Bristol Hotel Company Completes Spin-Off of New Hotel Operating Company Bristol Hotel & Resorts Becomes Largest Independent Hotel Operating Company
DALLAS, July 28 / Dallas-based Bristol Hotel Company
Today, FelCor Lodging Trust
As a result of the spin-off and merger, each share of Bristol Hotel Company stock was converted into one-half share of stock in the Bristol Hotels & Resorts and .685 shares of FelCor common stock.
"This transaction is a logical next step for Bristol and our investors, " said Bristol CEO Peter Kline. "It is clear that REITs are the preferred structure for the ownership of hotel real estate. By getting out of real estate ownership, we will be able to focus our energies on what we do best -- operating hotels."
While Bristol Hotels & Resorts and FelCor are not "paper clipped" or contractually obligated to any future transactions, they will continue to work closely toward mutually beneficial growth. Together, the companies will seek to acquire/operate additional hotels, with a focus on properties affiliated with Bass Hotels and Resorts brands. Bristol Hotels & Resorts also will seek growth opportunities through lease and management contracts with other REITs, institutional owners and private individuals.
"We have maintained a three-member team dedicated solely to the pursuit of these growth opportunities," Kline said.
Bristol Hotels & Resorts continues to operate, under long-term lease agreements, all of the hotels acquired by FelCor in the merger. Bristol Hotels & Resorts and FelCor are independent public companies with no overlap in management or boards of directors. However, three former members of Bristol Hotel Company's board became FelCor board members: Donald J. McNamara, chairman of the Hampstead Group; Richard North, financial director of Bass PLC, and Robert Lutz, chairman and CEO of Amresco Inc. Joining the board of Bristol Hotels & Resorts are: Thomas R. Oliver, chairman and CEO of Bass Hotels and Resorts; James J. Pinto, president of Private Finance Group Corp., and Robert A. Whitman, president and CEO of the Hampstead Group.
Also, Bristol Hotel Company executives Peter Kline and John Beckert will gain new job titles and responsibilities. Kline, formerly president and CEO, will become chairman and CEO for Bristol Hotels & Resorts. Beckert, formerly executive vice president and COO, will become president and COO.
Bristol Hotels & Resorts' hotels operate in the mid-priced to upscale segments of the industry and are located in 19 of the top 25 lodging markets in the United States. Bristol Hotels & Resorts operates the largest number of Bass Hotels and Resorts' (formerly Holiday Hospitality) branded hotels in the world, with 95 Crowne Plaza(R) and Holiday Inn(R) properties. The company is a leading franchisee in Bass' billion-and-a-half-dollar modernization program. By the year 2000, Bristol Hotels & Resorts will have overseen the investment of $400 million in the redevelopment of Crowne Plaza and Holiday Inn hotels. The company also operates hotels under its proprietary brands -- Harvey Hotels, Harvey Suites and Bristol House Residential Suites -- as well as the national franchises of Courtyard by Marriott(R), Fairfield Inn(R), Hampton Inn(R) and others.
With the exception of historical information, the matters discussed in this news release include "forward looking statements" within the meaning of the federal securities law and are qualified by cautionary statements contained herein and in the Company's filings with the Securities and Exchange Commission.