FelCor Agrees to Sell Two Non-Strategic Hotels and Expects to Pay Remaining Accrued Preferred Dividends
IRVING, Texas--(BUSINESS WIRE)-- FelCor Lodging Trust Incorporated (NYS: FCH) today announced that it has agreed to sell the 370-room Embassy Suites - New Orleans-Convention Center and the 296-room Embassy Suites - Nashville-Airport for an aggregate purchase price of $70 million. The purchaser has paid a $2.1 million hard money deposit toward the purchase price. The transaction is expected to close in October.
FelCor expects to use a portion of the proceeds to pay the remaining $37.7 million of accrued preferred dividends when the company pays its regular quarterly preferred dividends on October 31, 2012.
As part of FelCor's long-term portfolio repositioning strategy, the company is selling 39 non-strategic hotels. After selling the two hotels discussed above, FelCor will have sold 18 of the 25 hotels that it has brought to market since December 2010. The company continues to make significant progress using asset sale proceeds to strengthen its balance sheet.
FelCor, a real estate investment trust, owns 69 primarily upper-upscale, full-service hotels that are located in major and resort markets throughout 22 states. FelCor partners with leading hotel companies to operate its diversified portfolio of hotels, which are flagged under globally recognized names such as Doubletree®, Embassy Suites®, Fairmont®, Hilton®, Marriott®, Renaissance®, Sheraton®, Westin® and Holiday Inn®, and premier independent hotels in New York. Additional information can be found on the Company's Web site at www.felcor.com.
With the exception of historical information, the matters discussed in this news release include "forward-looking statements" within the meaning of the federal securities laws that are qualified by cautionary statements herein and in FelCor's filings with the Securities and Exchange Commission.We undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.
FelCor Lodging Trust Incorporated
Stephen A. Schafer, 972-444-4912
Vice President Strategic Planning & Investor Relations
KEYWORDS: United States North America Louisiana Tennessee Texas
The article FelCor Agrees to Sell Two Non-Strategic Hotels and Expects to Pay Remaining Accrued Preferred Dividends originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.