Reuters five days ahead on Felcor`s New York hotel buy

Reuters was five days ahead on news that Felcor Lodging Trust would buy two New York hotels from Morgans Hotel Group, a deal that sent Felcor shares up as much as 3 percent as the move lets it enter the lucrative New York housing market. The news, which Reuters broke on March 31 and the companies announced on April 4, also marked Morgans first move to sell assets and pay off debt. The exclusive was the latest in a string of scoops by Reuters on Morgans, the original boutique hotel company which counts billionaire activist investor Ron Burkle as its largest shareholder. Reuters was first to report in March that Morgans had decided to sell the hotels, sending shares up 8 percent. Reuters then reported that the company had installed a new CEO, operations executives and board members including Burkle, sending shares up another 5 percent. Morgans was founded by nightlife and lodging impresario Ian Schrager.