BETHESDA, MD–RLJ Lodging Trust has provided more details via a regulatory filing about its proposed acquisition of and merger with FelCor Lodging Trust some three weeks after the initial announcement of the $7 billion deal.
RLJ will focus on two particular asset types within FelCor's portfolio: compact full-service and upscale limited service/urban locations. Why? These asset types, it said, have less square footage, fewer food and beverage outlets, limited meeting space and majority of revenue comes from the hotel rooms.
It also intends to recapitalize FelCor's capital structure and, perhaps not surprisingly given its focus on on compact hotels, will sell off the REIT's non-strategic assets. It also plans some selective repositioning.
FelCor's full service hotels include The Fairmont Copley Plaza in Boston, the Embassy Suites Myrtle Beach, Hilton Myrtle Beach Resort, Sheraton Burlington, Sheraton Philadelphia Society Hill and the Vinoy Renaissance St. Petersburg.
FelCor's hotels in major urban markets include The Mills House Wyndham Grand Hotel in Charleston, the Wyndham Boston in Beacon Hill, the Embassy Suites Mandalay Beach Hotel & Resort and the Embassy Suites at Los Angeles Int'l Airport South.
RLJ expects the merger to increase its presence in California and Boston, and decrease it in other markets.
The deal is expected to close by the end of the year.
BETHESDA, MD–RLJ Lodging Trust has provided more details via a regulatory filing about its proposed acquisition of and merger with FelCor Lodging Trust some three weeks after the initial announcement of the $7 billion deal.
RLJ will focus on two particular asset types within FelCor's portfolio: compact full-service and upscale limited service/urban locations. Why? These asset types, it said, have less square footage, fewer food and beverage outlets, limited meeting space and majority of revenue comes from the hotel rooms.
It also intends to recapitalize FelCor's capital structure and, perhaps not surprisingly given its focus on on compact hotels, will sell off the REIT's non-strategic assets. It also plans some selective repositioning.
FelCor's full service hotels include The Fairmont Copley Plaza in Boston, the Embassy Suites Myrtle Beach, Hilton Myrtle Beach Resort, Sheraton Burlington, Sheraton Philadelphia Society Hill and the Vinoy Renaissance St. Petersburg.
FelCor's hotels in major urban markets include The Mills House Wyndham Grand Hotel in Charleston, the Wyndham Boston in Beacon Hill, the Embassy Suites Mandalay Beach Hotel & Resort and the Embassy Suites at Los Angeles Int'l Airport South.
RLJ expects the merger to increase its presence in California and Boston, and decrease it in other markets.
The deal is expected to close by the end of the year.
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