FelCor Lodging Trust Inc. – a real estate investment trust – inked a deal to divest Sheraton Suites Galleria - Atlanta for $21 million to an undisclosed purchaser. The transaction is likely to be complete in July.
As part of deal, the purchaser paid an $840,000 non-refundable deposit to FelCor Lodging. The latter intends to utilize the entire proceeds to pay off its outstanding debts.
Notably, the asset sale is part of FelCor Lodging’s long-term strategy to reposition its portfolio through divestiture of non-strategic assets and investment in high-quality hotels in major markets to drive healthy return on investments.
The 277-room Sheraton Suites Galleria - Atlanta, one of the premium branded hotels of Starwood Hotels and Resorts Worldwide, Inc. , is located in proximity to well-known business centers including Cobb Galleria Convention Centre and Cobb Energy Centre. The all-suite hotel is also located at an easily commutable distance from renowned shopping and dining outlets – such as Macy's, Inc. (M - Free Report) , Maggiano's Little Italy, Victoria's Secret and The Cheesecake Factory Inc (CAKE - Free Report) .
In the previous month, FelCor Lodging had agreed to sell another non-strategic asset – Holiday Inn – located in Santa Barbara/Goleta for $24 million. The company used the proceeds to repay its outstanding debt. We expect such strategic moves to position FelCor Lodging favorably, going forward.
FelCor Lodging currently owns 66 upper-upscale full-service hotels and resorts under globally recognized brands such as Embassy Suites Hotels, Doubletree, Hilton, Marriott, Renaissance, Fairmont, Sheraton, Westin and Holiday Inn. Most of the properties of the company are located in major markets across the U.S.
FelCor Lodging currently carries a Zacks Rank #3 (Hold).