Organization

FelCor Lodging Trust Incorporated (NYSE:FCH), or FelCor, is a Maryland corporation, operating as a real estate investment trust, or REIT. FelCor is the sole general partner of, and the owner of a greater than 99% partnership interest in, FelCor Lodging Limited Partnership, or FelCor LP, through which we held ownership interests in (i) 77 hotels in continuing operations with approximately 22,000 rooms and (ii) one hotel designated as held for sale at September 30, 2011. At September 30, 2011, we had an aggregate of 125,216,738 shares and units outstanding, consisting of 124,580,313 shares of FelCor common stock and 636,425 FelCor LP units not owned by FelCor.

Of the 77 hotels included in continuing operations, we owned a 100% interest in 59 hotels, a 90% interest in entities owning three hotels, an 82% interest in an entity owning one hotel, a 60% interest in an entity owning one hotel and a 50% interest in entities owning 13 hotels. We consolidate our real estate interests in the 64 hotels in which we held greater than 50% ownership interests, and we record the real estate interests of the 13 hotels in which we held 50% ownership interests using the equity method.

At September 30, 2011, 76 of the 77 hotels were leased to operating lessees, and one 50%-owned hotel was operated without a lease. We held majority interests and had direct or indirect controlling interests in all of the operating lessees. Because we owned controlling interests in these lessees (including lessees of 12 of the 13 hotels in which we owned 50% of the real estate interests), we consolidated our lessee interests in these hotels (we refer to these 76 hotels as our Consolidated Hotels) and reflect 100% of those hotels’ revenues and expenses on our statement of operations. Of our Consolidated Hotels, we owned 50% of the real estate interests in each of 12 hotels (we accounted for the ownership in our real estate interests of these hotels by the equity method) and majority real estate interests in each of the remaining 64 hotels (we consolidate our real estate interest in these hotels).

The following table illustrates the distribution of our 76 Consolidated Hotels at September 30, 2011:



Brand	Hotels	Rooms
Embassy Suites Hotels^®	40	10,474
Holiday Inn^®	15	5,154
Sheraton^®and Westin^®	7	2,478
Doubletree^® and Hilton^®	8	1,856
Marriott^®and Renaissance^®	3	1,321
Fairmont^®	1	383
Royalton^® and Morgans^®	2	282
Total	76	21,948

At September 30, 2011, our Consolidated Hotels were located in the United States (74 hotels in 22 states) and Canada (two hotels in Ontario), with concentrations in California (15 hotels), Florida (11 hotels) and Texas (8 hotels). Approximately 48% of our hotel room revenues were generated from hotels in these three states during the first nine months of 2011.

1. Organization — (continued)

At September 30, 2011, of our 76 Consolidated Hotels: (i) subsidiaries of Hilton Hotels Corporation, or Hilton, managed 47 hotels, (ii) subsidiaries of InterContinental Hotels Group, or IHG, managed 15 hotels, (iii) subsidiaries of Starwood Hotels & Resorts Worldwide Inc., or Starwood, managed seven hotels, (iv) subsidiaries of Marriott International Inc., or Marriott, managed three hotels, (v) a subsidiary of Fairmont Hotels and Resorts, or Fairmont, managed one hotel, (vi) a subsidiary of Morgans Hotel Group Corp. managed two hotels, and (vii) an independent management company managed one hotel.

Our hotels managed by Marriott are accounted for on a fiscal year comprised of 52 or 53 weeks ending on the Friday closest to December 31. Our nine-month periods ending September 30, 2011 and 2010 includes the results of operations for our Marriott-managed hotels for the thirty-six week periods ending September 9, 2011 and September 10, 2010, respectively.

The information in our consolidated financial statements for the three and nine months ended September 30, 2011 and 2010 is unaudited. Preparing financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The accompanying financial statements for the three and nine months ended September 30, 2011 and 2010, include adjustments based on management's estimates (consisting of normal and recurring accruals), which we consider necessary for a fair presentation of the results for the periods. The financial information should be read in conjunction with the consolidated financial statements for the year ended December 31, 2010, included in our Annual Report on Form 10-K. Operating results for the three and nine months ended September 30, 2011 are not necessarily indicative of actual operating results for the entire year.