Red Lion Hotels Corp. stock continued to be heavily traded and made modest gains yesterday on the heels of an unsolicited buyout bid from Columbia Pacific Opportunity Fund, LP last week.

When Columbia Pacific offered to buy Red Lion Hotels for $9.50 per share in cash, it was a 35-percent premium over the stock’s closing price ($7.05 on June 26) on the New York Stock Exchange. The stock (RLH) surged to $7.96 last Monday after the news and reached $8.88 at close yesterday. The 52-week high was $13.25, the low $6.45.

The Seattle-based investment group, which currently has a 12.7-percent stake in Red Lion, is offering to buy the remaining 18.2-millon shares for around $173 million. Red Lion is working with its investment banking firm JMP Securities to evaluate strategic options for maximizing shareholder value.

The Spokane, WA-based company says it is prepared to grant Columbia’s request for confidential access to nonpublic information concerning the company on a non-exclusive basis, meaning other interested suitors could get the same look. Carlson, Choice, Wyndham, IHG and Hyatt have been mentioned in media reports as potential buyers.

Red Lion has 53 hotels in nine states and Canada and an entertainment and event ticket distribution business. Red Lion hotels, predominantly located in the West, are full-service properties catering to both the corporate and leisure traveler.