On Sunday February 12, lodging REIT FelCor (NYSE:FCH) named hospitality industry veteran Steven R. Goldman as its new CEO. On Monday February 13, a day when the three major stock indices hit all-time highs FelCor’s share price fell 1.57%.
FelCor shareholders may be asking themselves whether Goldman is planning on yet another turnaround for the beleaguered company or if he will pursue a full range of strategic alternatives including a sale of the REIT.
UNITE HERE maintains that a sale of the company is the best option for shareholders. In a newly released a report on the website www.22YearsIsEnough.org UNITE HERE argues that FelCor has outlived its usefulness and should explore strategic alternatives immediately.
The report compares FelCor with other surviving legacy lodging REITs and finds the following:
- FelCor has failed to produce Dividends.
FelCor’s dividends have decreased in every lodging cycle. FelCor’s dividend production compares poorly with other legacy REITs such as Host Hotels & Resorts (NYSE:HST), LaSalle Hotel Properties, (NYSE:LHO) and Hospitality Properties Trust (NASDAQ:HPT)
- FelCor’s Stock Price has failed to recover.
FelCor’s Adjusted Closing Stock Price remains well below its 2007 Peak. In fact, FelCor’s stock price is still trading below where it was in 2002, two full lodging cycles ago.
- FelCor is burdened by debt.
Since the late 1990’s and despite significant asset sales and repositioning, FelCor has been burdened by over $1 billion in debt. FelCor’s level of debt is out of keeping with its peers in the lodging industry.
22 years is enough. FelCor should immediately explore strategic alternatives to return value to shareholders.
Find a full copy of the report here.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170214005456/en/
Contacts:
Jeff Nelson, Deputy Director Research
617-480-2585
jnelson@unitehere.org
