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

6 Months Ended

Jun. 30, 2014

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, guaranty, fully and unconditionally, except where subject to customary release provisions as described below, and jointly and severally, our senior debt.

The guaranties 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.


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

The following tables present consolidating information for the Subsidiary Guarantors.

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING BALANCE SHEET

June 30, 2014

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
Net investment in hotels	$	44,166		$	1,040,284		$	467,722	$	—		$	1,552,172
Hotel development	—			—			261,181		—			261,181
Equity investment in consolidated entities	1,491,230			—			—		(1,491,230		)	—
Investment in unconsolidated entities	31,479			11,314			1,333		—			44,126
Hotels held for sale	—			13,974			19,174		—			33,148
Cash and cash equivalents	12,816			45,033			3,495		—			61,344
Restricted cash	—			10,160			55,886		—			66,046
Accounts receivable, net	336			34,921			632		—			35,889
Deferred expenses, net	18,783			—			7,179		—			25,962
Other assets	7,650			11,996			19,065		(11,915		)	26,796

Total assets	$	1,606,460		$	1,167,682		$	835,667	$	(1,503,145	)	$	2,106,664

Debt, net	$	1,282,289		$	11,915		$	360,075	$	(53,113	)	$	1,601,166
Distributions payable	11,116			—			112		—			11,228
Accrued expenses and other liabilities	31,078			104,033			14,688		—			149,799

Total liabilities	1,324,483			115,948			374,875		(53,113		)	1,762,193

Redeemable units	6,440			—			—		—			6,440

Preferred units	478,766			—			—		—			478,766
Common units	(228,227		)	1,047,455			377,579		(1,425,034		)	(228,227		)
Accumulated other comprehensive income	24,998			4,551			20,447		(24,998		)	24,998
Total FelCor LP partners’ capital	275,537			1,052,006			398,026		(1,450,032		)	275,537
Noncontrolling interests	—			(272		)	21,772		—			21,500
Preferred capital in consolidated joint venture	—			—			40,994		—			40,994
Total partners’ capital	275,537			1,051,734			460,792		(1,450,032		)	338,031
Total liabilities and partners’ capital	$	1,606,460		$	1,167,682		$	835,667	$	(1,503,145	)	$	2,106,664

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

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2013

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
Net investment in hotels	$	48,971		$	1,053,724		$	550,572	$	—		$	1,653,267
Hotel development	—			—			216,747		—			216,747
Equity investment in consolidated entities	1,508,593			—			—		(1,508,593		)	—
Investment in unconsolidated entities	34,090			11,497			1,356		—			46,943
Hotel held for sale	—			—			16,319		—			16,319
Cash and cash equivalents	5,227			33,283			7,135		—			45,645
Restricted cash	—			9,051			68,176		—			77,227
Accounts receivable, net	516			34,366			865		—			35,747
Deferred expenses, net	20,540			—			8,785		—			29,325
Other assets	6,248			10,767			17,998		(11,953		)	23,060
Total assets	$	1,624,185		$	1,152,688		$	887,953	$	(1,520,546	)	$	2,144,280

Debt, net	$	1,279,190		$	11,953		$	464,036	$	(91,953	)	$	1,663,226
Distributions payable	11,047			—			—		—			11,047
Accrued expenses and other liabilities	37,980			96,494			16,264		—			150,738

Total liabilities	1,328,217			108,447			480,300		(91,953		)	1,825,011

Redeemable units	5,039			—			—		—			5,039

Preferred units	478,774			—			—		—			478,774
Common units	(212,888		)	1,039,903			363,647		(1,403,550		)	(212,888		)
Accumulated other comprehensive income	25,043			4,569			20,474		(25,043		)	25,043
Total FelCor LP partners’ capital	290,929			1,044,472			384,121		(1,428,593		)	290,929
Noncontrolling interests	—			(231		)	23,532		—			23,301
Total partners’ capital	290,929			1,044,241			407,653		(1,428,593		)	314,230
Total liabilities and partners’ capital	$	1,624,185		$	1,152,688		$	887,953	$	(1,520,546	)	$	2,144,280

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

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Three Months Ended June 30, 2014

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues:
Hotel operating revenue	$	—		$	258,279		$	—		$	—		$	258,279
Percentage lease revenue	1,910			—			24,401			(26,311		)	—
Other revenue	1			1,082			153			—			1,236
Total revenues	1,911			259,361			24,554			(26,311		)	259,515

Expenses:
Hotel operating expenses	—			162,700			—			—			162,700
Taxes, insurance and lease expense	450			49,544			3,309			(26,311		)	26,992
Corporate expenses	149			5,263			2,235			—			7,647
Depreciation and amortization	992			18,004			10,086			—			29,082
Other expenses	—			789			1,325			—			2,114
Total operating expenses	1,591			236,300			16,955			(26,311		)	228,535
Operating income	320			23,061			7,599			—			30,980
Interest expense, net	(20,300		)	(306		)	(3,889		)	—			(24,495		)
Debt extinguishment	—			—			(27		)	—			(27		)
Gain on sale of other assets, net	—			100			—			—			100
Income before equity in income from unconsolidated entities	(19,980		)	22,855			3,683			—			6,558
Equity in income from consolidated entities	42,238			—			—			(42,238		)	—
Equity in income from unconsolidated entities	2,315			462			(11		)	—			2,766
Income from continuing operations	24,573			23,317			3,672			(42,238		)	9,324
Income from discontinued operations	—			5			—			—			5
Income before gain on sale of property	24,573			23,322			3,672			(42,238		)	9,329
Gain on sale of property, net	(221		)	(15		)	15,862			—			15,626
Net income	24,352			23,307			19,534			(42,238		)	24,955
Income attributable to noncontrolling interests	—			(113		)	(149		)	—			(262		)
Preferred distributions - consolidated joint venture	—			—			(341		)	—			(341		)
Net income attributable to FelCor LP	24,352			23,194			19,044			(42,238		)	24,352
Preferred distributions	(9,678		)	—			—			—			(9,678		)
Net income attributable to FelCor LP common unitholders	$	14,674		$	23,194		$	19,044		$	(42,238	)	$	14,674

13. 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	$	—		$	238,806		$	—		$	—		$	238,806
Percentage lease revenue	1,615			—			21,788			(23,403		)	—
Other revenue	2			918			130			—			1,050
Total revenues	1,617			239,724			21,918			(23,403		)	239,856

Expenses:
Hotel operating expenses	—			153,915			—			—			153,915
Taxes, insurance and lease expense	386			44,436			3,434			(23,403		)	24,853
Corporate expenses	272			4,811			1,611			—			6,694
Depreciation and amortization	1,185			17,879			10,834			—			29,898
Impairment loss	14,294			—			10,147			—			24,441
Conversion expenses	4			292			291			—			587
Other expenses	2,754			842			319			—			3,915
Total operating expenses	18,895			222,175			26,636			(23,403		)	244,303
Operating loss	(17,278		)	17,549			(4,718		)	—			(4,447		)
Interest expense, net	(21,380		)	(319		)	(4,677		)	—			(26,376		)
Loss before equity in income from unconsolidated entities	(38,658		)	17,230			(9,395		)	—			(30,823		)
Equity in income from consolidated entities	21,183			—			—			(21,183		)	—
Equity in income from unconsolidated entities	1,547			369			(11		)	—			1,905
Loss from continuing operations	(15,928		)	17,599			(9,406		)	(21,183		)	(28,918		)
Income from discontinued operations	(2,895		)	(119		)	9,137			—			6,123
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	)

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

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2014

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues:
Hotel operating revenue	$	—		$	479,301		$	—		$	—		$	479,301
Percentage lease revenue	3,309			—			50,010			(53,319		)	—
Other revenue	2			1,348			213			—			1,563
Total revenues	3,311			480,649			50,223			(53,319		)	480,864

Expenses:
Hotel operating expenses	—			316,814			—			—			316,814
Taxes, insurance and lease expense	870			96,372			6,702			(53,319		)	50,625
Corporate expenses	272			10,333			4,867			—			15,472
Depreciation and amortization	1,984			35,770			20,929			—			58,683
Other expenses	35			1,629			2,464			—			4,128
Total operating expenses	3,161			460,918			34,962			(53,319		)	445,722
Operating income	150			19,731			15,261			—			35,142
Interest expense, net	(40,784		)	(634		)	(8,304		)	—			(49,722		)
Debt extinguishment	—			—			(33		)	—			(33		)
Gain on sale of other assets, net	—			100			—			—			100
Loss before equity in income from unconsolidated entities	(40,634		)	19,197			6,924			—			(14,513		)
Equity in income from consolidated entities	47,381			—			—			(47,381		)	—
Equity in income from unconsolidated entities	3,115			317			(23		)	—			3,409
Loss from continuing operations	9,862			19,514			6,901			(47,381		)	(11,104		)
Income from discontinued operations	—			34			106			—			140
Loss before gain on sale of property	9,862			19,548			7,007			(47,381		)	(10,964		)
Gain on sale of property, net	(449		)	(28		)	21,560			—			21,083
Net income	9,413			19,520			28,567			(47,381		)	10,119
Income attributable to noncontrolling interests	—			21			(205		)	—			(184		)
Preferred distributions - consolidated joint venture	—			—			(522		)	—			(522		)
Net income attributable to FelCor LP	9,413			19,541			27,840			(47,381		)	9,413
Preferred distributions	(19,356		)	—			—			—			(19,356		)
Net loss attributable to FelCor LP common unitholders	$	(9,943	)	$	19,541		$	27,840		$	(47,381	)	$	(9,943	)

13. 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	$	—		$	447,344		$	—		$	—		$	447,344
Percentage lease revenue	2,877			—			44,931			(47,808		)	—
Other revenue	5			1,251			193			—			1,449
Total revenues	2,882			448,595			45,124			(47,808		)	448,793

Expenses:
Hotel operating expenses	—			302,911			—			—			302,911
Taxes, insurance and lease expense	690			87,427			6,708			(47,808		)	47,017
Corporate expenses	380			10,355			3,791			—			14,526
Depreciation and amortization	2,435			35,475			21,743			—			59,653
Impairment loss	14,294			—			10,147			—			24,441
Conversion expenses	24			682			509			—			1,215
Other expenses	2,777			1,359			600			—			4,736
Total operating expenses	20,600			438,209			43,498			(47,808		)	454,499
Operating loss	(17,718		)	10,386			1,626			—			(5,706		)
Interest expense, net	(42,985		)	(622		)	(9,054		)	—			(52,661		)
Loss before equity in income from unconsolidated entities	(60,703		)	9,764			(7,428		)	—			(58,367		)
Equity in income from consolidated entities	16,558			—			—			(16,558		)	—
Equity in income from unconsolidated entities	1,852			165			(23		)	—			1,994
Loss from continuing operations	(42,293		)	9,929			(7,451		)	(16,558		)	(56,373		)
Income from discontinued operations	(2,895		)	(535		)	10,403			—			6,973
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	)

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

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Three Months Ended June 30, 2014

(in thousands)



	FelCor LP		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Net income	$	24,352	$	23,307		$	19,534		$	(42,238	)	$	24,955
Foreign currency translation adjustment	575		65			510			(575		)	575
Comprehensive income	24,927		23,372			20,044			(42,813		)	25,530
Comprehensive income attributable to noncontrolling interests	—		(113		)	(149		)	—			(262		)
Preferred distributions - consolidated joint venture	—		—			(341		)	—			(341		)
Comprehensive income attributable to FelCor LP	$	24,927	$	23,259		$	19,554		$	(42,813	)	$	24,927

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		)	(111		)	(456		)	567			(567		)
Comprehensive loss	(19,390		)	17,369			(725		)	(20,616		)	(23,362		)
Comprehensive loss attributable to noncontrolling interests	—			(16		)	3,988			—			3,972
Comprehensive loss attributable to FelCor LP	$	(19,390	)	$	17,353		$	3,263		$	(20,616	)	$	(19,390	)

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

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

For the Six Months Ended June 30, 2014

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Net income	$	9,413		$	19,520		$	28,567		$	(47,381	)	$	10,119
Foreign currency translation adjustment	(45		)	(18		)	(27		)	45			(45		)
Comprehensive income	9,368			19,502			28,540			(47,336		)	10,074
Comprehensive income attributable to noncontrolling interests	—			21			(205		)	—			(184		)
Preferred distributions - consolidated joint venture	—			—			(522		)	—			(522		)
Comprehensive income attributable to FelCor LP	$	9,368		$	19,523		$	27,813		$	(47,336	)	$	9,368

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		)	(207		)	(717		)	924			(924		)
Comprehensive loss	(46,112		)	9,187			2,235			(15,634		)	(50,324		)
Comprehensive loss attributable to noncontrolling interests	—			240			3,972			—			4,212
Comprehensive loss attributable to FelCor LP	$	(46,112	)	$	9,427		$	6,207		$	(15,634	)	$	(46,112	)

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

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 2014

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating activities:
Cash flows from operating activities	$	(38,098	)	$	62,307		$	29,912		$	—		$	54,121
Investing activities:
Improvements and additions to hotels	(685		)	(36,397		)	(10,950		)	—			(48,032		)
Hotel development	—			—			(48,178		)	—			(48,178		)
Net proceeds from asset dispositions	(419		)	(73		)	94,100			—			93,608
Insurance proceeds	—			255			—			—			255
Change in restricted cash - investing	—			(1,533		)	12,714			—			11,181
Distributions from unconsolidated entities	3,406			500			—			—			3,906
Intercompany financing	67,733			—			—			(67,733		)	—
Cash flows from investing activities	70,035			(37,248		)	47,686			(67,733		)	12,740
Financing activities:
Proceeds from borrowings	—			—			140,500			—			140,500
Repayment of borrowings	—			—			(205,904		)	—			(205,904		)
Distributions paid to noncontrolling interests	—			(626		)	(6,428		)	—			(7,054		)
Contributions from noncontrolling interests	—			605			4,464			—			5,069
Distributions paid to preferred unitholders	(19,356		)	—			—			—			(19,356		)
Distributions paid to common unitholders	(4,968		)	—			—			—			(4,968		)
Net proceeds from issuance of preferred capital - consolidated joint venture	—			—			40,994			—			40,994
Intercompany financing	—			(13,285		)	(54,448		)	67,733			—
Other	(24		)	—			(416		)	—			(440		)
Cash flows from financing activities	(24,348		)	(13,306		)	(81,238		)	67,733			(51,159		)
Effect of exchange rate changes on cash	—			(3		)	—			—			(3		)
Change in cash and cash equivalents	7,589			11,750			(3,640		)	—			15,699
Cash and cash equivalents at beginning of period	5,227			33,283			7,135			—			45,645
Cash and cash equivalents at end of period	$	12,816		$	45,033		$	3,495		$	—		$	61,344

13. 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