FelCor Lodging Trust said it is in talks to sell the Morgans
and Royalton hotels in New York. Both properties are managed by Morgans Hotel
In December, Morgans put two hotels it owns, the Hudson
in New York and the Delano in Miami Beach, on the market.
FelCor said that Morgans will continue to operate the Morgans
and Royalton hotels until they are sold. FelCor acquired the hotels in 2011 for
Morgans has struggled for the past few years, and the industrywide
drop in revenue per available room (RevPAR) in New York has added to the company's
difficulties. Through September 30, 2015, Morgans’ New York hotels’ RevPAR fell
3.9% from a year earlier, as room rates fell.
Last year, New York was one of only two of the largest 25
U.S. markets (Houston being the other) to have a drop in RevPAR, according to hospitality
research firm STR.
Morgans had one other New York hotel last year, the
Mondrian SoHo, but the company lost a court battle with ownership and was
ousted as the operator last April. That hotel is now the independent NoMo SoHo.