News for the Hospitality Executive
FelCor Lodging Trust Incorporated Acquiring The Fairmont
hotel in Boston for $98.5 million or Approximately $257,000 per Key
IRVING, Texas, Aug 02, 2010 - - FelCor Lodging Trust Incorporated today announced it has entered into a purchase and sale agreement to acquire the fee-simple interest in The Fairmont Copley Plaza hotel in Boston for $98.5 million from an affiliate of Fairmont Hotels & Resorts ("Fairmont"). Fairmont will continue to manage the property under a long-term management agreement. The purchase is expected to be completed in the third quarter and will be funded with cash on hand.
The Fairmont Copley Plaza is a 383-room world-class, historic hotel located in the heart of Boston's Back Bay on Copley Square. The property boasts 23,000 square feet of meeting space featuring the 5,720 square-foot Grand Ballroom.
The hotel features two of the most prominent dining and entertainment establishments in the city: The Oak Room and The Oak Bar. The Oak Room is one of the leading steakhouses in Boston, and The Oak Bar features an award-winning menu and has been recognized as the Best Hotel Bar by Boston Magazine. The property last underwent a major renovation in 2004, totaling $25 million, which included all guestrooms and upgrading the fourth floor to the premium Fairmont Gold.
"This irreplaceable asset is a significant acquisition for FelCor. It fits all of our value and strategic investment criteria. This hotel will improve the overall quality of our portfolio, increase future RevPAR and EBITDA growth rates and further diversify our portfolio by location, customer mix and product mix. The Boston hotel market, particularly the Back Bay area, has extremely high barriers to entry and diverse demand generators and is one of our three stated targeted acquisition markets. This transaction represents a rare opportunity to gain entry into this submarket at an attractive price per room," said Richard A. Smith, FelCor's President and Chief Executive Officer.
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. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," "continue" and other similar terms and phrases, including references to assumptions and forecasts of future results. 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 anticipated at the time the forward-looking statements are made. Current economic circumstances or a further economic slowdown and the impact on the lodging industry, operating risks associated with the hotel business, relationships with our property managers, risks associated with our level of indebtedness and our ability to meet debt covenants in our debt agreements, our ability to complete acquisitions, dispositions and debt refinancing, the availability of capital, the impact on the travel industry from increased fuel prices and security precautions, our ability to continue to qualify as a Real Estate Investment Trust for federal income tax purposes and numerous other factors may affect future results, performance and achievements. Certain of these risks and uncertainties are described in greater detail 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. We undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.
FelCor, a real estate investment trust, is the nation's largest owner of upper-upscale, all-suite hotels. FelCor owns interests in 84 hotels and resorts, located in 23 states and Canada. FelCor's portfolio consists primarily of upper-upscale hotels, which are flagged under global brands - Embassy Suites Hotels(R), Doubletree (R), Hilton(R), Marriott(R), Renaissance(R), Sheraton(R), Westin(R) and Holiday Inn(R). Additional information can be found on the Company's Web site at www.felcor.com.
FelCor Lodging Trust Incorporated
|Also See:||Fairmont Hotels & Resorts Inc. Purchases 50% Stake in Copley Plaza Boston / July 2001|
|HRH Prince Alwaleed and Interests Now the Sole Owner of Fairmont Copley Plaza Hotel / Sept 1999|