FelCor Lodging Trust Incorporated (NYSE: FCH) today announced that it has agreed to sell six non-strategic hotels for $103.0 million, in the aggregate, to an undisclosed buyer. The purchaser has paid a $3.9 million hard money deposit toward the purchase price. The transaction is expected to close late in the second quarter. As part of its long-term portfolio repositioning strategy, which includes the sale of 39 non-strategic hotels, FelCor is currently marketing 16 hotels, including the six hotels announced today.
After repayment of $73 million of secured debt and other costs at closing, FelCor expects to use the remaining $30 million of proceeds to pay a portion of its accrued preferred dividends (almost half of the $67.7 million arrearage) in conjunction with paying the regular quarterly preferred dividends on July 31, 2012. FelCor expects that the remaining accrued dividends will be paid in 2012 using proceeds from future asset sales.
The portfolio, which consists of 1,527 rooms, includes the Holiday Inn San Antonio-Airport, the Sheraton Suites Ft. Lauderdale-Cypress Creek, Doubletree Guest Suites hotels in Raleigh/Durham and Tampa-Rocky Point, and the Embassy Suites hotels in Boca Raton and St. Paul. The portfolio purchase price represents a 6.8% cap rate based on 2011 net operating income. When this transaction closes in the second quarter, FelCor will have sold 15 of the 25 hotels that it has brought to market since December 2010.
About FelCorFelCor, a real estate investment trust, owns 76 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.
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