UPDATE: Bank of America Merrill Lynch Initiates FelCor Lodging Trust at Underperform

Bank of America Merrill Lynch is out with its report today on FelCor Lodging Trust (NYSE: FCH), initiating FCH at Underperform with a $5.50 PO.

In a note to clients, Bank of America Merrill Lynch writes, "We initiate with an Underperform rating and a $5.50 Price Objective. FCH is a self-administered and self-managed hotel REIT focused on the upper upscale, allsuite segment of the hotel market that owns 81 hotels and 23,000 rooms. We prefer hotel REITs with exposure to key gateway and urban markets, as they typically exhibit stronger RevPAR growth at this point in the cycle, and FCH is exposed to more suburban markets/"

Shares of FCH closed Thursday at $5.42.