FelCor Lodging Trust Incorporated , the nation’s second largest hotel real
estate investment trust (REIT), today announced that it has closed on the
sale of four previously identified non-strategic hotels for $30 million.
The non-strategic hotels sold include: a Holiday Inn hotel in Plano,
Texas; a Crowne Plaza(R) hotel, in Jackson, Miss., a Crowne Plaza hotel in
Houston, Texas; and a Hampton Inn(R) hotel in Omaha, Nebraska. The hotels
ranged in size from 131 to 354 rooms, and each hotel sale had a separate
buyer. FelCor intends to use a portion of the proceeds to purchase the
Holiday Inn in Santa Monica, Calif.
The Holiday Inn - Santa Monica has 132 rooms. FelCor has entered into a
contract to purchase the hotel for $27 million, which the Company expects
to close within the next 30 days. The seven-story property is located on
Ocean Drive and is across the street from the Santa Monica pier. The hotel
will continue to be branded as a Holiday Inn and will be managed by
InterContinental Hotels Group. The acquisition is currently anticipated to
provide a $0.02 per share improvement to FelCor’s previously announced
earnings estimates for 2004.
FelCor also reported that consolidated hotel portfolio revenue per
available room (RevPAR) increased 1.0 percent in February and 1.7 percent
year to date, compared to the same periods of 2003. RevPAR growth for
January was 2.2 percent, compared to January 2003. FelCor has now seen
RevPAR growth for three consecutive months.
“We are pleased with the progress of our disposition program, which is the
first phase of our repositioning strategy,” said Thomas J. Corcoran, Jr.,
FelCor’s President and Chief Executive Officer. “In addition, we are
pleased to announce our first hotel acquisition since 2002. The Santa
Monica Holiday Inn is a great piece of real estate and a strong fit with
our refined investment strategy.”
FelCor is the nation’s second largest lodging REIT and the owner of the
largest number of full service, all-suite hotels in the nation. FelCor’s
consolidated portfolio is comprised of 157 hotels, located in 33 states
and Canada. FelCor owns 71 full service, all-suite hotels, and is the
owner of the greatest number of Embassy Suites Hotels(R) and Doubletree
Guest Suites(R) hotels. FelCor’s portfolio also includes 74 hotels in the
upscale and full service segments. FelCor has a current market
capitalization of approximately $3.0 billion. Additional information can
be found on the Company’s Web site at http://www.felcor.com/ .