FCH Felcor Lodging Trust Incorporated (delisted)

FelCor Lodging Trust Inc. said it would work with activist investor Jonathan Litt appoint two new directors to its board.

Last month, Mr. Litt and his firm, Land & Buildings Investment Management LLC, launched a campaign to push the Texas-based real-estate investment trust to sell three prime New York City hotels and explore a sale of the entire company.

On Friday FelCor said it has a letter agreement with the firm by which they are working together to recruit candidates "with the expectation that they will be elected by the board as directors in the very near term." The two new independent directors—one of whom will be added to the finance committee and one of which will be added to the executive committee—will be "mutually agreed upon" by the company and firm, and will stand for re-election at the company's May 2016 annual meeting.

The company said it expects two yet-to-be-determined long-serving FelCor directors will step down later this spring and before the 2017 annual meeting, respectively, "to ensure appropriate board size and reduce average board tenure."

FelCor also said the board will give the finance committee the power to review all of the company's finance and capital markets activity.

"FelCor's board has been keenly focused on enhancing corporate governance, including recently declassifying our board and beginning a search this past fall to bring aboard additional, exceptionally qualified and independent directors who will enhance the overall board diversity," said Chief Executive Richard Smith. "We have always welcomed stockholder input, as reflected in this process."

Mr. Litt said Land and Buildings is pleased to help the company "refresh" its board.

"We continue to believe there is significant upside potential at FelCor and are confident that the addition of two directors to the board and on the Finance and executive committees will serve the interests of all FelCor stockholders to continue maximizing value," he said.

Shares of FelCor, up 26% over the past month, were inactive premarket.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

February 19, 2016 09:55 ET (14:55 GMT)

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