FelCor Flops: What You Need to Know (FCH)

FelCor Flops: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Hotel REIT FelCor Lodging Trust (NYSE: FCH ) got evicted from 10% of its market cap Tuesday.

So what: It was a humbling result for a company that bills itself as the operator of "upper-upscale" hotels and resorts. Seems investors were less than impressed with FelCor's ballyhooed 6.2% increase in revenue per available room and totally unimpressed by the company's $42 million net loss for the quarter.

Now what: They'd better get used to it, though. Management predicts that its hotels will continue growing RevPAR in the 6% to 7.5% range for the rest of this year and continue losing money, to boot. Total losses for the year: now anywhere from $115 million to $121 million.

The company is growing revenues more slowly than just about any of its peer hoteliers, losing more money than most, and doesn't even pay a dividend -- which is kind of curious for a REIT. Maybe there's a reason to own it, but if there is one, I must say it escapes me.

Think there's hope for this stock? Add the stock to your Fool Watchlist and find out.

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Fool contributor Rich Smith does not own (or short) shares of FelCor Lodging Trust. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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