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Exhibit 99.2

CONTACTS:
FOR DOUBLETREE: FOR RED LION HOTELS: FOR KKR:
Bill Perocchi Randall Oliver Ruth Pachman, Dawn Dover
Executive Vice President Dir. Investor Relations Josh Pekarsky
and Chief Financial Officer 360-750-4347 Kekst and Company
602-220-6810 Brian Bell 212-593-2655
Bowler & Associates
503-248-9468

FOR IMMEDIATE RELEASE

DOUBLETREE CORPORATION TO ACQUIRE RED LION HOTELS
IN A MERGER TRANSACTION VALUED AT $1.2 BILLION

-- TRANSACTION WILL CREATE ONE OF THE NATION'S LARGEST FULL SERVICE HOTEL
OPERATING COMPANIES WITH MORE THAN 230 LOCATIONS IN UNITED STATES AND MEXICO --

- -- ACQUIRED HOTELS WILL ENHANCE DOUBLETREE'S POSITION AS A LEADING FULL SERVICE
NATIONAL LODGING BRAND --

PHOENIX, ARIZONA AND VANCOUVER, WASHINGTON, SEPTEMBER 12, 1996 -- Doubletree
Corporation (NASDAQ: TREE) and Red Lion Hotels, Inc. (NYSE:RL) today announced
that they have signed a definitive agreement under which Doubletree will
acquire Red Lion in a cash-and-stock merger valued at approximately $1.2
billion including the assumption of approximately $200 million of debt. The
transaction will create one of the largest hotel management companies in the
United States with more than 230 locations in 39 states, the District of
Columbia and Mexico and a total of more than 56,000 rooms. On a pro forma
basis, total revenues of the combined company for 1995 were approximately $600
million and revenues under management were approximately $1.4 billion. The
business combination will be accounted for as a purchase.

Under the terms of the proposed transaction, Red Lion shareholders will receive

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consideration of $30.11 per share, consisting of $21.30 in cash and
approximately $8.81 of Doubletree Corporation common stock (representing .2398
shares of Doubletree stock) for each Red Lion common share they hold, subject
to adjustment. A limited partnership comprising the pension funds of Washington
and Oregon, Red Lion co-founder Tod McClaskey, and Kohlberg Kravis Roberts &
Co. currently owns approximately 67 percent of Red Lion's common shares
outstanding and has committed to support the transaction. General Electric
Investments and Doubletree Co-chairmen Richard J. Ferris and Peter V.
Ueberroth, collective owners of approximately 39% of Doubletree common stock,
have also committed to support the transaction.

Following the transaction, it is expected that most of Red Lion's locations
will operate under the Doubletree brand name, enhancing Doubletree's position
as a leading full service national lodging brand. The companies' reservation
systems will be integrated to provide guests with a single resource for all of
their full-service lodging requirements on a nationwide basis.

"Several months ago, we approached Red Lion management about a possible
combination because we knew that Red Lion's high-quality properties throughout
the western United States would enhance our existing lodging portfolio, and
help bring us the critical mass we need to become the preferred national full
service lodging brand," said Richard M. Kelleher, President and Chief Executive
Officer of Doubletree Hotels Corporation. "We are delighted to have reached
agreement on the terms of a transaction that is expected to be accretive to
Doubletree's earnings in 1997.

"The merger brings to us a highly talented hotel team that will enhance our
position as a leading full service hotel management company, driven to provide
superior service to our guests and enhanced value to our hotel owners,"
continued Mr. Kelleher. "We expect to create an organization that incorporates
the best of both of our companies by

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combining certain headquarters and support operations, and realizing certain
scale economies.

"We believe that bringing Doubletree and Red Lion together will create a more
dynamic combined enterprise, help increase the visibility of the Doubletree
brand, and enhance our competitive position in the upscale, full-service segment
of the North American lodging industry," continued Mr. Kelleher.

David J. Johnson, Chairman and Chief Executive Officer of Red Lion Hotels, Inc.,
said: "More than 11,000 Red Lion employees provide our guests with outstanding
customer service, directed by our management team who has built a premier brand
and an extremely valuable company. I am very proud of everyone's contribution to
this effort.

"The merger of Red Lion and Doubletree is attractive and, by giving Doubletree
stock as part of the consideration, will provide shareholders an opportunity to
participate in the future growth potential of the combined company," said Mr.
Johnson. "The transaction will also enable the public pension funds of
Washington and Oregon, Tod McClaskey, and KKR to realize the significant value
they have helped us create through their support and ownership over the past 11
years."

"Dave Johnson and his management team have done an extraordinary job at Red
Lion, creating a strong company and significant value for all Red Lion
shareholders," said Michael Michelson, General Partner of KKR. "We have enjoyed
working with the executives and employees at Red Lion and we thank them for all
their efforts."

Doubletree has received written commitments for the financing of the entire cash
component of the transaction. Doubletree said that the transaction will be
financed by the issuance of $100 million of Doubletree common stock to General
Electric

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Investments, the issuance of approximately $280 million of Doubletree common
stock to Red Lion shareholders, the issuance of approximately $600 million of
institutional debt, and the issuance of Doubletree common stock in an
additional equity offering. Following these financing transactions,
Doubletree's debt as a percentage of its total capital will be less than 50
percent.

Doubletree said that the limited partnership comprising KKR, Mr. McClaskey, and
the pension funds of Washington and Oregon will have an approximate 13 percent
interest in the combined company as a result of the partnership's tendering of
its Red Lion shares into the transaction, and that under the terms of the
transaction the partnership will have two seats on Doubletree's expanded
ten-member Board. The companies noted that the units of Red Lion Inns Master
Limited Partnership (AMEX: RED), which owns 10 hotels managed by Red Lion
Hotels, are not a part of the Doubletree/Red Lion transaction. The combined
enterprise will, however, continue to manage these properties.

Completion of the transaction is subject to approval by the shareholders of
both companies, expiration of the applicable waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act, and other customary closing
conditions, and is expected to occur before year-end.

Morgan Stanley & Co. Incorporated is Doubletree's financial advisor for the
transaction. Smith Barney Inc. is Red Lion's financial advisor with regard to
the transaction.

Headquartered in Phoenix, Arizona, Doubletree Corporation is a leading hotel
management company and the exclusive franchisor of Doubletree Hotels(R),
Doubletree Guest Suites(R) and Club Hotels by Doubletree(R) hotel brands. On
June 30, 1996, Doubletree had a portfolio of 179 properties totalling 41,232
rooms under lease, management contract or franchise agreement in 37 states, the
District of Columbia and Mexico.

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Red Lion Hotels, Inc., based in Vancouver, Washington, is a leading
full-service hospitality company operating 55 hotels containing approximately
14,500 rooms in the western United States as of June 30, 1996.

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