Texas-based FelCor Lodging Trust, which controls more than 30 hotels around the country (including the Knickerbocker and Royalton hotels in New York), is reportedly in the "early stages" of talks to be acquired.
Insiders told the Wall Street Journal that the talks were not definite, and that no sale was guaranteed.
A year ago, we reported that FelCor Lodging trust was in negotiations to sell its Morgans and Royalton hotels in New York, and that proceeds from the sale of the assets will be used to fund initiatives with the goal of creating more stockholder value.
FelCor reportedly had letters of intent to sell some other properties, including the New York City hotels. An activist investor has claimed that the company’s properties were collectively worth an estimated $1.5 billion, and that it also has more than $1 billion in debt. This, the Journal suggests, could push a deal’s so-called "enterprise value" closer to $3 billion.
In September, FelCor's former president and CEO Richard A. Smith retired. Troy A. Pentecost, FelCor’s long-time COO and a 35-year veteran of the hospitality industry, was appointed to the additional positions of president and interim senior executive officer.