posted on August 06, 2010 09:00
Real estate investment trust FelCor Lodging Trust Inc. has inked a deal to buy The Fairmont Copley Plaza hotel in Boston for $98.5 million.
Irving-based FelCor (NYSE: FCH), which owns upscale all-suite hotels, will pay cash for the hotel.
The acquisition is expected to be completed in the third quarter.
The hotel houses one of Boston’s leading steakhouses – The Oak Room — and underwent a major $25 million renovation in 2004.
FelCor said the property will improve the overall quality of its hotel portfolio, while also increasing the company’s revenue per available room, or revenue generated from sales of individual room nights.
The Fairmont Copley’s 2009 revenue per available room hit $162, which is 98 percent higher than the average revenue per available room in FelCor's other properties in 2009.
As first reported in mid-June, FelCor Lodging Trust offered 27.5 million shares of common stock at $5.50 per share in a sale that was expected to generate $145 million to $167 million.
At the time, FelCor said it would use the proceeds to repay or repurchase mortgage debt at discounts and to help FelCor add to its upscale hotel and resort portfolio.
August 2nd, 2010 | Dallas Business Journal | Kerri Panchuk