FelCor Sells Four Hotels for $30 Million;
Announces Holiday Inn(R) - Santa Monica Acquisition
MARCH 9, 2004 -- 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/ .
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. Forward looking statements are not guarantees of future performance. Numerous risks and uncertainties, and the occurrence of future events, may cause actual results to differ materially from those currently anticipated. Certain of these risks and uncertainties are described in our filings with the Securities and Exchange Commission. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that actual results will not differ materially.
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09/03/2004 16:56 UTC http://www.prnewswire.com