April 25, 2017
Irving, TX-based FelCor Lodging Trust Incorporated will merge with and into a wholly-owned subsidiary of Bethesda, MD-based RLJ Lodging Trust, in an all-stock transaction expected to close by the end of 2017. RLJ and FelCor entered into a definitive merger agreement expected to create a pro forma equity market capitalization of approximately $4.2 billion and a total enterprise value of $7 billion.
Post-merger, RLJ will be the largest pure-play public REIT dedicated to owning focused-service and compact full-service hotels. The combined company will have ownership interests in 160 hotels in 26 states and the District of Columbia, encompassing 31,467 rooms, diversified across Marriott, Hilton, Hyatt and Wyndham flags.
RLJ’s shareholders are expected to own approximately 71% of the combined company’s fully diluted equity, and FelCor’s shareholders the remaining 29%.
For comments, questions or concerns, please contact Dennis Kaiser