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Land & Buildings Thesis At FelCor

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Land & Buildings, the REIT-focused activist hedge fund, is taking on FelCor Lodging Trust ($FAH). The hedge fund is pushing the company to boost shareholder value - this includes selling itself or its Knickerbocker hotel in NYC, among other hotels. This could include its Royalton New York and Morgans New York hotels. As well, L&B wants FelCor to cut the 10% of its worst performing portfolios. 

With the asset sales, L&B would like to see that money used for a buyback or debt reduction. 

The fund has called FelCor cheap and thinks shares can hit $10.50 a share. L&B says in its letter, “Given the economic environment as has unfolded in January, we’ve been going back and double-checking. We feel the $10.50 number is a solid number of what the company is worth as a going concern.”