Back to top

Analyst Blog

FelCor Lodging Trust Inc. (FCH - Snapshot Report), a real estate investment trust (REIT) that owns upper-upscale hotels, has recently sold two non-strategic hotels to an unnamed company for $70.0 million. The purchaser has paid $2.1 million cash as deposit money for the transaction, while the balance is expected to be paid when the sale consummates in October.

FelCor has divested Embassy Suites – New Orleans-Convention Center hotel in New Orleans, Louisiana; and Embassy Suites – Nashville-Airport in Nashville, Tennessee. The 370-room Embassy Suites – New Orleans-Convention Center hotel is located in the heart of the city's busy cultural center, in close proximity to the Port of New Orleans.

On the other hand, Embassy Suites – Nashville-Airport hotel is located at an easy commutable distance from the Nashville International Airport; and from the business and entertainment district of downtown Nashville. Besides the locational advantage, both the hotels also boast of an outstanding reputation for its food and beverage selections, with multiple options to accommodate every budget and taste.

The company intends to utilize the proceeds from the divestiture to pay the balance $37.7 million of its accrued preferred dividends when it pays the regular quarterly preferred dividends on October 31, 2012.

The asset sale is part of the long-term strategy of the company to reposition its portfolio to focus on a diversified asset-base of high-quality hotels in major markets and resort locations that have steep barriers to entry and solid demand to drive healthy return on investments. At present, FelCor has 39 non-strategic hotels up for sale in its portfolio, out of which a total of 18 hotels were sold since December 2010.

FelCor currently owns 69 hotels and resorts in 22 states in the U.S. under globally recognized brands such as – Embassy Suites Hotels, Doubletree, Hilton, Marriott, Renaissance, Fairmont, Sheraton, Westin and Holiday Inn.

We have a Neutral recommendation on FelCor, which has a Zacks #3 Rank that translates into a short-term Hold recommendation. We also have a Neutral recommendation and a Zacks #2 Rank (short-term Buy rating) for Host Hotels & Resorts Inc. (HST - Analyst Report), one of the competitors of FelCor.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%