FelCor Lodging Trust, Irving, Texas, announced on Monday that it unwound joint ventures that owned 10 non-strategic hotels.
Through an exchange of interests, FelCor now owns five of those hotels outright, and its joint venture partner owns the other five. The company intends to begin marketing the five retained hotels in early September.
The hotels retained by FelCor, comprising 1,224 guestrooms, include Embassy Suites Hotels-branded properties in Chicago, San Antonio, Austin, Texas and Raleigh, North Carolina. The five hotels retained by FelCor’s joint venture partner, comprising 1,215 guestrooms, include Embassy Suites Hotels-branded properties in Atlanta, San Rafael, California, Parsippany, New Jersey and two in Kansas City.
In addition, FelCor received its joint ventures partner’s 10% interest in the 189-room DoubleTree Suites Hotel Austin, located in Austin, Texas, and now owns the hotel outright.
“We are positioning FelCor to deliver sustainable growth by assembling a high-quality and diverse portfolio. We continue progressing with our portfolio positioning plan this year, and by the end of the third quarter, we expect to have either sold or begun marketing 19 of the 21 non-strategic hotels. In addition, we will use proceeds from future and pending asset sales to repay debt and complete our balance sheet restructuring plan,” said Richard Smith, FelCor’s president and CEO.