FelCor Lodging Trust Inc.
), a real estate investment trust (REIT) that owns upper-upscale
hotels, has recently sold the Embassy Suites - Anaheim-North hotel
in California for $25.5 million. The non-strategic asset was sold
to Urban Commons, LLC - a private real estate investment firm based
in Los Angeles, California.
FELCOR LODGING (FCH): Free Stock Analysis
HOST HOTEL&RSRT (HST): Free Stock Analysis
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The 222-room Embassy Suites - Anaheim-North hotel is located in
close proximity to the Disneyland Resort. The all-suite hotel is
also located at an easy commutable distance from John Wayne Airport
- the only commercial service airport in Orange County, California;
and Los Angeles International Airport - the primary airport serving
the Greater Los Angeles Area. Besides its locational advantage, the
hotel also boasts of an outstanding reputation for its food and
beverage selections, with multiple options to accommodate every
budget and taste.
The company intends to utilize the proceeds from the divestiture to
repay about $88 million of debt outstanding under a commercial
mortgage-backed security (CMBS) loan scheduled to mature in 2013.
The asset sale is part of the long-term strategy of the company to
reposition its portfolio to focus on a diversified asset-base of
high-quality hotels in major markets and resort locations that have
steep barriers to entry and solid demand to drive healthy return on
At present, FelCor has 39 non-strategic hotels up for sale in its
portfolio, out of which a total of 16 hotels were sold since
December 2010. The last-concluded asset sale transaction included
the sale of six non-core assets in the second quarter of 2012 for
FelCor currently owns 69 hotels and resorts in 22 states in the
U.S. under globally recognized brands such as - Embassy Suites
Hotels, Doubletree, Hilton, Marriott, Renaissance, Fairmont,
Sheraton, Westin and Holiday Inn.
We have a Neutral recommendation on FelCor, which has a Zacks #3
Rank that translates into a short-term Hold recommendation. We also
have a Neutral recommendation and a Zacks #2 Rank (short-term Buy
Host Hotels & Resorts Inc.
), one of the competitors of FelCor.