FelCor Sells New York Hotel As Merger With RLJ Looms

Morgans Hotel NYC

BETHESDA, MD–The pruning of FelCor’ portfolio has begun even before the official close to its merger with RLJ Lodging. It is selling Morgans Hotel NYC at 237 Madison Ave. for $41 million to a partnership between the Kash Group and Shel Capital, according to a separate report in GlobeSt.com. After the closing, the property will be converted to residential use.

The iconic hotel was originally designed in 1927 by architect Andrew Thomas, and completely renovated in 1984. The hotel will be delivered vacant, followed by major capital improvements for the future conversion of the 71,000-square-foot property.

RLJ’s Plans For FelCor

Last month in a regulatory filing the locally-based RLJ Lodging Trust provided details about its proposed $7 billion deal with FelCor Lodging Trust.

Read RLJ Updates Market On FelCor Merger

RLJ will focus on two particular asset types within FelCor’s portfolio: compact full-service and upscale limited service/urban locations because these asset types have less square footage, fewer food and beverage outlets, limited meeting space and majority of revenue comes from the hotel rooms.