Hospitality Properties Trust bought two hotels from FelCor Lodging Trust for $63 million.
The hotels are the 304-room Crowne Plaza in Miami and the 445-room Crowne Plaza in Philadelphia.
The hotels have 749 rooms and over 23,000 square feet of meeting space. In addition, each of them has fitness centers, swimming pools, restaurants and lounges.
HPT will invest $7.1 million in these hotels during the three years following the closing to fund capital improvements.
HPT’s annual minimum returns for the two hotels as assured by InterContinental Hotels Group would be $5.04 million in 2006, $5.6 million in 2007, $5.8 million in 2008 and about $6 million after $7.1 million of planned hotel improvements are funded.
The Newton, Mass.-based trust has funded this transaction by drawing under its unsecured revolving bank credit facility.HPT also said that its previously announced acquisition of the 524-room Holiday Inn Sunspree Resort in Montego Bay, Jamaica for $30 million is expected to close later in 2006.