Goldman Sachs Comments On FCH Stock Offering

Goldman Sachs has published a report regarding Felcor Lodging Trust's FCH announcement to offer 24 million shares of its common stock. According to Goldman Sachs, "FelCor management has made it clear for some time that it is actively looking to do a deal in New York, preferably in the midtown area. We are generally supportive of FelCor owning an asset in New York as it is a solid way for them to increase their asset quality and portfolio RevPAR as well as help diversify their cash flow stream." FCH has a Neutral Rating and closed yesterday at $6.46 a share.