FelCor LP's Consolidating Financial Information

Certain of FelCor LP's 100% owned subsidiaries (FCH/PSH, L.P.; 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 Milpitas Owner, L.L.C.; FelCor TRS Borrower 4, L.L.C.; FelCor Hotel Asset Company, L.L.C.; FelCor St. Pete (SPE), L.L.C.; FelCor Esmeralda (SPE), L.L.C.; FelCor S-4 Hotels (SPE), L.L.C.; Madison 237 Hotel, L.L.C.; Myrtle Beach Owner, L.L.C.; and Royalton 44 Hotel, L.L.C., collectively the “Subsidiary Guarantors”), together with Rangers, guaranty, fully and unconditionally, except where subject to customary release provisions as described below, and jointly and severally, our senior notes debt.

The guaranties by the Subsidiary Guarantors may be automatically and unconditionally released upon (i) 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, if, in each case, as a result of such sale or disposition, such Subsidiary Guarantor ceases to be a subsidiary of FelCor LP, (ii) 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 the Operating Partnership, (iii) a legal defeasance or covenant defeasance of the indenture, (iv) the unconditional and complete release of such Subsidiary Guarantor in accordance with the modification and waiver provisions of the indenture, or (v) 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 the consolidating financial information for the Subsidiary Guarantors:

FelCor Lodging Limited Partnership

Condensed Consolidating Balance Sheet

March 31, 2020

(in thousands)



	FelCor LP		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
Equity investment in consolidated entities	$	1,672,682	$	—	$	—	$	(1,672,682	)	$	—
Investment in hotel properties, net	—		572,103		1,366,450		—			1,938,553
Investment in unconsolidated joint ventures	15,820		—		—		—			15,820
Cash and cash equivalents	520		—		16,475		—			16,995
Restricted cash reserves	447		—		4,895		—			5,342
Related party receivable	—		797		5,911		—			6,708
Lease right-of-use assets	4,332		65,611		9,607		—			79,550
Prepaid expense and other assets	1,543		1,400		4,565		—			7,508
Total assets	$	1,695,344	$	639,911	$	1,407,903	$	(1,672,682	)	$	2,070,476

Debt, net	$	499,303	$	24,728	$	220,593	$	(32,709	)	$	711,915
Related party debt	—		—		85,000		—			85,000
Accounts payable and other liabilities	6,952		14,109		10,907		—			31,968
Lease liabilities	4,561		25,253		17,991		—			47,805
Accrued interest	9,588		59		514		—			10,161
Related party accrued interest	—		—		149		—			149
Total liabilities	520,404		64,149		335,154		(32,709		)	886,998

Partnership interests	1,174,940		575,762		1,064,211		(1,639,973		)	1,174,940
Total partners’ capital, excluding noncontrolling interest	1,174,940		575,762		1,064,211		(1,639,973		)	1,174,940
Noncontrolling interest in consolidated joint ventures	—		—		8,538		—			8,538
Total partners' capital	1,174,940		575,762		1,072,749		(1,639,973		)	1,183,478
Total liabilities and partners' capital	$	1,695,344	$	639,911	$	1,407,903	$	(1,672,682	)	$	2,070,476

FelCor Lodging Limited Partnership

Condensed Consolidating Balance Sheet

December 31, 2019

(in thousands)



	FelCor LP		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations			Total Consolidated
Equity investment in consolidated entities	$	1,722,133	$	—	$	—	$	(1,722,133	)	$	—
Investment in hotel properties, net	—		571,769		1,375,057		—			1,946,826
Investment in unconsolidated joint ventures	15,171		—		—		—			15,171
Cash and cash equivalents	1,985		—		17,587		—			19,572
Restricted cash reserves	447		—		3,700		—			4,147
Related party receivable	1,360		15,217		32,604		—			49,181
Lease right-of-use assets	4,444		66,571		9,620		—			80,635
Prepaid expense and other assets	1,748		1,888		3,907		—			7,543
Total assets	$	1,747,288	$	655,445	$	1,442,475	$	(1,722,133	)	$	2,123,075

Debt, net	$	500,484	$	24,711	$	221,241	$	(32,709	)	$	713,727
Related party debt	—		—		85,000		—			85,000
Accounts payable and other liabilities	7,449		15,017		10,210		—			32,676
Lease liabilities	4,661		25,571		17,968		—			48,200
Accrued interest	2,463		—		—		—			2,463
Related party accrued interest	—		—		190		—			190
Total liabilities	515,057		65,299		334,609		(32,709		)	882,256

Partnership interests	1,232,231		590,146		1,099,278		(1,689,424		)	1,232,231
Total partners’ capital, excluding noncontrolling interest	1,232,231		590,146		1,099,278		(1,689,424		)	1,232,231
Noncontrolling interest in consolidated joint ventures	—		—		8,588		—			8,588
Total partners' capital	1,232,231		590,146		1,107,866		(1,689,424		)	1,240,819
Total liabilities and partners' capital	$	1,747,288	$	655,445	$	1,442,475	$	(1,722,133	)	$	2,123,075

FelCor Lodging Limited Partnership

Condensed Consolidating Statement of Operations and Comprehensive Loss

For the Three Months Ended March 31, 2020

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues
Related party lease revenue	$	—		$	10,193		$	15,426		$	—		$	25,619
Total revenues	—			10,193			15,426			—			25,619

Expenses
Depreciation and amortization	140			7,031			11,357			—			18,528
Property tax, insurance and other	(7		)	4,608			5,770			—			10,371
General and administrative	290			61			16			—			367
Transaction costs	10			1			—			—			11
Total operating expenses	433			11,701			17,143			—			29,277
Interest income	234			—			60			(199		)	95
Interest expense	(5,944		)	(213		)	(2,075		)	199			(8,033		)
Related party interest expense	—			—			(967		)	—			(967		)
Loss before equity in income from unconsolidated joint ventures	(6,143		)	(1,721		)	(4,699		)	—			(12,563		)
Equity in loss from consolidated entities	(6,370		)	—			—			6,370			—
Equity in income from unconsolidated joint ventures	549			—			—			—			549
Net loss and comprehensive loss	(11,964		)	(1,721		)	(4,699		)	6,370			(12,014		)
Noncontrolling interest in consolidated joint ventures	—			—			50			—			50
Net loss and comprehensive loss attributable to FelCor LP	$	(11,964	)	$	(1,721	)	$	(4,649	)	$	6,370		$	(11,964	)

FelCor Lodging Limited Partnership

Condensed Consolidating Statement of Operations and Comprehensive Income

For the Three Months Ended March 31, 2019

(in thousands)



	FelCor LP			Subsidiary Guarantors		Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues
Related party lease revenue	$	—		$	18,272	$	31,649		$	—		$	49,921
Total revenues	—			18,272		31,649			—			49,921

Expenses
Depreciation and amortization	114			6,765		11,415			—			18,294
Property tax, insurance and other	26			4,906		5,576			—			10,508
General and administrative	385			20		9			—			414
Transaction costs	95			8		149			—			252
Total operating expenses	620			11,699		17,149			—			29,468
Other income	39			10		—			—			49
Interest income	238			—		51			(194		)	95
Interest expense	(5,944		)	—		(1,497		)	194			(7,247		)
Related party interest expense	—			—		(1,166		)	—			(1,166		)
Income before equity in income from unconsolidated joint ventures	(6,287		)	6,583		11,888			—			12,184
Equity in income from consolidated entities	17,236			—		—			(17,236		)	—
Equity in income from unconsolidated joint ventures	107			—		—			—			107
Net income and comprehensive income	11,056			6,583		11,888			(17,236		)	12,291
Noncontrolling interest in consolidated joint ventures	—			—		104			—			104
Preferred distributions - consolidated joint venture	—			—		(186		)	—			(186		)
Redemption of preferred capital - consolidated joint venture	—			—		(1,153		)	—			(1,153		)
Net income and comprehensive income attributable to FelCor LP	$	11,056		$	6,583	$	10,653		$	(17,236	)	$	11,056

FelCor Lodging Limited Partnership

Condensed Consolidating Statement of Cash Flows

For the Three Months Ended March 31, 2020

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating activities:
Cash flows from operating activities	$	883		$	21,822		$	34,477		$	—		$	57,182
Investing activities:
Improvements and additions to hotel properties	—			(9,161		)	(3,460		)	—			(12,621		)
Contributions to unconsolidated joint ventures	(100		)	—			—			—			(100		)
Intercompany financing	43,079			—			—			(43,079		)	—
Cash flows from investing activities	42,979			(9,161		)	(3,460		)	(43,079		)	(12,721		)
Financing activities:
Repayments of borrowings	—			—			(516		)	—			(516		)
Contributions from partners	24,641			—			—			—			24,641
Distributions to partners	(69,968		)	—			—			—			(69,968		)
Intercompany financing	—			(12,661		)	(30,418		)	43,079			—
Cash flows from financing activities	(45,327		)	(12,661		)	(30,934		)	43,079			(45,843		)
Net change in cash, cash equivalents, and restricted cash reserves	(1,465		)	—			83			—			(1,382		)
Cash, cash equivalents, and restricted cash reserves, beginning of year	2,432			—			21,287			—			23,719
Cash, cash equivalents, and restricted cash reserves, end of period	$	967		$	—		$	21,370		$	—		$	22,337

FelCor Lodging Limited Partnership

Condensed Consolidating Statement of Cash Flows

For the Three Months Ended March 31, 2019

(in thousands)



	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating activities:
Cash flows from operating activities	$	(1,236	)	$	10,947		$	15,502		$	—		$	25,213
Investing activities:
Improvements and additions to hotel properties	—			(3,714		)	(9,325		)	—			(13,039		)
Contributions to unconsolidated joint ventures	(603		)	—			—			—			(603		)
Intercompany financing	(33,305		)	—			—			33,305			—
Cash flows from investing activities	(33,908		)	(3,714		)	(9,325		)	33,305			(13,642		)
Financing activities:
Repayments of borrowings	—			—			(650		)	—			(650		)
Contributions from partners	73,846			—			—			—			73,846
Distributions to partners	(48,308		)	—			—			—			(48,308		)
Payments of deferred financing costs	—			(1		)	(1		)	—			(2		)
Preferred distributions - consolidated joint venture	—			—			(312		)	—			(312		)
Redemption of preferred capital - consolidated joint venture	—			—			(45,583		)	—			(45,583		)
Contributions from consolidated joint venture partners	—			—			2,281			—			2,281
Intercompany financing	—			(7,232		)	40,537			(33,305		)	—
Cash flows from financing activities	25,538			(7,233		)	(3,728		)	(33,305		)	(18,728		)
Net change in cash, cash equivalents, and restricted cash reserves	(9,606		)	—			2,449			—			(7,157		)
Cash, cash equivalents, and restricted cash reserves, beginning of year	11,219			—			13,343			—			24,562
Cash, cash equivalents, and restricted cash reserves, end of period	$	1,613		$	—		$	15,792		$	—		$	17,405