Even though it lost a whooping $2.3 million dollars, Spokane-based WestCoast Hotels is investing in its future, spending big bucks to press forward with several initiatives designed to boost occupancy.

Like other hospitality chains nationwide, WestCoast, which bought regional rival Red Lion in 2002 (and converted its Silverdale Hotel to the Red Lion brand), has seen increases in both occupancy and room rates as the travel industry has seen an uptick in business. Revenue per available room was up 6.2 percent at WestCoast's 70 hotels compared with the previous year,. But the net gain was offset by an increase a nearly 82 percent increase in net operating losses.

Still, the hotel chain is undaunted, spending $1.4 million in the first quarter to beef up its sales force and cover increased medical benefit costs.

Meanwhile, the hotel chain has lost franchisees following its acquisition of Red Lion as franchisees formed new partnerships with other operators. WestCoast is currently rebuilding the Red Lion brand with a new advertising campaign and has rebranded 22 of its own hotels under the Red Lion flag — including Silverdale.

Much of the improvement in occupancy and rates is credited to the company's new central reservations system which now links each of the chain's hotels to its headquarters and call center. The system is able to show room availability in real time for each property so managers know right away what's available. That also makes it easier for them to know when to raise rates as rooms fill. It has also improved the company's margins in dealing with its discount travel Web site partners.

Additionally, to help drive bookings through its corporate Web site, WestCoast now guarantees its rates will match other online travel Web sites or it will pick up the tab.