FelCor Lodging Trust Incorporated
) fell 1.4% following the announcement of the divestiture of its
two non-strategic hotels on Wednesday. This Irving, TX-based real
estate investment trust (REIT), sold 251-room Embassy Suites
Hotel-BWI Airport and 196-room Doubletree Suites Hotel-Dana Point
at a combined price of $54.1 million. FelCor intends to
utilize the proceeds for repayment of outstanding debts.
The current sell-off is in line with the usual company strategy of
repositioning its portfolio. In fact, to date, FelCor has sold 28
non-strategic hotels for a total of $627.0 million. Moreover, the
company is presently under negotiations or has already finalized
the sale of four hotels at a composite value of around $73.0
FelCor is the owner of a diversified portfolio of upper-upscale and
luxury hotels, spreading across the U.S. Boasting partnerships with
several leading hotel companies, its portfolio flaunts renowned
brand names such as Doubletree, Embassy Suites Hotels, Hilton,
Fairmont, Marriott, Renaissance, Sheraton, Westin and Holiday Inn.
In 2014, FelCor sold the Embassy Suites hotels in Atlanta for $17.2
million and in Bloomington for $24 million. Additionally, the
company has consented to vend off DoubleTree Suites in Charlotte
and Dana Point for a combined price of $69.9 million. FelCor has
also been negotiating to sell three hotels for aggregate gross
proceeds of $44.0 million.
FelCor currently carries a Zacks Rank #3 (Hold). Some better-ranked
equity REITs include
The GEO Group, Inc.
Terreno Realty Corp.
Aviv REIT, Inc.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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FELCOR LODGING (FCH): Free Stock Analysis
TERRENO REALTY (TRNO): Free Stock Analysis
GEO GRP INC/THE (GEO): Free Stock Analysis
AVIV REIT INC (AVIV): Free Stock Analysis
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