December 31, 2019, which we filed with the
Securities and Exchange Commission on February 27, 2020, could affect our future
financial results and performance, and could cause actual results or performance
to differ materially from those expressed. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date of
this quarterly report. We undertake no obligation to update or revise any
forward-looking statements except as required by law.

In this report, "we," "our," "us," "our company," "RLHC," and "RLH Corporation"
refer to Red Lion Hotels Corporation, doing business as RLH Corporation, and as
the context requires all, of its consolidated subsidiaries as follows:

Wholly owned subsidiaries:
•Red Lion Hotels Holdings, Inc.
•Red Lion Hotels Franchising, Inc.
•Red Lion Hotels Canada Franchising, Inc.
•Red Lion Hotels Management, Inc. ("RL Management")
•Red Lion Hotels Limited Partnership
•RL Baltimore LLC ("RL Baltimore")
•WestCoast Hotel Properties, Inc.
•Red Lion Anaheim, LLC
•RLabs, Inc.

Joint venture entities:
•RL Venture LLC ("RL Venture") in which we hold a 55% member interest
•RLS Atla Venture LLC ("RLS Atla Venture") in which we hold a 55% member
interest
•RLS DC Venture LLC ("RLS DC Venture") in which we hold a 55% member interest

The terms "the network," "systemwide hotels," "system of hotels," or "network of hotels" refer to our entire group of owned, managed and franchised hotels.



The following discussion and analysis should be read in connection with our
unaudited condensed consolidated financial statements and the condensed notes
thereto and other financial information included elsewhere in this quarterly
report, as well as in conjunction with the consolidated financial statements and
the notes thereto for the year ended December 31, 2019, which are included in
our annual report on Form 10-K for the year ended December 31, 2019.

COVID-19 Update



COVID-19 was first identified in Wuhan, China in December 2019, and subsequently
declared a pandemic by the World Health Organization. To date, COVID-19 has
surfaced in nearly all regions around the world and resulted in travel
restrictions and business slowdowns or shutdowns in affected areas. The economic
impact of the pandemic thus far has been extremely punitive to travel related
businesses across the nation, significantly affecting the operating results of
companies within the hospitality industry. The measures enacted by most
governments to combat the pandemic have included intensive restrictions on
travel, required closure of businesses deemed non-essential, and shelter in
place orders for civilians.

We have undertaken a series of organizational changes and cost cutting measures
including changes to senior management, a reduction in force and the
consolidation of office space to mitigate the impact of the COVID-19 pandemic on
our operating results. As our business is reliant in part on the financial
success and cooperation of our franchisees, we have also implemented policy
changes to address the impact of the pandemic on their financial condition,
including the implementation of a fee deferral program to certain of our
franchisees in which billings related to fees for March through May of 2020
could be deferred for up to 12 months, temporary fee reductions for review
responses, guest relations fees, and certain other fees, and a delay in
implementation of capital intensive brand standards. These changes are expected
to reduce cash flow, as our franchisees defer paying royalty fees to future
periods.

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While we did experience some impact from the COVID-19 pandemic on our operations
in March of 2020, the impact of the pandemic is ongoing, and the extent to which
the COVID-19 pandemic further impacts our business, operations and financial
results will depend on numerous evolving factors that we are not able to
accurately predict, including the length of travel restrictions and
government-mandated stay-at-home orders, the duration and spread of the virus,
and the extent to which people are willing to resume travel and hotel stays, as
well as the financial condition and recovery of our franchisees. Given the
dynamic nature of this situation, we cannot reasonably estimate the impacts of
COVID-19 on our financial condition, results of operations or cash flows for the
foreseeable future. However, we expect it will have a material, adverse impact
on future revenue growth as well as overall profitability.

Introduction



We are a NYSE-listed hospitality and leisure company (ticker symbol: RLH) doing
business as RLH Corporation and primarily engaged in the franchising and
ownership of hotels under the following proprietary brands: Hotel RL, Red Lion
Hotels, Red Lion Inn & Suites, GuestHouse, Settle Inn, Americas Best Value Inn
("ABVI"), Canadas Best Value Inn ("CBVI"), Signature and Signature Inn, Knights
Inn, and Country Hearth Inn & Suites ("Country Hearth").

We operate in two reportable segments:



•The franchised hotels segment is engaged primarily in licensing our brands to
franchisees. This segment generates revenue from royalty, marketing, and other
fees that are primarily based on a percentage of room revenue or on room count
or on transaction count and are charged to hotel owners in exchange for the use
of our brand and access to our marketing and central services programs. These
central services and marketing programs include our reservation system, guest
loyalty program, national and regional sales, revenue management tools, quality
inspections, advertising and brand standards. Additionally, this segment
includes our initial contracts for Canvas Integrated Systems.

•The company operated hotel segment derives revenues primarily from guest room
rentals and food and beverage offerings at owned and leased hotels for which we
consolidate results. Revenues have also been derived from management fees and
related charges for hotels with which we contract to perform management
services, however our last management agreement terminated in February 2019.

Our remaining activities, none of which constitutes a reportable segment, are aggregated into "other."



A summary of our open franchise and company operated hotels from January 1, 2020
through March 31, 2020, including the approximate number of available rooms, is
provided below:
                                                 Midscale Brand                                                   Economy Brand                                           Total
                                                           Total Available                            Total Available                             Total Available
                                          Hotels                Rooms                Hotels                Rooms                 Hotels                Rooms
Beginning quantity, January 1,
2020                                           96                 13,500                 966                 54,200                1,062                 67,700
Newly opened                                    -                      -                   6                    300                    6                    300

Terminated properties                          (1)                  (300)                (43)                (2,800)                 (44)                (3,100)
Ending quantity, March 31, 2020                95                 13,200                 929                 51,700                1,024                 64,900



A summary of activity relating to our open midscale franchise and company
operated hotels by brand from January 1, 2020 through March 31, 2020 is provided
below:
                                                                Red Lion           Red Lion Inn
Midscale Brand Hotels                     Hotel RL               Hotels             and Suites            Signature              Other                Total
Beginning quantity, January 1,
2020                                              9                   39                   40                      4                  4                    96

Terminated properties                             -                   (1)                   -                      -                  -                    (1)
Ending quantity, March 31, 2020                   9                   38                   40                      4                  4                    95

Ending rooms, March 31, 2020                  1,400                7,700                3,300                    300                500                13,200



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A summary of activity relating to our open economy franchise hotels by brand from January 1, 2020 through March 31, 2020 is provided below:


                                                                                                Country
Economy Brand Hotels                          ABVI and CBVI             Knights Inn             Hearth              Guest House                    Other               Total
Beginning quantity, January 1, 2020                     657                     232                  47                      19                        11                  966
Newly opened                                              3                       3                   -                       -                         -                    6

Terminated properties                                   (28)                    (11)                 (2)                     (1)                       (1)                 (43)
Ending quantity, March 31, 2020                         632                     224                  45                      18                        10                  929

Ending rooms, March 31, 2020                         33,500                  13,500               2,200                   1,200                     1,300               51,700


A summary of our executed franchise agreements for the three months ended March 31, 2020 is provided below:


                                                                 Midscale Brand        Economy Brand           Total

Executed franchise license agreements, three months ended March 31, 2020: New locations

                                                               2                   14                 16
New contracts for existing locations                                        4                   50                 54

Total executed franchise license agreements, three months
ended March 31, 2020                                                        6                   64                 70



Overview

Consistent with our previously stated business strategy to move towards
operating as primarily a franchise company, in the first quarter of 2020, we
sold two of our remaining company operated hotels. On February 7, 2020, we sold
the only hotel in our consolidated joint venture, RLS DC Venture, for $16.4
million. Using proceeds from the sale, together with the release of $2.3 million
in restricted cash held by our lender CP Business Finance I, LP, RLS DC Venture
repaid the remaining outstanding principal balance and accrued exit fee under
the RLH DC Venture loan agreement of $17.7 million.

On February 27, 2020, we sold our leasehold interest in the Red Lion Anaheim for
$21.5 million. Using net proceeds from the sale, the Company repaid the $10.0
million outstanding principal balance owing under the revolving line of credit
with Deutsche Bank AG New York Branch, and other lenders party thereto. Upon
repayment of the outstanding balance, the Line of Credit was terminated and
these funds are no longer available to us.


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Results of Operations

A summary of our Condensed Consolidated Statements of Comprehensive Income (Loss) is provided below (in thousands):

Three Months Ended March 31,


                                                                             2020                     2019
Total revenues                                                            $ 17,265                 $ 25,984
Total operating expenses                                                    25,504                   29,612
Operating income (loss)                                                     (8,239)                  (3,628)
Other income (expense):
Interest expense                                                              (506)                    (882)
Loss on early retirement of debt                                            (1,309)                       -
Other income (loss), net                                                        48                       33
Income (loss) before taxes                                                 (10,006)                  (4,477)
Income tax expense (benefit)                                                  (752)                      82
Net income (loss)                                                           (9,254)                  (4,559)
Net (income) loss attributable to noncontrolling interest                    1,155                      286

Net income (loss) and comprehensive income (loss) attributable to RLH Corporation

$ (8,099)                $ (4,273)

Non-GAAP Financial Measures (1)
EBITDA                                                                    $ (6,963)                $   (148)
Adjusted EBITDA                                                                       $ (10,315)               $ 999

(1) The definitions of "EBITDA," and "Adjusted EBITDA" and how those measures relate to net income (loss) are discussed and reconciled under Non-GAAP Financial Measures below.



For the three months ended March 31, 2020, we reported a net loss of $9.3
million, which includes $9.7 million of bad debt expense related to reserves
recognized for accounts receivable, key money, and notes receivable for certain
Inner Circle franchisees and other customer balances determined to be
uncollectible as of March 31, 2020, a $1.8 million asset impairment on our Red
Lion Hotel Seattle Airport as a result of the impact of the COVID-19 pandemic on
the operating results of that hotel, a $1.3 million loss on early retirement of
debt, $0.5 million of employee separation costs, $0.4 million of stock based
compensation, $0.4 million of transaction and integration costs, and $0.2
million of expense related to a non-income tax assessment, partially offset by
$7.9 million in gains from the disposal of two hotel properties

For the three months ended March 31, 2019, we reported a net loss of $4.6
million, which included $0.9 million of stock based compensation, $0.2 million
related to a non-income tax expense assessment and $0.1 million of transaction
and integration costs.

For the three months ended March 31, 2020, Adjusted EBITDA was $(10.3) million
compared with $1.0 million in 2019. This decrease was primarily due to $9.7
million of bad debt expense recognized in the first quarter of 2020 to establish
reserves for certain Inner Circle franchisees in bankruptcy and other customer
balances determined to be uncollectible as of March 31, 2020.

Non-GAAP Financial Measures



EBITDA is defined as net income (loss), before interest, taxes, depreciation and
amortization. We believe it is a useful financial performance measure due to the
significance of our long-lived assets and level of indebtedness.

Adjusted EBITDA is an additional measure of financial performance. We believe
that the inclusion or exclusion of certain special items, such as gains and
losses on asset dispositions and impairments and discontinued operations, is
necessary to provide the most accurate measure of core operating results and as
a means to evaluate comparative results. Adjusted EBITDA also excludes the
effect of non-cash stock compensation expense. We believe that the exclusion of
this item is consistent with the purposes of the measure described below.

EBITDA and Adjusted EBITDA are commonly used measures of performance in our industry. We utilize these measures because management finds them a useful tool to calculate more meaningful comparisons of past, present and future operating


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results and as a means to evaluate the results of core, ongoing operations. Our
board of directors and executive management team consider Adjusted EBITDA to be
a key performance metric and compensation measure. We believe they are a
complement to reported operating results. EBITDA and Adjusted EBITDA are not
intended to represent net income (loss) defined by generally accepted accounting
principles in the United States of America ("GAAP"), and such information should
not be considered as an alternative to reported information or any other measure
of performance prescribed by GAAP. In addition, other companies in our industry
may calculate EBITDA and, in particular, Adjusted EBITDA differently than we do
or may not calculate them at all, limiting the usefulness of EBITDA and Adjusted
EBITDA as comparative measures.

The following is a reconciliation of EBITDA and Adjusted EBITDA to net income (loss) for the periods presented (in thousands):


                                                                        Three Months Ended March 31,
                                                                       2020                     2019
Net income (loss)                                                   $ (9,254)                $ (4,559)
Depreciation and amortization                                          2,537                    3,447
Interest expense                                                         506                      882
Income tax expense (benefit)                                            (752)                      82
EBITDA                                                                (6,963)                    (148)
Stock-based compensation (1)                                             373                      916
Asset impairment (2)                                                   1,760                        -
Transaction and integration costs (3)                                    398                       62
Employee separation and transition costs (4)                             528                        -
Loss on early retirement of debt (5)                                   1,309                        -
Loss (gain) on asset dispositions (6)                                 (7,892)                       6

Non-income tax expense assessment (7)                                    172                      163
Adjusted EBITDA                                                      (10,315)                     999
Adjusted EBITDA attributable to noncontrolling interests                 (78)                    (547)
Adjusted EBITDA attributable to RLH Corporation                                 $ (10,393)               $ 452

(1) Costs represent total stock-based compensation for each period. These costs are included within
Selling, general, administrative and other expenses and Marketing, reservations and reimbursables on the
Condensed Consolidated Statements of Comprehensive Income (Loss).
(2) In the three months ended March 31, 2020, we recognized an impairment on our Red Lion Hotel Seattle
Airport leased property.
(3) Transaction and integration costs include incremental expenses incurred for potential and executed
acquisitions and dispositions of assets.
(4) The costs recognized relate to severance payments due to our Chief Financial Officer upon her
departure in March 2020, along with a reduction in force that was implemented in the first quarter of
2020. These costs are included within Selling, general, administrative and other expenses and Marketing,
reservations and reimbursables on the Condensed Consolidated Statements of Comprehensive Income (Loss).
(5) The Loss on early retirement of debt relates to unamortized deferred debt issuance costs and
prepayment fees incurred related to the payoff of a secured debt agreement at RL Venture - Olympia and
the outstanding balance on our Line of Credit.
(6) The gains relate to the sale of two properties during the first quarter of 2020. There was no
comparable activity during the three months ended March 31, 2019.

(7) Costs relate to estimated non-income taxes we have concluded we are probable of being assessed.
These estimated taxes have been accrued in Selling, general, administrative and other expenses on the
Condensed Consolidated Statements of Comprehensive Income (Loss).






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Franchise and Marketing, Reservations and Reimbursables Revenues


                                                       Three Months Ended March 31,
                                                      2020                          2019
                                                              (in thousands)
Royalty                                         $       4,357                    $ 5,740
Marketing, reservations and reimbursables               5,805                      6,729
Other franchise                                           774                        542


Three months ended March 31, 2020 and 2019



Royalty revenue decreased $1.4 million or 24% and revenues from Marketing,
reservations, and reimbursables revenue decreased by $0.9 million or 14%. These
decreases were primarily due to terminated franchise agreements in 2019 and the
first quarter of 2020, along with the impact of COVID-19 on our midscale brand
hotels who generally pay royalties and marketing fees as a percentage of gross
rooms revenue. Other franchise revenues increased $0.2 million or 43% primarily
due to an increase in various other fees, partially offset by the impact of
terminated agreements.

Company Operated Hotels Revenues


                                              Three Months Ended March 31,
                                                     (in thousands)
                                             2020                        

2019


Company operated hotels revenues       $      6,329                   $ 

12,970

Three months ended March 31, 2020 and 2019



During the three months ended March 31, 2020, revenue from our Company operated
hotels segment decreased $6.6 million or 51% compared with the same period in
2019. The decrease was driven primarily by the disposal of two company operated
hotel properties in the fourth quarter of 2019 and two additional company
operated hotel properties in the first quarter of 2020.

Revenues for the four company operated hotels held during the entirety of both
periods decreased by $1.0 million, to $3.9 million in the first quarter of 2020
compared to $4.9 million in the first quarter of 2019. This decrease was
primarily due to the negative impact of the COVID-19 pandemic on hotel occupancy
during March of 2020.

Operating Expenses

Selling, General, Administrative and Other Expenses




                                                                            Three Months Ended March 31,
                                                                                   (in thousands)
                                                                               2020                  2019
Franchise development and operations, including labor                   $        1,936           $   2,005
General and administrative labor and labor-related costs                         1,983               1,877
Stock-based compensation                                                           160                 474
Non-income tax expense assessment                                                  172                 163
Bad debt expense                                                                 9,720                 211
Legal fees                                                                         528                 588
Professional fees and outside services                                             568                 417
Facility lease                                                                     213                 278
Information technology costs                                                       201                 217
Other                                                                              784               1,161
Total Selling, general, administrative and other expenses               $       16,265           $   7,391


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Three months ended March 31, 2020 and 2019



Selling, general, administrative and other expenses increased by $8.9 million
for the three months ended March 31, 2020 compared with the three months ended
March 31, 2019.

Bad debt expense increased primarily due to $6.3 million of expense arising from
a reserve recognized for accounts receivable, key money, and notes receivable
for certain Inner Circle franchisees. The remaining increase relates primarily
to reserves recognized for accounts and notes receivable related to large
balances under legal dispute, aged balances from terminated agreements, or aged
balances placed with third party collections. See Note 7. Revenue from Contracts
with Customers within Item 8. Financial Statements for additional detail.

Labor and labor-related costs increased primarily due to accrued severance costs
related to the departure of our Chief Financial Officer in March 2020, partially
offset by a decrease in headcount compared to the prior period. Stock-based
compensation decreased primarily due to executive terminations in the fourth
quarter of 2019 and a reduction in force in the first quarter of 2020.

Other expenses decreased primarily due to various efficiencies and cost cutting initiatives implemented by management.

Company Operated Hotels Expenses



                                             Three Months Ended March 31,
                                                    (in thousands)
                                            2020                        2019

Company operated hotels expenses      $      6,678                   $ 

11,545

Three months ended March 31, 2020 and 2019



Company operated hotels expenses decreased by $4.9 million or 42% in the first
three months of 2020. The decrease was driven primarily by the disposal of two
company operated hotel properties in the fourth quarter of 2019 and two
additional company operated hotel properties in the first quarter of 2020.

Operating expenses for the four company operated hotels held during the entirety
of both periods decreased by $0.8 million, to $4.2 million in the first quarter
of 2020 compared to $5.0 million in the first quarter of 2019, primarily due to
the impact of COVID-19 on hotel operations in March 2020 and other cost cutting
initiatives implemented by management.

Marketing, Reservations and Reimbursables Expenses


                                                                            Three Months Ended March 31,
                                                                                   (in thousands)
                                                                              2020                  2019
Marketing, reservations and reimbursables expenses                      $       5,758           $   7,161

Three months ended March 31, 2020 and 2019



Marketing, reservations and reimbursables expenses decreased by $1.4 million or
20% in the first three months of 2020. This decrease was primarily due a
decrease in marketing expenditures in an effort by management to reduce costs in
the first quarter of 2020, along with a decrease in reservation volume.

Depreciation and Amortization
                                           Three Months Ended March 31,
                                                  (in thousands)
                                          2020                          2019

Depreciation and amortization       $       2,537                    $ 3,447



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Three months ended March 31, 2020 and 2019



Depreciation and amortization expense decreased $0.9 million or 26% during the
first three months of 2020. This decrease was driven primarily by the disposal
of two company operated hotel properties in the fourth quarter of 2019 and two
additional company operated hotel properties in the first quarter of 2020. This
decrease was partially offset by additional depreciation recognized from other
fixed assets placed in service during the remainder of 2019 and the first three
months of 2020.

Asset Impairment
                                  Three Months Ended March 31,
                                         (in thousands)
                                 2020                              2019

Asset impairment        $           1,760                         $ -



Three months ended March 31, 2020 and 2019



We recognized an impairment loss of $1.8 million on our Red Lion Hotel Seattle
Airport leased property in the first quarter of 2020. See Note 5. Property and
Equipment within Item 8. Financial Statements for additional detail.

Loss (Gain) on Asset Dispositions, net



                                                                           Three Months Ended March 31,
                                                                                  (in thousands)
                                                                              2020                 2019

Loss (gain) on asset dispositions, net                                  $    (7,892)           $       6

Three months ended March 31, 2020 and 2019



We recognized a net gain on asset dispositions of $7.9 million from the disposal
of two hotel properties during the first quarter of 2020, with no comparable
activity in 2019.

Interest Expense

Interest expense decreased $0.4 million in the first quarter of 2020 compared to
the first quarter of 2019. This decrease is primarily due to hotel sales and the
related reduction in our average corporate and hotel-specific debt outstanding
in 2020 as compared to 2019.

Loss on Early Retirement of Debt



In the first quarter of 2020, we recognized a Loss on early retirement of debt
of $1.3 million related to the early payoff of our Line of Credit and a secured
debt agreement at RLH DC Venture. These loans were paid off using proceeds from
the sale of the Hotel RL Washington DC joint venture property and our leasehold
interest in the Red Lion Anaheim.

Income Taxes



For the three months ended March 31, 2020, we reported an income tax benefit of
$752,000 compared with income tax expense of $82,000 for the same period in
2019. The income tax benefit recognized for the three months ended March 31,
2020 is principally related to the provisions of the CARES Act. The income tax
expense recognized for the three months ended March 31, 2019 varies from the
statutory rate primarily due to a partial valuation allowance against our
deferred tax assets. See Note 13 Income Taxes within Item 1. Financial
Statements.

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Liquidity and Capital Resources



Our principal source of liquidity is cash flow from operations. Cash flows may
fluctuate and are sensitive to many factors including changes in working capital
and the timing and magnitude of capital expenditures and payments on debt. We
believe the ongoing effects of COVID-19 on our operations have had, and will
continue to have, a material impact on our ability to generate cash from our
operations and our financial results, and the impact may continue beyond the
containment of the outbreak. We cannot assure you that our assumptions used to
estimate our liquidity requirements will be correct given the dynamic nature of
the situation.

Working capital, which represents current assets less current liabilities, was
$34.6 million and $23.0 million as of March 31, 2020 and December 31, 2019,
respectively. As of March 31, 2020, we had cash and cash equivalents of $37.8
million and debt of $5.6 million. In order to preserve sufficient liquidity
during these uncertain times, we implemented certain cost saving measures at the
end of the first quarter of 2020, which included a reduction in force of
approximately 40%, company-wide compensation reductions, consolidation of office
space and a reduction in 2020 capital expenditures and key money commitments.
Based upon our current liquidity position, and assumptions regarding the impact
of COVID-19, including its duration, economic impact and impact on travel, we
believe that we have sufficient liquidity to fund our operations at least
through May 2021. However, given the uncertain nature of the COVID-19 pandemic
on our operations, we cannot assure you that our assumptions used to estimate
our liquidity requirements will be correct.

We may seek to raise additional funds through public or private financings,
strategic relationships, sales of assets or other arrangements. We cannot assure
that such funds, if needed, will be available on terms attractive to us, or at
all. If we sell additional assets, these sales may result in future impairments
or losses on the final sale. Finally, any additional equity financings may be
dilutive to shareholders and debt financing, if available, may involve covenants
that place substantial restrictions on our business.

We are committed to maintaining our infrastructure for systems and services we
provide to our franchisees. This requires ongoing access to capital investments
in technology and related assets.

Sources and Uses of our Cash, Cash Equivalents, and Restricted Cash

The following table summarizes our net cash flows for operating, investing, and financing activities (in thousands):

Three Months Ended March 31,


                                                                          2020                  2019
Net cash provided by (used in) operating activities                 $      (2,294)          $  (2,032)
Net cash provided by (used in) investing activities                        36,114              (1,569)
Net cash provided by (used in) financing activities                       (27,753)              8,682



Operating Activities

Net cash used in operating activities totaled $2.3 million during the first
three months of 2020 compared with $2.0 million during the same period in 2019.
The primary driver of the change was an increase in cash flows from working
capital accounts of $1.7 million, partially offset by an increase in net loss
excluding Loss (gain) on asset dispositions, net, Asset impairment, and
Provision for doubtful accounts of approximately $1.3 million.

Investing Activities



Net cash provided by investing activities totaled $36.1 million during the first
three months of 2020 compared with cash used in investing activities of $1.6
million during the same period in 2019. Cash flows increased in the first
quarter of 2020 primarily due to net proceeds from hotel sales of $36.9 million
during the first three months of 2020.

Financing Activities



Net cash used in financing activities was $27.8 million during the first three
months of 2020 compared with cash provided by financing activities of $8.7
million in the first three months of 2019. During the three months ended March
31, 2020, we paid off an outstanding loan for one company operated property
along with the outstanding balance on our Line of Credit. During the three
months ended March 31, 2019 we executed new mortgage loans for two company
operated hotel properties. Some of the loan proceeds were distributed to joint
venture partners.
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Debt

As of March 31, 2020, we had outstanding total debt, excluding unamortized deferred financing costs and discounts, of $5.6 million related to a single property mortgage on our RL Venture Olympia property.



In February 2020, we sold the Hotel RL Washington DC for $16.4 million. Using
proceeds from the sale, together with the release of $2.3 million in restricted
cash held by CP Business Finance I, LP, RLH DC Venture repaid the remaining
outstanding principal balance and accrued exit fee under the RLH DC Venture loan
agreement of $17.7 million, plus a prepayment penalty of $0.6 million.

Also in February of 2020, using the net proceeds from the sale of our leasehold
interest in the Red Lion Anaheim, we repaid the outstanding Line of Credit
balance of $10.0 million. Upon repayment of the outstanding balance, the Line of
Credit was terminated and these funds are no longer available to us.

See Note 8 Debt and Line of Credit within Item 1. Financial Statements of this
quarterly report on Form 10-Q, for further additional information about our debt
obligations.

Off-Balance Sheet Arrangements



As of March 31, 2020, we had no off-balance sheet arrangements which have or are
reasonably likely to have a current or future effect on our financial condition,
revenues or expenses, results of operations, liquidity, capital expenditures or
capital resources.

Critical Accounting Policies and Estimates



The preparation of condensed consolidated financial statements in conformity
with GAAP requires management to make estimates and assumptions that effect:
(i) the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the dates of the financial statements, and (ii) the
reported amounts of revenues and expenses during the reporting periods. Actual
results could differ materially from those estimates. We consider a critical
accounting policy to be one that is both important to the portrayal of our
financial condition and results of operations and requires management's most
subjective or complex judgments, often as a result of the need to make estimates
about the effect of matters that are inherently uncertain. Since the date of our
annual report on Form 10-K for the fiscal year ended December 31, 2019, we have
made no material changes to our critical accounting policies or the
methodologies or assumptions that we apply under them.

New and Recent Accounting Pronouncements

See Note 2 Summary of Significant Accounting Policies within Item 1. Financial Statements of this quarterly report on Form 10-Q for information on new and recent GAAP accounting pronouncements.


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