|
|
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.
|
|
|
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 |