IRVING, Texas—FelCor Lodging Trust Incorporated announced that it sold the 370-room Embassy Suites – New Orleans-Convention Center and the 296-room Embassy Suites – Nashville-Airport for an aggregate purchase price of $70 million.
FelCor is using the net proceeds to pay the remaining $37.7 million of accrued preferred dividends and to repay debt.
As part of FelCor’s long-term portfolio repositioning strategy, the company is selling 39 non-strategic hotels. Including these sales, FelCor has sold 18 of the 25 hotels that it has brought to market since December 2010. The company also has a contract (and a non-refundable cash deposit) to sell another hotel, for a total of 19 hotels. FelCor is using the proceeds to pay all remaining accrued preferred dividends and to support its comprehensive balance sheet restructuring plan to reduce FelCor’s leverage and cost of capital.