Red Lion Hotels Corporation Launches Revamped Loyalty Program with…

Red Lion Hotels Corporation Launches Revamped Loyalty Program with Commitment to
Brand Promise of 'Stay Comfortable'

Industry-Leading 'Red Lion R&R Club' Designed to Offer What Members Want

SPOKANE, WA (Feb. 28, 2008) - Red Lion Hotels Corporation [NYSE: RLH] has announced that it has completely redesigned
and renamed its loyalty program to reflect the Red Lion Stay Comfortable® promise. The new "Red Lion R&R Club®" offers an
effortless, rich and rewarding program that is easy to understand and easy to achieve. It also offers lower point redemption
thresholds as well as customized redemption options.

Members earn 10 points for every eligible dollar charged to their room, and for 10,000 points, can earn a free night stay at any
Red Lion® hotel. In addition, guests can redeem their points for everything from a massage to a sky diving trip or a Stay
Comfortable Bed by SealyTM.

"We are pleased to introduce the Red Lion R&R Club - a comprehensive program with more benefits and reward opportunities,
and based on what our members want," said John Taffin, Executive Vice President, Hotel Operations, of Red Lion Hotels
Corporation. "The new lower point threshold and variety of redemption options make the benefits achievable and relevant to
what our members are really looking for. The Red Lion R&R Club is genuine, in the same way that our hotels consistently
provide guests with a comfortable stay and genuine sincere service.

"Unlike other brand programs which have several tiers for redemption of hotel stays, The Red Lion R&R Club has removed the
concept of 'tiers,' making hotel stays more attainable and easy to use," Taffin added.

Members can also redeem rewards for as little as 5,000 points, and it is faster to attain Gold or Platinum levels than many other
programs. Members achieve Gold status with only 12 nights (not "stays"), and Platinum status with only 25 nights.

According to Namrata A. Patel, Director of Marketing for Red Lion Hotels Corporation, Red Lion R&R Club is the result of the
company's two-year effort to realign the guest frequency program to match the brand's promise of comfort. "In this world of
complicated travel and hotel loyalty programs, Red Lion R&R Club renews our commitment to the brand with a program that is
simpler to use; our goal is to offer a comfortable program in a complex space.

"The focus of the program isn't transactional but based on experiences so that our members can build a relationship with our
brand," Patel continued. "In this spirit, Red Lion R&R Club has been specifically designed to reflect guest and member input."

All active members of the former GuestAwards program will automatically be enrolled in the Red Lion R&R Club.

What Members Really Want - Merchandise Options that Make Memories

Now, Red Lion R&R Club offers members a memorable experience with options for redemption that include future hotel stays,
merchandise, entertainment, car rentals and other rewards from participating service and retail companies in the partner
network. Based on members' desires, redemption partners will continue to be added.

GiftCertificates.com, the leading e-commerce provider of innovative merchandise and reward solutions, and Cloud9Living, the
emerging market leader in the experience gifts industry offering over 1,700 experiences including spa and cruise vacations,
have joined Red Lion R&R Club's list of partners. To build upon the relationship between the brand and its members, Sealy has
been incorporated as a partner so that members can experience Red Lion's Stay Comfortable brand promise in their own home
by redeeming points for a Red Lion Stay Comfortable Bed by Sealy. Additional merchandise partners include Costco and
Nordstrom.

To enroll in the Red Lion R&R Club or for more information, visit www.redlion.com/redlionrandrclub, or contact the 24/7 Member
Service Center toll-free at 1-888-606-0563 or email at memberservices@redlion.com.

Stay Comfortable at Red Lion Hotels

Stay Comfortable® is the reference for Red Lion's guest experience enhancements first introduced in 2006. Now complete at a
majority of Red Lion Hotels, they showcase the enhanced brand and its high quality of service and comfort. Guestrooms
feature plush pillowtop beds, triple sheeting, extra pillows and new furnishings. Baths have been remodeled with imported
granite vanities and oversized framed mirrors, elegant lighting, porcelain tiled flooring, and curved shower rods with multi-spray
showerheads. Public space improvements include updated lobbies, restaurants and lounges, ballrooms and meeting rooms.

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® brand. As of December 31, 2007 the RLH hotel network was comprised of
53 hotels located in eight states and one Canadian province, with 9,388 rooms and 472,529 square feet of meeting space. The
company also owns and operates an entertainment and event ticket distribution business. For more information, visit the
company's website at www.redlion.com.

Contacts:
Namrata A. Patel
Red Lion Hotels Corporation
Office: 509-777-6326
Cell: 509-999-4505
Namrata.patel@redlion.com

Leora Halpern Lanz
HVS Sales & Marketing Services
516-248-8828, x278
llanz@hvs.com