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 43 hotels as of June 30, 2015, two of which were held for sale. At June 30, 2015, we had an aggregate of 143,939,535 shares and units outstanding, consisting of 143,328,073 shares of FelCor common stock and 611,462 FelCor LP units not owned by FelCor.

Of our 41 hotels as of June 30, 2015 (excluding the two hotels held for sale), we owned 100% interests in 38 hotels, a 95% interest in one hotel (The Knickerbocker) and 50% interests in entities owning two hotels. The Knickerbocker opened in February 2015, and, based on its partial completion as of June 30, 2015, we have classified $274.7 million of this development as investment in hotels, with the remaining investment ($51.2 million) classified as hotel development. We consolidate our real estate interests in the 39 hotels in which we held majority interests, and we record the real estate interests of the two hotels in which we held indirect 50% interests using the equity method. We lease 40 of the 41 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 our operating lessees, we consolidate our interests in all 40 leased hotels (which we refer to as our Consolidated Hotels) and reflect their operating revenues and expenses in our statements of operations. Of our Consolidated Hotels, we own 50% of the real estate interest in one hotel (we account for the ownership in our real estate interest of this hotel by the equity method) and majority real estate interests in our remaining 39 hotels (we consolidate our real estate interests in these hotels).

The following table illustrates the distribution of our 40 Consolidated Hotels at June 30, 2015:



Brand	Hotels	Rooms
Embassy Suites Hotels^®	18	4,982
Wyndham^®and Wyndham Grand^®	8	2,528
Marriott^®and Renaissance^®	3	1,321
Holiday Inn^®	2	968
DoubleTreeby Hilton^® and Hilton^®	3	802
Sheraton^®	2	673
Fairmont^®	1	383
The Knickerbocker	1	330
Morgans and Royalton	2	285
Total	40	12,272

At June 30, 2015, our Consolidated Hotels were located in 15 states, with concentrations in California (11 hotels), Florida (six hotels) and Massachusetts (three hotels). Approximately 61% of our revenue was generated from hotels in these three states during the first six months of 2015.

At June 30, 2015, of our 40 Consolidated Hotels: (i) subsidiaries of Hilton Worldwide, or Hilton, managed 20 hotels, (ii) subsidiaries of Wyndham Worldwide, 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 two hotels, (v) subsidiaries of Starwood Hotels & Resorts Worldwide Inc., or Starwood, managed two hotels, (vi) a subsidiary of Fairmont Raffles Hotels International, or Fairmont, managed one hotel, (vii) a subsidiary of Highgate Hotels, or Highgate,

1. Organization — (continued)

managed one hotel, (viii) a subsidiary of Morgans Hotel Group Corporation managed two hotels, and (ix) an independent management company managed one hotel.

The information in our consolidated financial statements for the three and six months ended June 30, 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 and six months ended June 30, 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 and six months ended June 30, 2015 are not necessarily indicative of actual operating results for the entire year.