FelCor to sell its Royalton and Morgans hotels in New York

FelCor Lodging trust is in negotiations to sell its Morgans and Royalton hotels in New York.

Proceeds from the sale of the assets will be used to fund initiatives with the goal of creating more stockholder value.

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FelCor and Morgans Hotel Group, which operates the properties, have agreed to allow FelCor to sell the hotels unencumbered by management. Morgans will continue to manage the hotels for FelCor until they are sold.