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February 24, 2017 Comments Off on Ashford Launches $1.28B Hostile Takeover of FelCor Views: 173 Texas News, Top Texas Stories

Ashford Launches $1.28B Hostile Takeover of FelCor

Following months of direct negotiation with FelCor Lodging Trust Inc., Ashford Hospitality Trust went public in a hostile takeover bid for $1.28 billion. Both hospitality REITs are headquartered in Dallas, and Ashford Hospitality currently owns 4.5% of FelCor’s outstanding stock.

Ashford indicated it had attempted to discuss merger discussions with FelCor since October 2016, claiming the latter had “failed to meaningfully engaged and has refused to provide customer information,” according to a statement. FelCor confirmed the offer from Ashford Hospitality, and said it would review the stock-for-stock exchange proposal.

If the two did merge, the resulting REIT would own 159 hotels, with 36,657 rooms across 34 states, and an enterprise value of $7.3 billion. Hilton and Marriott-branded hotels would make up 82% of the portfolio.

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