FelCor Lodging Trust Incorporated (NYSE: FCH) today announced that it has sold a portfolio of six hotels for gross proceeds of $103 million.
After repayment of $73 million of secured debt and other costs, FelCor expects to use the remaining proceeds to pay approximately $30 million of accrued preferred dividends (almost half of the $67.7 million arrearage) when it pays the regular quarterly preferred dividends on July 31, 2012. FelCor expects to pay the remaining accrued dividends 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 purchase price represents a 6.8% cap rate based on 2011 net operating income for the portfolio.
Holliday Fenoglio Fowler and CBRE Hotels represented FelCor in this transaction.About FelCor FelCor, a real estate investment trust, owns 70 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.