IRVING, TX FelCor Lodging Trust recently completed a deal to acquire the lessee interests in 88 of its hotels from Bass Hotels & Resorts. The transaction will be effective July 1, 2001.
As permitted by the REIT Modernization Act, which became effective January 1, 2001, FelCor will acquire the lessee interests held by Bass and contribute them to a taxable REIT subsidiary of FelCor. Bass will continue to manage the properties under long-term management contracts. For financial reporting purposes, a portion of the future management fees to be paid under the long-term management agreements which have a present value of approximately $125 million will be considered by FelCor as lease termination costs, and will be expensed in the third quarter of 2001. (4/2/01)