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

12 Months Ended

Dec. 31, 2013

FelCor Lodging LP [Member]

Condensed Financial Statements, Captions [Line Items]

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 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.

In the third quarter of 2013, we revised FelCor LP’s Consolidating Financial Information related to (1) the presentation of intercompany notes between a Subsidiary Guarantor, a Non-Guarantor Subsidiary, and FelCor LP and (2) the presentation of accumulated other comprehensive income and the related foreign currency translation adjustment. Certain intercompany notes owed by a Subsidiary Guarantor to one of the Non-Guarantor Subsidiaries were historically included within equity as a component of common units. These amounts have been reclassified to properly reflect the notes as intercompany debt in the consolidating balance sheet of the Subsidiary Guarantor and as other assets in the consolidating balance sheet of the Non-Guarantor Subsidiary. Additionally, FelCor LP had historically presented the accumulated other comprehensive income related to its subsidiaries within common units of FelCor LP. These amounts were reclassified to properly state accumulated other comprehensive income as a separate component of FelCor LP’s equity in the consolidating balance sheet. Similarly, the related foreign currency translation adjustment was added as a foreign currency translation adjustment to FelCor LP in the consolidating statement of comprehensive income.

The quantitative impacts of this revision on the condensed consolidating financial information as of December 31, 2012 and for the years ended December 31, 2012 and 2011 are described in Note 11 to Felcor's September 30, 2013 Form 10-Q. Management evaluated the impact of the above corrections on all previously issued condensed consolidating financial statements and concluded the impact was not material.

The following tables present consolidating information for the Subsidiary Guarantors.

25. FelCor LP's Consolidating Financial Information — (continued)

FELCOR LODGING LIMITED PARTNERSHIP

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, at redemption value	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

25. FelCor LP's Consolidating Financial Information — (continued)

FELCOR LODGING LIMITED PARTNERSHIP

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			16,187		(11,240		)	23,391
Total assets	$	1,700,017		$	1,187,800		$	877,233	$	(1,562,617	)	$	2,202,433
Debt, net	$	1,273,587		$	11,240		$	356,938	$	(11,240	)	$	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			107,226			379,078		(11,240		)	1,777,512
Redeemable units, at redemption value	2,902			—			—		—			2,902
Preferred units	478,774			—			—		—			478,774
Common units	(110,258		)	1,076,067			449,159		(1,525,226		)	(110,258		)
Accumulated other comprehensive income	26,151			4,782			21,369		(26,151		)	26,151
Total FelCor LP partners’ capital	394,667			1,080,849			470,528		(1,551,377		)	394,667
Noncontrolling interests	—			(275		)	27,627		—			27,352
Total partners’ capital	394,667			1,080,574			498,155		(1,551,377		)	422,019
Total liabilities and partners’ capital	$	1,700,017		$	1,187,800		$	877,233	$	(1,562,617	)	$	2,202,433

25. FelCor LP's Consolidating Financial Information — (continued)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSEDCONSOLIDATING STATEMENT OF OPERATIONS

For the Year Ended December 31, 2013

(in thousands)

	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues:
Hotel operating revenue	$	—		$	890,006		$	—		$	—		$	890,006
Percentage lease revenue	5,041			—			62,903			(67,944		)	—
Other revenue	9			2,976			445			—			3,430
Total revenue	5,050			892,982			63,348			(67,944		)	893,436
Expenses:
Hotel operating expenses	—			600,931			—			—			600,931
Taxes, insurance and lease expense	2,078			148,932			13,128			(67,944		)	96,194
Corporate expenses	553			17,966			8,477			—			26,996
Depreciation and amortization	4,438			71,898			43,288			—			119,624
Impairment loss	14,294			—			10,147			—			24,441
Conversion expenses	23			666			445			—			1,134
Other expenses	3,179			3,166			2,404			—			8,749
Total operating expenses	24,565			843,559			77,889			(67,944		)	878,069
Operating income	(19,515		)	49,423			(14,541		)	—			15,367
Interest expense, net	(84,206		)	(1,270		)	(18,311		)	—			(103,787		)
Gain on involuntary conversion, net	—			—			41			—			41
Loss before equity in income from unconsolidated entities	(103,721		)	48,153			(32,811		)	—			(88,379		)
Equity in income from consolidated entities	40,276			—			—			(40,276		)	—
Equity in income from unconsolidated entities	4,183			449			(46		)	—			4,586
Loss from continuing operations	(59,262		)	48,602			(32,857		)	(40,276		)	(83,793		)
Income from discontinued operations	(2,739		)	1,842			18,907			—			18,010
Net loss	(62,001		)	50,444			(13,950		)	(40,276		)	(65,783		)
Loss attributable to noncontrolling interests	—			788			2,994			—			3,782
Net loss attributable to FelCor LP	(62,001		)	51,232			(10,956		)	(40,276		)	(62,001		)
Preferred distributions	(38,713		)	—			—			—			(38,713		)
Net loss attributable to FelCor LP common unitholders	$	(100,714	)	$	51,232		$	(10,956	)	$	(40,276	)	$	(100,714	)

25. FelCor LP's Consolidating Financial Information — (continued)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSEDCONSOLIDATING STATEMENT OF OPERATIONS

For the Year Ended December 31, 2012

(in thousands)

	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues:
Hotel operating revenue	$	—		$	858,941		$	—		$	—		$	858,941
Percentage lease revenue	5,160			—			71,858			(77,018		)	—
Other revenue	21			2,752			412			—			3,185
Total revenue	5,181			861,693			72,270			(77,018		)	862,126
Expenses:
Hotel operating expenses	—			587,813			—			—			587,813
Taxes, insurance and lease expense	1,424			153,444			14,316			(77,018		)	92,166
Corporate expenses	533			17,015			8,580			—			26,128
Depreciation and amortization	4,778			63,533			48,073			—			116,384
Conversion expenses	487			14,210			16,500			—			31,197
Other expenses	685			3,375			566			—			4,626
Total operating expenses	7,907			839,390			88,035			(77,018		)	858,314
Operating income	(2,726		)	22,303			(15,765		)	—			3,812
Interest expense, net	(86,617		)	(16,052		)	(18,883		)	—			(121,552		)
Debt extinguishment	(55,056		)	(6,395		)	(10,899		)	—			(72,350		)
Loss before equity in income from unconsolidated entities	(144,399		)	(144		)	(45,547		)	—			(190,090		)
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		)	92			(45,593		)	(13,038		)	(187,311		)
Income from discontinued operations	(77		)	(9,745		)	67,719			—			57,897
Net loss	(128,849		)	(9,653		)	22,126			(13,038		)	(129,414		)
Loss attributable to noncontrolling interests	—			779			(214		)	—			565
Net loss attributable to FelCor LP	(128,849		)	(8,874		)	21,912			(13,038		)	(128,849		)
Preferred distributions	(38,713		)	—			—			—			(38,713		)
Net loss attributable to FelCor LP common unitholders	$	(167,562	)	$	(8,874	)	$	21,912		$	(13,038	)	$	(167,562	)

25. FelCor LP's Consolidating Financial Information — (continued)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSEDCONSOLIDATING STATEMENT OF OPERATIONS

For the Year Ended December 31, 2011

(in thousands)

	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Revenues:
Hotel operating revenue	$	—		$	805,541		$	—		$	—		$	805,541
Percentage lease revenue	4,787			—			62,569			(67,356		)	—
Other revenue	10			2,593			346			—			2,949
Total revenue	4,797			808,134			62,915			(67,356		)	808,490
Expenses:
Hotel operating expenses	—			555,615			—			—			555,615
Taxes, insurance and lease expense	1,593			135,131			13,759			(67,356		)	83,127
Corporate expenses	291			17,719			11,070			—			29,080
Depreciation and amortization	4,590			59,044			46,864			—			110,498
Impairment loss	—			4,315			—			—			4,315
Other expenses	122			3,674			221			—			4,017
Total operating expenses	6,596			775,498			71,914			(67,356		)	786,652
Operating income	(1,799		)	32,636			(8,999		)	—			21,838
Interest expense, net	(90,543		)	(17,517		)	(17,984		)	—			(126,044		)
Debt extinguishment	(27,354		)	(16		)	(270		)	—			(27,640		)
Gain on involuntary conversion, net	(21		)	316			—			—			295
Loss before equity in loss from unconsolidated entities	(119,717		)	15,419			(27,253		)	—			(131,551		)
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		)	14,987			(27,299		)	10,099			(133,619		)
Income from discontinued operations	863			(18,919		)	20,780			—			2,724
Net loss	(130,543		)	(3,932		)	(6,519		)	10,099			(130,895		)
Loss attributable to noncontrolling interests	—			367			(15		)	—			352
Net loss attributable to FelCor LP	(130,543		)	(3,565		)	(6,534		)	10,099			(130,543		)
Preferred distributions	(38,713		)	—			—			—			(38,713		)
Net loss attributable to FelCor LP common unitholders	$	(169,256	)	$	(3,565	)	$	(6,534	)	$	10,099		$	(169,256	)

25.    FelCor LP's Consolidating Financial Information — (continued)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For the Year Ended December 31, 2013

(in thousands)

	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Net loss	$	(62,001	)	$	50,444		$	(13,950	)	$	(40,276	)	$	(65,783	)
Foreign currency translation adjustment	(1,108		)	(213		)	(895		)	1,108			(1,108		)
Comprehensive loss	(63,109		)	50,231			(14,845		)	(39,168		)	(66,891		)
Comprehensive loss attributable to noncontrolling interests	—			788			2,994			—			3,782
Comprehensive loss attributable to FelCor LP	$	(63,109	)	$	51,019		$	(11,851	)	$	(39,168	)	$	(63,109	)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For the Year Ended December 31, 2012

(in thousands)

	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Net loss	$	(128,849	)	$	(9,653	)	$	22,126		$	(13,038	)	$	(129,414	)
Foreign currency translation adjustment	303			16			287			(303		)	303
Comprehensive loss	(128,546		)	(9,637		)	22,413			(13,341		)	(129,111		)
Comprehensive loss attributable to noncontrolling interests	—			779			(214		)	—			565
Comprehensive loss attributable to FelCor LP	$	(128,546	)	$	(8,858	)	$	22,199		$	(13,341	)	$	(128,546	)

25. FelCor LP's Consolidating Financial Information — (continued)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For the Year Ended December 31, 2011

(in thousands)

	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations		Total Consolidated
Net loss	$	(130,543	)	$	(3,932	)	$	(6,519	)	$	10,099	$	(130,895	)
Foreign currency translation adjustment	(726		)	45			(771		)	726		(726		)
Comprehensive loss	(131,269		)	(3,887		)	(7,290		)	10,825		(131,621		)
Comprehensive loss attributable to noncontrolling interests	—			367			(15		)	—		352
Comprehensive loss attributable to FelCor LP	$	(131,269	)	$	(3,520	)	$	(7,305	)	$	10,825	$	(131,269	)

25.    FelCor LP's Consolidating Financial Information — (continued)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSEDCONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2013

(in thousands)

	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating activities:
Cash flows from operating activities	$	(55,959	)	$	114,777		$	9,643		$	—		$	68,461
Investing activities:
Improvements and additions to hotels	2,383			(61,239		)	(42,501		)	—			(101,357		)
Hotel development	—			—			(60,553		)	—			(60,553		)
Net proceeds from asset dispositions	9,650			17,750			71,420			—			98,820
Distributions from unconsolidated entities	8,159			1,625			—			—			9,784
Contributions to unconsolidated entities	—			(1,500		)	—			—			(1,500		)
Intercompany financing	73,730			—			—			(73,730		)	—
Other	—			239			699			—			938
Cash flows from investing activities	93,922			(43,125		)	(30,935		)	(73,730		)	(53,868		)
Financing activities:
Proceeds from borrowings	—			—			164,000			—			164,000
Repayment of borrowings	—			—			(136,902		)	—			(136,902		)
Distributions paid to preferred unitholders	(38,713		)	—			—			—			(38,713		)
Intercompany financing	—			(69,561		)	(4,169		)	73,730			—
Other	(2,335		)	832			(1,510		)	—			(3,013		)
Cash flows from financing activities	(41,048		)	(68,729		)	21,419			73,730			(14,628		)
Effect of exchange rate changes on cash	—			(65		)	—			—			(65		)
Change in cash and cash equivalents	(3,085		)	2,858			127			—			(100		)
Cash and cash equivalents at beginning of period	8,312			30,425			7,008			—			45,745
Cash and cash equivalents at end of period	$	5,227		$	33,283		$	7,135		$	—		$	45,645

25.    FelCor LP's Consolidating Financial Information — (continued)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSEDCONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2012

(in thousands)

	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating activities:
Cash flows from operating activities	$	(82,558	)	$	69,045		$	60,822		$	—		$	47,309
Investing activities:
Improvements and additions to hotels	(7,760		)	(79,696		)	(34,019		)	—			(121,475		)
Hotel development	—			—			(24,849		)	—			(24,849		)
Net proceeds from asset dispositions	(14		)	4,236			193,391			—			197,613
Distributions from unconsolidated entities	12,914			625			—			—			13,539
Intercompany financing	(49,051		)	—			—			49,051			—
Other	—			5,285			1,028			—			6,313
Cash flows from investing activities	(43,911		)	(69,550		)	135,551			49,051			71,141
Financing activities:
Proceeds from borrowings	525,000			—			473,611			—			998,611
Repayment of borrowings	(299,542		)	(208,027		)	(535,796		)	—			(1,043,365		)
Payment of deferred financing costs	(7,719		)	(26		)	(10,125		)	—			(17,870		)
Distributions paid to preferred unitholders	(106,461		)	—			—			—			(106,461		)
Intercompany financing	—			169,919			(120,868		)	(49,051		)	—
Other	—			2,001			559			—			2,560
Cash flows from financing activities	111,278			(36,133		)	(192,619		)	(49,051		)	(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

25. FelCor LP's Consolidating Financial Information — (continued)

FELCOR LODGING LIMITED PARTNERSHIP

CONDENSEDCONSOLIDATING STATEMENT OF CASH FLOWS

For the Year Ended December 31, 2011

(in thousands)

	FelCor LP			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Total Consolidated
Operating activities:
Cash flows from operating activities	$	(84,572	)	$	66,994		$	63,443		$	—		$	45,865
Investing activities:
Acquisition of hotels	—			(137,985		)	—			—			(137,985		)
Improvements and additions to hotels	(3,810		)	(45,005		)	(40,227		)	—			(89,042		)
Hotel development	—			—			(119,611		)	—			(119,611		)
Net proceeds from asset dispositions	14,132			22,258			96,384			—			132,774
Intercompany financing	(458,506		)	—			—			458,506			—
Other	1,488			(3,171		)	3,127			—			1,444
Cash flows from investing activities	(446,696		)	(163,903		)	(60,327		)	458,506			(212,420		)
Financing activities:
Proceeds from borrowings	525,000			—			562,285			—			1,087,285
Repayment of borrowings	(233,761		)	(1,517		)	(900,544		)	—			(1,135,822		)
Payment of deferred financing costs	(14,081		)	(10		)	(6,142		)	—			(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	—			425			6,542			—			6,967
Intercompany financing	—			122,484			336,022			(458,506		)	—
Other	2,500			(1,053		)	—			—			1,447
Cash flows from financing activities	399,421			120,329			(1,837		)	(458,506		)	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