VIENNA, Virginia—FelCor Lodging Trust sold the Sheraton Premiere Hotel at Tysons Corner in Vienna, Virginia, to The JBG Companies for US$84.5 million in cash.
The 443-room property, which was owned in a joint venture between FelCor and Starwood Hotels & Resorts Worldwide, will continue to be managed by Starwood with the Sheraton flag under a long-term management contract.
FelCor in a release said it received US$42.3 million in gross proceeds from the sale. There was no debt associated with the hotel.
The current assessed value is US$43.6 million, according to the Fairfax County assessor’s website.
Stephen Schafer, FelCor’s VP of investor relations, said the sale price was approximately 23 times trailing-12-month earnings before interest, taxes, depreciation and amortization, or approximately US$191, 000 per key.
“This is part of a bigger asset sale program,” he said. “We’re selling more than 30 hotels as part of the second phase of asset sales. We put the first group of hotels on the market in October. The goal of that ultimately is to improve the overall portfolio quality, increase barriers-to-entry protection while improving our future (revenue per available room) and EBITDA growth rates.”
Schafer said the hotel’s suburban D.C. location is susceptible to new supply. “The operation of the hotel will be impacted over the next few years due to the construction surrounding the hotel,” he said.
FelCor bought the property in 1999 for approximately US$49 million.
Molinaro Koger represented FelCor in this transaction.
Contact:
Stephen Schafer
VP of investor relations, FelCor Lodging Trust
972-444-4912
sschafer@felcor.com