Red Lion Hotels 8-K RLH Completes Sale of Red Lion Hotel Anaheim for $21.5 Million

Exhibit 99.2

RED LION HOTELS CORPORATION

Unaudited Pro Forma Consolidated Balance Sheet

As of December 31, 2019

(In thousands, except share data)

	As Reported			Less: Previously Sold Hotel Assets (a)			Previously Sold Hotel Pro Forma Adjustments			Less: Anaheim Hotel Asset Sold			Anaheim Pro Forma Adjustments			Pro Forma
ASSETS
Current assets:
Cash and cash equivalents		29,497			(410	)b		(213	)g		10,772	j		4	g		41,961
								2,311	h
Restricted cash		2,311						(2,311	)h								—
Accounts receivable, net		15,143						(74	)g					(739	)g		14,330
Notes receivable, net		5,709															5,709
Other current assets		5,849						(278	)g					(127	)g		5,444
Total current assets		58,509			(410	)		(565	)		10,772			(862	)		67,444
Property and equipment, net		68,668			(18,125	)c					(12,408	)c					38,135
Operating leaseright-of-use assets		48,283			(10,810	)e					(31,364	)e					6,109
Goodwill		18,595															18,595
Intangible assets, net		48,612															48,612
Other assets, net		3,851			(703	)c											3,148
Total assets		246,518			(30,048	)		(565	)		(33,000	)		(862	)		182,043
LIABILITIES
Current liabilities:
Accounts payable		5,510						(412	)g					(243	)g		4,855
Accrued payroll and related benefits		2,709						(59	)g					(211	)g		2,439
Other accrued liabilities		5,469			(71	)e		(94	)g		(12	)e		(408	)g		4,884
Long-term debt, due within one year		16,984			(16,984	)d											—
Operating lease liabilities, due within one year		4,809			(966	)e					(2,325	)e					1,518
Total current liabilities		35,481			(18,021	)		(565	)		(2,337	)		(862	)		13,696
Long-term debt, due after one year, net of debt issuance costs		5,576															5,576
Line of credit, due after one year		10,000									(10,000	)d					—
Operating lease liabilities, due after one year		46,592			(11,938	)e					(29,039	)e					5,615
Deferred income and other long-term liabilities		1,105			(21	)e					(85	)e					999
Deferred income taxes		743															743
Total liabilities		99,497			(29,980	)		(565	)		(41,461	)		(862	)		26,629
Commitments and contingencies
STOCKHOLDERS’ EQUITY
RLH Corporation stockholders' equity
Preferred stock - 5,000,000 shares authorized; $0.01 par value; no shares issued or outstanding		—															—
Common stock - 50,000,000 shares authorized; $0.01 par value; 25,148,005 shares issued and outstanding		251															251
Additionalpaid-in capital, common stock		181,608						(1,307	)i								180,301
Accumulated deficit		(36,875	)		(37	)f					8,461	f					(28,451	)
Total RLH Corporation stockholders’ equity		144,984			(37	)		(1,307	)		8,461			—			152,101
Noncontrolling interest		2,037			(31	)f		1,307	i								3,313
Total stockholders’ equity		147,021			(68	)		—			8,461			—			155,414
Total liabilities and stockholders’ equity		246,518			(30,048	)		(565	)		(33,000	)		(862	)		182,043

a - Reflects the removal of balances related to our Washington DC hotel sold in February 2020

b - Reflects the additional cash in excess of cash received from the sale of assets less selling costs required to repay outstanding debt

c - Reflects the book value of assets sold

d - Reflects the elimination of debt after full repayment

e - Reflects the leases and/or equipment financing assumed by the purchaser

f - Reflects the gain (loss) on sale

g - Reflects the settlement of working capital

h - Reflects the release of restricted cash related to the assets sold and repayment of debt

i - Reflects the elimination of the noncontrolling interest

j - Reflects the cash from the sale of assets less selling costs and the repayment of debt

RED LION HOTELS CORPORATION

Unaudited Pro Forma Consolidated Statement of Comprehensive Income (Loss)

For the year ended December 31, 2019

(In thousands, except per share data)

	As Reported			Less: Previously Sold Hotels Assets Sold (k)			Previously Sold Hotels Pro Forma Adjustments			Less: Anaheim Hotel Asset Sold			Anaheim Pro Forma Adjustments			Pro Forma
Revenue:
Royalty		22,121						304	l					248	l		22,673
Marketing, reservations and reimbursables		31,375						406	l					447	l		32,228
Other franchise		5,749															5,749
Company operated hotels		55,029			(18,718	)					(13,344	)					22,967
Other		14															14
Total revenues		114,288			(18,718	)		710			(13,344	)		695			83,631
Operating expenses:
Selling, general, administrative and other expenses		29,420															29,420
Company operated hotels		48,612			(16,229	)					(11,132	)					21,251
Marketing, reservations and reimbursables		29,292						406	l					447	l		30,145
Depreciation and amortization		14,567			(3,402	)					(1,208	)					9,957
Asset impairment		14,128			(5,382	)											8,746
Gain on asset dispositions, net		(7,067	)		7,287												220
Transaction and integration costs		632			(144	)					(69	)					419
Total operating expenses		129,584			(17,870	)		406			(12,409	)		447			100,158
Operating income (loss)		(15,296	)		(848	)		304			(935	)		248			(16,527	)
Other income (expense):
Interest expense		(5,157	)		3,935						14						(1,208	)
Loss on early retirement of debt		(428	)		273												(155	)
Other income (expense), net		161			(2	)											159
Total other income (expense)		(5,424	)		4,206			—			14			—			(1,204	)
Income (loss) from continuing operations before taxes		(20,720	)		3,358			304			(921	)		248			(17,731	)
Income tax expense (benefit)		253															253
Net income (loss)		(20,973	)		3,358			304			(921	)		248			(17,984	)
Net (income) loss attributable to noncontrolling interest		1,944			(419	)					414						1,939
Net income (loss) and comprehensive income (loss) attributable to RLHC		(19,029	)		2,939			304			(507	)		248			(16,045	)
Earnings (loss) per share - basic	$	(0.76	)													$	(0.64	)
Earnings (loss) per share - diluted	$	(0.76	)													$	(0.64	)
Weighted average shares - basic		24,931															24,931
Weighted average shares - diluted		24,931															24,931

k -	Reflects the removal of balances related to our Atlanta and Salt Lake City hotels sold in 2019 and Washington DC hotel sold in February 2020
l  -	Reflects the franchise income and related expenses that would have been received under the existing intercompany franchise agreement. Does not represent the impact of the franchise agreements with the new owners of the assets.