FelCor Lodging Turst Jumps 19% on Hotel Sale Agreement
FelCor Lodging Trust Inc. (FCH), a real estate investment trust, that owns interests in hotels in the U.S. and Canada, rose the most in more than two years after announcing the sale of six hotels.
FelCor, based in Irving, Texas, rose 19 percent to $4.28 after agreeing to sell six “non-strategic” hotels for $103 million to an undisclosed buyer. It plans to repay $73 million of secured debt and other costs when the sale closes and use the remaining $30 million to pay part of its accrued preferred dividends.
The transaction is expected to close late in the second quarter. Trading volume was almost 6 million shares, more than 10 times the 20-day average volume of 588,135. The shares have gained 40 percent in 2012.
To contact the reporter on this story: Richard Stubbe in Houston at rstubbe1@bloomberg.net
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net
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