IRVING, Texas—FelCor Lodging Trust Incorporated announced that it unwound joint ventures that owned 10 non-strategic hotels. Through an exchange of interests, FelCor now owns five of those hotels outright, and its joint venture partner owns the other five. The company intends to begin marketing the five retained hotels in early September.
The hotels retained by FelCor, comprising 1,224 rooms, include Embassy Suites Hotels in Austin, Chicago, Raleigh and two in San Antonio. The five hotels retained by FelCor’s joint venture partner, comprising 1,215 rooms, include Embassy Suites Hotels in Atlanta, San Rafael, Parsippany, and two in Kansas City.
In addition, FelCor received its joint ventures partner’s 10 percent interest in the DoubleTree Suites Hotel, located in downtown Austin, and now owns the hotel outright.
“We are positioning FelCor to deliver sustainable growth by assembling a high-quality and diverse portfolio. We continue progressing with our portfolio positioning plan this year, and by the end of the third quarter, we expect to have either sold or begun marketing 19 of the 21 non-strategic hotels. In addition, we will use proceeds from future and pending asset sales to repay debt and complete our balance sheet restructuring plan,” said Richard A. Smith, president and chief executive officer.