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NATION / WORLD: REAL ESTATE

FelCor to Pay $1.8 Billion for Bristol's Hotels

March 25, 1998|Bloomberg News

FelCor Suite Hotels Inc. agreed to buy Bristol Hotel Co.'s hotel properties for about $1.8 billion in stock and assumed debt in a deal that would make it the largest owner of Holiday Inns. The purchase would more than double the number of properties owned by FelCor, which has hotels under such brands as Embassy Suites. FelCor expects the move to add to earnings as it renovates the hotels to boost occupancy and room rates. FelCor would swap about 0.69 share for each Bristol share, for a total of about $1.1 billion, and take on $700 million in debt. Dallas-based FelCor owns 75 hotels with 18,521 suites and rooms, mostly under the Embassy Suites and Doubletree Suites brand names. Bristol, also based in Dallas, will own 121 hotels with pending acquisitions, mostly under the Holiday Inn and Crowne Plaza brands. FelCor shares fell 50 cents to close at $35.63, and Bristol shares fell $1.38 to close at $26.25. Both trade on the NYSE.

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