FelCor to Sell Two of its Hotels for $70M

FelCor Lodging Trust Incorporated FCH today announced that it has agreed to sell 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. The purchaser has paid a $2.1 million hard money deposit toward the purchase price. The transaction is expected to close in October. FelCor expects to use a portion of the proceeds to pay the remaining $37.7 million of accrued preferred dividends when the company pays its regular quarterly preferred dividends on October 31, 2012. As part of FelCor's long-term portfolio repositioning strategy, the company is selling 39 non-strategic hotels. After selling the two hotels discussed above, FelCor will have sold 18 of the 25 hotels that it has brought to market since December 2010. The company continues to make significant progress using asset sale proceeds to strengthen its balance sheet.