Felcor Lodging Trust (NYSE:FCH) has received several asset sale scenarios from FBR Capital, based on the successful sale of 30 hotels.
FBR said, "In light of FelCor’s recent sale of the Sheraton Tysons Corner for $84.5M ($191K/key) at 23x TTM hotel EBITDA, or what we estimate as a 3.5% cap rate, we examine several stock price valuation scenarios, assuming the planned sale of 30 hotels. Using a range of scenarios, we calculate that the year-end 2011 equity value per share could be $8 to $11, assuming all of these assets are sold by year-end. This stock price scenario range, which is based on 11.5–13.5 EV/EBITDA multiples, represents 14%–56% upside to the current share price, with the midpoint (the scenario we believe most likely) implying a $9.50 stock, or 35% potential upside."
FBR Capital maintains an "Outperform" on Felcor Lodging Trust, which closed Monday at $7.41, up $0.37, or 5.26 percent. FBR has a price target of $9 on Felcor.
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