FelCor Lodging Trust said Friday it plans to sell its 117-room Morgans and 186-room Royalton hotels in New York and will use the proceeds to fund initiatives to create “significant stockholder value.”
The two groups have agreed that FelCor can pay Morgans US$3.5 million per hotel to sell the properties unencumbered by management, which should significantly increase their value. Morgans will continue to manage the properties for FelCor until they are sold.
In April 2011, to reduce debt Morgans sold the two hotels to FelCor for a reported US$140 million, or about US$500,000 per room.