(Mark One) | ||
x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF | |
THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the fiscal year ended December 31, 2012 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF | |
THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the transition period from to |
Commission file number: 001-14236 | (FelCor Lodging Trust Incorporated) | ||
Commission file number: 333-39595-01 | (FelCor Lodging Limited Partnership) |
Maryland | (FelCor Lodging Trust Incorporated) | 75-2541756 | |||
Delaware | (FelCor Lodging Limited Partnership) | 75-2544994 | |||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||
545 E. John Carpenter Freeway, Suite 1300, Irving, Texas | 75062 | ||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered | ||||||||||||||||
FelCor Lodging Trust Incorporated: | |||||||||||||||||
Common Stock | New York Stock Exchange | ||||||||||||||||
$1.95 Series A Cumulative Convertible Preferred Stock | New York Stock Exchange | ||||||||||||||||
Depositary Shares representing 8% Series C Cumulative Redeemable Preferred Stock | New York Stock Exchange | ||||||||||||||||
FelCor Lodging Limited Partnership: | |||||||||||||||||
None |
FelCor Lodging Trust Incorporated | ¨ | Yes | þ | No | ||
FelCor Lodging Limited Partnership | ¨ | Yes | þ | No |
FelCor Lodging Trust Incorporated | ¨ | Yes | þ | No | ||
FelCor Lodging Limited Partnership | ¨ | Yes | þ | No |
FelCor Lodging Trust Incorporated | þ | Yes | ¨ | No | ||
FelCor Lodging Limited Partnership | þ | Yes | ¨ | No |
FelCor Lodging Trust Incorporated | þ | Yes | ¨ | No | ||
FelCor Lodging Limited Partnership | þ | Yes | ¨ | No |
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨ |
FelCor Lodging Trust Incorporated: | ||
Large accelerated filer o | Accelerated filer þ | |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
FelCor Lodging Limited Partnership: | ||
Large accelerated filer o | Accelerated filer ¨ | |
Non-accelerated filer þ (Do not check if a smaller reporting company) | Smaller reporting company o |
FelCor Lodging Trust Incorporated | o | Yes | þ | No | ||
FelCor Lodging Limited Partnership | o | Yes | þ | No |
The aggregate market value of shares of common stock held by non-affiliates of FelCor Lodging Trust Incorporated as of June 30, 2012, computed by reference to the price at which its common stock was last sold at June 30, 2012, was approximately $562 million. | ||||||||||||||||||||
As of February 22, 2013, the registrant had issued and outstanding 124,121,786 shares of common stock. | ||||||||||||||||||||
DOCUMENTS INCORPORATED BY REFERENCE | ||||||||||||||||||||
Portions of FelCor Lodging Trust Incorporated’s definitive Proxy Statement pertaining to its 2013 Annual Meeting of Stockholders (the “Proxy Statement”), filed or to be filed not later than 120 days after the end of the fiscal year pursuant to Regulation 14A, is incorporated herein by reference into Part III. |
• | presents our business as a whole (the same way management views and operates the business); |
• | eliminates duplicative disclosure and provides a more streamlined presentation (a substantial portion of our disclosure applies to both FelCor and FelCor LP); and |
• | saves time and cost by preparing combined reports instead of separate reports. |
Form 10-K | |||
Report | |||
Item No. | Page | ||
PART I | |||
Item 1. | Business | ||
Item 1A. | Risk Factors | ||
Item 1B. | Unresolved Staff Comments | ||
Item 2. | Properties | ||
Item 3. | Legal Proceedings | ||
Item 4. | Mine Safety Disclosures | ||
PART II | |||
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | ||
Item 6. | Selected Financial Data | ||
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | ||
Item 8. | Financial Statements and Supplementary Data | ||
Item 9. | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure | ||
Item 9A. | Controls and Procedures | ||
PART III | |||
Item 10. | Directors, Executive Officers of the Registrant and Corporate Governance | ||
Item 11. | Executive Compensation | ||
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | ||
Item 13. | Certain Relationships, Related Transactions and Director Independence | ||
Item 14. | Principal Accountant Fees and Services | ||
PART IV | |||
Item 15. | Exhibits and Financial Statement Schedules |
• | Portfolio Quality and Diversity - we are investing in our core portfolio of high-growth hotels located in gateway and resort markets with high barriers to entry and limited supply growth while we sell non-strategic hotels. |
• | Long-Term Leverage - we are steadily reducing our outstanding indebtedness to achieve leverage levels that are readily managed through economic and industry cycles. |
• | Cost of Debt; Staggered and Extended Maturities - we opportunistically refinance higher-cost debt, taking advantage of historically low interest rates to reduce our cost of debt and stagger and extend maturities well into the future. |
• | Organic Growth - we invest in our core portfolio to enhance our assets’ long-term performance and return on invested capital through high ROI redevelopment projects. |
• | Acquisitions - we look to acquire hotels in targeted markets that meet our strict underwriting criteria, such as returns in excess of our weighted average cost of capital, ones located in markets with high barriers-to-entry with limited supply growth, and redevelopment opportunities that leverage our expertise to achieve superior returns on redevelopment capital. |
• | We issued $525 million aggregate principal amount of 5.625% senior secured notes due 2023, significantly reducing our cost of borrowing. We used the proceeds to redeem $258 million in aggregate face amount of 10% senior notes due 2014 and repay a $187 million 8.1% mortgage loan with the remaining proceeds used to repay a portion of the balance on our outstanding line of credit and to pay prepayment costs and other expenses. With this offering, we have effectively completed the capital markets portion of restructuring our balance sheet. We expect to repay the remaining $234 million of our 10% notes and other mortgage debt using proceeds from future asset sales. |
• | In December 2012, we amended and restated our $225 million secured line of credit facility. The facility now matures in June 2017 (extended from August 2015), inclusive of a one-year extension option, subject to satisfaction of certain conditions. Borrowings under the facility bear interest at LIBOR (no floor) plus 3.375% (reduced from LIBOR plus 4.50%). The unused commitment fee decreased 10 basis points. The facility is secured by mortgages and related security interests on eight hotels. |
• | We have sold 19 hotels since December 2010 (including 10 hotels in 2012), for total gross proceeds of $429 million (our pro rata share was $387 million). We used $319 million of these asset sale proceeds to repay indebtedness. |
• | We paid all outstanding accrued preferred dividends ($67.7 million) in 2012. |
• | We raised $160.8 million in proceeds from five single-asset mortgage loans that closed in September 2012, and bear an average interest rate of 4.95%. Proceeds from these loans were used to repay a $107 million 9.02% mortgage loan that would have matured in 2014. We also repaid the remaining $60 million balance of a mortgage loan using excess proceeds from the new loan, as well as asset sale proceeds. |
• | In December 2011, we acquired the landmark Knickerbocker Hotel in midtown Manhattan for $115 million. We are redeveloping the property as a four-plus star hotel featuring 330 large guest rooms, a rooftop sky bar and lounge directly overlooking Times Square, state-of-the-art meeting space and a full-service fitness center. In November 2012, we closed on an $85 million construction loan to finance redeveloping the Knickerbocker. |
• | In 2012, we spent $121.5 million on capital expenditures, including renovation and redevelopment on our operating hotels. During this time, we completed renovations at seven hotels. We also completed redevelopment projects at two properties, the Fairmont Boston Copley Plaza and the Embassy Suites Myrtle Beach Oceanfront Resort. We completed the redevelopment of the Fairmont Boston Copley Plaza in September 2012, repositioning the hotel closer to its luxury competitors, including a complete renovation of rooms and corridors, upgrading 12 rooms to Fairmont Gold, adding a new rooftop fitness center and spa, and redeveloping the food and beverage and other public areas. We are currently redeveloping Morgans to add three guest rooms, build a brand new fitness facility, relocate the lounge and reconcept the food and beverage areas. |
• | As cash flow increases from continued revenue per available room, or RevPAR, growth and we sell additional non-strategic hotels, we expect to continue to materially reduce our leverage. |
• | We have successfully extended our weighted-average debt maturity to 2020 and reduced our weighted-average interest rate to 6.4%, significantly lower than our historical levels. |
• | Hotel Sales. On an ongoing basis, we review each hotel in our portfolio in terms of projected performance, future capital expenditure requirements, market dynamics and concentration risk. We believe selling non-strategic hotels enhances our long-term growth, reduces future capital expenditures and enables management to focus on “core” long-term investments. |
• | In 2010 and 2011, we announced our intention to sell our interests in 39 hotels. We have sold 19 hotels since December 2010 for total gross proceeds of $429 million (our pro rata share was $387 million). Twenty non-strategic hotels remain to be sold. As of January 2013, we are marketing 11 of the remaining 20 hotels. The other nine non-strategic hotels are held in joint ventures, and we and our partners are analyzing the best timing to begin marketing those properties. |
• | We continually review opportunities to sell additional non-strategic hotels in the future and reinvest proceeds to earn a higher return on our investments. |
• | Hotel Acquisitions. We only consider purchasing hotels that meet or exceed our strict investment criteria. |
• | We consider properties that are accretive to long-term stockholder value, are priced at a significant discount to replacement cost with investment returns that exceed our weighted-average cost of capital and can provide attractive long-term yields. |
• | We seek high-quality hotels in major urban and resort markets with high barriers to entry and high growth potential, as typified by the iconic Fairmont Copley Plaza, Royalton, Morgans and (at stabilization) the Knickerbocker. |
• | We focus on properties that will improve the overall quality and diversity of our portfolio and increase our future growth. |
• | We also consider hotels that offer redevelopment and/or revenue enhancement opportunities that can further enhance returns on our investment. |
• | Hotel Brand Conversions. We are rebranding and repositioning eight Holiday Inn properties with Wyndham Hotels & Resorts, effective March 1, 2013. Wyndham Hotel Group will manage the hotels under long-term management agreements. The agreement includes a $100 million performance guaranty from Wyndham Worldwide Corporation over the initial 10-year term (which can be extended for an additional five years), with an annual performance guaranty of up to $21.5 million that ensures minimum annual NOI for the eight hotels. The management fee structure is more consistent with prevailing industry practices, and we expect to save approximately $50 million in management fees over the initial term. Rebranding and repositioning these hotels demonstrates our efforts to execute our long-term value creation strategy, which includes moving more of our portfolio into the upper-upscale segment. |
• | RevPAR increased 6.8%, which was above the long-term historical average; |
• | Occupancy increased 2.5% to 61.4%, as improving demand growth and moderating supply growth trends continued; |
• | Industry performance improved on a widespread basis, with all but one of the largest 25 markets (as defined by STR) experiencing higher RevPAR in 2012; and |
• | Average daily rate (ADR) increased 4.2%, as operators raised rates in the face of strong demand growth, led by increases in corporate travel, and re-mixed their business in favor of premium corporate guests. |
Year Ended December 31, | |||||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||||
Number of FelCor Hotels | 65 | 73 | 80 | 83 | 85 | ||||||||||||||||||||
Occupancy: | |||||||||||||||||||||||||
FelCor hotels(a) | 72.2 | % | 72.0 | % | 70.5 | % | 66.2 | % | 70.9 | % | |||||||||||||||
All Luxury U.S. hotels(b) | 69.7 | 68.1 | 65.4 | 61.6 | 67.1 | ||||||||||||||||||||
All Upscale U.S. hotels(c) | 65.5 | 61.4 | 58.9 | 56.4 | 62.0 | ||||||||||||||||||||
All Midprice U.S. hotels(d) | 62.1 | 56.3 | 53.8 | 51.9 | 57.6 | ||||||||||||||||||||
All U.S. hotels | 61.4 | 60.1 | 57.6 | 55.1 | 60.4 | ||||||||||||||||||||
ADR: | |||||||||||||||||||||||||
FelCor hotels(a) | $ | 142.46 | $ | 128.68 | $ | 121.47 | $ | 123.23 | $ | 136.32 | |||||||||||||||
All Luxury U.S. hotels(b) | 173.50 | 151.37 | 146.54 | 146.85 | 168.43 | ||||||||||||||||||||
All Upscale U.S. hotels(c) | 129.09 | 109.52 | 106.44 | 106.66 | 115.96 | ||||||||||||||||||||
All Midprice U.S. hotels(d) | 100.30 | 81.00 | 78.33 | 78.12 | 84.21 | ||||||||||||||||||||
All U.S. hotels | 106.10 | 101.64 | 98.08 | 97.51 | 106.55 | ||||||||||||||||||||
RevPAR: | |||||||||||||||||||||||||
FelCor hotels(a) | $ | 102.80 | $ | 92.68 | $ | 85.58 | $ | 81.62 | $ | 96.67 | |||||||||||||||
All Luxury U.S. hotels(b) | 120.86 | 103.16 | 95.84 | 90.53 | 112.96 | ||||||||||||||||||||
All Upscale U.S. hotels(c) | 84.51 | 67.22 | 62.71 | 60.12 | 71.83 | ||||||||||||||||||||
All Midprice U.S. hotels(d) | 62.27 | 45.57 | 42.16 | 40.58 | 48.48 | ||||||||||||||||||||
All U.S. hotels | 65.17 | 61.06 | 56.47 | 53.71 | 64.37 |
(a) | This information is based on historical hotel presentations. |
(b) | This category includes “luxury” hotels (hotels with ADRs in the 85th to 100th percentiles in their respective markets). |
(c) | This category includes “upscale” hotels (hotels with ADRs in the 70th to 85th percentiles in their respective markets). |
(d) | This category includes “midprice” hotels (hotels with ADRs in the 40th to 70th percentiles in their respective markets). |
• | general economic conditions, including unemployment rates, major bank failures, unsettled capital markets and sovereign debt uncertainty; |
• | changes in international, national, regional and local economic climate and real estate market conditions; |
• | changes in zoning laws; |
• | changes in traffic patterns and neighborhood characteristics; |
• | increases in assessed property taxes from changes in valuation and real estate tax rates; |
• | increases in the cost of property insurance; |
• | potential for uninsured or underinsured property losses; |
• | costly governmental regulations and fiscal policies; |
• | changes in tax laws; and |
• | other circumstances beyond our control. |
• | changes in business and leisure travel patterns; |
• | decreases in demand for hotel rooms; |
• | increases in lodging supply or competition, which may adversely affect demand at our hotels; |
• | the effect of geopolitical disturbances, including terrorist attacks and terror alerts, that reduce business and leisure travel; |
• | the attractiveness of our hotels to consumers relative to competing hotels; |
• | fluctuations in our revenue caused by the seasonal nature of the hotel industry; |
• | a downturn in the hotel industry; |
• | unionization of the labor force at our hotels; |
• | the threat or outbreak of a pandemic disease affecting the travel industry; |
• | increasing fuel costs and other travel expenses resulting in reductions of travel; and |
• | increased transportation security precautions affecting the travel industry. |
• | increases in operating expenses due to inflation; |
• | wage and benefit costs, including hotels that employ unionized labor; |
• | repair and maintenance expenses; |
• | gas and electricity costs; |
• | insurance costs including health, general liability and workers compensation; and |
• | other operating expenses. |
• | limit our ability to obtain additional financing for working capital, renovation, redevelopment and rebranding plans, acquisitions, debt service requirements and other purposes; |
• | limit our ability to refinance existing debt; |
• | limit our ability to pay dividends, invest in unconsolidated joint ventures, etc.; |
• | require us to agree to additional restrictions and limitations on our business operations and capital structure to obtain financing; |
• | increase our vulnerability to adverse economic and industry conditions, and to interest rate fluctuations; |
• | require us to dedicate a substantial portion of our cash flow from operations to payments on our debt, thereby reducing funds available for capital expenditures, future business opportunities, paying dividends or other purposes; |
• | limit our flexibility to make, or react to, changes in our business and our industry; and |
• | place us at a competitive disadvantage, compared to our competitors that have less debt. |
Brand | Hotels | Rooms | 2012 Hotel Operating Revenue (in thousands) | 2012 Hotel EBITDA(a) (in thousands) | |||||||||||||||
Embassy Suites Hotels | 20 | 5,433 | $ | 256,200 | $ | 78,389 | |||||||||||||
Holiday Inn | 10 | (b) | 3,494 | 160,866 | 42,178 | ||||||||||||||
Renaissance and Marriott | 3 | 1,321 | 111,976 | 17,912 | |||||||||||||||
Doubletree and Hilton | 5 | 1,206 | 56,071 | 16,706 | |||||||||||||||
Sheraton and Westin | 4 | 1,604 | 68,369 | 14,540 | |||||||||||||||
Fairmont | 1 | 383 | 41,255 | 4,286 | |||||||||||||||
Morgans and Royalton | 2 | 282 | 32,129 | 3,458 | |||||||||||||||
Total core hotels | 45 | 13,723 | 726,866 | 177,469 | |||||||||||||||
Non-strategic hotels | 20 | 5,099 | 179,474 | 48,044 | |||||||||||||||
Total | 65 | 18,822 | $ | 906,340 | $ | 225,513 | |||||||||||||
Market | |||||||||||||||||||
San Francisco area | 4 | 1,637 | $ | 99,659 | $ | 21,036 | |||||||||||||
Los Angeles area | 3 | 677 | 33,287 | 13,760 | |||||||||||||||
South Florida | 3 | 923 | 47,298 | 13,257 | |||||||||||||||
Boston | 3 | 916 | 68,121 | 12,126 | |||||||||||||||
New York area | 4 | 817 | 57,052 | 9,733 | |||||||||||||||
Myrtle Beach | 2 | 640 | 36,973 | 9,429 | |||||||||||||||
Atlanta | 3 | 952 | 35,410 | 9,230 | |||||||||||||||
Philadelphia | 2 | 728 | 36,122 | 8,882 | |||||||||||||||
Tampa | 1 | 361 | 45,152 | 7,957 | |||||||||||||||
San Diego | 1 | 600 | 26,445 | 6,688 | |||||||||||||||
Other markets | 19 | 5,472 | 241,347 | 65,371 | |||||||||||||||
Total core hotels | 45 | 13,723 | 726,866 | 177,469 | |||||||||||||||
Non-strategic hotels | 20 | 5,099 | 179,474 | 48,044 | |||||||||||||||
Total | 65 | 18,822 | $ | 906,340 | $ | 225,513 | |||||||||||||
Location | |||||||||||||||||||
Urban | 17 | 5,305 | $ | 316,354 | $ | 74,446 | |||||||||||||
Resort | 10 | 2,928 | 183,807 | 41,475 | |||||||||||||||
Airport | 9 | 2,957 | 126,906 | 33,742 | |||||||||||||||
Suburban | 9 | 2,533 | 99,799 | 27,806 | |||||||||||||||
Total core hotels | 45 | 13,723 | 726,866 | 177,469 | |||||||||||||||
Non-strategic hotels | 20 | 5,099 | 179,474 | 48,044 | |||||||||||||||
Total | 65 | 18,822 | $ | 906,340 | $ | 225,513 |
(a) | Hotel EBITDA is a non-GAAP financial measure. A detailed reconciliation and further discussion of Hotel EBITDA is contained in the “Non-GAAP Financial Measures” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Annual Report. |
(b) | Effective March 1, 2013, eight of these hotels, which comprise 2,526 rooms (13% of our total rooms) and account for $38.0 million of our 2012 Hotel EBITDA, will be operated by Wyndham Hotel Group as either Wyndham or Wyndham Grand hotels. |
Occupancy (%) | |||||||||||
Year Ended December 31, | |||||||||||
2012 | 2011 | %Variance | |||||||||
Embassy Suites Hotels | 74.6 | 75.7 | (1.5 | ) | |||||||
Holiday Inn | 75.2 | 74.7 | 0.7 | ||||||||
Renaissance and Marriott | 69.0 | 67.3 | 2.5 | ||||||||
Doubletree and Hilton | 67.7 | 67.9 | (0.3 | ) | |||||||
Sheraton and Westin | 64.6 | 65.7 | (1.7 | ) | |||||||
Fairmont | 63.5 | 70.2 | (9.6 | ) | |||||||
Morgans and Royalton | 83.7 | 86.4 | (3.1 | ) | |||||||
Core hotels (45) | 72.3 | 72.8 | (0.7 | ) | |||||||
Non-strategic hotels (20) | 71.7 | 71.7 | — | ||||||||
Same-store hotels (65) | 72.2 | 72.5 | (0.5 | ) | |||||||
ADR ($) | |||||||||||
Year Ended December 31, | |||||||||||
2012 | 2011 | %Variance | |||||||||
Embassy Suites Hotels | 144.62 | 137.78 | 5.0 | ||||||||
Holiday Inn | 142.58 | 129.91 | 9.7 | ||||||||
Renaissance and Marriott | 192.43 | 177.04 | 8.7 | ||||||||
Doubletree and Hilton | 137.97 | 130.20 | 6.0 | ||||||||
Sheraton and Westin | 112.31 | 111.81 | 0.5 | ||||||||
Fairmont | 282.00 | 248.97 | 13.3 | ||||||||
Morgans and Royalton | 308.14 | 293.10 | 5.1 | ||||||||
Core hotels (45) | 151.79 | 142.63 | 6.4 | ||||||||
Non-strategic hotels (20) | 117.19 | 113.36 | 3.4 | ||||||||
Same-store hotels (65) | 142.46 | 134.79 | 5.7 | ||||||||
RevPAR ($) | |||||||||||
Year Ended December 31, | |||||||||||
2012 | 2011 | %Variance | |||||||||
Embassy Suites Hotels | 107.88 | 104.32 | 3.4 | ||||||||
Holiday Inn | 107.20 | 97.00 | 10.5 | ||||||||
Renaissance and Marriott | 132.76 | 119.12 | 11.4 | ||||||||
Doubletree and Hilton | 93.40 | 88.42 | 5.6 | ||||||||
Sheraton and Westin | 72.56 | 73.47 | (1.2 | ) | |||||||
Fairmont | 179.11 | 174.85 | 2.4 | ||||||||
Morgans and Royalton | 257.83 | 253.15 | 1.9 | ||||||||
Core hotels (45) | 109.76 | 103.90 | 5.6 | ||||||||
Non-strategic hotels (20) | 84.08 | 81.31 | 3.4 | ||||||||
Same-store hotels (65) | 102.80 | 97.78 | 5.1 |
Occupancy (%) | ||||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2011 | %Variance | ||||||||||
San Francisco area | 80.5 | 79.9 | 0.7 | |||||||||
Los Angeles area | 75.6 | 77.3 | (2.2 | ) | ||||||||
South Florida | 77.4 | 78.0 | (0.8 | ) | ||||||||
Boston | 70.2 | 77.1 | (9.0 | ) | ||||||||
New York area | 78.1 | 79.3 | (1.6 | ) | ||||||||
Myrtle Beach | 59.7 | 59.7 | (0.1 | ) | ||||||||
Atlanta | 73.8 | 73.3 | 0.7 | |||||||||
Philadelphia | 65.2 | 69.4 | (6.0 | ) | ||||||||
Tampa | 81.0 | 78.4 | 3.4 | |||||||||
San Diego | 79.6 | 78.5 | 1.4 | |||||||||
Other markets | 68.9 | 68.6 | 0.5 | |||||||||
Core hotels (45) | 72.3 | 72.8 | (0.7 | ) | ||||||||
Non-strategic hotels (20) | 71.7 | 71.7 | — | |||||||||
Same-store hotels (65) | 72.2 | 72.5 | (0.5 | ) | ||||||||
ADR ($) | ||||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2011 | %Variance | ||||||||||
San Francisco area | 174.13 | 152.75 | 14.0 | |||||||||
Los Angeles area | 156.04 | 149.47 | 4.4 | |||||||||
South Florida | 145.67 | 141.29 | 3.1 | |||||||||
Boston | 207.71 | 187.14 | 11.0 | |||||||||
New York area | 209.80 | 200.66 | 4.6 | |||||||||
Myrtle Beach | 145.27 | 140.62 | 3.3 | |||||||||
Atlanta | 108.53 | 104.83 | 3.5 | |||||||||
Philadelphia | 147.79 | 135.80 | 8.8 | |||||||||
Tampa | 174.57 | 164.50 | 6.1 | |||||||||
San Diego | 128.94 | 119.70 | 7.7 | |||||||||
Other markets | 135.57 | 129.39 | 4.8 | |||||||||
Core hotels (45) | 151.79 | 142.63 | 6.4 | |||||||||
Non-strategic hotels (20) | 117.19 | 113.36 | 3.4 | |||||||||
Same-store hotels (65) | 142.46 | 134.79 | 5.7 | |||||||||
RevPAR ($) | ||||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2011 | %Variance | ||||||||||
San Francisco area | 140.15 | 122.05 | 14.8 | |||||||||
Los Angeles area | 117.94 | 115.49 | 2.1 | |||||||||
South Florida | 112.77 | 110.20 | 2.3 | |||||||||
Boston | 145.72 | 144.25 | 1.0 | |||||||||
New York area | 163.83 | 159.20 | 2.9 | |||||||||
Myrtle Beach | 86.70 | 84.01 | 3.2 | |||||||||
Atlanta | 80.06 | 76.83 | 4.2 | |||||||||
Philadelphia | 96.39 | 94.21 | 2.3 | |||||||||
Tampa | 141.44 | 128.91 | 9.7 | |||||||||
San Diego | 102.63 | 94.00 | 9.2 | |||||||||
Other markets | 93.41 | 88.73 | 5.3 | |||||||||
Core hotels (45) | 109.76 | 103.90 | 5.6 | |||||||||
Non-strategic hotels (20) | 84.08 | 81.31 | 3.4 | |||||||||
Same-store hotels (65) | 102.80 | 97.78 | 5.1 |
Core Hotels | Brand | State | Rooms | % Owned | (a) | |||||
Birmingham | Embassy Suites Hotel | AL | 242 | |||||||
Phoenix – Biltmore | Embassy Suites Hotel | AZ | 232 | |||||||
Dana Point – Doheny Beach | Doubletree Guest Suites | CA | 196 | |||||||
Indian Wells – Esmeralda Resort & Spa | Renaissance Resort | CA | 560 | |||||||
Los Angeles – International Airport/South | Embassy Suites Hotel | CA | 349 | |||||||
Napa Valley | Embassy Suites Hotel | CA | 205 | |||||||
Oxnard – Mandalay Beach – Hotel & Resort | Embassy Suites Hotel | CA | 249 | |||||||
San Diego – On the Bay | Holiday Inn(b) | CA | 600 | |||||||
San Francisco – Airport/Waterfront | Embassy Suites Hotel | CA | 340 | |||||||
San Francisco – Airport/South San Francisco | Embassy Suites Hotel | CA | 312 | |||||||
San Francisco – Fisherman’s Wharf | Holiday Inn | CA | 585 | |||||||
San Francisco – Union Square | Marriott | CA | 400 | |||||||
Santa Monica Beach – at the Pier | Holiday Inn(b) | CA | 132 | |||||||
Deerfield Beach – Resort & Spa | Embassy Suites Hotel | FL | 244 | |||||||
Ft. Lauderdale – 17th Street | Embassy Suites Hotel | FL | 361 | |||||||
Miami – International Airport | Embassy Suites Hotel | FL | 318 | |||||||
Orlando – International Drive South/Convention | Embassy Suites Hotel | FL | 244 | |||||||
Orlando – Walt Disney World Resort | Doubletree Guest Suites | FL | 229 | |||||||
St. Petersburg – Vinoy Resort & Golf Club | Renaissance Resort | FL | 361 | |||||||
Atlanta – Buckhead | Embassy Suites Hotel | GA | 316 | |||||||
Atlanta – Gateway – Atlanta Airport | Sheraton | GA | 395 | |||||||
Atlanta – Perimeter Center | Embassy Suites Hotel | GA | 241 | 50 | % | |||||
Chicago – Lombard/Oak Brook | Embassy Suites Hotel | IL | 262 | 50 | % | |||||
New Orleans – French Quarter | Holiday Inn(b) | LA | 374 | |||||||
Boston – at Beacon Hill | Holiday Inn(b) | MA | 304 | |||||||
Boston – Copley Plaza | Fairmont | MA | 383 | |||||||
Boston – Marlborough | Embassy Suites Hotel | MA | 229 | |||||||
Baltimore – at BWI Airport | Embassy Suites Hotel | MD | 251 | 90 | % | |||||
Charlotte – SouthPark | Doubletree Guest Suites | NC | 208 | |||||||
Parsippany | Embassy Suites Hotel | NJ | 274 | 50 | % | |||||
Secaucus – Meadowlands | Embassy Suites Hotel | NJ | 261 | 50 | % | |||||
New York – Morgans | Independent | NY | 114 | |||||||
New York – Royalton | Independent | NY | 168 | |||||||
Philadelphia – Historic District | Holiday Inn(b) | PA | 364 | |||||||
Philadelphia – Society Hill | Sheraton | PA | 364 | |||||||
Pittsburgh – at University Center (Oakland) | Holiday Inn(b) | PA | 251 |
Core Hotels | Brand | State | Rooms | % Owned | (a) | |||||
Charleston – The Mills House Hotel | Holiday Inn(b) | SC | 214 | |||||||
Myrtle Beach – Oceanfront Resort | Embassy Suites Hotel | SC | 255 | |||||||
Myrtle Beach Resort | Hilton | SC | 385 | |||||||
Nashville – Opryland – Airport (Briley Parkway) | Holiday Inn | TN | 383 | |||||||
Austin | Doubletree Guest Suites | TX | 188 | 90 | % | |||||
Dallas – Love Field | Embassy Suites Hotel | TX | 248 | |||||||
Dallas – Park Central | Westin | TX | 536 | 60 | % | |||||
Houston – Medical Center | Holiday Inn(b) | TX | 287 | |||||||
Burlington Hotel & Conference Center | Sheraton | VT | 309 | |||||||
Unconsolidated Hotel | ||||||||||
New Orleans – French Quarter – Chateau LeMoyne | Holiday Inn | LA | 171 | 50 | % | |||||
Hotel under Development | ||||||||||
New York – Midtown Manhattan – Knickerbocker Hotel | Independent | NY | 330 | 95 | % | |||||
Non-strategic Hotels | ||||||||||
Santa Barbara – Goleta | Holiday Inn | CA | 160 | |||||||
Milpitas – Silicon Valley | Embassy Suites Hotel | CA | 266 | |||||||
San Rafael – Marin County | Embassy Suites Hotel | CA | 235 | 50 | % | |||||
Wilmington | Doubletree | DE | 244 | 90 | % | |||||
Jacksonville – Baymeadows | Embassy Suites Hotel | FL | 277 | |||||||
Orlando – International Airport | Holiday Inn | FL | 288 | |||||||
Atlanta – Airport | Embassy Suites Hotel | GA | 232 | |||||||
Atlanta – Galleria | Sheraton Suites | GA | 278 | |||||||
Kansas City – Overland Park | Embassy Suites Hotel | KS | 199 | 50 | % | |||||
Indianapolis – North | Embassy Suites Hotel | IN | 221 | 82 | % | |||||
Baton Rouge | Embassy Suites Hotel | LA | 223 | |||||||
Bloomington | Embassy Suites Hotel | MN | 218 | |||||||
Minneapolis – Airport | Embassy Suites Hotel | MN | 310 | |||||||
Kansas City – Plaza | Embassy Suites Hotel | MO | 266 | 50 | % | |||||
Charlotte | Embassy Suites Hotel | NC | 274 | 50 | % | |||||
Raleigh – Crabtree | Embassy Suites Hotel | NC | 225 | 50 | % | |||||
Toronto – Airport | Holiday Inn | Ontario | 446 | |||||||
Austin – Central | Embassy Suites Hotel | TX | 260 | 50 | % | |||||
San Antonio – International Airport | Embassy Suites Hotel | TX | 261 | 50 | % | |||||
San Antonio – NW I-10 | Embassy Suites Hotel | TX | 216 | 50 | % |
(a) | We own 100% of the real estate interests unless otherwise noted. |
(b) | Effective March 1, 2013, this hotel will be operated by Wyndham Hotel Group under the Wyndham or Wyndham Grand brand. |
Year Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Base fees | $ | 25,929 | $ | 24,472 | $ | 22,696 | ||||||
Incentive fees | 2,265 | 1,818 | 1,136 | |||||||||
Total management fees | $ | 28,194 | $ | 26,290 | $ | 23,832 |
Number of Management Agreements Expiring | ||||||||||||
Manager | 2014 | 2015 | Thereafter | |||||||||
Hilton | 3 | 4 | 33 | |||||||||
IHG | — | — | 13 | (a) | ||||||||
Starwood | — | — | 5 | |||||||||
Marriott | — | — | 3 | |||||||||
Morgans | — | — | 2 | |||||||||
Fairmont | — | — | 1 | |||||||||
Other | — | 1 | — | |||||||||
Total | 3 | 5 | 57 |
(a) | Eight of these hotels will be managed by Wyndham beginning March 1, 2013. The management agreements with Wyndham terminate in 2023 and may be extended by Wyndham subject to certain conditions. |
High | Low | Dividends Declared Per Share | ||||||||||||
2012 | ||||||||||||||
First quarter | $ | 4.44 | $ | 3.00 | $ | — | ||||||||
Second quarter | 4.75 | 3.59 | — | |||||||||||
Third quarter | 5.43 | 4.35 | — | |||||||||||
Fourth quarter | 4.82 | 3.90 | — | |||||||||||
2011 | ||||||||||||||
First quarter | $ | 8.31 | $ | 5.76 | $ | — | ||||||||
Second quarter | 6.68 | 5.08 | — | |||||||||||
Third quarter | 6.06 | 2.01 | — | |||||||||||
Fourth quarter | 3.49 | 1.91 | — |
Plan category | Number of shares to be issued upon exercise of outstanding options, warrants and rights | Weighted average exercise price of outstanding options, warrants and rights | Number of shares remaining available for future issuance | ||||||||||
Equity compensation plan approved by security holders | — | $ | — | 3,338,349 |
Year Ended December 31, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Statement of Operations Data:(a) | ||||||||||||||||||||
Total revenues | $ | 910 | $ | 855 | $ | 777 | $ | 727 | $ | 873 | ||||||||||
Loss from continuing operations(b) | (188 | ) | (134 | ) | (112 | ) | (89 | ) | (47 | ) | ||||||||||
Diluted earnings per share/unit: | ||||||||||||||||||||
FelCor - loss from continuing operations | $ | (1.82 | ) | $ | (1.46 | ) | $ | (1.85 | ) | $ | (2.02 | ) | $ | (1.40 | ) | |||||
FelCor LP - loss from continuing operations | (1.82 | ) | (1.46 | ) | (1.85 | ) | (2.02 | ) | (1.40 | ) | ||||||||||
Other Data: | ||||||||||||||||||||
Cash distributions declared per common share/unit(c) | $ | — | $ | — | $ | — | $ | — | $ | 0.85 | ||||||||||
Adjusted FFO per share/unit(d) | $ | 0.23 | $ | 0.14 | $ | (0.09 | ) | $ | 0.39 | $ | 1.99 | |||||||||
Adjusted EBITDA(d) | 203 | 203 | 188 | 179 | 276 | |||||||||||||||
Cash flows provided by operating activities | 47 | 46 | 59 | 73 | 153 | |||||||||||||||
Balance Sheet Data (at end of period): | ||||||||||||||||||||
Total assets | $ | 2,202 | $ | 2,403 | $ | 2,359 | $ | 2,626 | $ | 2,512 | ||||||||||
Total debt, net of discount | 1,631 | 1,596 | 1,548 | 1,773 | 1,552 | |||||||||||||||
FelCor’s redeemable noncontrolling interests in FelCor LP at redemption value | 3 | 3 | 2 | 1 | 1 |
(a) | All years presented have been adjusted to reflect hotels no longer owned as discontinued operations. |
(b) | Included in loss from continuing operations are the following amounts (in millions): |
Year Ended December 31, | |||||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||||
Impairment loss | $ | — | $ | (4 | ) | $ | (53 | ) | $ | — | $ | (38 | ) | ||||||||||||
Impairment loss on unconsolidated hotels | — | — | — | (2 | ) | (13 | ) | ||||||||||||||||||
Hurricane loss | (1 | ) | — | — | — | (1 | ) | ||||||||||||||||||
Debt extinguishment | (74 | ) | (28 | ) | 45 | (2 | ) | — | |||||||||||||||||
Conversion expenses | (31 | ) | — | — | — | (1 | ) | ||||||||||||||||||
Severance expenses | (1 | ) | — | — | — | (1 | ) | ||||||||||||||||||
Gain on involuntary conversion, net | — | — | — | — | 2 |
(c) | FelCor suspended payment of its common dividend in December 2008. Funds used by FelCor to pay common or preferred dividends are provided through distributions from FelCor LP. FelCor's Board of Directors will determine the amount of future common and preferred dividends for each quarter, if any, based upon various factors including operating results, economic conditions, other operating trends, our financial condition and capital requirements, as well as the minimum REIT distribution requirements. |
(d) | A more detailed description and computation of Adjusted FFO per share and Adjusted EBITDA is contained in the “Non-GAAP Financial Measures” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7. |
• | In December 2012, we amended and restated our $225 million secured line of credit facility. The facility now matures in June 2017 (extended from August 2015), including a one-year extension option, subject to certain conditions. Borrowings under the facility bear interest at LIBOR (no floor) plus 3.375% (reduced from LIBOR plus 4.50%). The unused commitment fee decreased 10 basis points. The facility is secured by mortgages and related security interests on eight hotels. |
• | In December 2012, we issued $525 million aggregate principal amount of 5.625% senior secured notes due 2023, significantly reducing our cost of borrowing. We used the proceeds to redeem $258 million in aggregate face amount of 10% senior notes due 2014 and repay a $187 million 8.1% mortgage loan with the remaining proceeds used to repay a portion of the balance on our outstanding line of credit and to pay prepayment costs and other expenses. With this offering, we have effectively completed the capital markets portion of restructuring our balance sheet. We expect to repay the remaining $234 million of our 10% notes and other mortgage debt using proceeds from future asset sales. |
• | We have sold 19 hotels since December 2010 (including 10 hotels in 2012) for total gross proceeds of $429 million (our pro rata share of which was $387 million). We used $319 million of asset sale proceeds to repay indebtedness. |
• | We paid all outstanding accrued preferred dividends ($67.7 million) in 2012. |
• | We raised $160.8 million in proceeds from five single-asset mortgage loans that closed in September 2012, and bear an average interest rate of 4.95%. Proceeds from these loans were used to repay a $107 million, 9.02% mortgage loan that would have matured in 2014. We also repaid the remaining $60 million balance of a mortgage loan using excess proceeds from the new loans, as well as recent asset sale proceeds. |
• | We are redeveloping the landmark Knickerbocker Hotel in midtown Manhattan (which we acquired in December 2011 for $115 million), as a four-plus star hotel featuring 330 large guest rooms, a rooftop sky bar and lounge directly overlooking Times Square, state-of-the-art meeting space and a full-service fitness center. In November 2012, we obtained an $85 million construction loan to finance the project and expect to obtain additional five-year financing through the EB-5 visa program. |
• | In 2012, we spent $121.5 million on capital expenditures, including renovation and redevelopment on our operating hotels. During this time, we completed renovations at seven hotels. We also completed redevelopment projects at two properties, the Embassy Suites Myrtle Beach Oceanfront Resort and the Fairmont Copley Plaza. The Fairmont Copley Plaza redevelopment repositioned the hotel closer to its luxury competitors and included a complete renovation of rooms and corridors, upgrading 12 rooms to Fairmont Gold, adding a new rooftop fitness center and spa, and redeveloping the food and beverage and other public areas. We are currently redeveloping Morgans to add three guest rooms, build a brand new fitness facility, relocate the lounge and reconcept the food and beverage areas. |
Year Ended December 31, | |||||||||||||||||||||||
2012 | 2011 | % Change 2012-11 | 2010 | % Change 2011-10 | |||||||||||||||||||
RevPAR(a) | $ | 102.80 | $ | 97.78 | 5.1 | % | $ | 93.22 | 4.9 | % | |||||||||||||
Hotel EBITDA(a)(b) | 226 | 211 | 6.9 | % | 192 | 10.2 | % | ||||||||||||||||
Hotel EBITDA margin(a)(b) | 24.9 | % | 24.4 | % | 1.9 | % | 23.1 | % | 5.7 | % | |||||||||||||
Loss from continuing operations(c) | (188 | ) | (134 | ) | (41.1 | )% | (112 | ) | (19.5 | )% |
(a) | All years presented are for our 65 same-store Consolidated Hotels. |
(b) | Hotel EBITDA and Hotel EBITDA margin are non-GAAP financial measures. A discussion of the use, limitations and importance of these non-GAAP financial measures and detailed reconciliations to the most comparable GAAP measure are found elsewhere in Management’s |
(c) | The following amounts are included in loss from continuing operations (in millions): |
Year Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Impairment loss | — | (4 | ) | (53 | ) | |||||||
Hurricane loss | (1 | ) | — | — | ||||||||
Debt extinguishment | (74 | ) | (28 | ) | 45 | |||||||
Conversion expenses | (31 | ) | — | — | ||||||||
Severance expenses | (1 | ) | — | — |
• | Total revenue was $909.5 million, 6.4% more than 2011. This increase was primarily driven by a 5.1% increase in same-store RevPAR reflecting a 5.7% increase in ADR (partially offset by a 30 basis point decrease in occupancy), as well as $11.5 million in incremental revenue from Royalton and Morgans, acquired in May 2011. Several of our core hotels were under significant renovation or redevelopment during 2012. |
• | Hotel departmental expenses increased $19.1 million (including $6.8 million of incremental hotel departmental expenses at Royalton and Morgans). As a percentage of total revenue, hotel departmental expenses decreased slightly from 36.6% in 2011 to 36.5% in 2012. Improved ADR was offset, in part, by decreasing food and beverage margins. |
• | Other property-related costs increased $10.9 million due to a combination of higher costs (such as marketing programs) and $3.5 million of incremental other property-related costs at Royalton and Morgans. As a percentage of total revenue, other property-related costs decreased from 27.6% to 27.1% compared to 2011. This improvement primarily reflects revenue increases driven by ADR as opposed to occupancy. |
• | Management and franchise fees increased $2.5 million compared to 2011, primarily reflecting higher revenues (which serve as the basis for determining such fees). As a percentage of total revenue, these costs remained essentially unchanged from the same period in 2011. |
• | Taxes, insurance and lease expense increased $9.3 million (including $999,000 of incremental taxes, insurance, and lease expenses at Royalton and Morgans) and increased as a percentage of total revenue from 9.9% to 10.4% compared to 2011. The higher percentage of revenue reflects more favorable liability claims in 2011 in addition to lower estimated Canadian taxes in 2011. |
• | Corporate expenses decreased $3.0 million (decreasing as a percentage of total revenue from 3.4% to 2.9%), which reflects: (i) lower restricted stock amortization in 2012, as a significant amount of restricted stock vested in 2011, and (ii) lower payroll tax withholding with respect to restricted cash awards, which were lower in 2012 than in 2011. We recognize payroll tax withholding on these awards as an expense when awarded rather than amortizing that expense over the three-year vesting periods (as is the case with the remainder of the awards). |
• | Depreciation and amortization expense increased $5.6 million compared to 2011, including $1.3 million of incremental depreciation expense related to Royalton and Morgans. The remainder of the increase primarily reflects depreciation associated with hotel capital expenditures of $89.0 million in 2011 and $121.5 million in 2012. |
• | Impairment loss. At December 31, 2012, no impairment charges were included in continuing operations, while 2011 continuing operations included a $4.3 million charge for one hotel. That charge was based on a revised estimated fair value obtained through the marketing process that was lower than the net book value for that hotel. |
• | Conversion expenses. In the fourth quarter of 2012, we decided to convert eight Holiday Inn hotels to the Wyndham Hotels & Resorts brand and management effective March 1, 2013. The expenses incurred related to converting these hotels have been classified as conversion expenses in our statements of operations and include $30.7 million of IHG termination fees for the year ended December 31, 2012. |
• | Other expenses increased $838,000 compared to 2011, because of 2012 hurricane-related charges and other expenses, offset by lower acquisition costs. |
• | Net interest expense decreased $5.1 million compared to 2011, which primarily reflects increased capitalized interest related to the Knickerbocker Hotel development, which was partially offset by an increase in our average effective interest rate. |
• | Debt extinguishment charges during the year ended December 31, 2012 were $74.3 million. These charges include $19.3 million of prepayment penalties and the write-off of deferred loan costs primarily related to repaying $353.9 million in mortgage debt secured by properties in continuing operations. In addition, we redeemed $258.0 million of our 10% senior notes and recognized a $55.0 million debt extinguishment charge related to prepayment penalties, and the write-off of a pro rata portion of the original issue discount and deferred loan costs. During the year ended December 31, 2011, we redeemed $144.0 million of our 10% senior notes and recognized a $27.4 million debt extinguishment charge related to prepayment penalties, and the write-off of a pro rata portion of the original issue discount and deferred loan costs. |
• | Discontinued operations include the results of operations for ten hotels sold in 2012. Discontinued operations in 2011 include results of operations for eight hotels sold that year and the ten hotels sold in 2012. Discontinued operations in 2012 included a $54.5 million net gain on the sale of hotels in addition to $1.3 million in impairment charges. Discontinued operations in 2011 reflects a $4.7 million net gain on the sale of hotels, $3.3 million in net gains from debt extinguishment and $8.9 million in impairment charges. |
• | Total revenue was $855.2 million, a 10.1% increase compared to 2010. The increase was primarily driven by a 4.9% increase in same-store RevPAR (5.4% at our core hotels and 3.2% at our non-strategic hotels), which was driven by a 3.7% increase in ADR and a 1.1% increase in occupancy, as well as $45.9 million in incremental revenue from our recently-acquired hotels (the Fairmont Copley Plaza, acquired in August 2010, and Royalton and Morgans, acquired in May 2011). |
• | Hotel departmental expenses increased $32.3 million, compared to 2010, reflecting improved occupancy and $23.4 million of incremental hotel departmental expense at our recently acquired hotels. As a percentage of total revenue, hotel departmental expenses increased from 36.2% in 2010 to 36.6% in 2011. This change is primarily due to the mix and nature of the business at the Fairmont Copley Plaza, which has significant food and beverage revenue. Food and beverage expenses are generally much higher as a percent of revenue than room expenses. |
• | Other property related costs increased $20.3 million, compared to 2010, due to a combination of improved occupancy and $12.5 million of incremental other property-related costs from our recently-acquired hotels. As a percentage of total revenue, other property related costs remained essentially unchanged compared to 2010. |
• | Management and franchise fees increased $2.8 million, compared to 2010, due to higher revenues (which serve as the basis for determining such fees) and $766,000 in fees with respect of our recently-acquired hotels. As a percent of total revenue, management and franchise fees remained essentially unchanged compared to 2010. |
• | Taxes, insurance and lease expenses increased $2.5 million compared to 2010. As a percentage of total revenue, taxes, insurance and lease expense improved from 10.6% in 2010 to 9.9% in 2011. This trend reflects favorable property tax settlements and improved liability claims experience, and was partially offset by $3.4 million of incremental expenses at our recently-acquired hotels. |
• | Corporate expenses decreased $1.7 million and decreased as a percentage of total revenue from 4.0% to 3.4%. This decrease is primarily attributed to the decrease in corporate bonus expense. |
• | Depreciation and amortization expense increased $1.8 million compared to 2010. This change was driven by an increase in hotel capital expenditures, in addition to $3.6 million of depreciation expense related to our recently acquired hotels. Offsetting this increase is a reduction to depreciation expense resulting from a decline in certain asset values. Our asset values, the basis from which we calculate depreciation, declined between 2010 and 2011 as a result of hotel sales and impairment charges. As a percent of total revenue, depreciation and amortization expense decreased to 13.8% in 2011 compared to 15.0% in 2010. |
• | Impairment charges. We had an impairment charge of $4.3 million in 2011 relating to one hotel that we are currently marketing for sale. The charge was based on a revised estimated fair value obtained through the marketing process that was lower than the net book value. In 2010, we had impairment charges of $52.6 million included in continuing operations, relating to six non-strategic hotels. |
• | Net interest expense decreased $1.5 million compared to 2010, primarily reflecting our lower average debt. |
• | Extinguishment of debt. During 2011, we redeemed $144 million of our 10% senior notes due in October 2014 and recognized a $27.4 million debt extinguishment charge related to the prepayment premium and the write-off of a pro rata portion of the original issue discount and deferred loan costs. In June 2010, we repaid $177 million of debt, secured by two hotels, for $130 million, and recorded a related $46.1 million gain on extinguishment of debt. This gain was partially offset by a loss from debt extinguishment of approximately $1.6 million resulting from the retirement of $40.3 million of our senior notes which were due June 2011. |
• | Equity in income from unconsolidated entities was a loss of $2.1 million compared to $16.9 million of income in 2010. In 2010, we had a $20.5 million gain from the sale of our interest in an unconsolidated entity, which owned the Sheraton Premiere hotel in Tysons Corner, Virginia. |
• | Discontinued operations consist of ten hotels sold in 2012, and eight hotels sold in 2011. Discontinued operations in 2010 also included one hotel sold in 2010 and two hotels transferred to a lender in satisfaction of debt in 2010. In 2011, we recorded $4.7 million of gains from the sale of hotels, $3.3 million for the extinguishment of debt, and $8.9 million of impairment charges. In 2010, we recorded impairment charges on discontinued hotels of: (i) $100.0 million related to our 2010 decision to sell certain hotels which reduced our estimated hold period and (ii) $21.1 million related to our 2010 decision to return two hotels to their respective lenders in full satisfaction of the related debt. These charges were partially offset by a $15.2 million gain from debt extinguishment related to the two hotels transferred to lenders in satisfaction of debt. |
Year Ended December 31, | |||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||
Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | |||||||||||||||||||||||||
Net loss | $ | (129,414 | ) | $ | (130,895 | ) | $ | (225,837 | ) | ||||||||||||||||||||||||
Noncontrolling interests | 1,407 | 1,041 | 2,796 | ||||||||||||||||||||||||||||||
Preferred dividends | (38,713 | ) | (38,713 | ) | (38,713 | ) | |||||||||||||||||||||||||||
Numerator for basic and diluted loss attributable to common stockholders | (166,720 | ) | 123,634 | 123,648 | $ | (1.35 | ) | (168,567 | ) | 117,068 | $ | (1.44 | ) | (261,754 | ) | 80,611 | $ | (3.25 | ) | ||||||||||||||
Depreciation and amortization | 123,879 | — | 1.00 | 118,232 | — | 1.01 | 116,439 | — | 1.44 | ||||||||||||||||||||||||
Depreciation, discontinued operations and unconsolidated entities | 16,721 | — | 0.14 | 33,136 | — | 0.28 | 45,787 | — | 0.57 | ||||||||||||||||||||||||
Gain on involuntary conversion | — | — | — | (292 | ) | — | — | — | — | — | |||||||||||||||||||||||
Loss on involuntary conversion, discontinued operations | — | — | — | 12 | — | — | — | — | — | ||||||||||||||||||||||||
Impairment loss | — | — | — | 4,315 | — | 0.04 | 52,587 | — | 0.65 | ||||||||||||||||||||||||
Impairment loss, discontinued operations and unconsolidated entities | 1,335 | — | 0.01 | 8,935 | — | 0.08 | 120,389 | — | 1.49 | ||||||||||||||||||||||||
Gain on sale of hotels | (54,459 | ) | — | (0.44 | ) | (4,714 | ) | — | (0.04 | ) | — | — | — | ||||||||||||||||||||
Gain on sale of unconsolidated entities | — | — | — | — | — | — | (21,103 | ) | — | (0.26 | ) | ||||||||||||||||||||||
Noncontrolling interests in FelCor LP | (842 | ) | 628 | — | (689 | ) | 499 | (0.01 | ) | (881 | ) | 294 | (0.01 | ) | |||||||||||||||||||
Unvested restricted stock | — | — | — | — | — | — | — | 505 | — | ||||||||||||||||||||||||
FFO | (80,086 | ) | 124,262 | (0.64 | ) | (9,632 | ) | 117,567 | (0.08 | ) | 51,464 | 81,410 | 0.63 | ||||||||||||||||||||
Acquisition costs | 132 | — | — | 1,479 | — | 0.01 | 449 | — | 0.01 | ||||||||||||||||||||||||
Hurricane loss | 1,021 | — | 0.01 | — | — | — | — | — | — | ||||||||||||||||||||||||
Hurricane loss, unconsolidated entities | 253 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Extinguishment of debt | 75,117 | — | 0.60 | 24,381 | — | 0.21 | (59,465 | ) | — | (0.73 | ) | ||||||||||||||||||||||
Conversion expenses | 31,197 | — | 0.25 | — | — | — | — | — | — | ||||||||||||||||||||||||
Severance costs | 553 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Abandoned projects | 219 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Pre-opening costs | 398 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Unvested restricted stock | — | 11 | 0.01 | — | 175 | — | — | (505 | ) | — | |||||||||||||||||||||||
Adjusted FFO | $ | 28,804 | 124,273 | $ | 0.23 | $ | 16,228 | 117,742 | $ | 0.14 | $ | (7,552 | ) | 80,905 | $ | (0.09 | ) |
Year Ended December 31, | |||||||||||||||||||||
2009 | 2008 | ||||||||||||||||||||
Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | ||||||||||||||||
Net loss | $ | (109,091 | ) | $ | (120,487 | ) | |||||||||||||||
Noncontrolling interests | 969 | 1,242 | |||||||||||||||||||
Preferred dividends | (38,713 | ) | (38,713 | ) | |||||||||||||||||
Net loss attributable to FelCor common stockholders | (146,835 | ) | (157,958 | ) | |||||||||||||||||
Less: Dividends declared on unvested restricted stock | — | (1,041 | ) | ||||||||||||||||||
Numerator for basic and diluted loss attributable to common stockholders | (146,835 | ) | 63,114 | $ | (2.33 | ) | (158,999 | ) | 61,979 | $ | (2.57 | ) | |||||||||
Depreciation and amortization | 114,631 | — | 1.82 | 106,246 | — | 1.72 | |||||||||||||||
Depreciation, discontinued operations and unconsolidated entities | 50,018 | — | 0.79 | 49,585 | — | 0.80 | |||||||||||||||
Gain on involuntary conversion | — | — | — | (2,417 | ) | — | (0.04 | ) | |||||||||||||
Gain on involuntary conversion, discontinued operations | — | — | — | (678 | ) | — | (0.01 | ) | |||||||||||||
Impairment loss | — | — | — | 38,455 | — | 0.62 | |||||||||||||||
Impairment loss, discontinued operations and unconsolidated entities | 5,516 | — | 0.09 | 82,204 | — | 1.33 | |||||||||||||||
Gain on sale of hotels | (910 | ) | — | (0.01 | ) | (1,193 | ) | — | (0.02 | ) | |||||||||||
Noncontrolling interests in FelCor LP | (672 | ) | 296 | (0.02 | ) | (2,433 | ) | 1,199 | (0.08 | ) | |||||||||||
Dividends declared on unvested restricted stock | — | — | — | 1,041 | — | 0.02 | |||||||||||||||
Unvested restricted stock | — | 331 | — | — | 98 | — | |||||||||||||||
FFO | 21,748 | 63,741 | 0.34 | 111,811 | 63,276 | 1.77 | |||||||||||||||
Extinguishment of debt | 1,721 | — | 0.02 | — | — | — | |||||||||||||||
Hurricane loss | — | — | — | 789 | — | 0.02 | |||||||||||||||
Hurricane loss, discontinued operations and unconsolidated entities | — | — | — | 930 | — | 0.01 | |||||||||||||||
Conversion expenses | 447 | — | 0.01 | 507 | — | 0.01 | |||||||||||||||
Severance costs | 612 | — | 0.01 | 850 | — | 0.01 | |||||||||||||||
Lease termination costs | 469 | — | 0.01 | — | — | — | |||||||||||||||
Liquidated damages, discontinued operations | — | — | — | 11,060 | — | 0.17 | |||||||||||||||
Adjusted FFO | $ | 24,997 | 63,741 | $ | 0.39 | $ | 125,947 | 63,276 | $ | 1.99 |
Year Ended December 31, | |||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
Net loss | $ | (129,414 | ) | $ | (130,895 | ) | $ | (225,837 | ) | $ | (109,091 | ) | $ | (120,487 | ) | ||||
Depreciation and amortization | 123,879 | 118,232 | 116,439 | 114,631 | 106,246 | ||||||||||||||
Depreciation, discontinued operations and unconsolidated entities | 16,721 | 33,136 | 45,787 | 50,018 | 49,585 | ||||||||||||||
Interest expense | 125,484 | 130,658 | 132,331 | 92,275 | 83,271 | ||||||||||||||
Interest expense, discontinued operations and unconsolidated entities | 4,792 | 9,892 | 17,178 | 17,786 | 23,377 | ||||||||||||||
Noncontrolling interests in other partnerships | 565 | 352 | 1,915 | 297 | (1,191 | ) | |||||||||||||
EBITDA | 142,027 | 161,375 | 87,813 | 165,916 | 140,801 | ||||||||||||||
Impairment loss | — | 4,315 | 52,587 | — | 38,455 | ||||||||||||||
Impairment loss, discontinued operations and unconsolidated entities | 1,335 | 8,935 | 120,389 | 5,516 | 82,204 | ||||||||||||||
Hurricane loss | 1,021 | — | — | — | 789 | ||||||||||||||
Hurricane loss, discontinued operations and unconsolidated entities | 253 | — | — | — | 930 | ||||||||||||||
Extinguishment of debt | 75,117 | 24,381 | (59,465 | ) | 1,721 | — | |||||||||||||
Acquisition costs | 132 | 1,479 | 449 | — | — | ||||||||||||||
Amortization of stock compensation | 5,003 | 7,170 | 7,445 | 5,165 | 4,451 | ||||||||||||||
Severance costs | 553 | — | — | 612 | 850 | ||||||||||||||
Liquidated damages, discontinued operations | — | — | — | — | 11,060 | ||||||||||||||
Lease termination costs | — | — | — | 469 | — | ||||||||||||||
Abandoned projects | 219 | — | — | — | — | ||||||||||||||
Conversion expenses | 31,197 | — | — | 447 | 507 | ||||||||||||||
Pre-opening costs | 398 | — | — | — | — | ||||||||||||||
Gain on sale of hotels | (54,459 | ) | (4,714 | ) | — | (910 | ) | (1,193 | ) | ||||||||||
Gain on involuntary conversion | — | (292 | ) | — | — | (2,417 | ) | ||||||||||||
Loss on involuntary conversion, discontinued operations | — | 12 | — | — | (678 | ) | |||||||||||||
Gain on sale of unconsolidated entities | — | — | (21,103 | ) | — | — | |||||||||||||
Adjusted EBITDA | $ | 202,796 | $ | 202,661 | $ | 188,115 | $ | 178,936 | $ | 275,759 |
Year Ended December 31, | |||||||||||||||
2012 | 2011 | 2010 | |||||||||||||
Same-store operating revenue: | |||||||||||||||
Room | $ | 707,908 | $ | 671,567 | $ | 640,268 | |||||||||
Food and beverage | 148,736 | 141,048 | 136,304 | ||||||||||||
Other operating departments | 49,696 | 51,042 | 52,382 | ||||||||||||
Same-store operating revenue | 906,340 | 863,657 | 828,954 | ||||||||||||
Same-store operating expense: | |||||||||||||||
Room | 190,293 | 182,780 | 175,765 | ||||||||||||
Food and beverage | 119,560 | 113,329 | 110,510 | ||||||||||||
Other operating departments | 22,434 | 23,490 | 23,699 | ||||||||||||
Other property related costs | 246,518 | 239,104 | 231,162 | ||||||||||||
Management and franchise fees | 41,815 | 39,702 | 38,133 | ||||||||||||
Taxes, insurance and lease expense | 60,207 | 54,280 | 58,169 | ||||||||||||
Same-store operating expense | 680,827 | 652,685 | 637,438 | ||||||||||||
Hotel EBITDA | $ | 225,513 | $ | 210,972 | $ | 191,516 | |||||||||
Hotel EBITDA Margin | 24.9 | % | 24.4 | % | 23.1 | % |
Year Ended December 31, | |||||||||||||||
2012 | 2011 | 2010 | |||||||||||||
Same-store operating revenue(a) | $ | 906,340 | $ | 863,657 | $ | 828,954 | |||||||||
Other revenue | 3,185 | 2,949 | 3,174 | ||||||||||||
Revenue from acquired hotels | — | (11,455 | ) | (55,249 | ) | ||||||||||
Total revenue | 909,525 | 855,151 | 776,879 | ||||||||||||
Same-store operating expense(a) | 680,827 | 652,685 | 637,438 | ||||||||||||
Consolidated hotel lease expense(b) | 41,342 | 38,759 | 36,327 | ||||||||||||
Unconsolidated taxes, insurance and lease expense | (7,255 | ) | (6,987 | ) | (6,630 | ) | |||||||||
Corporate expenses | 26,128 | 29,080 | 30,747 | ||||||||||||
Depreciation and amortization | 123,879 | 118,232 | 116,439 | ||||||||||||
Impairment loss | — | 4,315 | 52,587 | ||||||||||||
Expenses from acquired hotels | — | (11,290 | ) | (51,992 | ) | ||||||||||
Conversion expenses | 31,197 | — | — | ||||||||||||
Other expenses | 4,855 | 4,017 | 3,280 | ||||||||||||
Total operating expenses | 900,973 | 828,811 | 818,196 | ||||||||||||
Operating income (loss) | $ | 8,552 | $ | 26,340 | $ | (41,317 | ) |
(a) | For same-store metrics, we have included the hotel acquired in August 2010 and the two hotels acquired in May 2011 for all periods presented as if they were acquired at the beginning of 2010. |
(b) | Consolidated hotel lease expense represents the percentage lease expense of our 51% owned operating lessees. The offsetting percentage lease revenue is included in equity in income from unconsolidated entities. |
• | Gains and losses related to extinguishment of debt and interest rate swaps - We exclude gains and losses related to extinguishment of debt and interest rate swaps from FFO and EBITDA because we believe that it is not indicative of ongoing operating performance of our hotel assets. This also represents an acceleration of interest expense or a reduction of interest expense, and interest expense is excluded from EBITDA. |
Encumbered Hotels | Interest Rate (%) | December 31, | ||||||||||||||||
Maturity Date | 2012 | 2011 | ||||||||||||||||
Line of credit | 8 | L + 3.375 | June 2016(a) | $ | 56,000 | $ | — | |||||||||||
Hotel mortgage debt | ||||||||||||||||||
Mortgage debt(b) | 5 | 6.66 | June - August 2014 | 65,431 | 67,375 | |||||||||||||
Mortgage debt | 1 | 5.81 | July 2016 | 10,405 | 10,876 | |||||||||||||
Mortgage debt(b) | 4 | 4.95 | October 2022 | 128,066 | — | |||||||||||||
Mortgage debt | 1 | 4.94 | October 2022 | 32,176 | — | |||||||||||||
Senior notes | ||||||||||||||||||
Senior secured notes(c) | 11 | 10.00 | October 2014 | 223,586 | 459,931 | |||||||||||||
Senior secured notes | 6 | 6.75 | June 2019 | 525,000 | 525,000 | |||||||||||||
Senior secured notes | 10 | 5.625 | March 2023 | 525,000 | — | |||||||||||||
Other(d) | — | L + 1.25 | May 2016 | 64,861 | — | |||||||||||||
Retired debt | — | — | — | — | 533,284 | |||||||||||||
Total | 46 | $ | 1,630,525 | $ | 1,596,466 |
(a) | Our $225 million line of credit can be extended for one year (to 2017), subject to satisfying certain conditions. |
(b) | This debt is comprised of separate non-cross-collateralized loans each secured by a mortgage of a different hotel. |
(c) | We originally issued $636 million (face amount) of these notes. After redemptions in 2011 and 2012, $234 million (face amount) of these notes were outstanding at December 31, 2012. These notes were initially sold at a discount that provided an effective yield of 12.875% before transaction costs. |
(d) | This loan is related to our Knickerbocker development project and is fully secured by restricted cash and a mortgage. Because we were able to assume an existing loan when we purchased this hotel, we were not required to pay any local mortgage recording tax. This loan can be extended for one year subject to satisfying certain conditions. |
Total | Less Than 1 Year | 1 – 3 Years | 4 – 5 Years | After 5 Years | ||||||||||||||||
Debt(a) | $ | 2,364,299 | $ | 107,777 | $ | 474,625 | $ | 281,757 | $ | 1,500,140 | ||||||||||
Operating leases | 319,620 | 11,126 | 22,297 | 17,193 | 269,004 | |||||||||||||||
Purchase obligations | 35,005 | 35,005 | — | — | — | |||||||||||||||
IHG termination fees | 30,710 | 30,710 | — | — | — | |||||||||||||||
Accrued obligations on sold hotels | 2,544 | 2,544 | — | — | — | |||||||||||||||
Total contractual obligations | $ | 2,752,178 | $ | 187,162 | $ | 496,922 | $ | 298,950 | $ | 1,769,144 |
(a) | This includes both principal and interest. Interest expense for variable rate debt was calculated using interest rates at December 31, 2012. |
• | We record an impairment charge when we believe that an investment in one or more of our hotels held for investment has been impaired, such that future undiscounted cash flows would not recover the book basis, or net book value, of the investment. We test for impairment when certain events occur, including one or more of the following: projected cash flows are significantly less than recent historical cash flows; significant changes in legal factors or actions by a regulator that could affect the value of our hotels; events that could cause changes or uncertainty in travel patterns; and a current expectation that, more likely than not, a hotel will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. In the evaluation of impairment of our hotels, and in establishing impairment charges, we make many assumptions and estimates on a hotel by hotel basis, which include the following: |
◦ | Annual cash flow growth rates for revenues and expenses; |
◦ | Holding periods; |
◦ | Expected remaining useful lives of assets; |
◦ | Estimates in fair values taking into consideration future cash flows, capitalization rates, discount rates and comparable selling prices; and |
◦ | Future capital expenditures. |
• | We record an impairment charge when one or more of our investments in unconsolidated subsidiaries experiences an other-than-temporary decline in fair value. Any decline in fair value that is not expected to be recovered in the next 12 months is considered other-than-temporary. We record an impairment in our equity-based investments as a reduction in the carrying value of the investment. Our estimates of fair values are based on future cash flow estimates, capitalization rates, discount rates and comparable selling prices. |
• | We capitalize interest and certain other costs, such as property taxes, land leases, property insurance and employee costs related to hotels undergoing major renovations and redevelopments. In 2012, 2011 and 2010, we capitalized $22.2 million, $8.5 million and $5.8 million, respectively, of such costs. We make estimates with regard to when components of the renovated asset or redevelopment project are taken out of service or placed in service when determining the appropriate amount and time to capitalize these costs. If these estimates are inaccurate, we could capitalize too much or too little with regard to a particular project. |
• | Depreciation expense is based on the estimated useful life of our assets, and amortization expense for leasehold improvements is the shorter of the lease term or the estimated useful life of the related assets. The lives of the assets are based on a number of assumptions including cost and timing of capital expenditures to maintain and refurbish the assets, as well as specific market and economic conditions. While we believe our estimates are reasonable, a change in the estimated lives could affect depreciation and amortization expense and net income (loss) or the gain or loss on the sale of any of our hotels. |
• | Investments in hotel properties are based on purchase price and allocated to land, property and equipment, identifiable intangible assets and assumed debt and other liabilities at fair value. Any remaining unallocated purchase price, if any, is treated as goodwill. Property and equipment are recorded at fair value, based on current replacement cost for similar capacity, and allocated to buildings, improvements, furniture, fixtures and equipment using appraisals and valuations prepared by management and/or independent third parties. Identifiable intangible assets (typically contracts including ground and retail leases and management and franchise agreements) are recorded at fair value, although no value is generally allocated to contracts which are at market terms. Above-market and below-market contract values are based on the present value of the difference between contractual amounts to be paid pursuant to the contracts acquired and our estimate of the fair value of contract rates for corresponding contracts measured over the period equal to the remaining non-cancelable term of the contract. Intangible assets are amortized using the straight-line method over the remaining non-cancelable term of the related agreements. In making estimates of fair values for purposes of allocating purchase price, we may utilize a number of sources such as those obtained in connection with the acquisition or financing of a property and other market data, including third-party appraisals and valuations. |
• | We make estimates with respect to contingent liabilities for losses covered by insurance. We record liabilities for self-insured losses under our insurance programs when it becomes probable that an asset has been impaired or a liability has been incurred at the date of our financial statements and the amount of the loss can be reasonably estimated. We are self-insured for the first $250,000, per occurrence, of our general liability claims with regard to 43 of our hotels. We review the adequacy of our reserves for our self-insured claims on a regular basis. Our reserves are intended to cover the estimated ultimate uninsured liability for losses with respect to reported and unreported claims incurred at the end of each accounting period. These reserves represent estimates at a given date, generally utilizing projections based on claims, historical settlement of claims and estimates of future costs to settle claims. Estimates are also required since there may be delays in reporting. Because establishment of insurance reserves is an inherently uncertain process involving estimates, currently established reserves may not be sufficient. If our insurance reserves of $3.0 million, at December 31, 2012, for general liability losses are insufficient, we will record an additional expense in future periods. Property and catastrophic losses are event-driven losses and, as such, until a loss occurs and the amount of loss can be reasonably estimated, no liability is recorded. We recorded no contingent liabilities with regard to property or catastrophic losses at December 31, 2012. |
• | Our Taxable REIT Subsidiaries, or TRSs, have cumulative potential future tax deductions totaling $353.2 million. The deferred income tax asset associated with these potential future tax deductions was $134.2 million at December 31, 2012. We recorded a 100% valuation allowance related to our TRSs net deferred tax asset, because of the uncertainty of realizing the asset’s benefit. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. We have considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance. In the event we were to determine that we would be able to realize all or a portion of our deferred tax assets in the future, an adjustment to the deferred tax asset would increase operating income in the period such determination was made. |
December 31, 2012 | |||||||||||||||||||||||||||||||
Expected Maturity Date | |||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Fixed rate: | |||||||||||||||||||||||||||||||
Debt | $ | 4,752 | $ | 300,192 | $ | 3,107 | $ | 11,465 | $ | 2,810 | $ | 1,197,656 | $ | 1,519,982 | $ | 1,596,596 | |||||||||||||||
Average interest rate | 5.79 | % | 9.25 | % | 5.11 | % | 5.61 | % | 4.95 | % | 6.03 | % | 6.66 | % | |||||||||||||||||
Floating rate: | |||||||||||||||||||||||||||||||
Debt | — | — | — | 120,861 | — | — | 120,861 | 120,969 | |||||||||||||||||||||||
Average interest rate(a) | — | — | — | 3.37 | % | — | — | 3.37 | % | ||||||||||||||||||||||
Total debt | $ | 4,752 | $ | 300,192 | $ | 3,107 | $ | 132,326 | $ | 2,810 | $ | 1,197,656 | $ | 1,640,843 | |||||||||||||||||
Average interest rate | 5.79 | % | 9.25 | % | 5.11 | % | 3.57 | % | 4.95 | % | 6.03 | % | 6.42 | % | |||||||||||||||||
Net discount | (10,318 | ) | |||||||||||||||||||||||||||||
$ | 1,630,525 |
(a) | The average floating rate represents the implied forward rates in the yield curve at December 31, 2012. |
December 31, 2011 | |||||||||||||||||||||||||||||||
Expected Maturity Date | |||||||||||||||||||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||
Liabilities | (dollars in thousands) | ||||||||||||||||||||||||||||||
Fixed rate: | |||||||||||||||||||||||||||||||
Debt | $ | 4,600 | $ | 4,981 | $ | 660,338 | $ | 564 | $ | 8,813 | $ | 525,000 | $ | 1,204,296 | $ | 1,253,180 | |||||||||||||||
Average interest rate | 7.69 | % | 7.71 | % | 9.52 | % | 5.81 | % | 5.81 | % | 6.75 | % | 8.27 | % | |||||||||||||||||
Floating rate: | |||||||||||||||||||||||||||||||
Debt | 89,370 | 133,588 | 1,021 | 200,260 | — | — | 424,239 | 436,816 | |||||||||||||||||||||||
Average interest rate(a) | 2.39 | % | 2.99 | % | 8.10 | % | 8.10 | % | — | — | 5.29 | % | |||||||||||||||||||
Total debt | $ | 93,970 | $ | 138,569 | $ | 661,359 | $ | 200,824 | $ | 8,813 | $ | 525,000 | $ | 1,628,535 | |||||||||||||||||
Average interest rate | 2.65 | % | 3.16 | % | 9.52 | % | 8.09 | % | 5.81 | % | 6.75 | % | 7.49 | % | |||||||||||||||||
Net discount | (32,069 | ) | |||||||||||||||||||||||||||||
Total debt | $ | 1,596,466 |
(a) | The average floating rate represents the implied forward rates in the yield curve at December 31, 2011. |
Report of Independent Registered Public Accounting Firm (FelCor Lodging Trust Incorporated) | |
Report of Independent Registered Public Accounting Firm (FelCor Lodging Limited Partnership) | |
FelCor Lodging Trust Incorporated Financial Statements: | |
Consolidated Balance Sheets — December 2012 and 2011 | |
Consolidated Statements of Operations for the years ended December 31, 2012, 2011 and 2010 | |
Consolidated Statements of Comprehensive Loss for the years ended December 31, 2012, 2011 and 2010 | |
Consolidated Statements of Equity for the years ended December 31, 2012, 2011 and 2010 | |
Consolidated Statements of Cash Flows for the years ended December 31, 2012, 2011 and 2010 | |
FelCor Lodging Limited Partnership Financial Statements: | |
Consolidated Balance Sheets — December 2012 and 2011 | |
Consolidated Statements of Operations for the years ended December 31, 2012, 2011 and 2010 | |
Consolidated Statements of Comprehensive Loss for the years ended December 31, 2012, 2011 and 2010 | |
Consolidated Statements of Partners’ Capital for the years ended December 31, 2012, 2011 and 2010 | |
Consolidated Statements of Cash Flows for the years ended December 31, 2012, 2011 and 2010 | |
Notes to Consolidated Financial Statements | |
Schedule III — Real Estate and Accumulated Depreciation as of December 31, 2012 |
2012 | 2011 | ||||||
Assets | |||||||
Investment in hotels, net of accumulated depreciation of $929,298 and $987,895 at December 31, 2012 and 2011, respectively | $ | 1,794,564 | $ | 1,953,795 | |||
Hotel development | 146,079 | 120,163 | |||||
Investment in unconsolidated entities | 55,082 | 70,002 | |||||
Cash and cash equivalents | 45,745 | 93,758 | |||||
Restricted cash | 77,927 | 84,240 | |||||
Accounts receivable, net of allowance for doubtful accounts of $469 and $333 at December 31, 2012 and 2011, respectively | 25,383 | 27,135 | |||||
Deferred expenses, net of accumulated amortization of $13,820 and $13,119 at December 31, 2012 and 2011, respectively | 34,262 | 29,772 | |||||
Other assets | 23,391 | 24,363 | |||||
Total assets | 2,202,433 | 2,403,228 | |||||
Liabilities and Equity | |||||||
Debt, net of discount of $10,318 and $32,069 at December 31, 2012 and 2011, respectively | 1,630,525 | 1,596,466 | |||||
Distributions payable | 8,545 | 76,293 | |||||
Accrued expenses and other liabilities | 138,442 | 140,548 | |||||
Total liabilities | 1,777,512 | 1,813,307 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests in FelCor LP, 621 and 636 units issued and outstanding at December 31, 2012 and 2011, respectively | 2,902 | 3,026 | |||||
Equity: | |||||||
Preferred stock, $0.01 par value, 20,000 shares authorized: | |||||||
Series A Cumulative Convertible Preferred Stock, 12,880 shares, liquidation value of $322,011, issued and outstanding at December 31, 2012 and 2011 | 309,362 | 309,362 | |||||
Series C Cumulative Redeemable Preferred Stock, 68 shares, liquidation value of $169,950, issued and outstanding at December 31, 2012 and 2011 | 169,412 | 169,412 | |||||
Common stock, $0.01 par value, 200,000 shares authorized and 124,117 shares issued and outstanding at December 31, 2012, and 124,281 shares issued and outstanding at December 31, 2011 | 1,241 | 1,243 | |||||
Additional paid-in capital | 2,353,581 | 2,353,251 | |||||
Accumulated other comprehensive income | 26,039 | 25,738 | |||||
Accumulated deficit | (2,464,968 | ) | (2,297,468 | ) | |||
Total FelCor stockholders’ equity | 394,667 | 561,538 | |||||
Noncontrolling interests in other partnerships | 27,352 | 25,357 | |||||
Total equity | 422,019 | 586,895 | |||||
Total liabilities and equity | $ | 2,202,433 | $ | 2,403,228 |
2012 | 2011 | 2010 | |||||||||
Revenues: | |||||||||||
Hotel operating revenue | $ | 906,340 | $ | 852,202 | $ | 773,704 | |||||
Other revenue | 3,185 | 2,949 | 3,174 | ||||||||
Total revenues | 909,525 | 855,151 | 776,878 | ||||||||
Expenses: | |||||||||||
Hotel departmental expenses | 332,287 | 313,211 | 280,881 | ||||||||
Other property-related costs | 246,518 | 235,643 | 215,302 | ||||||||
Management and franchise fees | 41,815 | 39,359 | 36,535 | ||||||||
Taxes, insurance and lease expense | 94,294 | 84,954 | 82,424 | ||||||||
Corporate expenses | 26,128 | 29,080 | 30,747 | ||||||||
Depreciation and amortization | 123,879 | 118,232 | 116,439 | ||||||||
Impairment loss | — | 4,315 | 52,587 | ||||||||
Conversion expenses | 31,197 | — | — | ||||||||
Other expenses | 4,855 | 4,017 | 3,280 | ||||||||
Total operating expenses | 900,973 | 828,811 | 818,195 | ||||||||
Operating income (loss) | 8,552 | 26,340 | (41,317 | ) | |||||||
Interest expense, net | (125,346 | ) | (130,423 | ) | (131,954 | ) | |||||
Debt extinguishment | (74,327 | ) | (27,663 | ) | 44,600 | ||||||
Gain on involuntary conversion, net | — | 292 | — | ||||||||
Loss before equity in income (loss) from unconsolidated entities | (191,121 | ) | (131,454 | ) | (128,671 | ) | |||||
Equity in income (loss) from unconsolidated entities | 2,779 | (2,068 | ) | 16,916 | |||||||
Loss from continuing operations | (188,342 | ) | (133,522 | ) | (111,755 | ) | |||||
Income (loss) from discontinued operations | 58,928 | 2,627 | (114,082 | ) | |||||||
Net loss | (129,414 | ) | (130,895 | ) | (225,837 | ) | |||||
Net loss attributable to noncontrolling interests in other partnerships | 565 | 352 | 1,915 | ||||||||
Net loss attributable to redeemable noncontrolling interests in FelCor LP | 842 | 689 | 881 | ||||||||
Net loss attributable to FelCor | (128,007 | ) | (129,854 | ) | (223,041 | ) | |||||
Preferred dividends | (38,713 | ) | (38,713 | ) | (38,713 | ) | |||||
Net loss attributable to FelCor common stockholders | $ | (166,720 | ) | $ | (168,567 | ) | $ | (261,754 | ) | ||
Basic and diluted per common share data: | |||||||||||
Loss from continuing operations | $ | (1.82 | ) | $ | (1.46 | ) | $ | (1.85 | ) | ||
Net loss | $ | (1.35 | ) | $ | (1.44 | ) | $ | (3.25 | ) | ||
Basic and diluted weighted average common shares outstanding | 123,634 | 117,068 | 80,611 |
2012 | 2011 | 2010 | ||||||||||
Net loss | $ | (129,414 | ) | $ | (130,895 | ) | $ | (225,837 | ) | |||
Foreign currency translation adjustment | 303 | (726 | ) | 2,937 | ||||||||
Comprehensive loss | (129,111 | ) | (131,621 | ) | (222,900 | ) | ||||||
Comprehensive loss attributable to noncontrolling interests in other partnerships | 565 | 352 | 1,915 | |||||||||
Comprehensive loss attributable to redeemable noncontrolling interests in FelCor LP | 840 | 696 | 873 | |||||||||
Comprehensive loss attributable to FelCor | $ | (127,706 | ) | $ | (130,573 | ) | $ | (220,112 | ) |
Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests in Other Partnerships | Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||
Number of Shares | Amount | Number of Shares | Amount | Accumulated Deficit | Treasury Stock | Total Equity | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2009 | 12,948 | $ | 478,774 | 69,413 | $ | 694 | $ | 2,021,837 | $ | 23,528 | $ | (1,792,822 | ) | $ | (71,895 | ) | $ | 22,583 | $ | 682,699 | |||||||||||||||||||||
Issuance of common stock | — | — | 31,625 | 316 | 166,011 | — | — | — | — | 166,327 | |||||||||||||||||||||||||||||||
Issuance of stock awards | — | — | — | — | (229 | ) | — | — | 297 | — | 68 | ||||||||||||||||||||||||||||||
Amortization of stock awards | — | — | — | — | 5,400 | — | — | — | — | 5,400 | |||||||||||||||||||||||||||||||
Forfeiture of stock awards | — | — | — | — | 405 | — | — | (1,928 | ) | — | (1,523 | ) | |||||||||||||||||||||||||||||
Conversion of operating partnership units into common shares | — | — | — | — | (185 | ) | — | — | 185 | — | — | ||||||||||||||||||||||||||||||
Allocation to redeemable noncontrolling interests | — | — | — | — | (1,815 | ) | — | — | — | — | (1,815 | ) | |||||||||||||||||||||||||||||
Contribution from noncontrolling interests | — | — | — | — | — | — | — | — | 1,394 | 1,394 | |||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | (2,383 | ) | (2,383 | ) | |||||||||||||||||||||||||||||
Other | — | — | — | — | (1,116 | ) | — | (49 | ) | — | 116 | (1,049 | ) | ||||||||||||||||||||||||||||
Preferred dividends: | |||||||||||||||||||||||||||||||||||||||||
$1.95 per Series A preferred share | — | — | — | — | — | — | (25,117 | ) | — | — | (25,117 | ) | |||||||||||||||||||||||||||||
$2.00 per Series C depositary preferred share | — | — | — | — | — | — | (13,596 | ) | — | — | (13,596 | ) | |||||||||||||||||||||||||||||
Comprehensive loss: | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange translation | — | — | — | — | — | 2,929 | — | — | — | $ | 2,929 | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (223,041 | ) | — | (1,915 | ) | (224,956 | ) | ||||||||||||||||||||||||||||
Comprehensive loss | $ | (222,027 | ) | (222,027 | ) | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2010 | 12,948 | $ | 478,774 | 101,038 | $ | 1,010 | $ | 2,190,308 | $ | 26,457 | $ | (2,054,625 | ) | $ | (73,341 | ) | $ | 19,795 | $ | 588,378 |
Preferred Stock | Common Stock | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests in Other Partnerships | |||||||||||||||||||||||||||||||||||||||
Number of Shares | Amount | Number of Shares | Amount | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock | Comprehensive Income (Loss) | Total Equity | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2010 | 12,948 | $ | 478,774 | 101,038 | $ | 1,010 | $ | 2,190,308 | $ | 26,457 | $ | (2,054,625 | ) | $ | (73,341 | ) | $ | 19,795 | $ | 588,378 | ||||||||||||||||||||||
Issuance of common stock | — | — | 27,600 | 276 | 158,200 | — | — | — | — | 158,476 | ||||||||||||||||||||||||||||||||
Retirement of treasury stock | — | — | (4,156 | ) | (41 | ) | — | — | (73,300 | ) | 73,341 | — | — | |||||||||||||||||||||||||||||
Issuance of stock awards | — | — | 95 | 1 | 554 | — | — | — | — | 555 | ||||||||||||||||||||||||||||||||
Amortization of stock awards | — | — | — | — | 3,475 | — | — | — | — | 3,475 | ||||||||||||||||||||||||||||||||
Forfeiture of stock awards | — | — | (312 | ) | (3 | ) | — | — | (958 | ) | — | — | (961 | ) | ||||||||||||||||||||||||||||
Conversion of operating partnership units into common shares | — | — | 16 | — | 97 | — | — | — | — | 97 | ||||||||||||||||||||||||||||||||
Allocation to redeemable noncontrolling interests | — | — | — | — | 685 | — | — | — | — | 685 | ||||||||||||||||||||||||||||||||
Contribution from noncontrolling interests | — | — | — | — | — | — | — | — | 6,967 | 6,967 | ||||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | (1,053 | ) | (1,053 | ) | ||||||||||||||||||||||||||||||
Other | — | — | — | — | (68 | ) | — | (18 | ) | — | — | (86 | ) | |||||||||||||||||||||||||||||
Preferred dividends: | ||||||||||||||||||||||||||||||||||||||||||
$1.95 per Series A preferred share | — | — | — | — | — | — | (25,117 | ) | — | — | (25,117 | ) | ||||||||||||||||||||||||||||||
$2.00 per Series C depositary preferred share | — | — | — | — | — | — | (13,596 | ) | — | — | (13,596 | ) | ||||||||||||||||||||||||||||||
Comprehensive loss: | ||||||||||||||||||||||||||||||||||||||||||
Foreign exchange translation | — | — | — | — | — | (719 | ) | — | — | — | $ | (719 | ) | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (129,854 | ) | — | (352 | ) | (130,206 | ) | |||||||||||||||||||||||||||||
Comprehensive loss | $ | (130,925 | ) | (130,925 | ) | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | 12,948 | $ | 478,774 | — | 124,281 | $ | 1,243 | $ | 2,353,251 | $ | 25,738 | $ | (2,297,468 | ) | $ | — | $ | 25,357 | $ | 586,895 |
Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests in Other Partnerships | Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||
Number of Shares | Amount | Number of Shares | Amount | Accumulated Deficit | Treasury Stock | Total Equity | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | 12,948 | $ | 478,774 | 124,281 | $ | 1,243 | $ | 2,353,251 | $ | 25,738 | $ | (2,297,468 | ) | $ | — | $ | 25,357 | $ | 586,895 | ||||||||||||||||||||||
Issuance of stock awards | — | — | 10 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of stock awards | — | — | — | — | 827 | — | — | — | — | 827 | |||||||||||||||||||||||||||||||
Forfeiture of stock awards | — | — | (185 | ) | (2 | ) | 234 | — | (776 | ) | — | — | (544 | ) | |||||||||||||||||||||||||||
Conversion of operating partnership units into common shares | — | — | 11 | — | 45 | — | — | — | — | 45 | |||||||||||||||||||||||||||||||
Allocation to redeemable noncontrolling interests | — | — | — | — | (776 | ) | — | — | — | — | (776 | ) | |||||||||||||||||||||||||||||
Contribution from noncontrolling interests | — | — | — | — | — | — | — | — | 3,616 | 3,616 | |||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | (1,056 | ) | (1,056 | ) | |||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | (4 | ) | — | — | (4 | ) | |||||||||||||||||||||||||||||
Preferred dividends: | |||||||||||||||||||||||||||||||||||||||||
$1.95 per Series A preferred share | — | — | — | — | — | — | (25,117 | ) | — | — | (25,117 | ) | |||||||||||||||||||||||||||||
$2.00 per Series C depositary preferred share | — | — | — | — | — | — | (13,596 | ) | — | — | (13,596 | ) | |||||||||||||||||||||||||||||
Comprehensive loss: | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange translation | — | — | — | — | — | 301 | — | — | — | $ | 301 | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (128,007 | ) | — | (565 | ) | (128,572 | ) | ||||||||||||||||||||||||||||
Comprehensive loss | $ | (128,271 | ) | (128,271 | ) | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | 12,948 | $ | 478,774 | 124,117 | $ | 1,241 | $ | 2,353,581 | $ | 26,039 | $ | (2,464,968 | ) | $ | — | $ | 27,352 | $ | 422,019 |
2012 | 2011 | 2010 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (129,414 | ) | $ | (130,895 | ) | $ | (225,837 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 129,486 | 138,892 | 147,663 | |||||||||
Gain on sale of hotels, net | (54,459 | ) | (4,714 | ) | — | |||||||
Gain on involuntary conversion, net | — | (280 | ) | — | ||||||||
Amortization of deferred financing fees and debt discount | 18,053 | 17,496 | 17,849 | |||||||||
Amortization of unearned officers’ and directors’ compensation | 5,002 | 7,170 | 7,445 | |||||||||
Equity in (income) loss from unconsolidated entities | (2,779 | ) | 2,068 | (16,916 | ) | |||||||
Distributions of income from unconsolidated entities | 4,160 | 2,261 | 2,190 | |||||||||
Debt extinguishment | 75,117 | 24,380 | (59,464 | ) | ||||||||
Impairment loss | 1,335 | 13,250 | 173,713 | |||||||||
Changes in assets and liabilities: | ||||||||||||
Accounts receivable | 1,253 | (344 | ) | (746 | ) | |||||||
Restricted cash – operations | — | — | 3,986 | |||||||||
Other assets | (5,029 | ) | (6,101 | ) | (2,809 | ) | ||||||
Accrued expenses and other liabilities | 4,584 | (17,318 | ) | 11,738 | ||||||||
Net cash flow provided by operating activities | 47,309 | 45,865 | — | 58,812 | ||||||||
Cash flows from investing activities: | ||||||||||||
Acquisition of hotels | — | (137,985 | ) | (97,513 | ) | |||||||
Improvements and additions to hotels | (121,475 | ) | (89,042 | ) | (38,936 | ) | ||||||
Hotel development | (24,849 | ) | (119,611 | ) | — | |||||||
Additions to condominium project | — | (359 | ) | (274 | ) | |||||||
Net proceeds from asset dispositions | 197,613 | 132,774 | — | |||||||||
Change in restricted cash – investing | 6,313 | (176 | ) | (4,143 | ) | |||||||
Insurance proceeds | — | 391 | 492 | |||||||||
Distributions from unconsolidated entities | 13,539 | 1,588 | 46,084 | |||||||||
Contributions to unconsolidated entities | — | — | (25,172 | ) | ||||||||
Net cash flow provided by (used in) investing activities | 71,141 | (212,420 | ) | (119,462 | ) | |||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from borrowings | 998,611 | 1,087,285 | 241,171 | |||||||||
Repayment of borrowings | (1,043,365 | ) | (1,135,822 | ) | (400,968 | ) | ||||||
Payment of deferred financing fees | (17,870 | ) | (20,233 | ) | (7,848 | ) | ||||||
Change in restricted cash – financing | — | — | 1,016 | |||||||||
Acquisition of noncontrolling interest | — | — | (1,000 | ) | ||||||||
Distributions paid to noncontrolling interests | (1,056 | ) | (1,053 | ) | (2,383 | ) | ||||||
Contribution from noncontrolling interests | 3,616 | 6,967 | 1,394 | |||||||||
Distributions paid to preferred stockholders | (106,461 | ) | (38,713 | ) | — | |||||||
Net proceeds from common stock issuance | — | 158,476 | 166,327 | |||||||||
Proceeds from FelCor LP unit issuance | — | 2,500 | — | |||||||||
Net cash flow provided by (used in) financing activities | (166,525 | ) | 59,407 | (2,291 | ) | |||||||
Effect of exchange rate changes on cash | 62 | (66 | ) | 382 | ||||||||
Net change in cash and cash equivalents | (48,013 | ) | (107,214 | ) | (62,559 | ) | ||||||
Cash and cash equivalents at beginning of periods | 93,758 | 200,972 | 263,531 | |||||||||
Cash and cash equivalents at end of periods | $ | 45,745 | $ | 93,758 | $ | 200,972 | ||||||
Supplemental cash flow information — interest paid | $ | 116,789 | $ | 119,732 | $ | 127,793 |
2012 | 2011 | ||||||
Assets | |||||||
Investment in hotels, net of accumulated depreciation of $929,298 and $987,895 at December 31, 2012 and 2011, respectively | $ | 1,794,564 | $ | 1,953,795 | |||
Hotel development | 146,079 | 120,163 | |||||
Investment in unconsolidated entities | 55,082 | 70,002 | |||||
Cash and cash equivalents | 45,745 | 93,758 | |||||
Restricted cash | 77,927 | 84,240 | |||||
Accounts receivable, net of allowance for doubtful accounts of $469 and $333 at December 31, 2012 and 2011, respectively | 25,383 | 27,135 | |||||
Deferred expenses, net of accumulated amortization of $13,820 and $13,119 at December 31, 2012 and 2011, respectively | 34,262 | 29,772 | |||||
Other assets | 23,391 | 24,363 | |||||
Total assets | $ | 2,202,433 | $ | 2,403,228 | |||
Liabilities and Partners’ Capital | |||||||
Debt, net of discount of $10,318 and $32,069 at December 31, 2012 and 2011, respectively | $ | 1,630,525 | $ | 1,596,466 | |||
Distributions payable | 8,545 | 76,293 | |||||
Accrued expenses and other liabilities | 138,442 | 140,548 | |||||
Total liabilities | 1,777,512 | 1,813,307 | |||||
Commitments and contingencies | |||||||
Redeemable units, 621 and 636 units issued and outstanding at December 31, 2012 and December 31, 2011, respectively | 2,902 | 3,026 | |||||
Capital: | |||||||
Preferred units, $0.01 par value, 20,000 units authorized: | |||||||
Series A Cumulative Convertible Preferred Units, 12,880 units issued and outstanding at December 31, 2012 and 2011 | 309,362 | 309,362 | |||||
Series C Cumulative Redeemable Preferred Units, 68 units issued and outstanding at December 31, 2012 and 2011 | 169,412 | 169,412 | |||||
Common units, 124,117 and 124,281 units issued at December 31, 2012 and 2011, respectively | (110,258 | ) | 56,916 | ||||
Accumulated other comprehensive income | 26,151 | 25,848 | |||||
Total FelCor LP partners’ capital | 394,667 | 561,538 | |||||
Noncontrolling interests | 27,352 | 25,357 | |||||
Total partners’ capital | 422,019 | 586,895 | |||||
Total liabilities and partners’ capital | $ | 2,202,433 | $ | 2,403,228 |
2012 | 2011 | 2010 | |||||||||
Revenues: | |||||||||||
Hotel operating revenue | $ | 906,340 | $ | 852,202 | $ | 773,704 | |||||
Other revenue | 3,185 | 2,949 | 3,174 | ||||||||
Total revenues | 909,525 | 855,151 | 776,878 | ||||||||
Expenses: | |||||||||||
Hotel departmental expenses | 332,287 | 313,211 | 280,881 | ||||||||
Other property-related costs | 246,518 | 235,643 | 215,302 | ||||||||
Management and franchise fees | 41,815 | 39,359 | 36,535 | ||||||||
Taxes, insurance and lease expense | 94,294 | 84,954 | 82,424 | ||||||||
Corporate expenses | 26,128 | 29,080 | 30,747 | ||||||||
Depreciation and amortization | 123,879 | 118,232 | 116,439 | ||||||||
Impairment loss | — | 4,315 | 52,587 | ||||||||
Conversion expenses | 31,197 | — | — | ||||||||
Other expenses | 4,855 | 4,017 | 3,280 | ||||||||
Total operating expenses | 900,973 | 828,811 | 818,195 | ||||||||
Operating income (loss) | 8,552 | 26,340 | (41,317 | ) | |||||||
Interest expense, net | (125,346 | ) | (130,423 | ) | (131,954 | ) | |||||
Debt extinguishment | (74,327 | ) | (27,663 | ) | 44,600 | ||||||
Gain on involuntary conversion, net | — | 292 | — | ||||||||
Loss before equity in income (loss) from unconsolidated entities | (191,121 | ) | (131,454 | ) | (128,671 | ) | |||||
Equity in income (loss) from unconsolidated entities | 2,779 | (2,068 | ) | 16,916 | |||||||
Loss from continuing operations | (188,342 | ) | (133,522 | ) | (111,755 | ) | |||||
Income (loss) from discontinued operations | 58,928 | 2,627 | (114,082 | ) | |||||||
Net loss | (129,414 | ) | (130,895 | ) | (225,837 | ) | |||||
Net loss attributable to noncontrolling interests | 565 | 352 | 1,915 | ||||||||
Net loss attributable to FelCor LP | (128,849 | ) | (130,543 | ) | (223,922 | ) | |||||
Preferred distributions | (38,713 | ) | (38,713 | ) | (38,713 | ) | |||||
Net loss attributable to FelCor LP common unitholders | $ | (167,562 | ) | $ | (169,256 | ) | $ | (262,635 | ) | ||
Basic and diluted per common unit data: | |||||||||||
Loss from continuing operations | $ | (1.82 | ) | $ | (1.46 | ) | $ | (1.85 | ) | ||
Net loss | $ | (1.35 | ) | $ | (1.44 | ) | $ | (3.25 | ) | ||
Basic and diluted weighted average common units outstanding | 124,262 | 117,567 | 80,905 |
2012 | 2011 | 2010 | |||||||||
Net loss | $ | (129,414 | ) | $ | (130,895 | ) | $ | (225,837 | ) | ||
Foreign currency translation adjustment | 303 | (726 | ) | 2,937 | |||||||
Comprehensive loss | (129,111 | ) | (131,621 | ) | (222,900 | ) | |||||
Comprehensive loss attributable to noncontrolling interests | 565 | 352 | 1,915 | ||||||||
Comprehensive loss attributable to FelCor LP | $ | (128,546 | ) | $ | (131,269 | ) | $ | (220,985 | ) |
Preferred Units | Common Units | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Comprehensive Income (Loss) | Total Partners’ Capital | |||||||||||||||||||
Balance at December 31, 2009 | $ | 478,774 | $ | 157,705 | $ | 23,637 | $ | 22,583 | $ | 682,699 | ||||||||||||||
Issuance of common units | 166,327 | — | — | 166,327 | ||||||||||||||||||||
FelCor restricted stock compensation | — | 3,945 | — | — | 3,945 | |||||||||||||||||||
Contributions | — | — | — | 1,394 | 1,394 | |||||||||||||||||||
Distributions | — | (38,713 | ) | — | (2,383 | ) | (41,096 | ) | ||||||||||||||||
Allocation to redeemable units | — | (942 | ) | — | — | (942 | ) | |||||||||||||||||
Other | — | (1,165 | ) | — | 116 | (1,049 | ) | |||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||
Foreign exchange translation | 2,937 | $ | 2,937 | |||||||||||||||||||||
Net loss | (223,922 | ) | (1,915 | ) | (225,837 | ) | ||||||||||||||||||
Comprehensive loss | $ | (222,900 | ) | (222,900 | ) | |||||||||||||||||||
Balance at December 31, 2010 | 478,774 | 63,235 | 26,574 | 19,795 | 588,378 | |||||||||||||||||||
Issuance of common units | — | 158,476 | — | — | 158,476 | |||||||||||||||||||
FelCor restricted stock compensation | — | 3,069 | — | — | 3,069 | |||||||||||||||||||
Contributions | — | — | — | 6,967 | 6,967 | |||||||||||||||||||
Distributions | — | (38,713 | ) | — | (1,053 | ) | (39,766 | ) | ||||||||||||||||
Allocation to redeemable units | — | 1,478 | — | — | 1,478 | |||||||||||||||||||
Other | — | (86 | ) | — | — | (86 | ) | |||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||
Foreign exchange translation | (726 | ) | $ | (726 | ) | |||||||||||||||||||
Net loss | (130,543 | ) | (352 | ) | (130,895 | ) | ||||||||||||||||||
Comprehensive loss | $ | (131,621 | ) | (131,621 | ) | |||||||||||||||||||
Balance at December 31, 2011 | $ | 478,774 | $ | 56,916 | $ | 25,848 | $ | 25,357 | $ | 586,895 | ||||||||||||||
FelCor restricted stock compensation | — | 283 | — | — | 283 | |||||||||||||||||||
Contributions | — | — | — | 3,616 | 3,616 | |||||||||||||||||||
Distributions | — | (38,713 | ) | — | (1,056 | ) | (39,769 | ) | ||||||||||||||||
Allocation to redeemable units | — | 109 | — | — | 109 | |||||||||||||||||||
Other | — | (4 | ) | — | — | (4 | ) | |||||||||||||||||
Comprehensive income (loss): | — | |||||||||||||||||||||||
Foreign exchange translation | 303 | $ | 303 | |||||||||||||||||||||
Net loss | (128,849 | ) | (565 | ) | (129,414 | ) | ||||||||||||||||||
Comprehensive loss | $ | (129,111 | ) | (129,111 | ) | |||||||||||||||||||
Balance at December 31, 2012 | $ | 478,774 | $ | (110,258 | ) | $ | 26,151 | $ | 27,352 | $ | 422,019 |
2012 | 2011 | 2010 | |||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (129,414 | ) | $ | (130,895 | ) | $ | (225,837 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 129,486 | 138,892 | 147,663 | ||||||||
Gain on sale of hotels, net | (54,459 | ) | (4,714 | ) | — | ||||||
Gain on involuntary conversion, net | — | (280 | ) | — | |||||||
Amortization of deferred financing fees and debt discount | 18,053 | 17,496 | 17,849 | ||||||||
Amortization of unearned officers’ and directors’ compensation | 5,002 | 7,170 | 7,445 | ||||||||
Equity in loss (income) from unconsolidated entities | (2,779 | ) | 2,068 | (16,916 | ) | ||||||
Distributions of income from unconsolidated entities | 4,160 | 2,261 | 2,190 | ||||||||
Extinguishment of debt | 75,117 | 24,380 | (59,464 | ) | |||||||
Impairment loss | 1,335 | 13,250 | 173,713 | ||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | 1,253 | (344 | ) | (746 | ) | ||||||
Restricted cash - operations | — | — | 3,986 | ||||||||
Other assets | (5,029 | ) | (6,101 | ) | (2,809 | ) | |||||
Accrued expenses and other liabilities | 4,584 | (17,318 | ) | 11,738 | |||||||
Net cash flow provided by operating activities | 47,309 | 45,865 | 58,812 | ||||||||
Cash flows from investing activities: | |||||||||||
Acquisition of hotels | — | (137,985 | ) | (97,513 | ) | ||||||
Improvements and additions to hotels | (121,475 | ) | (89,042 | ) | (38,936 | ) | |||||
Hotel development | (24,849 | ) | (119,611 | ) | — | ||||||
Additions to condominium project | — | (359 | ) | (274 | ) | ||||||
Net proceeds from asset dispositions | 197,613 | 132,774 | — | ||||||||
Change in restricted cash – investing | 6,313 | (176 | ) | (4,143 | ) | ||||||
Insurance proceeds | — | 391 | 492 | ||||||||
Distributions from unconsolidated entities | 13,539 | 1,588 | 46,084 | ||||||||
Contributions to unconsolidated entities | — | — | (25,172 | ) | |||||||
Net cash flow provided by (used in) investing activities | 71,141 | (212,420 | ) | (119,462 | ) | ||||||
Cash flows from financing activities: | |||||||||||
Proceeds from borrowings | 998,611 | 1,087,285 | 241,171 | ||||||||
Repayment of borrowings | (1,043,365 | ) | (1,135,822 | ) | (400,968 | ) | |||||
Payment of deferred financing fees | (17,870 | ) | (20,233 | ) | (7,848 | ) | |||||
Change in restricted cash - financing | — | — | 1,016 | ||||||||
Acquisition of noncontrolling interest | — | — | (1,000 | ) | |||||||
Distributions paid to noncontrolling interests | (1,056 | ) | (1,053 | ) | (2,383 | ) | |||||
Contributions from noncontrolling interests | 3,616 | 6,967 | 1,394 | ||||||||
Distributions paid to preferred unitholders | (106,461 | ) | (38,713 | ) | — | ||||||
Net proceeds from common unit issuance | — | 158,476 | 166,327 | ||||||||
Proceeds from FelCor LP unit issuance | — | 2,500 | — | ||||||||
Net cash flow provided by (used in) financing activities | (166,525 | ) | 59,407 | (2,291 | ) | ||||||
Effect of exchange rate changes on cash | 62 | (66 | ) | 382 | |||||||
Net change in cash and cash equivalents | (48,013 | ) | (107,214 | ) | (62,559 | ) | |||||
Cash and cash equivalents at beginning of periods | 93,758 | 200,972 | 263,531 | ||||||||
Cash and cash equivalents at end of periods | $ | 45,745 | $ | 93,758 | $ | 200,972 | |||||
Supplemental cash flow information – interest paid | $ | 116,789 | $ | 119,732 | $ | 127,793 |
1. | Organization |
Brand | Hotels | Rooms | |||||
Embassy Suites Hotels | 35 | 9,116 | |||||
Holiday Inn | 13 | 4,388 | |||||
Sheraton and Westin | 5 | 1,882 | |||||
Doubletree and Hilton | 6 | 1,450 | |||||
Marriott and Renaissance | 3 | 1,321 | |||||
Fairmont | 1 | 383 | |||||
Independent (Morgans/Royalton) | 2 | 282 | |||||
Total | 65 | 18,822 |
1. | Organization – (continued) |
2. | Summary of Significant Accounting Policies |
2. | Summary of Significant Accounting Policies — (continued) |
• | Cash distributions up to the aggregate historical earnings of the unconsolidated entity are recorded as an operating activity (i.e., a distribution of earnings); and |
• | Cash distributions in excess of aggregate historical earnings are recorded as an investing activity (i.e., a distribution of contributed capital). |
2. | Summary of Significant Accounting Policies — (continued) |
2. | Summary of Significant Accounting Policies — (continued) |
3. | Investment in Hotels |
December 31, | ||||||||
2012 | 2011 | |||||||
Building and improvements | $ | 1,962,164 | $ | 2,104,522 | ||||
Furniture, fixtures and equipment | 488,237 | 516,690 | ||||||
Land | 248,614 | 273,000 | ||||||
Construction in progress | 24,847 | 47,478 | ||||||
2,723,862 | 2,941,690 | |||||||
Accumulated depreciation | (929,298 | ) | (987,895 | ) | ||||
$ | 1,794,564 | $ | 1,953,795 |
4. | Hotel Acquisitions |
Assets | |||
Investment in hotels(a) | $ | 136,035 | |
Restricted cash | 2,500 | ||
Accounts receivable | 635 | ||
Other assets | 322 | ||
Total assets acquired | 139,492 | ||
Liabilities | |||
Accrued expenses and other liabilities | 1,507 | ||
Net assets acquired | $ | 137,985 |
(a) | Investment in hotels was allocated to land ($48.7 million), building and improvements ($78.3 million) and furniture, fixtures and equipment ($9.0 million). |
Year Ended December 31, | ||||||||||
(unaudited) | ||||||||||
2011 | 2010 | |||||||||
Total revenues | $ | 866,497 | $ | 809,018 | ||||||
Net loss | $ | (132,087 | ) | $ | (225,876 | ) | ||||
Earnings per share/unit - basic and diluted | $ | (1.45 | ) | $ | (3.25 | ) |
4. | Hotel Acquisitions — (continued) |
Year Ended December 31, (unaudited) | |||||
2010 | |||||
Total revenues | $ | 799,987 | |||
Net loss | $ | (227,360 | ) | ||
Earnings per share/unit - basic and diluted | $ | (3.27 | ) |
6. | Impairment Charges |
6. | Impairment Charges— (continued) |
Year Ended December 31, | |||||||||||||||
2012 | 2011 | 2010 | |||||||||||||
Hotel operating revenue | $ | 60,238 | $ | 132,988 | $ | 184,138 | |||||||||
Operating expenses(a) | (52,942 | ) | (133,051 | ) | (300,950 | ) | |||||||||
Operating income (loss) from discontinued operations | 7,296 | (63 | ) | (116,812 | ) | ||||||||||
Interest expense, net | (2,037 | ) | (5,294 | ) | (12,135 | ) | |||||||||
Debt extinguishment | (790 | ) | 3,282 | 14,865 | |||||||||||
Loss on involuntary conversion | — | (12 | ) | — | |||||||||||
Gain on sale, net | 54,459 | 4,714 | — | ||||||||||||
Income (loss) from discontinued operations | $ | 58,928 | $ | 2,627 | $ | (114,082 | ) |
(a) | Includes impairment charges of $1.3 million, $8.9 million and $121.1 million for the years ended December 31, 2012, 2011 and 2010, respectively. |
9. | Investment in Unconsolidated Entities |
December 31, | |||||||||
2012 | 2011 | ||||||||
Investment in hotels, net of accumulated depreciation | $ | 155,888 | $ | 173,310 | |||||
Total assets | $ | 170,477 | $ | 199,063 | |||||
Debt | $ | 148,395 | $ | 150,388 | |||||
Total liabilities | $ | 154,139 | $ | 156,607 | |||||
Equity | $ | 16,338 | $ | 42,456 |
Year Ended December 31, | |||||||||||||||
2012 | 2011 | 2010 | |||||||||||||
Total revenues | $ | 67,725 | $ | 62,782 | $ | 64,500 | |||||||||
Net income (loss) | $ | 9,278 | $ | (416 | ) | $ | (5,302 | ) | |||||||
Net income (loss) attributable to FelCor | $ | 4,639 | $ | (208 | ) | $ | (2,327 | ) | |||||||
Gain on joint venture liquidation | — | — | 21,103 | (a) | |||||||||||
Depreciation of cost in excess of book value | (1,860 | ) | (1,860 | ) | (1,860 | ) | |||||||||
Equity in income (loss) from unconsolidated entities | $ | 2,779 | $ | (2,068 | ) | $ | 16,916 |
(a) | Includes a $20.5 million gain from the sale of our interest in an unconsolidated joint venture and $559,000 in net proceeds in the final liquidation of a joint venture. |
9. | Investment in Unconsolidated Entities — (continued) |
December 31, | |||||||
2012 | 2011 | ||||||
Hotel-related investments | $ | 246 | $ | 12,400 | |||
Cost in excess of book value of hotel investments | 46,913 | 48,774 | |||||
Land and condominium investments | 7,923 | 8,828 | |||||
$ | 55,082 | $ | 70,002 |
Year Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Hotel investments | $ | 3,434 | $ | (1,348 | ) | $ | 17,509 | |||||
Other investments | (655 | ) | (720 | ) | (593 | ) | ||||||
Equity in income (loss) from unconsolidated entities | $ | 2,779 | $ | (2,068 | ) | $ | 16,916 |
10. | Debt |
Encumbered Hotels | Interest Rate (%) | December 31, | ||||||||||||||||
Maturity Date | 2012 | 2011 | ||||||||||||||||
Line of credit | 8 | L + 3.375 | June 2016(a) | $ | 56,000 | $ | — | |||||||||||
Hotel mortgage debt | ||||||||||||||||||
Mortgage debt(b) | 5 | 6.66 | June - August 2014 | 65,431 | 67,375 | |||||||||||||
Mortgage debt | 1 | 5.81 | July 2016 | 10,405 | 10,876 | |||||||||||||
Mortgage debt(b) | 4 | 4.95 | October 2022 | 128,066 | — | |||||||||||||
Mortgage debt | 1 | 4.94 | October 2022 | 32,176 | — | |||||||||||||
Senior notes | ||||||||||||||||||
Senior secured notes(c) | 11 | 10.00 | October 2014 | 223,586 | 459,931 | |||||||||||||
Senior secured notes | 6 | 6.75 | June 2019 | 525,000 | 525,000 | |||||||||||||
Senior secured notes | 10 | 5.625 | March 2023 | 525,000 | — | |||||||||||||
Other(d) | — | L + 1.25 | May 2016 | 64,861 | — | |||||||||||||
Retired debt | — | — | — | — | 533,284 | |||||||||||||
Total | 46 | $ | 1,630,525 | $ | 1,596,466 |
(a) | Our $225 million line of credit can be extended for one year (to 2017), subject to satisfying certain conditions. |
(b) | This debt is comprised of separate non-cross-collateralized loans each secured by a mortgage of a different hotel. |
(c) | We originally issued $636 million (face amount) of these notes. After redemptions in 2011 and 2012, $234 million (face amount) of these notes were outstanding at December 31, 2012. These notes were initially sold at a discount that provided an effective yield of 12.875% before transaction costs. |
(d) | This loan is related to our Knickerbocker development project and is fully secured by restricted cash and a mortgage. Because we were able to assume an existing loan when we purchased this hotel, we were not required to pay any local mortgage recording tax. This loan can be extended for one year subject to satisfying certain conditions. |
10. | Debt – (continued) |
10. | Debt – (continued) |
10. | Debt – (continued) |
Year | ||||
2013 | $ | 4,752 | ||
2014 | 300,192 | |||
2015 | 3,107 | |||
2016 | 132,326 | |||
2017 | 2,810 | |||
Thereafter | 1,197,656 | |||
1,640,843 | ||||
Discount accretion over term | (10,318 | ) | ||
$ | 1,630,525 |
12. | Income Taxes |
Year Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
GAAP consolidated net loss attributable to FelCor LP | $ | (128,849 | ) | $ | (130,543 | ) | $ | (223,922 | ) | |||
Loss allocated to FelCor LP unitholders | 842 | 689 | 881 | |||||||||
GAAP consolidated net loss attributable to FelCor | (128,007 | ) | (129,854 | ) | (223,041 | ) | ||||||
GAAP net loss from REIT operations | 125,088 | 127,709 | 172,495 | |||||||||
GAAP net loss of taxable subsidiaries | (2,919 | ) | (2,145 | ) | (50,546 | ) | ||||||
Impairment loss not deductible for tax | — | 946 | 8,852 | |||||||||
Tax gain (loss) in excess of book gains on sale of hotels | (407 | ) | (7,841 | ) | — | |||||||
Depreciation and amortization(a) | 404 | 1,389 | (106 | ) | ||||||||
Employee benefits not deductible for tax | 363 | (1,578 | ) | 3,534 | ||||||||
Management fee recognition | (1,715 | ) | (1,717 | ) | 916 | |||||||
Tax adjustment to lease expense(b) | — | — | 40,572 | |||||||||
Foreign exchange | 12,907 | — | — | |||||||||
Other book/tax differences | 4,884 | (552 | ) | 5,251 | ||||||||
Tax income (loss) of taxable subsidiaries before utilization of net operating losses | 13,517 | (11,498 | ) | 8,473 | ||||||||
Utilization of net operating loss | (13,517 | ) | — | (8,473 | ) | |||||||
Net tax loss of taxable subsidiaries | — | $ | (11,498 | ) | $ | — |
(a) | The changes in book/tax differences in depreciation and amortization principally result from book and tax basis differences, differences in depreciable lives and accelerated depreciation methods. |
(b) | In 2010, we recorded a reduction in intercompany rent between our REIT entities and TRS entities for tax purposes. |
December 31, | ||||||||
2012 | 2011 | |||||||
Accumulated net operating losses of our TRS | $ | 124,318 | $ | 129,455 | ||||
Tax property basis in excess of book | 869 | 929 | ||||||
Accrued employee benefits not deductible for tax | 2,291 | 760 | ||||||
Management fee recognition | 932 | 1,415 | ||||||
Foreign exchange | 4,905 | — | ||||||
Other | 914 | 970 | ||||||
Gross deferred tax asset | 134,229 | 133,529 | ||||||
Valuation allowance | (134,229 | ) | (133,529 | ) | ||||
Deferred tax asset after valuation allowance | $ | — | $ | — |
Year Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
GAAP net loss from REIT operations | $ | (125,088 | ) | $ | (127,709 | ) | $ | (172,495 | ) | |||
Book/tax differences, net: | ||||||||||||
Depreciation and amortization(a) | 2,084 | 6,183 | (17,645 | ) | ||||||||
Noncontrolling interests | 4,112 | 4,149 | (882 | ) | ||||||||
Equity in loss from unconsolidated entities | — | — | (35,386 | ) | ||||||||
Tax gain (loss) on dispositions in excess of book | (30,747 | ) | (30,502 | ) | 34,729 | |||||||
Impairment loss not deductible for tax | 1,335 | 12,303 | 156,773 | |||||||||
Conversion costs | 31,197 | — | — | |||||||||
Tax adjustment to lease revenue(b) | — | — | (35,634 | ) | ||||||||
Other | (9,226 | ) | (1,974 | ) | (6,452 | ) | ||||||
Tax loss(c) | $ | (126,333 | ) | $ | (137,550 | ) | $ | (76,992 | ) |
(a) | Book/tax differences in depreciation and amortization principally result from differences in depreciable lives and accelerated depreciation methods. |
(b) | For tax purposes, we recorded a reduction in intercompany rent between our REIT entities and TRS entities. |
(c) | The dividend distribution requirement is 90% of any taxable income. |
2012 | 2011 | 2010 | |||||||||||||||
Amount | % | Amount | % | Amount | % | ||||||||||||
Preferred Stock – Series A | |||||||||||||||||
Dividend income | $ | — | — | $ | — | — | $ | — | — | ||||||||
Return of capital | 5.3625 | (b) | 100.00 | 1.95 | (a) | 100.00 | — | — | |||||||||
5.3625 | 100.00 | $ | 1.95 | 100.00 | $ | — | — | ||||||||||
Preferred Stock – Series C | |||||||||||||||||
Dividend income | $ | — | — | $ | — | — | $ | — | — | ||||||||
Return of capital | 5.50 | (b) | 100.00 | 2.00 | (a) | 100.00 | — | — | |||||||||
$ | 5.50 | 100.00 | $ | 2.00 | 100.00 | $ | — | — |
(a) | Fourth quarter 2010 preferred distributions were paid January 31, 2011, and were treated as 2011 distributions for tax purposes. |
Year Ended December 31, | ||||||||
2012 | 2011 | |||||||
Balance at beginning of period | $ | 3,026 | $ | 2,004 | ||||
Issuance of units | — | 2,500 | ||||||
Conversion of units | (45 | ) | (97 | ) | ||||
Forfeiture of units | (15 | ) | — | |||||
Redemption value allocation | 776 | (685 | ) | |||||
Comprehensive loss: | ||||||||
Foreign exchange translation | 2 | (7 | ) | |||||
Net loss | (842 | ) | (689 | ) | ||||
Balance at end of period | $ | 2,902 | $ | 3,026 |
Year Ended December 31, | ||||||||||||||
2012 | 2011 | 2010 | ||||||||||||
Room revenue | $ | 707,908 | $ | 662,557 | $ | 600,635 | ||||||||
Food and beverage revenue | 148,736 | 139,151 | 122,756 | |||||||||||
Other operating departments | 49,696 | 50,494 | 50,313 | |||||||||||
Total hotel operating revenue | $ | 906,340 | $ | 852,202 | $ | 773,704 |
15. | Hotel Operating Revenue, Departmental Expenses and Other Property Related Operating Costs — (continued) |
Year Ended December 31, | ||||||||||||||
2012 | 2011 | 2010 | ||||||||||||
Room | $ | 190,293 | $ | 178,963 | $ | 161,271 | ||||||||
Food and beverage | 119,560 | 110,923 | 96,864 | |||||||||||
Other operating departments | 22,434 | 23,325 | 22,746 | |||||||||||
Total hotel departmental expenses | $ | 332,287 | $ | 313,211 | $ | 280,881 |
Year Ended December 31, | ||||||||||||||
2012 | 2011 | 2010 | ||||||||||||
Hotel general and administrative expense | $ | 82,906 | $ | 78,328 | $ | 70,308 | ||||||||
Marketing | 76,923 | 71,199 | 64,603 | |||||||||||
Repair and maintenance | 47,236 | 44,599 | 40,905 | |||||||||||
Utilities | 39,453 | 41,517 | 39,486 | |||||||||||
Total other property operating costs | $ | 246,518 | $ | 235,643 | $ | 215,302 |
16. | Taxes, Insurance and Lease Expenses |
Year Ended December 31, | ||||||||||||||
2012 | 2011 | 2010 | ||||||||||||
Hotel lease expense(a) | $ | 41,342 | $ | 38,759 | $ | 36,327 | ||||||||
Land lease expense(b) | 11,158 | 10,582 | 10,053 | |||||||||||
Real estate and other taxes | 31,481 | 27,682 | 26,092 | |||||||||||
Property insurance, general liability insurance and other | 10,313 | 7,931 | 9,952 | |||||||||||
Total taxes, insurance and lease expense | $ | 94,294 | $ | 84,954 | $ | 82,424 |
(a) | Hotel lease expense is recorded by the consolidated operating lessees of 12 hotels owned by unconsolidated entities, and is partially (generally 49%) offset through noncontrolling interests in other partnerships. Our 50% share of the corresponding lease income is recorded through equity in income from unconsolidated entities. Hotel lease expense includes percentage rent of $19.6 million, $17.3 million and $15.0 million for the year ended December 31, 2012, 2011, and 2010, respectively. |
(b) | Land lease expense includes percentage rent of $5.5 million, $4.7 million and $4.2 million for the year ended December 31, 2012, 2011, and 2010, respectively. |
Year | |||
2013 | $ | 11,126 | |
2014 | 11,134 | ||
2015 | 11,163 | ||
2016 | 11,150 | ||
2017 | 6,043 | ||
2018 and thereafter | 269,004 | ||
$ | 319,620 |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Numerator: | |||||||||||
Net loss attributable to FelCor | $ | (128,007 | ) | $ | (129,854 | ) | $ | (223,041 | ) | ||
Discontinued operations attributable to FelCor | (58,633 | ) | (2,639 | ) | 112,786 | ||||||
Loss from continuing operations attributable to FelCor | (186,640 | ) | (132,493 | ) | (110,255 | ) | |||||
Less: Preferred dividends | (38,713 | ) | (38,713 | ) | (38,713 | ) | |||||
Loss from continuing operations attributable to FelCor common stockholders | (225,353 | ) | (171,206 | ) | (148,968 | ) | |||||
Discontinued operations attributable to FelCor | 58,633 | 2,639 | (112,786 | ) | |||||||
Numerator for basic and diluted loss attributable to FelCor common stockholders | $ | (166,720 | ) | $ | (168,567 | ) | $ | (261,754 | ) | ||
Denominator: | |||||||||||
Denominator for basic and diluted loss per share | 123,634 | 117,068 | 80,611 | ||||||||
Basic and diluted loss per share data: | |||||||||||
Loss from continuing operations | $ | (1.82 | ) | $ | (1.46 | ) | $ | (1.85 | ) | ||
Discontinued operations | $ | 0.47 | $ | 0.02 | $ | (1.40 | ) | ||||
Net loss | $ | (1.35 | ) | $ | (1.44 | ) | $ | (3.25 | ) |
Year Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Numerator: | |||||||||||
Net loss attributable to FelCor LP | $ | (128,849 | ) | $ | (130,543 | ) | $ | (223,922 | ) | ||
Discontinued operations attributable to FelCor LP | (58,928 | ) | (2,640 | ) | 113,165 | ||||||
Loss from continuing operations attributable to FelCor LP | (187,777 | ) | (133,183 | ) | (110,757 | ) | |||||
Less: Preferred distributions | (38,713 | ) | (38,713 | ) | (38,713 | ) | |||||
Loss from continuing operations attributable to FelCor LP common unitholders | (226,490 | ) | (171,896 | ) | (149,470 | ) | |||||
Discontinued operations attributable to FelCor LP | 58,928 | 2,640 | (113,165 | ) | |||||||
Numerator for basic and diluted loss attributable to FelCor LP common unitholders | $ | (167,562 | ) | $ | (169,256 | ) | $ | (262,635 | ) | ||
Denominator: | |||||||||||
Denominator for basic and diluted loss per unit | 124,262 | 117,567 | 80,905 | ||||||||
Basic and diluted loss per unit data: | |||||||||||
Loss from continuing operations | $ | (1.82 | ) | $ | (1.46 | ) | $ | (1.85 | ) | ||
Discontinued operations | $ | 0.47 | $ | 0.02 | $ | (1.40 | ) | ||||
Net loss | $ | (1.35 | ) | $ | (1.44 | ) | $ | (3.25 | ) |
2012 | 2011 | 2010 | |||||||
Series A convertible preferred shares/units | 9,985 | 9,985 | 9,985 |
Year Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Depreciation and amortization from continuing operations | $ | 123,879 | $ | 118,232 | $ | 116,439 | ||||||
Depreciation and amortization from discontinued operations | 5,607 | 20,660 | 31,224 | |||||||||
Total depreciation and amortization expense | $ | 129,486 | $ | 138,892 | $ | 147,663 |
2011 | 2010 | |||||||||||||
Shares of Underlying Options | Weighted Average Exercise Prices | Shares of Underlying Options | Weighted Average Exercise Prices | |||||||||||
Outstanding at beginning of the year | 15,000 | $ | 15.62 | 40,000 | $ | 18.05 | ||||||||
Forfeited or expired | (15,000 | ) | $ | 15.62 | (25,000 | ) | $ | 19.50 | ||||||
Outstanding at end of year | — | $ | — | 15,000 | $ | 15.62 | ||||||||
Exercisable at end of year | — | $ | — | 15,000 | $ | 15.62 |
2012 | 2011 | 2010 | ||||||||||||||||||
Shares | Weighted Average Fair Market Value at Grant | Shares | Weighted Average Fair Market Value at Grant | Shares | Weighted Average Fair Market Value at Grant | |||||||||||||||
Outstanding at beginning of the year | 4,290,318 | $ | 10.58 | 4,200,089 | $ | 10.69 | 4,255,187 | $ | 10.90 | |||||||||||
Granted: | ||||||||||||||||||||
With immediate vesting(a) | — | $ | — | 95,000 | $ | 5.85 | 16,166 | $ | 4.21 | |||||||||||
With 5-year pro rata vesting | 10,000 | $ | 4.40 | — | $ | — | — | $ | — | |||||||||||
Forfeited | (60,493 | ) | $ | 18.60 | (4,771 | ) | $ | 12.20 | (71,264 | ) | $ | 21.71 | ||||||||
Outstanding at end of year | 4,239,825 | $ | 10.45 | 4,290,318 | $ | 10.58 | 4,200,089 | $ | 10.69 | |||||||||||
Vested at end of year | (3,936,492 | ) | $ | 10.97 | (3,632,564 | ) | $ | 11.54 | (2,645,272 | ) | $ | 13.00 | ||||||||
Unvested at end of year | 303,333 | $ | 3.71 | 657,754 | $ | 5.30 | 1,554,817 | $ | 6.76 |
(a) | Shares awarded to directors. |
Revenue For the Year Ended December 31, | Investment in Hotel Assets as of December 31, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2012 | 2011 | 2010 | |||||||||||||||||||
California | $ | 248,253 | $ | 230,084 | $ | 215,896 | $ | 480,982 | $ | 496,426 | $ | 505,753 | ||||||||||||
Texas | 75,906 | 73,014 | 70,393 | 104,641 | 128,749 | 175,483 | ||||||||||||||||||
Florida | 126,416 | 119,180 | 114,769 | 264,248 | 318,430 | 348,823 | ||||||||||||||||||
Georgia | 52,424 | 50,439 | 51,734 | 100,541 | 105,526 | 109,677 | ||||||||||||||||||
Other states | 391,615 | 366,834 | 309,353 | 827,366 | 886,127 | 795,596 | ||||||||||||||||||
Canada | 14,911 | 15,600 | 14,733 | 16,786 | 18,537 | 50,447 | ||||||||||||||||||
Total | $ | 909,525 | $ | 855,151 | $ | 776,878 | $ | 1,794,564 | $ | 1,953,795 | $ | 1,985,779 |
2012 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Total revenues | $ | 207,965 | $ | 244,823 | $ | 234,563 | $ | 222,174 | ||||||||
Loss from continuing operations | $ | (33,053 | ) | $ | (5,008 | ) | $ | (28,715 | ) | $ | (121,566 | ) | ||||
Discontinued operations | $ | 4,192 | $ | 17,036 | $ | 9,160 | $ | 28,540 | ||||||||
Net income (loss) attributable to FelCor | $ | (28,463 | ) | $ | 11,869 | $ | (19,025 | ) | $ | (92,388 | ) | |||||
Net income (loss) attributable to FelCor common stockholders | $ | (38,141 | ) | $ | 2,191 | $ | (28,703 | ) | $ | (102,067 | ) | |||||
Comprehensive income (loss) attributable to FelCor | $ | (28,157 | ) | $ | 11,554 | $ | (18,526 | ) | $ | (92,577 | ) | |||||
Basic and diluted per common share data: | ||||||||||||||||
Net loss from continuing operations | $ | (0.34 | ) | $ | (0.12 | ) | $ | (0.31 | ) | $ | (1.06 | ) | ||||
Discontinued operations | $ | 0.03 | $ | 0.14 | $ | 0.07 | $ | 0.23 | ||||||||
Net income (loss) | $ | (0.31 | ) | $ | 0.02 | $ | (0.23 | ) | $ | (0.83 | ) | |||||
Basic weighted average common shares outstanding | 123,665 | 123,638 | 123,640 | 123,635 | ||||||||||||
Diluted weighted average common shares outstanding | 123,665 | 123,638 | 123,640 | 123,635 |
2011 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Total revenues | $ | 194,719 | $ | 228,489 | $ | 221,214 | $ | 210,729 | ||||||||
Loss from continuing operations | $ | (35,102 | ) | $ | (45,482 | ) | $ | (21,822 | ) | $ | (31,116 | ) | ||||
Discontinued operations | $ | 3,376 | $ | 3,085 | $ | (1,554 | ) | $ | (2,280 | ) | ||||||
Net loss attributable to FelCor | $ | (31,664 | ) | $ | (42,265 | ) | $ | (22,832 | ) | $ | (33,093 | ) | ||||
Net loss attributable to FelCor common stockholders | $ | (41,342 | ) | $ | (51,943 | ) | $ | (32,510 | ) | $ | (42,772 | ) | ||||
Comprehensive loss attributable to FelCor | $ | (30,376 | ) | $ | (42,079 | ) | $ | (26,349 | ) | $ | (31,769 | ) | ||||
Basic and diluted per common share data: | ||||||||||||||||
Net loss from continuing operations | $ | (0.47 | ) | $ | (0.45 | ) | $ | (0.25 | ) | $ | (0.33 | ) | ||||
Discontinued operations | $ | 0.04 | $ | 0.02 | $ | (0.01 | ) | $ | (0.02 | ) | ||||||
Net loss | $ | (0.43 | ) | $ | (0.42 | ) | $ | (0.26 | ) | $ | (0.35 | ) | ||||
Basic weighted average common shares outstanding | 95,350 | 122,992 | 123,062 | 123,906 | ||||||||||||
Diluted weighted average common shares outstanding | 95,350 | 122,992 | 123,062 | 123,906 |
2012 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Total revenues | $ | 207,965 | $ | 244,823 | $ | 234,563 | $ | 222,174 | ||||||||
Loss from continuing operations | $ | (33,053 | ) | $ | (5,008 | ) | $ | (28,715 | ) | $ | (121,566 | ) | ||||
Discontinued operations | $ | 4,192 | $ | 17,036 | $ | 9,160 | $ | 28,540 | ||||||||
Net income (loss) attributable to FelCor LP | $ | (28,659 | ) | $ | 11,880 | $ | (19,169 | ) | $ | (92,901 | ) | |||||
Net income (loss) attributable to FelCor LP common unitholders | $ | (38,337 | ) | $ | 2,202 | $ | (28,847 | ) | $ | (102,580 | ) | |||||
Comprehensive income (loss) attributable to FelCor LP | $ | (28,351 | ) | $ | 11,563 | $ | (18,667 | ) | $ | (93,091 | ) | |||||
Basic and diluted per common unit data: | ||||||||||||||||
Net loss from continuing operations | $ | (0.34 | ) | $ | (0.12 | ) | $ | (0.31 | ) | $ | (1.06 | ) | ||||
Discontinued operations | $ | 0.03 | $ | 0.14 | $ | 0.07 | $ | 0.23 | ||||||||
Net income (loss) | $ | (0.31 | ) | $ | 0.02 | $ | (0.23 | ) | $ | (0.83 | ) | |||||
Basic weighted average common units outstanding | 124,301 | 124,266 | 124,266 | 124,257 | ||||||||||||
Diluted weighted average common units outstanding | 124,301 | 124,266 | 124,266 | 124,257 |
2011 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Total revenues | $ | 194,719 | $ | 228,489 | $ | 221,214 | $ | 210,729 | ||||||||
Loss from continuing operations | $ | (35,102 | ) | $ | (45,482 | ) | $ | (21,822 | ) | $ | (31,116 | ) | ||||
Discontinued operations | $ | 3,376 | $ | 3,085 | $ | (1,554 | ) | $ | (2,280 | ) | ||||||
Net loss attributable to FelCor LP | $ | (31,784 | ) | $ | (42,448 | ) | $ | (22,998 | ) | $ | (33,313 | ) | ||||
Net loss attributable to FelCor LP common unitholders | $ | (41,462 | ) | $ | (52,126 | ) | $ | (32,676 | ) | $ | (42,992 | ) | ||||
Comprehensive loss attributable to FelCor LP | $ | (30,492 | ) | $ | (42,262 | ) | $ | (26,533 | ) | $ | (31,982 | ) | ||||
Basic and diluted per common unit data: | ||||||||||||||||
Net loss from continuing operations | $ | (0.47 | ) | $ | (0.45 | ) | $ | (0.25 | ) | $ | (0.33 | ) | ||||
Discontinued operations | $ | 0.04 | $ | 0.02 | $ | (0.01 | ) | $ | (0.02 | ) | ||||||
Net loss | $ | (0.43 | ) | $ | (0.42 | ) | $ | (0.26 | ) | $ | (0.35 | ) | ||||
Basic weighted average common units outstanding | 95,635 | 123,425 | 123,700 | 124,542 | ||||||||||||
Diluted weighted average common units outstanding | 95,635 | 123,425 | 123,700 | 124,542 |
25. | FelCor LP's Consolidating Financial Information |
25. | FelCor LP's Consolidating Financial Information — (continued) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net investment in hotels | $ | 66,945 | $ | 904,487 | $ | 823,132 | $ | — | $ | 1,794,564 | |||||||||
Hotel development | — | — | 146,079 | — | 146,079 | ||||||||||||||
Equity investment in consolidated entities | 1,551,377 | — | — | (1,551,377 | ) | — | |||||||||||||
Investment in unconsolidated entities | 42,508 | 11,173 | 1,401 | — | 55,082 | ||||||||||||||
Cash and cash equivalents | 8,312 | 30,425 | 7,008 | — | 45,745 | ||||||||||||||
Restricted cash | — | 9,186 | 68,741 | — | 77,927 | ||||||||||||||
Accounts receivable, net | 96 | 24,432 | 855 | — | 25,383 | ||||||||||||||
Deferred expenses, net | 22,657 | — | 11,605 | — | 34,262 | ||||||||||||||
Other assets | 8,122 | 9,987 | 5,282 | — | 23,391 | ||||||||||||||
Total assets | $ | 1,700,017 | $ | 989,690 | $ | 1,064,103 | $ | (1,551,377 | ) | $ | 2,202,433 | ||||||||
Debt | $ | 1,273,587 | $ | — | $ | 356,938 | $ | — | $ | 1,630,525 | |||||||||
Distributions payable | 8,545 | — | — | — | 8,545 | ||||||||||||||
Accrued expenses and other liabilities | 20,316 | 95,803 | 22,323 | — | 138,442 | ||||||||||||||
Total liabilities | 1,302,448 | 95,803 | 379,261 | — | 1,777,512 | ||||||||||||||
Redeemable units, at redemption value | 2,902 | — | — | — | 2,902 | ||||||||||||||
Preferred units | 478,774 | — | — | — | 478,774 | ||||||||||||||
Common units | (84,107 | ) | 868,011 | 657,215 | (1,551,377 | ) | (110,258 | ) | |||||||||||
Accumulated other comprehensive income | — | 26,151 | — | — | 26,151 | ||||||||||||||
Total FelCor LP partners’ capital | 394,667 | 894,162 | 657,215 | (1,551,377 | ) | 394,667 | |||||||||||||
Noncontrolling interests | — | (275 | ) | 27,627 | — | 27,352 | |||||||||||||
Total partners’ capital | 394,667 | 893,887 | 684,842 | (1,551,377 | ) | 422,019 | |||||||||||||
Total liabilities and partners’ capital | $ | 1,700,017 | $ | 989,690 | $ | 1,064,103 | $ | (1,551,377 | ) | $ | 2,202,433 |
25. | FelCor LP's Consolidating Financial Information — (continued) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net investment in hotels | $ | 67,828 | $ | 805,280 | $ | 1,080,687 | $ | — | $ | 1,953,795 | |||||||||
Hotel development | — | — | 120,163 | — | 120,163 | ||||||||||||||
Equity investment in consolidated entities | 1,478,347 | — | — | (1,478,347 | ) | — | |||||||||||||
Investment in unconsolidated entities | 56,492 | 12,063 | 1,447 | — | 70,002 | ||||||||||||||
Cash and cash equivalents | 23,503 | 67,001 | 3,254 | — | 93,758 | ||||||||||||||
Restricted cash | — | 11,514 | 72,726 | — | 84,240 | ||||||||||||||
Accounts receivable, net | 540 | 26,357 | 238 | — | 27,135 | ||||||||||||||
Deferred expenses, net | 24,101 | — | 5,671 | — | 29,772 | ||||||||||||||
Other assets | 8,507 | 10,817 | 5,039 | — | 24,363 | ||||||||||||||
Total assets | $ | 1,659,318 | $ | 933,032 | $ | 1,289,225 | $ | (1,478,347 | ) | $ | 2,403,228 | ||||||||
Debt | $ | 984,931 | $ | — | $ | 611,535 | $ | — | $ | 1,596,466 | |||||||||
Distributions payable | 76,293 | — | — | — | 76,293 | ||||||||||||||
Accrued expenses and other liabilities | 33,530 | 98,127 | 8,891 | — | 140,548 | ||||||||||||||
Total liabilities | 1,094,754 | 98,127 | 620,426 | — | 1,813,307 | ||||||||||||||
Redeemable units, at redemption value | 3,026 | — | — | — | 3,026 | ||||||||||||||
Preferred units | 478,774 | — | — | — | 478,774 | ||||||||||||||
Common units | 82,764 | 810,554 | 641,945 | (1,478,347 | ) | 56,916 | |||||||||||||
Accumulated other comprehensive income | — | 25,848 | — | — | 25,848 | ||||||||||||||
Total FelCor LP partners’ capital | 561,538 | 836,402 | 641,945 | (1,478,347 | ) | 561,538 | |||||||||||||
Noncontrolling interests | — | (1,497 | ) | 26,854 | — | 25,357 | |||||||||||||
Total partners’ capital | 561,538 | 834,905 | 668,799 | (1,478,347 | ) | 586,895 | |||||||||||||
Total liabilities and partners’ capital | $ | 1,659,318 | $ | 933,032 | $ | 1,289,225 | $ | (1,478,347 | ) | $ | 2,403,228 |
25. | FelCor LP's Consolidating Financial Information — (continued) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Hotel operating revenue | $ | — | $ | 906,340 | $ | — | $ | — | $ | 906,340 | |||||||||
Percentage lease revenue | 5,160 | — | 121,501 | (126,661 | ) | — | |||||||||||||
Other revenue | 21 | 2,752 | 412 | — | 3,185 | ||||||||||||||
Total revenue | 5,181 | 909,092 | 121,913 | (126,661 | ) | 909,525 | |||||||||||||
Expenses: | |||||||||||||||||||
Hotel operating expenses | — | 620,620 | — | — | 620,620 | ||||||||||||||
Taxes, insurance and lease expense | 1,424 | 200,122 | 19,409 | (126,661 | ) | 94,294 | |||||||||||||
Corporate expenses | 533 | 14,746 | 10,849 | — | 26,128 | ||||||||||||||
Depreciation and amortization | 4,778 | 50,069 | 69,032 | — | 123,879 | ||||||||||||||
Conversion expenses | 487 | 14,210 | 16,500 | 31,197 | |||||||||||||||
Other expenses | 685 | 3,512 | 658 | — | 4,855 | ||||||||||||||
Total operating expenses | 7,907 | 903,279 | 116,448 | (126,661 | ) | 900,973 | |||||||||||||
Operating income | (2,726 | ) | 5,813 | 5,465 | — | 8,552 | |||||||||||||
Interest expense, net | (86,617 | ) | (1,227 | ) | (37,502 | ) | — | (125,346 | ) | ||||||||||
Debt extinguishment | (55,056 | ) | — | (19,271 | ) | — | (74,327 | ) | |||||||||||
Loss before equity in income from unconsolidated entities | (144,399 | ) | 4,586 | (51,308 | ) | — | (191,121 | ) | |||||||||||
Equity in income from consolidated entities | 13,038 | — | — | (13,038 | ) | — | |||||||||||||
Equity in income from unconsolidated entities | 2,589 | 236 | (46 | ) | — | 2,779 | |||||||||||||
Loss from continuing operations | (128,772 | ) | 4,822 | (51,354 | ) | (13,038 | ) | (188,342 | ) | ||||||||||
Income from discontinued operations | (77 | ) | 6,195 | 52,810 | — | 58,928 | |||||||||||||
Net loss | (128,849 | ) | 11,017 | 1,456 | (13,038 | ) | (129,414 | ) | |||||||||||
Loss attributable to noncontrolling interests | — | 779 | (214 | ) | — | 565 | |||||||||||||
Net loss attributable to FelCor LP | (128,849 | ) | 11,796 | 1,242 | (13,038 | ) | (128,849 | ) | |||||||||||
Preferred distributions | (38,713 | ) | — | — | — | (38,713 | ) | ||||||||||||
Net loss attributable to FelCor LP common unitholders | $ | (167,562 | ) | $ | 11,796 | $ | 1,242 | $ | (13,038 | ) | $ | (167,562 | ) |
25. | FelCor LP's Consolidating Financial Information — (continued) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Hotel operating revenue | $ | — | $ | 852,202 | $ | — | $ | — | $ | 852,202 | |||||||||
Percentage lease revenue | 4,787 | — | 110,711 | (115,498 | ) | — | |||||||||||||
Other revenue | 10 | 2,593 | 346 | — | 2,949 | ||||||||||||||
Total revenue | 4,797 | 854,795 | 111,057 | (115,498 | ) | 855,151 | |||||||||||||
Expenses: | |||||||||||||||||||
Hotel operating expenses | — | 588,213 | — | — | 588,213 | ||||||||||||||
Taxes, insurance and lease expense | 1,593 | 180,175 | 18,684 | (115,498 | ) | 84,954 | |||||||||||||
Corporate expenses | 291 | 15,394 | 13,395 | — | 29,080 | ||||||||||||||
Depreciation and amortization | 4,590 | 45,478 | 68,164 | — | 118,232 | ||||||||||||||
Impairment loss | — | 4,315 | — | — | 4,315 | ||||||||||||||
Other expenses | 122 | 3,674 | 221 | — | 4,017 | ||||||||||||||
Total operating expenses | 6,596 | 837,249 | 100,464 | (115,498 | ) | 828,811 | |||||||||||||
Operating income | (1,799 | ) | 17,546 | 10,593 | — | 26,340 | |||||||||||||
Interest expense, net | (90,543 | ) | (2,433 | ) | (37,447 | ) | — | (130,423 | ) | ||||||||||
Debt extinguishment | (27,354 | ) | — | (309 | ) | — | (27,663 | ) | |||||||||||
Gain on involuntary conversion, net | (21 | ) | 316 | (3 | ) | — | 292 | ||||||||||||
Loss before equity in loss from unconsolidated entities | (119,717 | ) | 15,429 | (27,166 | ) | — | (131,454 | ) | |||||||||||
Equity in loss from consolidated entities | (10,099 | ) | — | — | 10,099 | — | |||||||||||||
Equity in loss from unconsolidated entities | (1,590 | ) | (432 | ) | (46 | ) | — | (2,068 | ) | ||||||||||
Loss from continuing operations | (131,406 | ) | 14,997 | (27,212 | ) | 10,099 | (133,522 | ) | |||||||||||
Income from discontinued operations | 863 | (13,087 | ) | 14,851 | — | 2,627 | |||||||||||||
Net loss | (130,543 | ) | 1,910 | (12,361 | ) | 10,099 | (130,895 | ) | |||||||||||
Loss attributable to noncontrolling interests | — | 367 | (15 | ) | — | 352 | |||||||||||||
Net loss attributable to FelCor LP | (130,543 | ) | 2,277 | (12,376 | ) | 10,099 | (130,543 | ) | |||||||||||
Preferred distributions | (38,713 | ) | — | — | — | (38,713 | ) | ||||||||||||
Net loss attributable to FelCor LP common unitholders | $ | (169,256 | ) | $ | 2,277 | $ | (12,376 | ) | $ | 10,099 | $ | (169,256 | ) |
25. | FelCor LP's Consolidating Financial Information — (continued) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Hotel operating revenue | $ | — | $ | 773,704 | $ | — | $ | — | $ | 773,704 | |||||||||
Percentage lease revenue | 8,454 | — | 140,748 | (149,202 | ) | — | |||||||||||||
Other revenue | 4 | 2,846 | 324 | — | 3,174 | ||||||||||||||
Total revenue | 8,458 | 776,550 | 141,072 | (149,202 | ) | 776,878 | |||||||||||||
Expenses: | |||||||||||||||||||
Hotel operating expenses | — | 532,718 | — | — | 532,718 | ||||||||||||||
Taxes, insurance and lease expense | 1,313 | 211,443 | 18,870 | (149,202 | ) | 82,424 | |||||||||||||
Corporate expenses | 797 | 16,299 | 13,651 | — | 30,747 | ||||||||||||||
Depreciation and amortization | 5,769 | 41,490 | 69,180 | — | 116,439 | ||||||||||||||
Impairment loss | — | 22,994 | 29,593 | — | 52,587 | ||||||||||||||
Other expenses | 17 | 3,678 | (415 | ) | — | 3,280 | |||||||||||||
Total operating expenses | 7,896 | 828,622 | 130,879 | (149,202 | ) | 818,195 | |||||||||||||
Operating loss | 562 | (52,072 | ) | 10,193 | — | (41,317 | ) | ||||||||||||
Interest expense, net | (81,430 | ) | (4,633 | ) | (45,891 | ) | — | (131,954 | ) | ||||||||||
Debt extinguishment | (1,658 | ) | 46,574 | (316 | ) | — | 44,600 | ||||||||||||
Loss before equity in income from unconsolidated entities | (82,526 | ) | (10,131 | ) | (36,014 | ) | — | (128,671 | ) | ||||||||||
Equity in loss from consolidated entities | (152,326 | ) | — | — | 152,326 | — | |||||||||||||
Equity in income from unconsolidated entities | 17,218 | (618 | ) | 316 | — | 16,916 | |||||||||||||
Loss from continuing operations | (217,634 | ) | (10,749 | ) | (35,698 | ) | 152,326 | (111,755 | ) | ||||||||||
Loss from discontinued operations | (6,288 | ) | (15,910 | ) | (91,884 | ) | — | (114,082 | ) | ||||||||||
Net loss | (223,922 | ) | (26,659 | ) | (127,582 | ) | 152,326 | (225,837 | ) | ||||||||||
Loss attributable to noncontrolling interests | — | 1,134 | 781 | — | 1,915 | ||||||||||||||
Net loss attributable to FelCor LP | (223,922 | ) | (25,525 | ) | (126,801 | ) | 152,326 | (223,922 | ) | ||||||||||
Preferred distributions | (38,713 | ) | — | — | — | (38,713 | ) | ||||||||||||
Net loss attributable to FelCor LP common unitholders | $ | (262,635 | ) | $ | (25,525 | ) | $ | (126,801 | ) | $ | 152,326 | $ | (262,635 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net loss | $ | (128,849 | ) | $ | 11,017 | $ | 1,456 | $ | (13,038 | ) | $ | (129,414 | ) | ||||||
Foreign currency translation adjustment | — | 303 | — | — | 303 | ||||||||||||||
Comprehensive loss | (128,849 | ) | 11,320 | 1,456 | (13,038 | ) | (129,111 | ) | |||||||||||
Comprehensive loss attributable to noncontrolling interests | — | 779 | (214 | ) | — | 565 | |||||||||||||
Comprehensive loss attributable to FelCor LP | $ | (128,849 | ) | $ | 12,099 | $ | 1,242 | $ | (13,038 | ) | $ | (128,546 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net loss | $ | (130,543 | ) | $ | 1,910 | $ | (12,361 | ) | $ | 10,099 | $ | (130,895 | ) | ||||||
Foreign currency translation adjustment | — | (726 | ) | — | — | (726 | ) | ||||||||||||
Comprehensive loss | (130,543 | ) | 1,184 | (12,361 | ) | 10,099 | (131,621 | ) | |||||||||||
Comprehensive loss attributable to noncontrolling interests | — | 367 | (15 | ) | — | 352 | |||||||||||||
Comprehensive loss attributable to FelCor LP | $ | (130,543 | ) | $ | 1,551 | $ | (12,376 | ) | $ | 10,099 | $ | (131,269 | ) |
25. | FelCor LP's Consolidating Financial Information — (continued) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net loss | $ | (223,922 | ) | $ | (26,659 | ) | $ | (127,582 | ) | $ | 152,326 | $ | (225,837 | ) | |||||
Foreign currency translation adjustment | — | 2,937 | — | — | 2,937 | ||||||||||||||
Comprehensive loss | (223,922 | ) | (23,722 | ) | (127,582 | ) | 152,326 | (222,900 | ) | ||||||||||
Comprehensive loss attributable to noncontrolling interests | — | 1,134 | 781 | — | 1,915 | ||||||||||||||
Comprehensive loss attributable to FelCor LP | $ | (223,922 | ) | $ | (22,588 | ) | $ | (126,801 | ) | $ | 152,326 | $ | (220,985 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Operating activities: | |||||||||||||||||||
Cash flows from operating activities | $ | (82,558 | ) | $ | 51,666 | $ | 78,201 | $ | — | $ | 47,309 | ||||||||
Investing activities: | |||||||||||||||||||
Improvements and additions to hotels | (7,459 | ) | (72,307 | ) | (41,709 | ) | — | (121,475 | ) | ||||||||||
Hotel development | — | — | (24,849 | ) | — | (24,849 | ) | ||||||||||||
Net proceeds from asset dispositions | (14 | ) | 22,714 | 174,913 | — | 197,613 | |||||||||||||
Distributions from unconsolidated entities | 13,539 | — | — | — | 13,539 | ||||||||||||||
Intercompany financing | (49,977 | ) | — | — | 49,977 | — | |||||||||||||
Other | — | 2,019 | 4,294 | — | 6,313 | ||||||||||||||
Cash flows from investing activities | (43,911 | ) | (47,574 | ) | 112,649 | 49,977 | 71,141 | ||||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from borrowings | 525,000 | — | 473,611 | — | 998,611 | ||||||||||||||
Repayment of borrowings | (299,542 | ) | — | (743,823 | ) | — | (1,043,365 | ) | |||||||||||
Payment of deferred financing fees | (7,719 | ) | — | (10,151 | ) | — | (17,870 | ) | |||||||||||
Distributions paid to preferred unitholders | (106,461 | ) | — | — | — | (106,461 | ) | ||||||||||||
Intercompany financing | — | (40,730 | ) | 90,707 | (49,977 | ) | — | ||||||||||||
Other | — | — | 2,560 | — | 2,560 | ||||||||||||||
Cash flows from financing activities | 111,278 | (40,730 | ) | (187,096 | ) | (49,977 | ) | (166,525 | ) | ||||||||||
Effect of exchange rate changes on cash | — | 62 | — | — | 62 | ||||||||||||||
Change in cash and cash equivalents | (15,191 | ) | (36,576 | ) | 3,754 | — | (48,013 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 23,503 | 67,001 | 3,254 | — | 93,758 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 8,312 | $ | 30,425 | $ | 7,008 | $ | — | $ | 45,745 |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Operating activities: | |||||||||||||||||||
Cash flows from operating activities | $ | (84,542 | ) | $ | 57,413 | $ | 72,994 | $ | — | $ | 45,865 | ||||||||
Investing activities: | |||||||||||||||||||
Acquisition of hotels | — | (137,985 | ) | — | — | (137,985 | ) | ||||||||||||
Improvements and additions to hotels | (4,711 | ) | (39,311 | ) | (45,020 | ) | — | (89,042 | ) | ||||||||||
Hotel development | — | — | (119,611 | ) | — | (119,611 | ) | ||||||||||||
Net proceeds from asset dispositions | 14,132 | 36,263 | 82,379 | — | 132,774 | ||||||||||||||
Intercompany financing | (457,735 | ) | — | — | 457,735 | — | |||||||||||||
Other | 1,588 | (2,338 | ) | 2,194 | — | 1,444 | |||||||||||||
Cash flows from investing activities | (446,726 | ) | (143,371 | ) | (80,058 | ) | 457,735 | (212,420 | ) | ||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from borrowings | 525,000 | — | 562,285 | — | 1,087,285 | ||||||||||||||
Repayment of borrowings | (233,761 | ) | — | (902,061 | ) | — | (1,135,822 | ) | |||||||||||
Payment of deferred financing fees | (14,081 | ) | — | (6,152 | ) | — | (20,233 | ) | |||||||||||
Distributions paid to preferred unitholders | (38,713 | ) | — | — | — | (38,713 | ) | ||||||||||||
Net proceeds from common unit issuance | 158,476 | — | — | — | 158,476 | ||||||||||||||
Contributions from noncontrolling interests | — | — | 6,967 | — | 6,967 | ||||||||||||||
Intercompany financing | — | 109,378 | 348,357 | (457,735 | ) | — | |||||||||||||
Other | 2,500 | — | (1,053 | ) | — | 1,447 | |||||||||||||
Cash flows from financing activities | 399,421 | 109,378 | 8,343 | (457,735 | ) | 59,407 | |||||||||||||
Effect of exchange rate changes on cash | — | (66 | ) | — | — | (66 | ) | ||||||||||||
Change in cash and cash equivalents | (131,847 | ) | 23,354 | 1,279 | — | (107,214 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 155,350 | 43,647 | 1,975 | — | 200,972 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 23,503 | $ | 67,001 | $ | 3,254 | $ | — | $ | 93,758 |
25. | FelCor LP's Consolidating Financial Information — (continued) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Operating activities: | |||||||||||||||||||
Cash flows from operating activities | $ | (64,668 | ) | $ | 20,644 | $ | 102,836 | $ | — | $ | 58,812 | ||||||||
Investing activities: | |||||||||||||||||||
Acquisition of hotels | — | (97,513 | ) | — | — | (97,513 | ) | ||||||||||||
Improvements and additions to hotels | (546 | ) | (15,017 | ) | (23,373 | ) | — | (38,936 | ) | ||||||||||
Change in restricted cash - investing | — | (2,286 | ) | (1,857 | ) | — | (4,143 | ) | |||||||||||
Distributions from unconsolidated entities | 46,084 | — | — | — | 46,084 | ||||||||||||||
Contributions to unconsolidated entities | (25,172 | ) | — | — | — | (25,172 | ) | ||||||||||||
Intercompany financing | (175,212 | ) | — | — | 175,212 | — | |||||||||||||
Other | — | 492 | (274 | ) | — | 218 | |||||||||||||
Cash flows from investing activities | (154,846 | ) | (114,324 | ) | (25,504 | ) | 175,212 | (119,462 | ) | ||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from borrowings | 29,000 | — | 212,171 | — | 241,171 | ||||||||||||||
Repayment of borrowings | (41,936 | ) | (132,478 | ) | (226,554 | ) | — | (400,968 | ) | ||||||||||
Payment of deferred financing fees | (2,053 | ) | (10 | ) | (5,785 | ) | — | (7,848 | ) | ||||||||||
Net proceeds from common unit issuance | 166,327 | — | — | — | 166,327 | ||||||||||||||
Intercompany financing | — | 231,583 | (56,371 | ) | (175,212 | ) | — | ||||||||||||
Other | (1,000 | ) | 1,016 | (989 | ) | — | (973 | ) | |||||||||||
Cash flows from financing activities | 150,338 | 100,111 | (77,528 | ) | (175,212 | ) | (2,291 | ) | |||||||||||
Effect of exchange rate changes on cash | — | 382 | — | — | 382 | ||||||||||||||
Change in cash and cash equivalents | (69,176 | ) | 6,813 | (196 | ) | — | (62,559 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 224,526 | 36,834 | 2,171 | — | 263,531 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 155,350 | $ | 43,647 | $ | 1,975 | $ | — | $ | 200,972 |
Initial Cost | Cost Capitalized Subsequent to Acquisition | Gross Amounts at Which Carried at Close of Period | Accumulated Depreciation Buildings & Improvements | Life Upon Which Depreciation is Computed | ||||||||||||||||||||||||||||||||||||||
Location | Encumbrances | Land | Building and Improvements | Land | Building and Improvements | Land | Building and Improvements | Total | Year Opened | Date Acquired | ||||||||||||||||||||||||||||||||
Birmingham, AL (a) | $ | 24,268 | $ | 2,843 | $ | 29,286 | $ | — | $ | 4,449 | $ | 2,843 | $ | 33,735 | $ | 36,578 | $ | 13,587 | 1987 | 1/3/1996 | 15 - 40 Yrs | |||||||||||||||||||||
Phoenix - Biltmore, AZ (a) | 17,824 | 4,694 | 38,998 | — | 4,136 | 4,694 | 43,134 | 47,828 | 17,638 | 1985 | 1/3/1996 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Dana Point – Doheny Beach, CA (c) | 5,958 | 1,787 | 15,545 | — | 4,611 | 1,787 | 20,156 | 21,943 | 7,469 | 1992 | 2/21/1997 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Indian Wells – Esmeralda Resort & Spa, CA (d) | (l) | 30,948 | 73,507 | — | 5,003 | 30,948 | 78,510 | 109,458 | 9,594 | 1989 | 12/16/2007 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Los Angeles – International Airport – South, CA (a) | (l) | 2,660 | 17,997 | — | 3,174 | 2,660 | 21,171 | 23,831 | 8,914 | 1985 | 3/27/1996 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Milpitas – Silicon Valley, CA (a) | (m) | 4,021 | 23,677 | — | 4,132 | 4,021 | 27,809 | 31,830 | 11,311 | 1987 | 1/3/1996 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Napa Valley, CA (a) | 28,404 | 2,218 | 14,205 | — | 5,788 | 2,218 | 19,993 | 22,211 | 7,040 | 1985 | 5/8/1996 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Oxnard - Mandalay Beach – Hotel & Resort, CA (a) | 9,649 | 2,930 | 22,125 | — | 10,515 | 2,930 | 32,640 | 35,570 | 11,895 | 1986 | 5/8/1996 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
San Diego – On the Bay, CA (e) | (k) | — | 68,229 | — | 11,532 | — | 79,761 | 79,761 | 35,269 | 1965 | 7/28/1998 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
San Francisco – Airport/Waterfront, CA (a) | (k) | — | 39,929 | — | 3,749 | — | 43,678 | 43,678 | 17,792 | 1986 | 11/6/1995 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
San Francisco – Airport/South San Francisco, CA (a) | (m) | 3,418 | 31,737 | — | 4,385 | 3,418 | 36,122 | 39,540 | 14,768 | 1988 | 1/3/1996 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
San Francisco - Fisherman’s Wharf, CA (e) | (k) | — | 61,883 | — | 17,071 | — | 78,954 | 78,954 | 38,399 | 1970 | 7/28/1998 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
San Francisco –Union Square, CA (f) | (k) | 8,466 | 73,684 | (434 | ) | 52,859 | 8,032 | 126,543 | 134,575 | 36,944 | 1970 | 7/28/1998 | 15 - 40 Yrs | |||||||||||||||||||||||||||||
Santa Barbara – Goleta, CA (e) | — | 1,683 | 14,647 | 4 | 1,579 | 1,687 | 16,226 | 17,913 | 5,819 | 1969 | 7/28/1998 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Santa Monica Beach – at the Pier, CA (e) | 9,442 | 10,200 | 16,580 | — | 899 | 10,200 | 17,479 | 27,679 | 3,734 | 1967 | 3/11/2004 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Toronto - Airport, Canada (e) | (k) | — | 21,041 | — | 17,676 | — | 38,717 | 38,717 | 14,439 | 1970 | 7/28/1998 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Wilmington, DE (c) | — | 1,379 | 12,487 | — | 11,297 | 1,379 | 23,784 | 25,163 | 8,853 | 1972 | 3/20/1998 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Deerfield Beach – Resort & Spa, FL (a) | 32,176 | 4,523 | 29,443 | 68 | 6,489 | 4,591 | 35,932 | 40,523 | 14,370 | 1987 | 1/3/1996 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Ft. Lauderdale – 17th Street, FL (a) | 36,377 | 5,329 | 47,850 | (163 | ) | 6,757 | 5,166 | 54,607 | 59,773 | 22,228 | 1986 | 1/3/1996 | 15 - 40 Yrs |
Initial Cost | Cost Capitalized Subsequent to Acquisition | Gross Amounts at Which Carried at Close of Period | Accumulated Depreciation Buildings & Improvements | Life Upon Which Depreciation is Computed | ||||||||||||||||||||||||||||||||||||||
Location | Encumbrances | Land | Building and Improvements | Land | Building and Improvements | Land | Building and Improvements | Total | Year Opened | Date Acquired | ||||||||||||||||||||||||||||||||
Jacksonville – Baymeadows, FL (a) | $ | — | $ | 1,130 | $ | 9,608 | $ | — | $ | 8,505 | $ | 1,130 | $ | 18,113 | $ | 19,243 | $ | 7,501 | 1986 | 7/28/1994 | 15 - 40 Yrs | |||||||||||||||||||||
Miami – International Airport, FL (a) | 8,030 | 4,135 | 24,950 | — | 6,324 | 4,135 | 31,274 | 35,409 | 12,443 | 1983 | 1/3/1996 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Orlando – International Airport, FL (e) | 8,205 | 2,549 | 22,188 | 6 | 3,631 | 2,555 | 25,819 | 28,374 | 8,967 | 1984 | 7/28/1998 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Orlando – International Drive South/Convention, FL (a) | (m) | 1,632 | 13,870 | — | 3,239 | 1,632 | 17,109 | 18,741 | 7,778 | 1985 | 7/28/1994 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Orlando – Walt Disney World Resort, FL (c) | (k) | — | 28,092 | — | 2,162 | — | 30,254 | 30,254 | 15,157 | 1987 | 7/28/1997 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
St. Petersburg – Vinoy Resort & Golf Club, FL (d) | (l) | — | 100,823 | — | 5,552 | — | 106,375 | 106,375 | 14,568 | 1925 | 12/16/2007 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Atlanta – Airport, GA (a) | 11,306 | 2,568 | 22,342 | — | 3,807 | 2,568 | 26,149 | 28,717 | 8,885 | 1989 | 5/4/1998 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Atlanta – Buckhead, GA (a) | (m) | 7,303 | 38,996 | (300 | ) | 2,922 | 7,003 | 41,918 | 48,921 | 16,755 | 1988 | 10/17/1996 | 15 - 40 Yrs | |||||||||||||||||||||||||||||
Atlanta – Galleria, GA (b) | — | 5,052 | 28,507 | — | 2,518 | 5,052 | 31,025 | 36,077 | 11,269 | 1990 | 6/30/1997 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Atlanta – Gateway-Atlanta Airport, GA (b) | (k) | 5,113 | 22,857 | — | 1,907 | 5,113 | 24,764 | 29,877 | 9,403 | 1986 | 6/30/1997 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Indianapolis – North, IN (a) | 10,405 | 5,125 | 13,821 | — | 6,708 | 5,125 | 20,529 | 25,654 | 11,164 | 1986 | 8/1/1996 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Baton Rouge, LA (a) | (m) | 2,350 | 19,092 | 1 | 3,109 | 2,351 | 22,201 | 24,552 | 8,904 | 1985 | 1/3/1996 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
New Orleans – French Quarter, LA (e) | (k) | — | 50,732 | — | 9,393 | — | 60,125 | 60,125 | 21,375 | 1969 | 7/28/1998 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Boston – at Beacon Hill, MA (e) | (k) | — | 45,192 | — | 9,482 | — | 54,674 | 54,674 | 26,964 | 1968 | 7/28/1998 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Boston – Copley Plaza, MA (i) | (l) | 27,600 | 62,500 | — | 13,318 | 27,600 | 75,818 | 103,418 | 4,025 | 1912 | 8/18/2010 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Boston – Marlborough, MA (a) | (m) | 948 | 8,143 | 761 | 15,318 | 1,709 | 23,461 | 25,170 | 9,024 | 1988 | 6/30/1995 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Baltimore – at BWI Airport, MD (a) | 20,043 | 2,568 | 22,433 | (2 | ) | 4,093 | 2,566 | 26,526 | 29,092 | 10,278 | 1987 | 3/20/1997 | 15 - 40 Yrs | |||||||||||||||||||||||||||||
Bloomington, MN (a) | — | 2,038 | 17,731 | — | 3,249 | 2,038 | 20,980 | 23,018 | 8,094 | 1980 | 2/1/1997 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Minneapolis – Airport, MN (a) | 39,018 | 5,417 | 36,508 | 24 | 2,364 | 5,441 | 38,872 | 44,313 | 16,281 | 1986 | 11/6/1995 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Charlotte – SouthPark, NC (c) | 3,539 | 1,458 | 12,681 | — | 3,478 | 1,458 | 16,159 | 17,617 | 4,643 | N/A | 7/12/2002 | 15 - 40 Yrs |
Initial Cost | Cost Capitalized Subsequent to Acquisition | Gross Amounts at Which Carried at Close of Period | Accumulated Depreciation Buildings & Improvements | Life Upon Which Depreciation is Computed | ||||||||||||||||||||||||||||||||||||||
Location | Encumbrances | Land | Building and Improvements | Land | Building and Improvements | Land | Building and Improvements | Total | Year Opened | Date Acquired | ||||||||||||||||||||||||||||||||
New York - Morgans (j) | (l) | $ | 16,200 | $ | 29,872 | $ | — | $ | 529 | $ | 16,200 | $ | 30,401 | $ | 46,601 | $ | 1,198 | 1984 | 5/23/2011 | 15 - 40 Yrs | ||||||||||||||||||||||
New York - Royalton (j) | (l) | 32,500 | 48,423 | — | 1,390 | 32,500 | 49,813 | 82,313 | 1,962 | 1988 | 5/23/2011 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Philadelphia – Historic District, PA (e) | 7,437 | 3,164 | 27,535 | 7 | 10,421 | 3,171 | 37,956 | 41,127 | 14,887 | 1972 | 7/28/1998 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Philadelphia – Society Hill, PA (b) | (m) | 4,542 | 45,121 | — | 9,456 | 4,542 | 54,577 | 59,119 | 19,777 | 1986 | 10/1/1997 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Pittsburgh – at University Center (Oakland), PA (e) | 6,502 | — | 25,031 | — | 3,456 | — | 28,487 | 28,487 | 10,645 | 1988 | 11/1/1998 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Charleston – Mills House, SC (e) | — | 3,251 | 28,295 | 7 | 5,514 | 3,258 | 33,809 | 37,067 | 11,514 | 1982 | 7/28/1998 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Myrtle Beach – Oceanfront Resort, SC (a) | (k) | 2,940 | 24,988 | — | 13,307 | 2,940 | 38,295 | 41,235 | 11,945 | 1987 | 12/5/1996 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Myrtle Beach Resort (g) | (m) | 9,000 | 19,844 | 6 | 30,322 | 9,006 | 50,166 | 59,172 | 12,766 | 1974 | 7/23/2002 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Nashville – Opryland – Airport (Briley Parkway), TN (e) | (k) | — | 27,734 | — | 3,438 | — | 31,172 | 31,172 | 15,655 | 1981 | 7/28/1998 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Austin, TX (c) | 8,053 | 2,508 | 21,908 | — | 3,796 | 2,508 | 25,704 | 28,212 | 9,988 | 1987 | 3/20/1997 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Dallas – Love Field, TX (a) | (m) | 1,934 | 16,674 | — | 4,242 | 1,934 | 20,916 | 22,850 | 8,606 | 1986 | 3/29/1995 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Dallas – Park Central, TX (h) | — | 4,513 | 43,125 | 762 | 8,364 | 5,275 | 51,489 | 56,764 | 19,341 | 1983 | 6/30/1997 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Houston - Medical Center, TX (e) | 5,443 | — | 22,027 | — | 6,432 | — | 28,459 | 28,459 | 9,614 | 1984 | 7/28/1998 | 15 - 40 Yrs | ||||||||||||||||||||||||||||||
Burlington Hotel & Conference Center, VT (b) | (m) | 3,136 | 27,283 | (2 | ) | 3,328 | 3,134 | 30,611 | 33,745 | 11,361 | 1967 | 12/4/1997 | 15 - 40 Yrs | |||||||||||||||||||||||||||||
Total hotels | $ | 292,079 | $ | 247,773 | $ | 1,661,776 | $ | 745 | $ | 391,175 | $ | 248,518 | $ | 2,052,951 | $ | 2,301,469 | $ | 692,800 | ||||||||||||||||||||||||
Other properties (less than 5% of total) | $ | — | $ | 550 | $ | 3,686 | $ | — | $ | 191 | $ | 550 | $ | 3,877 | $ | 4,427 | $ | 314 | ||||||||||||||||||||||||
Total | $ | 292,079 | $ | 248,323 | $ | 1,665,462 | $ | 745 | $ | 391,366 | $ | 249,068 | $ | 2,056,828 | $ | 2,305,896 | $ | 693,114 |
(k) | This hotel is mortgaged or otherwise encumbered to secure repayment of our 10% senior notes due in 2014. |
Year Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Reconciliation of Land and Buildings and Improvements | ||||||||||||
Balance at beginning of period | $ | 2,528,930 | $ | 2,609,050 | $ | 2,541,962 | ||||||
Additions during period: | ||||||||||||
Acquisitions | — | 131,231 | 90,100 | |||||||||
Improvements | 44,887 | 34,981 | 22,863 | |||||||||
Deductions during period: | ||||||||||||
Disposition of properties | (267,921 | ) | (246,332 | ) | — | |||||||
Foreclosures | — | — | (45,875 | ) | ||||||||
Balance at end of period before impairment charges | 2,305,896 | 2,528,930 | 2,609,050 | |||||||||
Cumulative impairment charges on real estate assets owned at end of period | (95,121 | ) | (151,408 | ) | (179,477 | ) | ||||||
Balance at end of period | $ | 2,210,775 | $ | 2,377,522 | $ | 2,429,573 | ||||||
Reconciliation of Accumulated Depreciation | ||||||||||||
Balance at beginning of period | $ | 723,982 | $ | 729,420 | $ | 672,160 | ||||||
Additions during period: | ||||||||||||
Depreciation for the period | 64,953 | 68,826 | 71,821 | |||||||||
Deductions during period: | ||||||||||||
Disposition of properties | (95,821 | ) | (74,264 | ) | (14,561 | ) | ||||||
Balance at end of period | $ | 693,114 | $ | 723,982 | $ | 729,420 |
Exhibit Number | Description of Exhibit | ||
3.1 | Articles of Amendment and Restatement dated June 22, 1995, amending and restating the Charter of FelCor Lodging Trust Incorporated (“FelCor”), as amended or supplemented by Articles of Merger dated June 23, 1995, Articles Supplementary dated April 30, 1996, Articles of Amendment dated August 8, 1996, Articles of Amendment dated June 16, 1997, Articles of Amendment dated October 30, 1997, Articles Supplementary filed May 6, 1998, Articles of Merger and Articles of Amendment dated July 27, 1998, Certificate of Correction dated March 11, 1999, Certificate of Correction to the Articles of Merger between FelCor and Bristol Hotel Company, dated August 30, 1999, Articles Supplementary, dated April 1, 2002, Certificate of Correction, dated March 29, 2004, to Articles Supplementary filed May 2, 1996, Articles Supplementary filed April 2, 2004, Articles Supplementary filed August 20, 2004, Articles Supplementary filed April 6, 2005, and Articles Supplementary filed August 29, 2005 (filed as Exhibit 4.1 to FelCor’s Registration Statement on Form S-3 (Registration No. 333-128862) and incorporated herein by reference). | ||
3.2 | Amended and Restated Bylaws of FelCor (filed as Exhibit 3.1 to FelCor’s Form 8-K, dated October 30, 2012, and incorporated herein by reference). | ||
4.1 | Form of Share Certificate for Common Stock (filed as Exhibit 4.1 to FelCor’s Form 10-Q for the quarter ended June 30, 1996 and incorporated herein by reference). | ||
4.2 | Form of Share Certificate for $1.95 Series A Cumulative Convertible Preferred Stock (filed as Exhibit 4.4 to FelCor’s Form 8-K, dated May 1, 1996, and incorporated herein by reference). |
4.3 | Form of Share Certificate for 8% Series C Cumulative Redeemable Preferred Stock (filed as Exhibit 4.10.1 to FelCor’s Form 8-K, dated April 6, 2005, and incorporated herein by reference). |
4.4 | Deposit Agreement, dated April 7, 2005, between FelCor and SunTrust Bank, as preferred share depositary (filed as Exhibit 4.11.1 to FelCor’s Form 8-K, dated April 6, 2005, and incorporated herein by reference). |
4.4.1 | Supplement and Amendment to Deposit Agreement, dated August 30, 2005, between the Company and SunTrust Bank, as depositary (filed as Exhibit 4.11.2 to FelCor’s Form 8-K, dated April 6, 2005, and incorporated herein by reference). |
4.5 | Form of Depositary Receipt evidencing the Depositary Shares, which represent the 8% Series C Cumulative Redeemable Preferred Stock (filed as Exhibit 4.12.1 to FelCor’s Form 8-K, dated April 6, 2005, and incorporated herein by reference). |
4.6 | Indenture, dated as of October 1, 2009, by and between FelCor Escrow Holdings, L.L.C. and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to FelCor’s Form 8-K, dated October 1, 2009, and incorporated herein by reference). |
4.6.1 | First Supplemental Indenture dated as of October 12, 2009, by and between FelCor Escrow Holdings, L.L.C. and U.S. Bank National Association (filed as Exhibit 4.1 to FelCor’s Form 8‑K, dated October 13, 2009, and incorporated herein by reference). |
4.6.2 | Second Supplemental Indenture dated as of October 13, 2009, by and among FelCor, FelCor Lodging Limited Partnership (“FelCor LP”), certain subsidiary guarantors named therein, FelCor Holdings Trust, FelCor Escrow Holdings, L.L.C. and U.S. Bank National Association (filed as Exhibit 4.2 to FelCor’s Form 8-K, dated October 13, 2009, and incorporated herein by reference). |
4.6.3 | Third Supplemental Indenture dated as of March 23, 2010, by and among FelCor, FelCor LP, certain subsidiary guarantors named therein, FelCor Holdings Trust and U.S. Bank National Association (filed as Exhibit 4.1 to FelCor’s Form 10-Q for the quarter ended March 31, 2010 and incorporated herein by reference). |
4.6.4 | Fourth Supplemental Indenture, dated as of March 3, 2011, by and among FelCor, FelCor LP, certain of their subsidiaries, as guarantors, and U.S. Bank National Association, as trustee (filed as Exhibit 4.4 to FelCor’s Form 8-K, dated May 23, 2011, and incorporated herein by reference). |
4.6.5 | Fifth Supplemental Indenture, dated as of May 23, 2011, by and among FelCor, FelCor LP, certain of their subsidiaries, as guarantors, and U.S. Bank National Association, as trustee (filed as Exhibit 4.5 to FelCor’s Form 8-K, dated May 23, 2011, and incorporated herein by reference). |
4.6.6 | Sixth Supplemental Indenture, dated as of January 7, 2013, by and among FelCor, FelCor LP, certain of their subsidiaries, as guarantors, and U.S. Bank National Association, as trustee (filed as Exhibit 4.3 to FelCor’s Form 8-K, dated January 7, 2013, and incorporated herein by reference). |
4.7 | Indenture, dated as of May 10, 2011, by and between FelCor Escrow Holdings, L.L.C. and Wilmington Trust Company, as trustee, and Deutsche Bank Trust Company Americas, as collateral agent, registrar and paying agent (filed as Exhibit 4.1 to FelCor’s Form 8-K, dated May 23, 2011, and incorporated herein by reference). |
4.7.1 | First Supplemental Indenture, dated as of May 23, 2011, by and among FelCor Escrow Holdings, L.L.C., FelCor LP, FelCor, certain of their subsidiaries, as guarantors, and Wilmington Trust Company, as trustee, and Deutsche Bank Trust Company Americas, as collateral agent, registrar and paying agent (filed as Exhibit 4.2 to FelCor’s Form 8-K, dated May 23, 2011, and incorporated herein by reference). |
4.7.2 | Second Supplemental Indenture, dated as of January 7, 2013, by and among FelCor LP, FelCor, certain of their subsidiaries, as guarantors, and Wilmington Trust Company, as trustee, and Deutsche Bank Trust Company Americas, as collateral agent, registrar and paying agent (filed as Exhibit 4.2 to FelCor’s Form 8-K, dated January 7, 2013, and incorporated herein by reference). |
4.8 | Registration Rights Agreement, dated May 10, 2011, among FelCor LP, FelCor, the subsidiary guarantors named therein, and J.P. Morgan Securities LLC (filed as Exhibit 4.3 to FelCor’s Form 8-K, dated May 23, 2011, and incorporated herein by reference). |
4.9 | Indenture, dated as of December 17, 2012, between FelCor LP, FelCor, the subsidiary guarantors party thereto, and U.S. Bank National Association, as trustee, collateral agent, registrar and paying agent (filed as Exhibit 4.1 to FelCor’s Form 8-K, dated December 17, 2012, and incorporated herein by reference). |
4.9.1 | First Supplemental Indenture, dated as of January 7, 2013, by and among FelCor, FelCor LP, certain of their subsidiaries, as guarantors, and U.S. Bank National Association, as trustee. (filed as Exhibit 4.1 to FelCor’s Form 8-K, dated January 7, 2013, and incorporated herein by reference). |
4.10 | Registration Rights Agreement, dated December 17, 2012, among FelCor LP, FelCor, the subsidiary guarantors named therein, and J.P. Morgan Securities LLC (filed as Exhibit 4.2 to FelCor’s Form 8-K, dated December 17, 2012, and incorporated herein by reference). |
10.1 | Second Amended and Restated Agreement of Limited Partnership of FelCor LP, dated as of December 31, 2001 (filed as Exhibit 10.1 to FelCor’s Form 10-K for the fiscal year ended December 31, 2001 (the “2001 Form 10-K”) and incorporated herein by reference). |
10.1.1 | First Amendment to Second Amended and Restated Agreement of Limited Partnership of FelCor LP, dated April 1, 2002 (filed as Exhibit 10.1.1 to FelCor’s Form 8-K, dated April 1, 2002, and incorporated herein by reference). |
10.1.2 | Second Amendment to Second Amended and Restated Agreement of Limited Partnership of FelCor LP, dated August 31, 2002 (filed as Exhibit 10.1.2 to FelCor’s Form 10-K for the fiscal year ended December 31, 2002 (the “2002 Form 10-K”) and incorporated herein by reference). |
10.1.3 | Third Amendment to Second Amended and Restated Agreement of Limited Partnership of FelCor LP, dated October 1, 2002 (filed as Exhibit 10.1.3 to the 2002 Form 10-K and incorporated herein by reference). |
10.1.4 | Fourth Amendment to Second Amended and Restated Agreement of Limited Partnership of FelCor LP, dated as of July 1, 2003 (filed as Exhibit 10.1.4 to FelCor’s Form 10-Q for the quarter ended March 31, 2004 and incorporated herein by reference). |
10.1.5 | Fifth Amendment to Second Amended and Restated Agreement of Limited Partnership of FelCor LP, dated as of April 2, 2004 (filed as Exhibit 10.1.5 to FelCor’s Form 10-Q for the quarter ended March 31, 2004 and incorporated herein by reference). |
10.1.6 | Sixth Amendment to Second Amended and Restated Agreement of Limited Partnership of FelCor LP, dated as of August 23, 2004 (filed as Exhibit 10.1.6 to FelCor’s Form 8-K, dated August 26, 2004, and incorporated herein by reference). |
10.1.7 | Seventh Amendment to Second Amended and Restated Agreement of Limited Partnership of FelCor LP, dated as of April 7, 2005, which contains Addendum No. 4 to the Second Amended and Restated Agreement of Limited Partnership of FelCor L P (filed as Exhibit 10.1.8 to FelCor’s Form 8-K, dated April 6, 2005, and incorporated herein by reference). |
10.1.8 | Eighth Amendment to Second Amended and Restated Agreement of Limited Partnership of FelCor LP, dated as of August 30, 2005 (filed as Exhibit 10.1.9 to FelCor’s Form 8-K, dated August 29, 2005, and incorporated herein by reference). |
10.2 | Form of Management Agreement between subsidiaries of FelCor, as owner, and a subsidiary of Hilton Hotels Corporation, as manager, with respect to FelCor’s Embassy Suites Hotels branded hotels, including the form of Embassy Suites Hotels License Agreement attached as an exhibit thereto, effective prior to July 28, 2004 (filed as Exhibit 10.5 to the 2001 Form 10-K and incorporated herein by reference). |
10.2.1 | Form of Management Agreement between subsidiaries of FelCor, as owner, and a subsidiary of Hilton Hotels Corporation, as manager, with respect to FelCor’s Embassy Suites Hotels branded hotels, including the form of Embassy Suites Hotels License Agreement attached as an exhibit thereto, effective July 28, 2004 (filed as Exhibit 10.3.2 to FelCor’s Form 10-K for the fiscal year ended December 31, 2004 (the “2004 Form 10-K”) and incorporated herein by reference). |
10.3 | Form of Management Agreement between subsidiaries of FelCor, as owner, and a subsidiary of Hilton Hotels Corporation, as manager, with respect to FelCor’s Doubletree and Doubletree Guest Suites branded hotels (filed as Exhibit 10.6 to the 2001 Form 10-K and incorporated herein by reference). |
10.4 | Executive Employment Agreement, dated effective as of February 1, 2006, between FelCor and Thomas J. Corcoran, Jr. (filed as Exhibit 10.36 to FelCor’s Form 8-K, dated February 7, 2006, and incorporated herein by reference). |
10.4.1 | Letter Agreement dated March 1, 2008 between Thomas J. Corcoran, Jr. and FelCor (filed as Exhibit 10.1 to FelCor’s Form 10-Q for the quarter ended March 31, 2008 and incorporated herein by reference). |
10.5 | Executive Employment Agreement dated October 19, 2007, between FelCor and Richard A. Smith (filed as Exhibit 10.1 to FelCor’s Form 10-Q for the quarter ended September 30, 2007 and incorporated herein by reference). |
10.5.1 | Letter dated October 16, 2012 amending the 2007 Employment Agreement between FelCor and Richard A. Smith (filed as Exhibit 10.3 to FelCor’s Form 10-Q for the quarter ended September 30, 2012 and incorporated herein by reference). |
10.6 | Form of 2007 Change in Control and Severance Agreement between FelCor and each of Rick Smith, Andy Welch, Mike DeNicola, Troy Pentecost, Jon Yellen and Tom Corcoran (filed as Exhibit 10.1 to FelCor’s Form 8-K, dated October 23, 2007, and incorporated herein by reference). |
10.7 | Savings and Investment Plan of FelCor (filed as Exhibit 10.10 to the 2001 Form 10-K and incorporated herein by reference). |
10.8 | 2001 Restricted Stock and Stock Option Plan of FelCor (filed as Exhibit 10.14 to the 2002 Form 10-K and incorporated herein by reference). |
10.9 | Form of Nonstatutory Stock Option Contract under Restricted Stock and Stock Option Plans of FelCor (filed as Exhibit 10.16 to the 2004 Form 10-K and incorporated herein by reference). |
10.10 | Form of Employee Stock Grant Contract under Restricted Stock and Stock Option Plans of FelCor (filed as Exhibit 10.17 to the 2004 Form 10-K and incorporated herein by reference). |
10.11 | FelCor’s 2005 Restricted Stock and Stock Option Plan (as amended through October 29, 2012)(filed as Exhibit 10.1 to FelCor’s Form 10-Q for the quarter ended September 30, 2012 and incorporated herein by reference). |
10.12 | Form of Employee Stock Grant Contract under Restricted Stock and Stock Option Plans of FelCor applicable to grants in 2005 and thereafter (filed as Exhibit 10.33 to FelCor’s Form 8-K, dated April 26, 2005, and incorporated herein by reference). |
10.13 | Form of Employee Stock Grant and Supplemental Long-Term Cash Payment Agreement dated as of February 19, 2009 (filed as Exhibit 10.1 to FelCor’s Form 8-K, dated February 20, 2009, and incorporated herein by reference). |
10.13.1 | Amendment to Employee Stock Grant and Supplemental Long-Term Cash Payment Agreement dated as of February 19, 2009 (filed as Exhibit 10.1 to FelCor’s Form 8-K, dated December 28, 2009, and incorporated herein by reference). |
10.14 | Form of Restricted Payment Contract (filed as Exhibit 10.2 to FelCor’s Form 8-K, dated December 28, 2009, and incorporated herein by reference). |
10.15 | Form of Employee Stock Grant Contract (filed as Exhibit 10.3 to FelCor’s Form 8-K, dated December 28, 2009, and incorporated herein by reference. |
10.16 | Form of Performance Equity Grant Agreement (filed as Exhibit 10.2 to FelCor’s Form 10-Q for the quarter ended September 30, 2012 and incorporated herein by reference). |
10.17 | Form of Indemnification Agreement by and among FelCor, FelCor LP and individual officers and directors of FelCor (filed as Exhibit 10.1 to FelCor’s 10-Q for the quarter ended March 31, 2009 and incorporated herein by reference; superseding the form of Indemnification Agreement that was filed as Exhibit 10.1 to FelCor’s Form 8-K, dated November 9, 2006, and incorporated herein by reference.) |
10.18 | Form of Guaranty Agreement by and among FelCor, FelCor LP and individual employees of FelCor (filed as Exhibit 10.2 to FelCor’s Form 10-Q for the quarter ended March 31, 2009 and incorporated herein by reference). |
10.19 | Summary of Amended Annual Compensation Program for Directors of FelCor (filed as Exhibit 10.21 to FelCor's Form 10-K for the fiscal year ended December 31, 2009 and incorporated herein by reference). |
10.20 | Summary of FelCor’s Revised Performance-Based Annual Incentive Compensation Programs for Executive Officers (filed as Exhibit 10.1 to FelCor’s Form 8-K, dated August 24, 2012, and incorporated herein by reference). |
10.21 | Form of Loan Agreement, each dated either May 26, 2004, June 10, 2004 or July 19, 2004, between JPMorgan Chase Bank, as lender, and each of FelCor/JPM Boca Raton Hotel, L.L.C., FelCor/JPM Phoenix Hotel, L.L.C., FelCor/JPM Wilmington Hotel, L.L.C., FelCor/JPM Atlanta ES Hotel, L.L.C., FelCor/JPM Austin Holdings, L.P., FelCor/JPM Orlando Hotel, L.L.C., and FelCor/JPM BWI Hotel, L.L.C. and FCH/DT BWI Hotel, L.L.C., as borrowers, and acknowledged and agreed by FelCor LP (filed as Exhibit 10.34 to FelCor’s Form 10-Q for the quarter ended June 30, 2004 and incorporated herein by reference). |
10.21.1 | Form of Mortgage, Renewal Mortgage, Deed of Trust, Deed to Secure Debt, Indemnity Deed of Trust and Assignment of Leases and Rents, Security Agreement and Fixture Filing, each dated either May 26, 2004, June 10, 2004 or July 19, 2004, from FelCor/JPM Phoenix Hotel, L.L.C., DJONT/JPM Phoenix Leasing, L.L.C., FelCor/JPM Atlanta ES Hotel, L.L.C., DJONT/JPM Atlanta ES Leasing, L.L.C., FelCor/JPM Austin Holdings, L.P., DJONT/JPM Austin Leasing, L.P., FelCor/JPM Orlando Hotel, L.L.C., DJONT/JPM Orlando Leasing, L.L.C., FCH/DT BWI Holdings, L.P., FCH/DT BWI Hotel, L.L.C. and DJONT/JPM BWI Leasing, L.L.C., to, and for the benefit of, JPMorgan Chase Bank, as mortgagee or beneficiary (filed as Exhibit 10.34.1 to FelCor’s Form 10-Q for the quarter ended June 30, 2004 and incorporated herein by reference). |
10.21.2 | Form of five separate Promissory Notes, each dated either May 26, 2004, June 10, 2004 or July 19, 2004, made by FelCor/JPM Phoenix Hotel, L.L.C., FelCor/JPM Atlanta ES Hotel, L.L.C., FelCor/JPM Austin Holdings, L.P., FelCor/JPM Orlando Hotel, L.L.C., and FelCor/JPM BWI Hotel, L.L.C., each separately payable to the order of JPMorgan Chase Bank in the respective original principal amounts of $21,368,000 (Phoenix, Arizona), $13,500,000 (Atlanta, Georgia), $9,616,000 (Austin, Texas), $9,798,000 (Orlando, Florida), and $24,120,000 (Linthicum, Maryland) (filed as Exhibit 10.34.2 to FelCor’s Form 10-Q for the quarter ended June 30, 2004 and incorporated herein by reference). |
10.21.4 | Form of Guaranty of Recourse of Borrower, each dated either May 26, 2004, June 10, 2004 or July 19, 2004, made by FelCor LP in favor of JPMorgan Chase Bank (filed as Exhibit 10.34.3 to FelCor's Form 10-Q for the quarter ended June 30, 2004 and incorporated herein by reference). |
10.22 | Pledge Agreement dated October 13, 2009, by and among FelCor, FelCor LP, certain subsidiary pledgors named therein, FelCor Holdings Trust, and U.S. Bank National Association (filed as Exhibit 10.1 to FelCor’s Form 8-K, dated October 13, 2009, and incorporated herein by reference). |
10.22.1 | Form of Mortgage, Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing for the benefit of U.S. Bank National Association, as trustee and collateral agent, relating to FelCor LP’s 10% Senior Secured Notes due 2014 (filed as Exhibit 10.1 to the Form 10-Q for the quarter ended March 31, 2010 and incorporated herein by reference). |
10.23 | Amended and Restated Revolving Credit Agreement dated as of December 18, 2012, among FelCor/JPM Hospitality (SPE), L.L.C., DJONT/JPM Hospitality Leasing (SPE), L.L.C., FelCor/JPM Boca Raton Hotel, L.L.C., DJONT/JPM Boca Raton Leasing, L.L.C. and Miami AP Hotel, L.L.C. as borrowers, and JPMorgan Chase Bank, N.A., as administrative agent, and the lenders that are parties thereto (filed as Exhibit 10.2 to FelCor’s Form 8-K, dated December 17, 2012, and incorporated herein by reference). |
10.23.1 | Amended and Restated Guaranty Agreement to the Revolving Credit Agreement dated as of December 18, 2012, by FelCor Lodging Trust Incorporated and FelCor Lodging Limited Partnership in favor of JPMorgan Chase Bank, N.A., as administrative agent, on behalf of the lenders (filed as Exhibit 10.3 to FelCor’s Form 8-K, dated December 17, 2012, and incorporated herein by reference). |
10.23.2 | Form of Fee and Leasehold Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing under the Revolving Credit Agreement for the benefit of JPMorgan Chase Bank, N.A., as administrative agent for the lenders (filed as Exhibit 10.4 to FelCor’s Form 10-Q for the quarter ended March 31, 2011 and incorporated herein by reference). |
10.24 | Form of [Fee and] Leasehold Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing for the benefit of Deutsch Bank Trust Company, as collateral agent, relating to FelCor LP’s 6.75% senior secured notes due 2019 (filed as Exhibit 10.1 to FelCor’s Form 8-K, dated May 23, 2011, and incorporated herein by reference). |
10.24.1 | Pledge Agreement, dated as of May 23, 2011, among FelCor LP, FelCor, the subsidiaries named therein, and Deutsche Bank Trust Company Americas, as collateral agent (filed as Exhibit 10.2 to FelCor’s Form 8-K, dated May 23, 2011, and incorporated herein by reference). |
10.25 | Pledge Agreement, dated as of December 17, 2012, by FelCor LP, in favor of U.S. Bank National Association, as collateral agent (filed as Exhibit 10.1 to FelCor’s Form 8-K, dated December 17, 2012, and incorporated herein by reference). |
21.1* | List of Subsidiaries of FelCor. |
21.2* | List of Subsidiaries of FelCor LP. |
23* | Consent of PricewaterhouseCoopers LLP. |
31.1* | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for FelCor. |
31.2* | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for FelCor. |
31.3* | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for FelCor LP. |
31.4* | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for FelCor LP. |
32.1* | Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) for FelCor. |
32.2* | Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) for FelCor LP. |
101.INS | XBRL Instance Document. Submitted electronically with this report. |
101.SCH | XBRL Taxonomy Extension Schema Document. Submitted electronically with this report. |
101.CAL | XBRL Taxonomy Calculation Linkbase Document. Submitted electronically with this report. |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. Submitted electronically with this report. |
101.LAB | XBRL Taxonomy Label Linkbase Document. Submitted electronically with this report. |
101.PRE | XBRL Taxonomy Presentation Linkbase Document. Submitted electronically with this report. |
FELCOR LODGING TRUST INCORPORATED | |||
Date: February 28, 2013 | By: | /s/ Jonathan H. Yellen | |
Name: | Jonathan H. Yellen | ||
Title: | Executive Vice President |
Date | Signature | |||||
February 28, 2013 | /s/ Richard A. Smith | |||||
Richard A. Smith President and Director (Chief Executive Officer) | ||||||
February 28, 2013 | /s/ Andrew J. Welch | |||||
Andrew J. Welch Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||||||
February 28, 2013 | /s/ Jeffrey D. Symes | |||||
Jeffrey D. Symes Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) | ||||||
February 28, 2013 | /s/ Thomas J. Corcoran, Jr. | |||||
Thomas J. Corcoran, Jr. Chairman of the Board and Director | ||||||
February 28, 2013 | /s/ Melinda J. Bush | |||||
Melinda J. Bush, Director | ||||||
February 28, 2013 | /s/ Glenn A. Carlin | |||||
Glenn A. Carlin, Director | ||||||
February 28, 2013 | /s/Robert F. Cotter | |||||
Robert F. Cotter, Director | ||||||
February 28, 2013 | /s/Christopher J. Hartung | |||||
Christopher J. Hartung, Director | ||||||
February 28, 2013 | /s/ Thomas C. Hendrick | |||||
Thomas C. Hendrick, Director |
Date | Signature | |||||
February 28, 2013 | /s/ Charles A. Ledsinger, Jr. | |||||
Charles A. Ledsinger, Jr., Director | ||||||
February 28, 2013 | /s/ Robert H. Lutz, Jr. | |||||
Robert H. Lutz, Jr., Director | ||||||
February 28, 2013 | /s/ Robert A. Mathewson | |||||
Robert A. Mathewson, Director | ||||||
February 28, 2013 | /s/ Mark D. Rozells | |||||
Mark D. Rozells, Director |
FELCOR LODGING LIMITED PARTNERSHIP | |||
a Delaware limited partnership | |||
By: | FelCor Lodging Trust Incorporated | ||
Its General Partner | |||
Date: February 28, 2013 | By: | /s/ Jonathan H. Yellen | |
Name: | Jonathan H. Yellen | ||
Title: | Executive Vice President |
Date | Signature | |||||
February 28, 2013 | /s/ Richard A. Smith | |||||
Richard A. Smith President and Director (Chief Executive Officer) | ||||||
February 28, 2013 | /s/ Andrew J. Welch | |||||
Andrew J. Welch Executive Vice President and Chief Financial Officer (Principal Financial Officer) | ||||||
February 28, 2013 | /s/ Jeffrey D. Symes | |||||
Jeffrey D. Symes Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) |
February 28, 2013 | /s/ Thomas J. Corcoran, Jr. | |||||
Thomas J. Corcoran, Jr. Chairman of the Board and Director | ||||||
February 28, 2013 | /s/ Melinda J. Bush | |||||
Melinda J. Bush, Director | ||||||
February 28, 2013 | /s/ Glenn A. Carlin | |||||
Glenn A. Carlin, Director |
Date | Signature | |||||
February 28, 2013 | /s/Robert F. Cotter | |||||
Robert F. Cotter, Director | ||||||
February 28, 2013 | /s/Christopher J. Hartung | |||||
Christopher J. Hartung, Director | ||||||
February 28, 2013 | /s/ Thomas C. Hendrick | |||||
Thomas C. Hendrick, Director | ||||||
February 28, 2013 | /s/ Charles A. Ledsinger, Jr. | |||||
Charles A. Ledsinger, Jr., Director | ||||||
February 28, 2013 | /s/ Robert H. Lutz, Jr. | |||||
Robert H. Lutz, Jr., Director | ||||||
February 28, 2013 | /s/ Robert A. Mathewson | |||||
Robert A. Mathewson, Director | ||||||
February 28, 2013 | /s/ Mark D. Rozells | |||||
Mark D. Rozells, Director |
EXHIBIT 21.1 | ||||
LIST OF SUBSIDIARIES OF FELCOR LODGING TRUST INCORPORATED | ||||
(as of December 31, 2012) | ||||
Name | State and Form of Organization | |||
1 | BHR Canada Tenant Company | Nova Scotia, Canada - Unlimited Liability Company | ||
2 | BHR Lodging Tenant Company | Delaware - Corporation | ||
3 | BHR Operations, L.L.C. | Delaware - Limited Liability Company | ||
4 | Birmingham ES Hotel, L.L.C. | Delaware - Limited Liability Company | ||
5 | Birmingham ES Leasing, L.L.C. | Delaware - Limited Liability Company | ||
6 | Birmingham Hotel Holdco, L.L.C. | Delaware - Limited Liability Company | ||
7 | Birmingham Leasing Holdco, L.L.C. | Delaware - Limited Liability Company | ||
8 | Brighton at Kingston Plantation, L.L.C. | Delaware - Limited Liability Company | ||
9 | Deerfield Beach ES Hotel, L.L.C. | Delaware - Limited Liability Company | ||
10 | Deerfield Beach ES Leasing, L.L.C. | Delaware - Limited Liability Company | ||
11 | Deerfield Beach Hotel Holdco, L.L.C. | Delaware - Limited Liability Company | ||
12 | Deerfield Beach Leasing Holdco, L.L.C. | Delaware - Limited Liability Company | ||
13 | DJONT Leasing, L.L.C. | Delaware - Limited Liability Company | ||
14 | DJONT Operations, L.L.C. | Delaware - Limited Liability Company | ||
15 | DJONT/Charlotte Leasing, L.L.C. | Delaware - Limited Liability Company | ||
16 | DJONT/CMB Buckhead Leasing, L.L.C. | Delaware - Limited Liability Company | ||
17 | DJONT/CMB FCOAM, L.L.C. | Delaware - Limited Liability Company | ||
18 | DJONT/CMB New Orleans Leasing, L.L.C. | Delaware - Limited Liability Company | ||
19 | DJONT/CMB Orsouth Leasing, L.L.C. | Delaware - Limited Liability Company | ||
20 | DJONT/CMB SSF Leasing, L.L.C. | Delaware - Limited Liability Company | ||
21 | DJONT/EPT Leasing, L.L.C. | Delaware - Limited Liability Company | ||
22 | DJONT/EPT Manager, Inc. | Delaware - Corporation | ||
23 | DJONT/FCH Leasing, L.L.C. | Delaware - Limited Liability Company | ||
24 | DJONT/Indianapolis Leasing, L.L.C. | Delaware - Limited Liability Company | ||
25 | DJONT/JPM Atlanta ES Leasing, L.L.C. | Delaware - Limited Liability Company | ||
26 | DJONT/JPM Austin Leasing, L.P. | Delaware - Limited Partnership | ||
27 | DJONT/JPM Austin Tenant Co., L.L.C. | Delaware - Limited Liability Company | ||
28 | DJONT/JPM Boca Raton Leasing, L.L.C. | Delaware - Limited Liability Company | ||
29 | DJONT/JPM BWI Leasing, L.L.C. | Delaware - Limited Liability Company | ||
30 | DJONT/JPM Hospitality Leasing (SPE), L.L.C. | Delaware - Limited Liability Company | ||
31 | DJONT/JPM Hospitality Leasing Holdco (SPE), L.L.C. | Delaware - Limited Liability Company | ||
32 | DJONT/JPM Leasing, L.L.C. | Delaware - Limited Liability Company | ||
33 | DJONT/JPM Orlando Leasing, L.L.C. | Delaware - Limited Liability Company | ||
34 | DJONT/JPM Phoenix Leasing, L.L.C. | Delaware - Limited Liability Company | ||
35 | DJONT/JPM Wilmington Leasing, L.L.C. | Delaware - Limited Liability Company | ||
36 | E.S. Charlotte Limited Partnership | Delaware - Limited Partnership | ||
37 | E.S. North, an Indiana Limited Partnership | Indiana - Limited Partnership | ||
38 | EPT Atlanta-Perimeter Center Limited Partnership | Delaware - Limited Partnership | ||
39 | EPT Austin Limited Partnership | Delaware - Limited Partnership | ||
40 | EPT Kansas City Limited Partnership | Delaware - Limited Partnership | ||
41 | EPT Meadowlands Limited Partnership | Delaware - Limited Partnership | ||
42 | EPT Raleigh Limited Partnership | Delaware - Limited Partnership | ||
43 | FCH HH Knickerbocker Leasing, L.L.C. | Delaware - Limited Partnership |
44 | FCH HH Knickerbocker Owner, L.P. | Delaware - Limited Liability Company | ||
45 | FCH/DT BWI Holdings, L.P. | Delaware - Limited Partnership | ||
46 | FCH/DT BWI Hotel, L.L.C. | Delaware - Limited Liability Company | ||
47 | FCH/DT Holdings, L.P. | Delaware - Limited Partnership | ||
48 | FCH/DT Hotels, L.L.C. | Delaware - Limited Liability Company | ||
49 | FCH/PSH, L.P. | Pennsylvania - Limited Partnership | ||
50 | FCH/SH Leasing II, L.L.C. | Delaware - Limited Liability Company | ||
51 | FCH/SH Leasing, L.L.C. | Delaware - Limited Liability Company | ||
52 | FelCor Baton Rouge Owner, L.L.C. | Delaware - Limited Liability Company | ||
53 | FelCor Canada Co. | Nova Scotia, Canada - Unlimited Liability Company | ||
54 | FelCor Canada Holding GP, L.L.C. | Delaware - Limited Liability Company | ||
55 | FelCor Canada Holding, L.P. | Delaware - Limited Partnership | ||
56 | FelCor Chat-Lem, L.L.C. | Delaware - Limited Liability Company | ||
57 | FelCor Copley Plaza Leasing, L.L.C. | Delaware - Limited Liability Company | ||
58 | FelCor Copley Plaza, L.L.C. | Delaware - Limited Liability Company | ||
59 | FelCor Dallas Love Field Owner, L.L.C. | Delaware - Limited Liability Company | ||
60 | FelCor Eight Hotels, L.L.C. | Delaware - Limited Liability Company | ||
61 | FelCor Escrow Holdings, L.L.C. | Delaware - Limited Liability Company | ||
62 | FelCor Esmeralda (SPE), L.L.C. | Delaware - Limited Liability Company | ||
63 | FelCor Esmeralda Leasing (SPE), L.L.C. | Delaware - Limited Liability Company | ||
64 | FelCor Holdings Trust | Massachusetts - Business Trust | ||
65 | FelCor Hotel Asset Company, L.L.C. | Delaware - Limited Liability Company | ||
66 | FelCor Hotel Operating Company, L.L.C. | Delaware - Limited Liability Company | ||
67 | FelCor Lodging Holding Company, L.L.C. | Delaware - Limited Liability Company | ||
68 | FelCor Lodging Limited Partnership | Delaware - Limited Partnership | ||
69 | FelCor Milpitas Owner, L.L.C. | Delaware - Limited Liability Company | ||
70 | FelCor Napa Development, L.L.C. | Delaware - Limited Liability Company | ||
71 | FelCor Pennsylvania Company, L.L.C. | Delaware - Limited Liability Company | ||
72 | FelCor S-4 Hotels (SPE), L.L.C. | Delaware - Limited Liability Company | ||
73 | FelCor S-4 Leasing (SPE), L.L.C. | Delaware - Limited Liability Company | ||
74 | FelCor St. Pete (SPE), L.L.C. | Delaware - Limited Liability Company | ||
75 | FelCor St. Pete Leasing (SPE), L.L.C. | Delaware - Limited Liability Company | ||
76 | FelCor TRS Borrower 1, L.P. | Delaware - Limited Partnership | ||
77 | FelCor TRS Borrower 4, L.L.C. | Delaware - Limited Liability Company | ||
78 | FelCor TRS Borrower GP 1, L.L.C. | Delaware - Limited Liability Company | ||
79 | FelCor TRS Guarantor GP, L.L.C. | Delaware - Limited Liability Company | ||
80 | FelCor TRS Guarantor, L.P. | Delaware - Limited Partnership | ||
81 | FelCor TRS Holdings, L.L.C. | Delaware - Limited Liability Company | ||
82 | FelCor/Charlotte Hotel, L.L.C. | Delaware - Limited Liability Company | ||
83 | FelCor/CMB Buckhead Hotel, L.L.C. | Delaware - Limited Liability Company | ||
84 | FelCor/CMB Marlborough Hotel, L.L.C. | Delaware - Limited Liability Company | ||
85 | FelCor/CMB New Orleans Hotel, L.L.C. | Delaware - Limited Liability Company | ||
86 | FelCor/CMB Orsouth Holdings, L.P. | Delaware - Limited Partnership | ||
87 | FelCor/CMB Orsouth Hotel, L.L.C. | Delaware - Limited Liability Company | ||
88 | FelCor/CMB SSF Holdings, L.P. | Delaware - Limited Partnership | ||
89 | FelCor/CMB SSF Hotel, L.L.C. | Delaware - Limited Liability Company | ||
90 | FelCor/CSS (SPE), L.L.C. | Delaware - Limited Liability Company | ||
91 | FelCor/CSS Holdings, L.P. | Delaware - Limited Partnership | ||
92 | FelCor/CSS Hotels, L.L.C. | Delaware - Limited Liability Company |
93 | FelCor/Indianapolis Hotel, L.L.C. | Delaware - Limited Liability Company | ||
94 | FelCor/Iowa-New Orleans Chat-Lem Hotel, L.L.C. | Delaware - Limited Liability Company | ||
95 | FelCor/JPM Atlanta ES Hotel, L.L.C. | Delaware - Limited Liability Company | ||
96 | FelCor/JPM Austin Holdings, L.P. | Delaware - Limited Partnership | ||
97 | FelCor/JPM Austin Hotel, L.L.C. | Delaware - Limited Liability Company | ||
98 | FelCor/JPM Boca Raton Hotel, L.L.C. | Delaware - Limited Liability Company | ||
99 | FelCor/JPM BWI Hotel, L.L.C. | Delaware - Limited Liability Company | ||
100 | FelCor/JPM Hospitality (SPE), L.L.C. | Delaware - Limited Liability Company | ||
101 | FelCor/JPM Hospitality Holdco (SPE), L.L.C. | Delaware - Limited Liability Company | ||
102 | FelCor/JPM Hotels, L.L.C. | Delaware - Limited Liability Company | ||
103 | FelCor/JPM Orlando Hotel, L.L.C. | Delaware - Limited Liability Company | ||
104 | FelCor/JPM Phoenix Hotel, L.L.C. | Delaware - Limited Liability Company | ||
105 | FelCor/JPM Wilmington Hotel, L.L.C. | Delaware - Limited Liability Company | ||
106 | FelCor/LAX Holdings, L.P. | Delaware - Limited Partnership | ||
107 | FelCor/LAX Hotels, L.L.C. | Delaware - Limited Liability Company | ||
108 | FelCor/MM S-7 Holdings, L.P. | Delaware - Limited Partnership | ||
109 | FelCor/MM S-7 Hotels, L.L.C. | Delaware - Limited Liability Company | ||
110 | FelCor/New Orleans Annex, L.L.C. | Delaware - Limited Liability Company | ||
111 | FelCor/St. Paul Holdings, L.P. | Delaware - Limited Partnership | ||
112 | FelCor/St. Paul Hotel (SPE), L.L.C. | Delaware - Limited Liability Company | ||
113 | FelCor/St. Paul Leasing (SPE), L.L.C. | Delaware - Limited Liability Company | ||
114 | Ft. Lauderdale ES Hotel, L.L.C. | Delaware - Limited Liability Company | ||
115 | Ft. Lauderdale ES Leasing, L.L.C. | Delaware - Limited Liability Company | ||
116 | Ft. Lauderdale Hotel Holdco, L.L.C. | Delaware - Limited Liability Company | ||
117 | Ft. Lauderdale Leasing Holdco, L.L.C. | Delaware - Limited Liability Company | ||
118 | Grande Palms, L.L.C. | Delaware - Limited Liability Company | ||
119 | HI Chat-Lem/Iowa-New Orleans Joint Venture | Louisiana - General Partnership | ||
120 | Kingston Plantation Development Corp. | Delaware - Corporation | ||
121 | Knickerbocker Holding Partnership, L.P. | Delaware - Limited Liability Company | ||
122 | Knickerbocker Hotel Owner GP, L.L.C. | Delaware - Limited Liability Company | ||
123 | Knickerbocker Hotel Owner, L.L.C. | Delaware - Limited Liability Company | ||
124 | Knickerbocker TRS. L.L.C. | Delaware - Limited Liability Company | ||
125 | Los Angeles International Airport Hotel Associates, a Texas Limited Partnership | Texas - Limited Partnership | ||
126 | Lovefield Beverage Corporation | Texas - Corporation | ||
127 | Madison 237 Hotel Leasing, L.L.C. | Delaware - Limited Liability Company | ||
128 | Madison 237 Hotel, L.L.C. | Delaware - Limited Liability Company | ||
129 | Margate Towers at Kingston Plantation, L.L.C. | Delaware - Limited Liability Company | ||
130 | MHV Joint Venture | Texas- General Partnership | ||
131 | Miama AP Hotel, L.L.C. | Delaware - Limited Liability Company | ||
132 | Miami AP Hotel Holdco, L.L.C. | Delaware - Limited Liability Company | ||
133 | Minneapolis ES Hotel, L.L.C. | Delaware - Limited Liability Company | ||
134 | Minneapolis ES Leasing, L.L.C. | Delaware - Limited Liability Company | ||
135 | Minneapolis Hotel Holdco, L.L.C. | Delaware - Limited Liability Company | ||
136 | Minneapolis Leasing Holdco, L.L.C. | Delaware - Limited Liability Company | ||
137 | Myrtle Beach Leasing, L.L.C. | Delaware - Limited Liability Company | ||
138 | Myrtle Beach Owner, L.L.C. | Delaware - Limited Liability Company | ||
139 | Napa Creek Residential, L.L.C. | Delaware - Limited Liability Company | ||
140 | Napa ES Hotel, L.L.C. | Delaware - Limited Liability Company |
141 | Napa ES Leasing, L.L.C. | Delaware - Limited Liability Company | ||
142 | Napa Hotel Holdco, L.L.C. | Delaware - Limited Liability Company | ||
143 | Napa Leasing Holdco, L.L.C. | Delaware - Limited Liability Company | ||
144 | Park Central Joint Venture | Texas- General Partnership | ||
145 | Plantation Laundry Services. L.L.C. | Delaware - Limited Liability Company | ||
146 | Promus/FCH Condominum Company, L.L.C. | Delaware - Limited Liability Company | ||
147 | Promus/FCH Development Company, L.L.C. | Delaware - Limited Liability Company | ||
148 | Promus/FelCor Hotels, L.L.C. | Delaware - Limited Liability Company | ||
149 | Promus/FelCor Lombard Venture | Illinois - General Partnership | ||
150 | Promus/FelCor Manager, Inc. | Delaware - Corporation | ||
151 | Promus/FelCor Parsippany Venture | New Jersey - General Partnership | ||
152 | Promus/FelCor San Antonio Venture | Texas - General Partnership | ||
153 | Royale Palms Rental, L.L.C. | Delaware - Limited Liability Company | ||
154 | Royalton 44 Hotel Leasing, L.L.C. | Delaware - Limited Liability Company | ||
155 | Royalton 44 Hotel, L.L.C. | Delaware - Limited Liability Company | ||
156 | Santa Barbara Owner, L.L.C. | Delaware - Limited Liability Company |
EXHIBIT 21.2 | ||||
LIST OF SUBSIDIARIES OF FELCOR LODGING LIMITED PARTNERSHIP | ||||
(as of December 31, 2012) | ||||
Name | State and Form of Organization | |||
1 | BHR Canada Tenant Company | Nova Scotia, Canada - Unlimited Liability Company | ||
2 | BHR Lodging Tenant Company | Delaware - Corporation | ||
3 | BHR Operations, L.L.C. | Delaware - Limited Liability Company | ||
4 | Birmingham ES Hotel, L.L.C. | Delaware - Limited Liability Company | ||
5 | Birmingham ES Leasing, L.L.C. | Delaware - Limited Liability Company | ||
6 | Birmingham Hotel Holdco, L.L.C. | Delaware - Limited Liability Company | ||
7 | Birmingham Leasing Holdco, L.L.C. | Delaware - Limited Liability Company | ||
8 | Brighton at Kingston Plantation, L.L.C. | Delaware - Limited Liability Company | ||
9 | Deerfield Beach ES Hotel, L.L.C. | Delaware - Limited Liability Company | ||
10 | Deerfield Beach ES Leasing, L.L.C. | Delaware - Limited Liability Company | ||
11 | Deerfield Beach Hotel Holdco, L.L.C. | Delaware - Limited Liability Company | ||
12 | Deerfield Beach Leasing Holdco, L.L.C. | Delaware - Limited Liability Company | ||
13 | DJONT Leasing, L.L.C. | Delaware - Limited Liability Company | ||
14 | DJONT Operations, L.L.C. | Delaware - Limited Liability Company | ||
15 | DJONT/Charlotte Leasing, L.L.C. | Delaware - Limited Liability Company | ||
16 | DJONT/CMB Buckhead Leasing, L.L.C. | Delaware - Limited Liability Company | ||
17 | DJONT/CMB FCOAM, L.L.C. | Delaware - Limited Liability Company | ||
18 | DJONT/CMB New Orleans Leasing, L.L.C. | Delaware - Limited Liability Company | ||
19 | DJONT/CMB Orsouth Leasing, L.L.C. | Delaware - Limited Liability Company | ||
20 | DJONT/CMB SSF Leasing, L.L.C. | Delaware - Limited Liability Company | ||
21 | DJONT/EPT Leasing, L.L.C. | Delaware - Limited Liability Company | ||
22 | DJONT/EPT Manager, Inc. | Delaware - Corporation | ||
23 | DJONT/FCH Leasing, L.L.C. | Delaware - Limited Liability Company | ||
24 | DJONT/Indianapolis Leasing, L.L.C. | Delaware - Limited Liability Company | ||
25 | DJONT/JPM Atlanta ES Leasing, L.L.C. | Delaware - Limited Liability Company | ||
26 | DJONT/JPM Austin Leasing, L.P. | Delaware - Limited Partnership | ||
27 | DJONT/JPM Austin Tenant Co., L.L.C. | Delaware - Limited Liability Company | ||
28 | DJONT/JPM Boca Raton Leasing, L.L.C. | Delaware - Limited Liability Company | ||
29 | DJONT/JPM BWI Leasing, L.L.C. | Delaware - Limited Liability Company | ||
30 | DJONT/JPM Hospitality Leasing (SPE), L.L.C. | Delaware - Limited Liability Company | ||
31 | DJONT/JPM Hospitality Leasing Holdco (SPE), L.L.C. | Delaware - Limited Liability Company | ||
32 | DJONT/JPM Leasing, L.L.C. | Delaware - Limited Liability Company | ||
33 | DJONT/JPM Orlando Leasing, L.L.C. | Delaware - Limited Liability Company | ||
34 | DJONT/JPM Phoenix Leasing, L.L.C. | Delaware - Limited Liability Company | ||
35 | DJONT/JPM Wilmington Leasing, L.L.C. | Delaware - Limited Liability Company | ||
36 | E.S. Charlotte Limited Partnership | Delaware - Limited Partnership | ||
37 | E.S. North, an Indiana Limited Partnership | Indiana - Limited Partnership | ||
38 | EPT Atlanta-Perimeter Center Limited Partnership | Delaware - Limited Partnership | ||
39 | EPT Austin Limited Partnership | Delaware - Limited Partnership | ||
40 | EPT Kansas City Limited Partnership | Delaware - Limited Partnership | ||
41 | EPT Meadowlands Limited Partnership | Delaware - Limited Partnership | ||
42 | EPT Raleigh Limited Partnership | Delaware - Limited Partnership | ||
43 | FCH HH Knickerbocker Leasing, L.L.C. | Delaware - Limited Partnership |
44 | FCH HH Knickerbocker Owner, L.P. | Delaware - Limited Liability Company | ||
45 | FCH/DT BWI Holdings, L.P. | Delaware - Limited Partnership | ||
46 | FCH/DT BWI Hotel, L.L.C. | Delaware - Limited Liability Company | ||
47 | FCH/DT Holdings, L.P. | Delaware - Limited Partnership | ||
48 | FCH/DT Hotels, L.L.C. | Delaware - Limited Liability Company | ||
49 | FCH/PSH, L.P. | Pennsylvania - Limited Partnership | ||
50 | FCH/SH Leasing II, L.L.C. | Delaware - Limited Liability Company | ||
51 | FCH/SH Leasing, L.L.C. | Delaware - Limited Liability Company | ||
52 | FelCor Baton Rouge Owner, L.L.C. | Delaware - Limited Liability Company | ||
53 | FelCor Canada Co. | Nova Scotia, Canada - Unlimited Liability Company | ||
54 | FelCor Canada Holding GP, L.L.C. | Delaware - Limited Liability Company | ||
55 | FelCor Canada Holding, L.P. | Delaware - Limited Partnership | ||
56 | FelCor Chat-Lem, L.L.C. | Delaware - Limited Liability Company | ||
57 | FelCor Copley Plaza Leasing, L.L.C. | Delaware - Limited Liability Company | ||
58 | FelCor Copley Plaza, L.L.C. | Delaware - Limited Liability Company | ||
59 | FelCor Dallas Love Field Owner, L.L.C. | Delaware - Limited Liability Company | ||
60 | FelCor Eight Hotels, L.L.C. | Delaware - Limited Liability Company | ||
61 | FelCor Escrow Holdings, L.L.C. | Delaware - Limited Liability Company | ||
62 | FelCor Esmeralda (SPE), L.L.C. | Delaware - Limited Liability Company | ||
63 | FelCor Esmeralda Leasing (SPE), L.L.C. | Delaware - Limited Liability Company | ||
64 | FelCor Hotel Asset Company, L.L.C. | Delaware - Limited Liability Company | ||
65 | FelCor Hotel Operating Company, L.L.C. | Delaware - Limited Liability Company | ||
66 | FelCor Lodging Holding Company, L.L.C. | Delaware - Limited Liability Company | ||
67 | FelCor Milpitas Owner, L.L.C. | Delaware - Limited Liability Company | ||
68 | FelCor Napa Development, L.L.C. | Delaware - Limited Liability Company | ||
69 | FelCor Pennsylvania Company, L.L.C. | Delaware - Limited Liability Company | ||
70 | FelCor S-4 Hotels (SPE), L.L.C. | Delaware - Limited Liability Company | ||
71 | FelCor S-4 Leasing (SPE), L.L.C. | Delaware - Limited Liability Company | ||
72 | FelCor St. Pete (SPE), L.L.C. | Delaware - Limited Liability Company | ||
73 | FelCor St. Pete Leasing (SPE), L.L.C. | Delaware - Limited Liability Company | ||
74 | FelCor TRS Borrower 1, L.P. | Delaware - Limited Partnership | ||
75 | FelCor TRS Borrower 4, L.L.C. | Delaware - Limited Liability Company | ||
76 | FelCor TRS Borrower GP 1, L.L.C. | Delaware - Limited Liability Company | ||
77 | FelCor TRS Guarantor GP, L.L.C. | Delaware - Limited Liability Company | ||
78 | FelCor TRS Guarantor, L.P. | Delaware - Limited Partnership | ||
79 | FelCor TRS Holdings, L.L.C. | Delaware - Limited Liability Company | ||
80 | FelCor/Charlotte Hotel, L.L.C. | Delaware - Limited Liability Company | ||
81 | FelCor/CMB Buckhead Hotel, L.L.C. | Delaware - Limited Liability Company | ||
82 | FelCor/CMB Marlborough Hotel, L.L.C. | Delaware - Limited Liability Company | ||
83 | FelCor/CMB New Orleans Hotel, L.L.C. | Delaware - Limited Liability Company | ||
84 | FelCor/CMB Orsouth Holdings, L.P. | Delaware - Limited Partnership | ||
85 | FelCor/CMB Orsouth Hotel, L.L.C. | Delaware - Limited Liability Company | ||
86 | FelCor/CMB SSF Holdings, L.P. | Delaware - Limited Partnership | ||
87 | FelCor/CMB SSF Hotel, L.L.C. | Delaware - Limited Liability Company | ||
88 | FelCor/CSS (SPE), L.L.C. | Delaware - Limited Liability Company | ||
89 | FelCor/CSS Holdings, L.P. | Delaware - Limited Partnership | ||
90 | FelCor/CSS Hotels, L.L.C. | Delaware - Limited Liability Company | ||
91 | FelCor/Indianapolis Hotel, L.L.C. | Delaware - Limited Liability Company | ||
92 | FelCor/Iowa-New Orleans Chat-Lem Hotel, L.L.C. | Delaware - Limited Liability Company |
93 | FelCor/JPM Atlanta ES Hotel, L.L.C. | Delaware - Limited Liability Company | ||
94 | FelCor/JPM Austin Holdings, L.P. | Delaware - Limited Partnership | ||
95 | FelCor/JPM Austin Hotel, L.L.C. | Delaware - Limited Liability Company | ||
96 | FelCor/JPM Boca Raton Hotel, L.L.C. | Delaware - Limited Liability Company | ||
97 | FelCor/JPM BWI Hotel, L.L.C. | Delaware - Limited Liability Company | ||
98 | FelCor/JPM Hospitality (SPE), L.L.C. | Delaware - Limited Liability Company | ||
99 | FelCor/JPM Hospitality Holdco (SPE), L.L.C. | Delaware - Limited Liability Company | ||
100 | FelCor/JPM Hotels, L.L.C. | Delaware - Limited Liability Company | ||
101 | FelCor/JPM Orlando Hotel, L.L.C. | Delaware - Limited Liability Company | ||
102 | FelCor/JPM Phoenix Hotel, L.L.C. | Delaware - Limited Liability Company | ||
103 | FelCor/JPM Wilmington Hotel, L.L.C. | Delaware - Limited Liability Company | ||
104 | FelCor/LAX Holdings, L.P. | Delaware - Limited Partnership | ||
105 | FelCor/LAX Hotels, L.L.C. | Delaware - Limited Liability Company | ||
106 | FelCor/MM S-7 Holdings, L.P. | Delaware - Limited Partnership | ||
107 | FelCor/MM S-7 Hotels, L.L.C. | Delaware - Limited Liability Company | ||
108 | FelCor/New Orleans Annex, L.L.C. | Delaware - Limited Liability Company | ||
109 | FelCor/St. Paul Holdings, L.P. | Delaware - Limited Partnership | ||
110 | FelCor/St. Paul Hotel (SPE), L.L.C. | Delaware - Limited Liability Company | ||
111 | FelCor/St. Paul Leasing (SPE), L.L.C. | Delaware - Limited Liability Company | ||
112 | Ft. Lauderdale ES Hotel, L.L.C. | Delaware - Limited Liability Company | ||
113 | Ft. Lauderdale ES Leasing, L.L.C. | Delaware - Limited Liability Company | ||
114 | Ft. Lauderdale Hotel Holdco, L.L.C. | Delaware - Limited Liability Company | ||
115 | Ft. Lauderdale Leasing Holdco, L.L.C. | Delaware - Limited Liability Company | ||
116 | Grande Palms, L.L.C. | Delaware - Limited Liability Company | ||
117 | HI Chat-Lem/Iowa-New Orleans Joint Venture | Louisiana - General Partnership | ||
118 | Kingston Plantation Development Corp. | Delaware - Corporation | ||
119 | Knickerbocker Holding Partnership, L.P. | Delaware - Limited Liability Company | ||
120 | Knickerbocker Hotel Owner GP, L.L.C. | Delaware - Limited Liability Company | ||
121 | Knickerbocker Hotel Owner, L.L.C. | Delaware - Limited Liability Company | ||
122 | Knickerbocker TRS. L.L.C. | Delaware - Limited Liability Company | ||
123 | Los Angeles International Airport Hotel Associates, a Texas Limited Partnership | Texas - Limited Partnership | ||
124 | Lovefield Beverage Corporation | Texas - Corporation | ||
125 | Madison 237 Hotel Leasing, L.L.C. | Delaware - Limited Liability Company | ||
126 | Madison 237 Hotel, L.L.C. | Delaware - Limited Liability Company | ||
127 | Margate Towers at Kingston Plantation, L.L.C. | Delaware - Limited Liability Company | ||
128 | MHV Joint Venture | Texas- General Partnership | ||
129 | Miama AP Hotel, L.L.C. | Delaware - Limited Liability Company | ||
130 | Miami AP Hotel Holdco, L.L.C. | Delaware - Limited Liability Company | ||
131 | Minneapolis ES Hotel, L.L.C. | Delaware - Limited Liability Company | ||
132 | Minneapolis ES Leasing, L.L.C. | Delaware - Limited Liability Company | ||
133 | Minneapolis Hotel Holdco, L.L.C. | Delaware - Limited Liability Company | ||
134 | Minneapolis Leasing Holdco, L.L.C. | Delaware - Limited Liability Company | ||
135 | Myrtle Beach Leasing, L.L.C. | Delaware - Limited Liability Company | ||
136 | Myrtle Beach Owner, L.L.C. | Delaware - Limited Liability Company | ||
137 | Napa Creek Residential, L.L.C. | Delaware - Limited Liability Company | ||
138 | Napa ES Hotel, L.L.C. | Delaware - Limited Liability Company | ||
139 | Napa ES Leasing, L.L.C. | Delaware - Limited Liability Company | ||
140 | Napa Hotel Holdco, L.L.C. | Delaware - Limited Liability Company |
141 | Napa Leasing Holdco, L.L.C. | Delaware - Limited Liability Company | ||
142 | Park Central Joint Venture | Texas- General Partnership | ||
143 | Plantation Laundry Services. L.L.C. | Delaware - Limited Liability Company | ||
144 | Promus/FCH Condominum Company, L.L.C. | Delaware - Limited Liability Company | ||
145 | Promus/FCH Development Company, L.L.C. | Delaware - Limited Liability Company | ||
146 | Promus/FelCor Hotels, L.L.C. | Delaware - Limited Liability Company | ||
147 | Promus/FelCor Lombard Venture | Illinois - General Partnership | ||
148 | Promus/FelCor Manager, Inc. | Delaware - Corporation | ||
149 | Promus/FelCor Parsippany Venture | New Jersey - General Partnership | ||
150 | Promus/FelCor San Antonio Venture | Texas - General Partnership | ||
151 | Royale Palms Rental, L.L.C. | Delaware - Limited Liability Company | ||
152 | Royalton 44 Hotel Leasing, L.L.C. | Delaware - Limited Liability Company | ||
153 | Royalton 44 Hotel, L.L.C. | Delaware - Limited Liability Company | ||
154 | Santa Barbara Owner, L.L.C. | Delaware - Limited Liability Company |
1. | I have reviewed this Annual Report on Form 10-K of FelCor Lodging Trust Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | February 28, 2013 | /s/ Richard A. Smith | |
Richard A. Smith Chief Executive Officer |
1. | I have reviewed this Annual Report on Form 10-K of FelCor Lodging Trust Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | February 28, 2013 | /s/ Andrew J. Welch | |
Andrew J. Welch Chief Financial Officer |
1. | I have reviewed this Annual Report on Form 10-K of FelCor Lodging Limited Partnership; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | February 28, 2013 | /s/ Richard A. Smith | ||
Richard A. Smith Chief Executive Officer of FelCor Lodging Trust Incorporated, as general partner of FelCor Lodging Limited Partnership |
1. | I have reviewed this Annual Report on Form 10-K of FelCor Lodging Limited Partnership; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | February 28, 2013 | /s/ Andrew J. Welch | ||
Andrew J. Welch Chief Financial Officer of FelCor Lodging Trust Incorporated, as general partner of FelCor Lodging Limited Partnership |
/s/ Richard A. Smith | |
Richard A. Smith | |
Chief Executive Officer | |
/s/ Andrew J. Welch | |
Andrew J. Welch | |
Chief Financial Officer |
/s/ Richard A. Smith | |
Richard A. Smith | |
Chief Executive Officer of FelCor Lodging Trust Incorporated, as general partner of FelCor Lodging Limited Partnership | |
/s/Andrew J. Welch | |
Andrew J. Welch | |
Chief Financial Officer of FelCor Lodging Trust Incorporated, as general partner of FelCor Lodging Limited Partnership |
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