FelCor (FCH) Announces $103M of Six non-Strategic Hotels

FelCor Lodging Trust Incorporated (NYSE: FCH) today announced that it has agreed to sell six non-strategic hotels for $103.0 million, in the aggregate, to an undisclosed buyer. The purchaser has paid a $3.9 million hard money deposit toward the purchase price. The transaction is expected to close late in the second quarter. As part of its long-term portfolio repositioning strategy, which includes the sale of 39 non-strategic hotels, FelCor is currently marketing 16 hotels, including the six hotels announced today.

After repayment of $73 million of secured debt and other costs at closing, FelCor expects to use the remaining $30 million of proceeds to pay a portion of its accrued preferred dividends (almost half of the $67.7 million arrearage) in conjunction with paying the regular quarterly preferred dividends on July 31, 2012. FelCor expects that the remaining accrued dividends will be paid in 2012 using proceeds from future asset sales.

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