FelCor says in a prepared statement it paid $35.3 million for the hotel, a leasehold interest in the golf course and an undisclosed amount of adjacent land.
FelCor paid cash for the property from a reserve of about $135-million that principals told GlobeSt.com earlier this month was on hand and ready for spending. There is no outstanding balance on the company's line of credit.
At the time of the Wyndham closing, the REIT signed a 15-year management agreement with Beverly Hills, CA-based Hilton Hotels Corp. FelCor will invest $10 million into renovation of the hotel guest rooms and public space and convert the hotel to a Hilton in spring 2003.
This purchase expands FelCor's holdings in Myrtle Beach. The Wyndham resort is near the Embassy Suites-Kingston Plantation, which is owned by FelCor and managed by Hilton. The Embassy Suites hotel is part of the 145-acre Kingston Plantation resort community, which has 1,600 sf of oceanfront property.
In addition, through a joint-venture arrangement, FelCor and Hilton developed and manage rentals for the 200-unit Brighton condominiums, which share 20,000 sf of meeting space with Kingston Plantation. The joint-venture partnership also holds land for up to 400 additional residential condominium units.
The 16-story Wyndham hotel property is located on the ocean area known as South Carolina's Grand Strand. There are nine oceanside suites among its 385 units.
Amenities include an outdoor pool, four lighted tennis courts, casual and formal restaurants, and meeting/exhibition space of about 16,000 sf. The combined meeting space of the hotel and Kingston Plantation is 100,000 sf.
Arcadian Golf Shores Club is an 18-hole, Rees Jones championship course adjacent the Wyndham. It has a clubhouse and pro shop.
This acquisition follows FelCor's mid-July purchase of the SouthPark Suite Hotel in Charlotte from Lowe's for $14.5 million and leaves the REIT with just under $100 million for additional purchases that Michael DeNicola, executive vice president and chief investment officer tells GlobeSt.com will be targeted to urban markets, primarily in the Northeast.
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