Hotel Online Special Report
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FelCor and Bristol Complete Merger Transaction; Transaction Creates $4.0 Billion Hotel REIT
Summary Fact Sheet
Portfolio Information
 
DALLAS, July 28, 1998 -  FelCor Lodging Trust Incorporated (NYSE: FCH), formerly FelCor Suite Hotels, Inc., today announced completion of the merger of Bristol Hotel Company's real estate holdings with and into FelCor. The merger, which was initially announced on March 24, 1998, establishes FelCor Lodging Trust as the nation's largest non-paired share hotel real estate investment trust (REIT) and one of the country's premier lodging companies. FelCor will continue to trade under the ticker symbol FCH on the New York Stock Exchange. 

On July 27, 1998, the merger was approved by the shareholders of both FelCor and Bristol. The merger results in FelCor's acquisition of 109 Bristol hotels in return for 31.1 million shares of newly issued FelCor common stock. Based on the July 27, 1998 closing stock prices, the transaction is valued at approximately $1.7 billion, including the assumption of approximately $700 million in debt. With the completion of this transaction, FelCor's market capitalization will be approximately $4 billion and the REIT will own approximately 195 hotels with nearly 50,000 rooms and suites. 

The Bristol hotels add more than 28,000 rooms to the FelCor portfolio. The average Bristol hotel has 266 keys and more than 8,000 square feet of meeting space. Based on the current FelCor stock price, the Bristol hotel's price per key is approximately $59,000. Eighty-seven of the newly acquired Bristol hotels are either all-suite upscale, upscale full-service or traditional full-service hotels. FelCor is the largest owner of Embassy Suites(R) hotels. As a result of the merger, FelCor is the owner of the largest number of Crowne Plaza(R) and Holiday Inn(R) hotels. 

The merger establishes significant brand owner/manager relationships for FelCor with Bass plc and its subsidiary Bass Hotels Resorts, which acquired approximately 13% of FelCor's common stock in the merger. FelCor also establishes a strategic relationship with Bristol Hotels Resorts (NYSE: BH), the new hotel operating company spun off from Bristol prior to its merger into FelCor, which leases and operates the hotels acquired by FelCor in the merger. Following the merger with Bristol, FelCor will continue Bristol's repositioning and redevelopment program, under which the redevelopment of 39 hotels was recently completed, and pursuant to which 43 hotels are currently in the process of redevelopment or are expected to be completed in 1999. FelCor also expands its potential acquisition pool through its new alliance with Bass Hotels Resorts, which operates or franchises more than 2,600 hotels and 450,000 guestrooms in more than 90 countries and territories. As a result of the merger, FelCor also diversifies its portfolio both geographically and by asset class, adding hotels in many key markets and broadening its portfolio in the upscale and traditional full-service hotel segments. FelCor's hotel portfolio is concentrated in the upscale and traditional full-service segments with over 93% of revenues derived from the hotels in those segments. 

Bristol Hotels Resorts, as the successor to Bristol's hotel operating business and as the lessee of the Bristol hotels acquired by FelCor, will remain a leading franchisee in Bass Hotels Resorts' $1.5 billion modernization program. By the year 2000, Felcor expects to complete the investment, commenced by Bristol in 1997 of approximately $400 million (of which $200 million remains to be spent) in the redevelopment of Crowne Plaza and Holiday Inn hotels owned by FelCor and leased to Bristol Hotels Resorts. 

Concurrently with the completion of the merger, Richard North, Financial Director of Bass plc; Robert Lutz, Chairman and CEO of Amresco, Inc.; and Donald J. McNamara, Chairman of The Hampstead Group, each of whom had been a director of Bristol, became FelCor directors, bringing the number of directors on its board to 10. 

"This merger transaction creates new strategic alliances for FelCor with Bristol Hotels Resorts and with Bass Hotels Resorts and is a natural extension of our original business plan of aligning ourselves with top brands and strong management/operating teams while primarily acquiring hotels at below their replacement cost and repositioning and/or rebranding them for strong internal growth," said Thomas J. Corcoran, Jr., President and CEO of FelCor. 

 FelCor Lodging Trust Incorporated is the largest non-paired share hotel REIT. The company is the largest owner of Promus-branded hotels (NYSE: PRH). Since its initial public offering in 1994, the company's portfolio has grown to 195 hotels with nearly 50,000 rooms and suites. The company maintains strategic relationships with key hotel brand owners/management companies. These include Promus Hotel Corporation, Bristol Hotels and Resorts, Bass Hotels Resorts and Starwood Hotels Resorts. The company's hotels are operated under a number of the nation's leading hotel brands, including the Embassy Suites, Doubletree Guest Suites(R), Doubletree(R), Sheraton Suites(R), Sheraton(R), Crowne Plaza, Holiday Inn and Hilton Suites(R) brands. 

With the exception of historical information, the matters discussed in this news release include "forward-looking statements" within the meaning of the federal securities law and are qualified by cautionary statements contained herein and in FelCor's filings with the Securities and Exchange Commission. 
 

 
 
 
SUMMARY FACT SHEET 
(Statistics are pro forma for all hotels owned at December 31, 1997)
 
Bristol
FelCor
Combined
Owned Hotels
109
86
195
Rooms
28,718
21,164
49,882
Current Equity Market Capitalization
$1.0 Billion
$1.5 Billion
$2.5 Billion
Debt
$0.7 Million
$0.8 Million
$1.5 Billion
Current Total Market Capitalization
$1.7 Billion
$2.3 Billion
$4.0 Billion
1997 occupancy
72.20%
73.20%
72.70%
1997 ADR
$ 74.47 
$ 112.44 
$ 89.34 
1997 RevPAR
$ 53.77 
$ 82.33 
$ 64.95 
1997 RevPar Growth
7.50%
8.80%
8.30%
1997 Hotel Acquisitions
$773 Million
$700 Million
$1.473 Billion
Shares (Diluted)
46.3
44.6
76.3 (1)
(1) Reflects and exchange ratio of 0.685 FelCor shares for each Bristol share
 
 
Portfolio Information
 
FelCor
Bristol
Combined
 
Brand Hotels Rooms Hotels Rooms Hotels Rooms
All Suite Upscale
Embassy Suites
48
14,332
0
0
58
14,332
Doubletree Guest Suites
14
2,713
0
0
14
2,713
Sheraton Suites
4
984
0
0
4
984
Hilton Suites
1
174
0
0
1
174
Crowne Plaza Suites
0
0
1
295
1
295
Homewood Suites
0
0
1
108
1
108
Bristol House
0
0
1
127
1
127
Subtotal
77
18,203
3
530
80
18,733
Upscale Full Service
Crowne Plaza
0
0
19
6,814
19
6,814
Doubletree Hotel
3
704
0
0
3
704
Harvey Hotel
0
0
4
1,262
4
1,262
Sheraton
5
1,956
0
0
5
1,956
Hilton
1
301
0
0
1
301
Subtotal
9
2,961
23
8,076
32
11,037
Traditional Full Service
Holiday Inn
0
0
47
12,939
47
12,939
Holiday Inn Select
0
0
6
2,145
6
2,145
Ramada
0
0
1
220
1
220
Days Inn
0
0
1
157
1
157
Courtyard by Marriott
0
0
2
420
2
420
Holiday Inn Suites
0
0
2
509
2
509
Sheraton Four Points
0
0
1
187
1
187
Independent
0
0
1
181
1
181
Subtotal
0
0
61
16,758
61
16,758
Limited Service
Holiday Inn Express
0
0
8
1,113
8
1,113
Fairfield Inn
0
0
5
931
5
931
Hampton Inn
0
0
9
1,310
9
1,310
Subtotal
0
0
22
3,354
22
3,354
Total
86 
21,164 
109 
28,718 
195 
49,882 
 SOURCE  FelCor Lodging Trust Incorporated
###

 

Contact:
 Thomas J. Corcoran, Jr., President CEO, 
or Randy Churchey, Senior Vice President CFO, 
or MonicaL. Hildebrand, Vice President-Director of Communications, 
all of FelCor, 972-444-4900
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Also See:
Bristol Hotels Resorts Opens Two Crowne Plaza(R) Hotels in Dallas / June 1998 
  FelCor Announces Plan to Purchase Eight All-suite Hotels From Starwood / April 1998 
  First-Quarter Hotel Industry MA Hits Record $32.2 Billion  / April 1998 

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