Four-State, 1,800-Room Hotel Package Up for Sale

IRVING, TX-With locations as the chief selling point, FelCor Lodging Trust Inc. has brought three Holiday Inns and two Crowne Plazas to market in an unencumbered flag and management offering. The vintage hotel product, totaling 1,800 rooms, is expected to catch $20,000 to $25,000 per key for the Holiday Inns and $50,000 to $60,000 per door for the Crowne Plazas.

“There will be a tremendous amount of interest,” Dennis Reed, regional vice president for the Tampa, FL-based Plasencia Group Inc., predicts to GlobeSt.com. “There are niche buyers out there who are looking to position themselves in certain markets.”

Intercontinental Hotels Group of Washington, DC is the manager of each property, operating the flagged assets under a contract with a cancellation clause that FelCor decided to enforce in late 2003 by hanging “for sale” tickets on the holdings, Reed says. Under the IHG-FelCor pact, all flags will be lowered at trade time although they are good for another two to five years, he explains. The four-state package, which can be bought as a portfolio or cherry-picked, is all about location.