IRVING, TX FelCor Lodging Trust and Interstate Hotels closed on a joint venture agreement for the ownership of seven Marriott-branded hotels and one Hampton Inn hotel. Interstate assumed management of the hotels on January 1, 2001. FelCor and Interstate each will own 50% of the new partnership and the eight hotels, valued at $77 million. The properties will be leased to newly formed entities also owned 50% by FelCor and 50% by Interstate, and will be managed by Crossroads Hospitality Management Co., an affiliate of Interstate.
The eight hotels include: Fairfield Inn-Scottsdale-Downtown, AZ; Courtyard by Marriott Atlanta-Downtown; Fairfield Inn Atlanta-Downtown; Fairfield Inn Dallas-Regal Row; Courtyard by Marriott Houston; Fairfield Inn Houston-I-10-East; Fairfield Inn Houston-Near the Galleria; and the Hampton Inn Houston-I-10-East.
Pursuant to the joint venture agreement, Interstate is contributing $8.1 million to the new partnership. The joint venture has closed on a loan for approximately $52 million with cash proceeds to FelCor of approximately $48 million. In addition to FelCor s 50% equity interest, FelCor will retain a preferred interest of approximately $17 million in the joint venture. (3/28/01)