FelCor Lodging Trust Incorporated (NYSE: FCH) today announced that it sold 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.
FelCor is using the net proceeds to pay the remaining $37.7 million of accrued preferred dividends and to repay debt.
As part of FelCor's long-term portfolio repositioning strategy, the company is selling 39 non-strategic hotels. Including the sales announced today, FelCor has sold 18 of the 25 hotels that it has brought to market since December 2010. The company also has a contract (and a non-refundable cash deposit) to sell another hotel, for a total of 19 hotels. FelCor is using the proceeds to pay all remaining accrued preferred dividends and to support its comprehensive balance sheet restructuring plan to reduce FelCor's leverage and cost of capital.
FelCor, a real estate investment trust, owns 67 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.