FelCor Lodging Trust on Wednesday announced it has agreed to sell the 370-room Embassy Suites – New Orleans-Convention Center and the 296-room Embassy Suites – Nashville-Airport for an aggregate purchase price of US$70 million.
The purchaser, which was not disclosed, has paid a US$2.1 million hard money deposit toward the purchase price, FelCor said in a news release. The transaction is expected to close in October.
FelCor expects to use a portion of the proceeds to pay the remaining US$37.7 million of accrued preferred dividends when the Irving, Texas-based REIT pays its regular quarterly preferred dividends October 31. The company is selling 39 non-strategic hotels as part of a long-term portfolio repositioning strategy, and after selling these two hotels, FelCor will have sold 18 of the 25 hotels it has brought to market since December 2010.