FelCor LP's Consolidating Financial Information (FelCor Lodging LP [Member])

6 Months Ended

Jun. 30, 2013

FelCor Lodging LP [Member]

FelCor LP's Consolidating Financial Information

FelCor LP’s Consolidating Financial Information

Certain of FelCor LP’s 100% owned subsidiaries (FCH/PSH, L.P.; FelCor Baton Rouge Owner, L.L.C.; FelCor/CMB Buckhead Hotel, L.L.C.; FelCor/CMB Marlborough Hotel, L.L.C.; FelCor/CMB Orsouth Holdings, L.P.; FelCor/CMB SSF Holdings, L.P.; FelCor/CSS Holdings, L.P.; FelCor Dallas Love Field Owner, L.L.C.; FelCor Lodging Holding Company, L.L.C.; FelCor Milpitas Owner, L.L.C.; FelCor TRS Borrower 4, L.L.C.; FelCor TRS Holdings, L.L.C.; FelCor Canada Co.; FelCor Hotel Asset Company, L.L.C.; FelCor Copley Plaza, L.L.C.; FelCor St. Pete (SPE), L.L.C.; FelCor Esmeralda (SPE), L.L.C.; FelCor S-4 Hotels (SPE), L.L.C.; Los Angeles International Airport Hotel Associates, a Texas L.P.; Madison 237 Hotel, L.L.C.; Myrtle Beach Owner, L.L.C.; and Royalton 44 Hotel, L.L.C., collectively, “Subsidiary Guarantors”), together with FelCor, guarantee, fully and unconditionally, except where subject to customary release provisions as described below, and jointly and severally, our senior debt.

The guarantees by the Subsidiary Guarantors may be automatically and unconditionally released upon (1) the sale or other disposition of all of the capital stock of the Subsidiary Guarantor or the sale or disposition of all or substantially all of the assets of the Subsidiary Guarantor, (2) the consolidation or merger of any such Subsidiary Guarantor with any person other than FelCor LP, or a subsidiary of FelCor LP, if, as a result of such consolidation or merger, such Subsidiary Guarantor ceases to be a subsidiary of FelCor LP, (3) a legal defeasance or covenant defeasance of the indenture, (4) the unconditional and complete release of such Subsidiary Guarantor in accordance with the modification and waiver provisions of the indenture, or (5) the designation of a restricted subsidiary that is a Subsidiary Guarantor as an unrestricted subsidiary under and in compliance with the indenture.

The following tables present consolidating information for the Subsidiary Guarantors.


11.	FelCor LP’s Consolidating Financial Information – (continued)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING BALANCE SHEET

June 30, 2013

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
Net investment in hotels	$	57,335		$	1,076,243		$	584,691	$	—		$	1,718,269
Hotel development	—			—			170,084		—			170,084
Equity investment in consolidated entities	1,505,974			—			—		(1,505,974		)	—
Investment in unconsolidated entities	38,909			12,463			1,379		—			52,751
Hotel held for sale	—			22			19,230		—			19,252
Cash and cash equivalents	14,172			42,353			9,710		—			66,235
Restricted cash	—			7,230			70,651		—			77,881
Accounts receivable, net	206			39,905			918		—			41,029
Deferred expenses, net	22,223			—			10,320		—			32,543
Other assets	11,093			14,408			5,622		—			31,123

Total assets	$	1,649,912		$	1,192,624		$	872,605	$	(1,505,974	)	$	2,209,167

Debt, net	$	1,276,298		$	—		$	415,648	$	—		$	1,691,946
Distributions payable	8,545			—			—		—			8,545
Accrued expenses and other liabilities	30,795			108,237			10,836		—			149,868

Total liabilities	1,315,638			108,237			426,484		—			1,850,359

Redeemable units	3,672			—			—		—			3,672

Preferred units	478,774			—			—		—			478,774
Common units	(148,172		)	1,059,304			421,443		(1,505,974		)	(173,399		)
Accumulated other comprehensive income	—			25,227			—		—			25,227
Total FelCor LP partners’ capital	330,602			1,084,531			421,443		(1,505,974		)	330,602
Noncontrolling interests	—			(144		)	24,678		—			24,534
Total partners’ capital	330,602			1,084,387			446,121		(1,505,974		)	355,136
Total liabilities and partners’ capital	$	1,649,912		$	1,192,624		$	872,605	$	(1,505,974	)	$	2,209,167

11. FelCor LP’s Consolidating Financial Information – (continued)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2012

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
Net investment in hotels	$	66,945		$	1,102,262		$	625,357	$	—		$	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			10,322			4,947		—			23,391

Total assets	$	1,700,017		$	1,187,800		$	865,993	$	(1,551,377	)	$	2,202,433

Debt, net	$	1,273,587		$	—		$	356,938	$	—		$	1,630,525
Distributions payable	8,545			—			—		—			8,545
Accrued expenses and other liabilities	20,316			95,986			22,140		—			138,442

Total liabilities	1,302,448			95,986			379,078		—			1,777,512

Redeemable units	2,902			—			—		—			2,902

Preferred units	478,774			—			—		—			478,774
Common units	(84,107		)	1,065,938			459,288		(1,551,377		)	(110,258		)
Accumulated other comprehensive income	—			26,151			—		—			26,151
Total FelCor LP partners’ capital	394,667			1,092,089			459,288		(1,551,377		)	394,667
Noncontrolling interests	—			(275		)	27,627		—			27,352
Total partners’ capital	394,667			1,091,814			486,915		(1,551,377		)	422,019
Total liabilities and partners’ capital	$	1,700,017		$	1,187,800		$	865,993	$	(1,551,377	)	$	2,202,433

11. FelCor LP’s Consolidating Financial Information – (continued)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Three Months Ended June 30, 2013

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues:
Hotel operating revenue	$	—		$	247,977		$	—		$	—		$	247,977
Percentage lease revenue	2,322			—			23,679			(26,001		)	—
Other revenue	2			918			130			—			1,050
Total revenues	2,324			248,895			23,809			(26,001		)	249,027

Expenses:
Hotel operating expenses	—			159,976			—			—			159,976
Taxes, insurance and lease expense	481			47,144			3,621			(26,001		)	25,245
Corporate expenses	272			4,811			1,611			—			6,694
Depreciation and amortization	1,427			18,205			11,500			—			31,132
Impairment loss	17,559			—			10,147			—			27,706
Conversion expenses	4			292			291			—			587
Other expenses	2,754			843			319			—			3,916
Total operating expenses	22,497			231,271			27,489			(26,001		)	255,256
Operating loss	(20,173		)	17,624			(3,680		)	—			(6,229		)
Interest expense, net	(21,380		)	(319		)	(4,875		)	—			(26,574		)
Loss before equity in income from unconsolidated entities	(41,553		)	17,305			(8,555		)	—			(32,803		)
Equity in loss from consolidated entities	21,183			—			—			(21,183		)	—
Equity in income from unconsolidated entities	1,547			369			(11		)	—			1,905
Loss from continuing operations	(18,823		)	17,674			(8,566		)	(21,183		)	(30,898		)
Income from discontinued operations	—			(194		)	8,297			—			8,103
Net loss	(18,823		)	17,480			(269		)	(21,183		)	(22,795		)
Loss attributable to noncontrolling interests	—			(16		)	3,988			—			3,972
Net loss attributable to FelCor LP	(18,823		)	17,464			3,719			(21,183		)	(18,823		)
Preferred distributions	(9,678		)	—			—			—			(9,678		)
Net loss attributable to FelCor LP common unitholders	$	(28,501	)	$	17,464		$	3,719		$	(21,183	)	$	(28,501	)

11. FelCor LP’s Consolidating Financial Information – (continued)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Three Months Ended June 30, 2012

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues:
Hotel operating revenue	$	—		$	240,133		$	—		$	—		$	240,133
Percentage lease revenue	1,578			—			30,939			(32,517		)	—
Other revenue	4			823			129			—			956
Total revenues	1,582			240,956			31,068			(32,517		)	241,089

Expenses:
Hotel operating expenses	—			155,289			—			—			155,289
Taxes, insurance and lease expense	443			52,881			3,616			(32,517		)	24,423
Corporate expenses	(1,650		)	5,001			2,816			—			6,167
Depreciation and amortization	1,143			15,422			13,208			—			29,773
Other expenses	59			672			69			—			800
Total operating expenses	(5		)	229,265			19,709			(32,517		)	216,452
Operating income	1,587			11,691			11,359			—			24,637
Interest expense, net	(21,297		)	(3,991		)	(5,645		)	—			(30,933		)
Debt extinguishment	—			(26		)	(111		)	—			(137		)
Loss before equity in income from unconsolidated entities	(19,710		)	7,674			5,603			—			(6,433		)
Equity in loss from consolidated entities	30,628			—			—			(30,628		)	—
Equity in income from unconsolidated entities	985			388			(11		)	—			1,362
Loss from continuing operations	11,903			8,062			5,592			(30,628		)	(5,071		)
Income from discontinued operations	(23		)	(2,921		)	20,043			—			17,099
Net income	11,880			5,141			25,635			(30,628		)	12,028
Income attributable to noncontrolling interests	—			24			(172		)	—			(148		)
Net income attributable to FelCor LP	11,880			5,165			25,463			(30,628		)	11,880
Preferred distributions	(9,678		)	—			—			—			(9,678		)
Net income attributable to FelCor LP common unitholders	$	2,202		$	5,165		$	25,463		$	(30,628	)	$	2,202

11. FelCor LP’s Consolidating Financial Information – (continued)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2013

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues:
Hotel operating revenue	$	—		$	464,642		$	—		$	—		$	464,642
Percentage lease revenue	3,584			—			48,902			(52,486		)	—
Other revenue	5			1,251			193			—			1,449
Total revenues	3,589			465,893			49,095			(52,486		)	466,091

Expenses:
Hotel operating expenses	—			314,709			—			—			314,709
Taxes, insurance and lease expense	785			92,325			7,130			(52,486		)	47,754
Corporate expenses	380			10,355			3,791			—			14,526
Depreciation and amortization	2,677			36,137			23,332			—			62,146
Impairment loss	17,559			—			10,147			—			27,706
Conversion expenses	24			682			509			—			1,215
Other expenses	2,777			1,360			600			—			4,737
Total operating expenses	24,202			455,568			45,509			(52,486		)	472,793
Operating loss	(20,613		)	10,325			3,586			—			(6,702		)
Interest expense, net	(42,985		)	(622		)	(9,450		)	—			(53,057		)
Loss before equity in income from unconsolidated entities	(63,598		)	9,703			(5,864		)	—			(59,759		)
Equity in loss from consolidated entities	16,558			—			—			(16,558		)	—
Equity in income from unconsolidated entities	1,852			165			(23		)	—			1,994
Loss from continuing operations	(45,188		)	9,868			(5,887		)	(16,558		)	(57,765		)
Income from discontinued operations	—			(474		)	8,839			—			8,365
Net loss	(45,188		)	9,394			2,952			(16,558		)	(49,400		)
Loss attributable to noncontrolling interests	—			240			3,972			—			4,212
Net loss attributable to FelCor LP	(45,188		)	9,634			6,924			(16,558		)	(45,188		)
Preferred distributions	(19,356		)	—			—			—			(19,356		)
Net loss attributable to FelCor LP common unitholders	$	(64,544	)	$	9,634		$	6,924		$	(16,558	)	$	(64,544	)

11. FelCor LP’s Consolidating Financial Information – (continued)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2012



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues:
Hotel operating revenue	$	—		$	444,221		$	—		$	—		$	444,221
Percentage lease revenue	2,826			—			60,871			(63,697		)	—
Other revenue	5			1,043			183			—			1,231
Total revenues	2,831			445,264			61,054			(63,697		)	445,452

Expenses:
Hotel operating expenses	—			301,782			—			—			301,782
Taxes, insurance and lease expense	746			101,185			7,756			(63,697		)	45,990
Corporate expenses	194			8,958			5,227			—			14,379
Depreciation and amortization	2,275			30,583			26,452			—			59,310
Other expenses	477			1,180			106			—			1,763
Total operating expenses	3,692			443,688			39,541			(63,697		)	423,224
Operating income	(861		)	1,576			21,513			—			22,228
Interest expense, net	(42,374		)	(8,082		)	(10,872		)	—			(61,328		)
Debt extinguishment	(7		)	(26		)	(111		)	—			(144		)
Loss before equity in income from unconsolidated entities	(43,242		)	(6,532		)	10,530			—			(39,244		)
Equity in loss from consolidated entities	25,490			—			—			(25,490		)	—
Equity in income from unconsolidated entities	1,018			143			(23		)	—			1,138
Loss from continuing operations	(16,734		)	(6,389		)	10,507			(25,490		)	(38,106		)
Income from discontinued operations	(45		)	(3,324		)	24,642			—			21,273
Net loss	(16,779		)	(9,713		)	35,149			(25,490		)	(16,833		)
Loss attributable to noncontrolling interests	—			289			(235		)	—			54
Net loss attributable to FelCor LP	(16,779		)	(9,424		)	34,914			(25,490		)	(16,779		)
Preferred distributions	(19,356		)	—			—			—			(19,356		)
Net loss attributable to FelCor LP common unitholders	$	(36,135	)	$	(9,424	)	$	34,914		$	(25,490	)	$	(36,135	)

11. FelCor LP’s Consolidating Financial Information – (continued)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For the Three Months Ended June 30, 2013

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Net loss	$	(18,823	)	$	17,480		$	(269	)	$	(21,183	)	$	(22,795	)
Foreign currency translation adjustment	—			(567		)	—			—			(567		)
Comprehensive loss	(18,823		)	16,913			(269		)	(21,183		)	(23,362		)
Comprehensive loss attributable to noncontrolling interests	—			(16		)	3,988			—			3,972
Comprehensive loss attributable to FelCor LP	$	(18,823	)	$	16,897		$	3,719		$	(21,183	)	$	(19,390	)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Three Months Ended June 30, 2012

(in thousands)



	FelCor LP		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Net income	$	11,880	$	5,141		$	25,635		$	(30,628	)	$	12,028
Foreign currency translation adjustment	—		(317		)	—			—			(317		)
Comprehensive income	11,880		4,824			25,635			(30,628		)	11,711
Comprehensive income attributable to noncontrolling interests	—		24			(172		)	—			(148		)
Comprehensive income attributable to FelCor LP	$	11,880	$	4,848		$	25,463		$	(30,628	)	$	11,563

11. FelCor LP’s Consolidating Financial Information – (continued)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For the Six Months Ended June 30, 2013

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
Net loss	$	(45,188	)	$	9,394		$	2,952	$	(16,558	)	$	(49,400	)
Foreign currency translation adjustment	—			(924		)	—		—			(924		)
Comprehensive loss	(45,188		)	8,470			2,952		(16,558		)	(50,324		)
Comprehensive loss attributable to noncontrolling interests	—			240			3,972		—			4,212
Comprehensive loss attributable to FelCor LP	$	(45,188	)	$	8,710		$	6,924	$	(16,558	)	$	(46,112	)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For the Six Months Ended June 30, 2012

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Net loss	$	(16,779	)	$	(9,713	)	$	35,149		$	(25,490	)	$	(16,833	)
Foreign currency translation adjustment	—			(9		)	—			—			(9		)
Comprehensive loss	(16,779		)	(9,722		)	35,149			(25,490		)	(16,842		)
Comprehensive loss attributable to noncontrolling interests	—			289			(235		)	—			54
Comprehensive loss attributable to FelCor LP	$	(16,779	)	$	(9,433	)	$	34,914		$	(25,490	)	$	(16,788	)

11. FelCor LP’s Consolidating Financial Information – (continued)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2013

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating activities:
Cash flows from operating activities	$	(30,682	)	$	40,893		$	19,060		$	—		$	29,271
Investing activities:
Improvements and additions to hotels	2,689			(30,529		)	(19,183		)	—			(47,023		)
Hotel development	—			—			(22,220		)	—			(22,220		)
Net proceeds from asset dispositions	(5		)	(1,252		)	21,736			—			20,479
Distributions from unconsolidated entities	3,066			375			—			—			3,441
Contributions to unconsolidated entities	—			(1,500		)	—			—			(1,500		)
Intercompany financing	52,477			—			—			(52,477		)	—
Other	—			1,824			(1,778		)	—			46
Cash flows from investing activities	58,227			(31,082		)	(21,445		)	(52,477		)	(46,777		)
Financing activities:
Proceeds from borrowings	—			—			127,245			—			127,245
Repayment of borrowings	—			—			(68,535		)	—			(68,535		)
Distributions paid to preferred unitholders	(19,356		)	—			—			—			(19,356		)
Intercompany financing	—			1,799			(54,276		)	52,477			—
Other	(2,329		)	372			653			—			(1,304		)
Cash flows from financing activities	(21,685		)	2,171			5,087			52,477			38,050
Effect of exchange rate changes on cash	—			(54		)	—			—			(54		)
Change in cash and cash equivalents	5,860			11,928			2,702			—			20,490
Cash and cash equivalents at beginning of period	8,312			30,425			7,008			—			45,745
Cash and cash equivalents at end of period	$	14,172		$	42,353		$	9,710		$	—		$	66,235

11. FelCor LP’s Consolidating Financial Information – (continued)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2012

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating activities:
Cash flows from operating activities	$	(43,758	)	$	20,608		$	53,097		$	—		$	29,947
Investing activities:
Improvements and additions to hotels	(6,478		)	(44,236		)	(22,635		)	—			(73,349		)
Hotel development	—			—			(10,317		)	—			(10,317		)
Net proceeds from asset dispositions	(14		)	8,190			92,230			—			100,406
Distributions from unconsolidated entities	8,728			375			—			—			9,103
Intercompany financing	59,353			—			—			(59,353		)	—
Other	—			1,769			(1,306		)	—			463
Cash flows from investing activities	61,589			(33,902		)	57,972			(59,353		)	26,306
Financing activities:
Proceeds from borrowings	—			—			71,000			—			71,000
Repayment of borrowings	(96		)	(16,312		)	(121,350		)	—			(137,758		)
Distributions paid to preferred unitholders	(19,356		)	—			—			—			(19,356		)
Intercompany financing	—			304			(59,657		)	59,353			—
Other	—			1,559			(1,322		)	—			237
Cash flows from financing activities	(19,452		)	(14,449		)	(111,329		)	59,353			(85,877		)
Effect of exchange rate changes on cash	—			(35		)	—			—			(35		)
Change in cash and cash equivalents	(1,621		)	(27,778		)	(260		)	—			(29,659		)
Cash and cash equivalents at beginning of period	23,503			67,001			3,254			—			93,758
Cash and cash equivalents at end of period	$	21,882		$	39,223		$	2,994		$	—		$	64,099