Business & Finance

FelCor, the US's No. 2 hotel real estate investment trust (REIT), and rival MeriStar Hospitality Corp. agreed to call off their $2.7 billion merger because of last week's steep stock market decline, the Financial Times reported. FelCor holds 185 hotels, among them Embassy Suites and Holiday Inn locations. Washington-based MeriStar holds a portfolio of 112 hotels in the Hilton, Sheraton, Marriott, and Westin chains. The deal, which was announced May 10, would have made Irving, Texas-based FelCor the largest hotel REIT, with properties in 39 states.

A severe dip in Las Vegas tourism and apparent infighting among the owners of the city's newest megaresort, the $1.2 billion Aladdin, prompted a warning that it may close only 13 months after opening. The hotel-casino also laid off 500 workers. The Aladdin has struggled with a heavy debt load and revenues from its casino have been below expectations.

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.