Organization

FelCor Lodging Trust Incorporated (NYSE:FCH), or FelCor, is a Maryland corporation, operating as a real estate investment trust, or REIT. FelCor is the sole general partner of, and the owner of a greater than 99.5% partnership interest in, FelCor Lodging Limited Partnership, or FelCor LP, through which we held ownership interests in 46 hotels as of March 31, 2015, one of which was held for sale. At March 31, 2015, we had an aggregate of 125,483,273 shares and units outstanding, consisting of 124,871,811 shares of FelCor common stock and 611,462 FelCor LP units not owned by FelCor.

Of the 45 hotels not held for sale as of March 31, 2015, we owned a 100% interest in 41 hotels, a 95% interest in one hotel (The Knickerbocker) and 50% interests in entities owning three hotels. The Knickerbocker opened in February 2015 and, based on its partial completion as of March 31, 2015, $172 million of this development was reclassified to investment in hotels. We consolidate our real estate interests in the 42 hotels in which we held majority interests, and we record the real estate interests of the three hotels in which we held 50% interests using the equity method. We lease 44 of the 45 hotels to our taxable REIT subsidiaries, of which we own a controlling interest. We operate one 50% owned hotel without a lease. Because we own controlling interests in these lessees, we consolidate our interests in these 44 hotels (which we refer to as our Consolidated Hotels) and reflect those hotels’ operating revenues and expenses in our statements of operations. Of our Consolidated Hotels, we own 50% of the real estate interests in each of two hotels (we account for the ownership in our real estate interests of these hotels by the equity method) and majority real estate interests in the remaining 42 hotels (we consolidate our real estate interest in these hotels).

The following table illustrates the distribution of our 44 Consolidated Hotels at March 31, 2015:



Brand	Hotels	Rooms
Embassy Suites Hotels^®	21	5,778
Wyndham^®and Wyndham Grand^®	8	2,528
Marriott^®and Renaissance^®	3	1,321
Holiday Inn^®	3	1,256
DoubleTreeby Hilton^® and Hilton^®	3	802
Sheraton^®	2	673
Fairmont^®	1	383
The Knickerbocker	1	330
Morgans and Royalton	2	285
Total	44	13,356

At March 31, 2015, our Consolidated Hotels were located in 17 states, with concentrations in California (11 hotels), Florida (seven hotels) and Texas (four hotels). Approximately 65% of our revenue was generated from hotels in these three states during the first three months of 2015.

At March 31, 2015, of our 44 Consolidated Hotels: (i) subsidiaries of Hilton Hotels Corporation, or Hilton, managed 23 hotels, (ii) subsidiaries of Wyndham Hotel Group, or Wyndham, managed eight hotels, (iii) subsidiaries of Marriott International Inc., or Marriott, managed three hotels, (iv) subsidiaries of InterContinental Hotels Group, or IHG, managed three hotels, (v) subsidiaries of Starwood Hotels & Resorts Worldwide Inc., or Starwood, managed two hotels, (vi) a subsidiary of Fairmont Hotels and Resorts, or Fairmont, managed one hotel, (vii) a subsidiary of Highgate Hotels, or Highgate, managed one hotel, (viii) a subsidiary of Morgans Hotel Group Corporation managed two hotels, and (ix) an independent management company managed one hotel.

1. Organization — (continued)

The information in our consolidated financial statements for the three months ended March 31, 2015 and 2014 is unaudited. Preparing financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The accompanying financial statements for the three months ended March 31, 2015 and 2014, include adjustments based on management’s estimates (consisting of normal and recurring accruals), which we consider necessary for a fair statement of the results for the periods. The financial information should be read in conjunction with the consolidated financial statements for the year ended December 31, 2014, included in our Annual Report on Form 10-K. Operating results for the three months ended March 31, 2015 are not necessarily indicative of actual operating results for the entire year.