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-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RBge49vYGlhc+4safynKaWBYPgQjQw97J+GiPCHssqemb31M6uHGezqXNZ+X3L3m FNJ4iZAIQdsAFgDvCk1q8w== 0000950134-05-008719.txt : 20050503 0000950134-05-008719.hdr.sgml : 20050503 20050502194951 ACCESSION NUMBER: 0000950134-05-008719 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20050502 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050503 DATE AS OF CHANGE: 20050502 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FelCor Lodging Trust Inc CENTRAL INDEX KEY: 0000923603 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 752541756 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14236 FILM NUMBER: 05792553 BUSINESS ADDRESS: STREET 1: 545 E JOHN CARPENTER FREEWAY STREET 2: SUITE 1300 CITY: IRVING STATE: TX ZIP: 75062 BUSINESS PHONE: 9724444900 MAIL ADDRESS: STREET 1: 545 E JOHN CARPENTER FREEWAY STREET 2: SUITE 1300 CITY: IRVING STATE: TX ZIP: 75062 FORMER COMPANY: FORMER CONFORMED NAME: FELCOR LODGING TRUST INC DATE OF NAME CHANGE: 19980810 FORMER COMPANY: FORMER CONFORMED NAME: FELCOR SUITE HOTELS INC DATE OF NAME CHANGE: 19940523 8-K 1 d24912e8vk.htm FORM 8-K e8vk

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) May 2, 2005

FelCor Lodging Trust Incorporated

(Exact name of registrant as specified in its charter)


Maryland	001-14236	75-2541756

(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)


545 E. John Carpenter Frwy., Suite 1300 Irving, Texas		75062

(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (972) 444-4900

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 – Financial Information

Item 2.02 Results of Operations and Financial Condition.

On May 2, 2005, FelCor Lodging Trust Incorporated issued a press release announcing its results of operations for the three months ended March 31, 2005, and published its Supplemental Information for the three months ended March 31, 2005, which provides additional corporate data, financial highlights and portfolio statistical data. Copies of the press release and the Supplemental Information are furnished as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K. Copies of the foregoing are also available on FelCor Lodging Trust Incorporated’s website at www.felcor.com, on its Investor Relations page in the “Financial Reports” section.

The information in this Current Report on Form 8-K, including the exhibits, is provided under Item 2.02 of Form 8-K and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section. Furthermore, the information in this Current Report on Form 8-K, including the exhibits, shall not be deemed to be incorporated by reference into the filings of the registrant under the Securities Act of 1933 regardless of any general incorporation language in such filings.

Section 9 – Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(a)   Financial statements of businesses acquired.

    Not applicable.

(b)   Pro forma financial information.

    Not applicable.

(c)   Exhibits.

The following exhibits are furnished in accordance with the provisions of Item 601 of Regulation S-K:


Exhibit
Number		Description of Exhibit
99.1		Press release issued by FelCor Lodging Trust Incorporated on May 2, 2005, announcing its results of operations for the three months ended March 31, 2005.

99.2		Supplemental Information for the three months ended March 31, 2005, published by FelCor Lodging Trust Incorporated on May 2, 2005, providing additional corporate data, financial highlights and portfolio statistical data.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	FELCOR LODGING TRUST INCORPORATED

Date: May 2, 2005	By:	/s/ Lester C. Johnson

		Name: Lester C. Johnson Title: Senior Vice President and Controller

INDEX TO EXHIBITS


Exhibit
Number		Description of Exhibit
99.1		Press release issued by FelCor Lodging Trust Incorporated on May 2, 2005, announcing its results of operations for the three months ended March 31, 2005.

99.2		Supplemental Information for the three months ended March 31, 2005, published by FelCor Lodging Trust Incorporated on May 2, 2005, providing additional corporate data, financial highlights and portfolio statistical data.

EX-99.1 2 d24912exv99w1.htm PRESS RELEASE exv99w1


		FelCor Lodging Trust Incorporated 545 E. John Carpenter Freeway, Suite 1300 Irving, Texas 75062-3933 P 972.444.4900 F 972.444.4949 www.felcor.com NYSE: FCH		Exhibit 99.1

For Immediate Release:

FELCOR EXCEEDS FIRST QUARTER GUIDANCE
• Raises Full Year Guidance

IRVING, Texas...May 2, 2005 - FelCor Lodging Trust Incorporated (NYSE: FCH), one of the nation’s largest public hotel real estate investment trusts (REITs), today reported operating results for the first quarter ended March 31, 2005.

Highlights:

•   Same-Store EBITDA increased to $62 million from $56 million in the first quarter of 2004, a 10.4 percent increase. Adjusted EBITDA grew from $59 million in the first quarter of 2004 to $62 million in 2005 and exceeded the high end of guidance.

•   Adjusted FFO was $16 million, compared to $9 million for the same period last year and Adjusted FFO per share was $0.25, compared to $0.14 for the same period last year, an increase of 79 percent. Results for the first quarter exceeded our previous guidance of $0.19 to $0.22 per share.

•   Net loss applicable to common stockholders was $18 million, or a net loss of $0.30 per share, compared to the prior year first quarter net loss of $27 million, or $0.47 per share.

•   Revenue per available room (“RevPAR”) for the quarter increased 6.7 percent, compared to the same period in 2004, exceeding our original first quarter forecast RevPAR growth of between four and five percent. Average daily rate (“ADR”) made up 84 percent of our RevPAR growth for the quarter.

•   Hotel operating profit increased to $60 million for the quarter, compared to $54 million in the prior year, an increase of 10.7 percent. Hotel operating profit margin during the quarter was 20 percent, an increase of 100 basis points over the 19 percent margin last year.

“We are pleased with the progress that our hotels have made in increasing room rates and operating margins,” said Thomas J. Corcoran, Jr., FelCor’s President and CEO. “Our portfolio performance also is showing the positive effects of our repositioning strategy to sell underperforming hotels. We have disposed of 16 hotels since the end of the first quarter 2004. As a result of the disposition of these hotels our operating margin increased 60 basis points this year in addition to the 100 basis points increase on a same-store basis. We expect further improvement as we continue to sell our non-strategic hotels, which have margins that are significantly below those of our core portfolio.”

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted EBITDA, Same-Store EBITDA, Funds From Operations (“FFO”), Adjusted FFO, Hotel Operating Profit and Hotel Operating Margin are all non-GAAP financial measures. See our discussion of “Non-GAAP Financial Measures” beginning on page 7 for a reconciliation of each of these measures to our net loss and for information regarding the use, limitations and importance of these non-GAAP financial measures.

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FelCor Lodging Trust First Quarter 2005 Operating Results
May 2, 2005
Page 2

Capital Structure:

At March 31, 2005, we had $1.8 billion of debt outstanding with a weighted average life of five years, and approximately $126 million in cash and cash equivalents. The improvements that we have made to our capital structure over the past 12 months resulted in savings of approximately $8 million in interest expense for the quarter, compared to the same period last year.

On April 8, 2005, we completed the issuance of 5.4 million depositary shares representing our 8% Series C preferred stock, with gross proceeds of $135 million. The gross proceeds were used to redeem a like number of depositary shares representing our 9% Series B preferred stock. This transaction will result in a positive impact of approximately $1.4 million annually. Following the redemption, we had approximately $35 million of our Series B preferred stock remaining outstanding.

Other Highlights:

We expect our April total portfolio RevPAR to increase approximately 11 percent, compared to the same period in 2004.

During 2005, through April, we have sold two hotels for gross proceeds of $10 million and have one hotel under a firm sale contract for $38 million, which is expected to close in the second quarter 2005. During the second quarter, we expect to complete the process of surrendering eight limited service hotels, owned by a consolidated joint venture with Interstate Hotels and Resorts, to their non-recourse mortgage holders. These eight hotels have an aggregate fair market value below the outstanding debt balance of $49 million, are generally located in depressed markets and are expected to generate negative cash flow for the foreseeable future. We recorded $1.3 million in estimated disposition costs in the first quarter related to these hotels.

After disposing of the previously mentioned hotels, we will have 16 hotels remaining that we are marketing for sale. We expect gross proceeds from the dispositions of approximately $105 million and we expect to complete the sale of these hotels by mid-2006.

We have started construction on the Grand Palms project, consisting of 184 condominium units connected to our Hilton – Myrtle Beach Resort^® at Kingston Plantation in South Carolina.

Our capital expenditures for the quarter totaled $28 million and the rooms taken out of service in connection with these capital expenditures had a slight negative impact on operations.

We declared and paid first quarter dividends on our Series A preferred stock and our Series B preferred stock.

Today, we have officially re-launched our Web site, www.felcor.com. Our Web site offers numerous enhancements over our previous Web site, including greater details about the Company, our business strategy, hotel portfolio and brand relationships. Additionally, the Web site is more interactive and offers improved functionality.

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FelCor Lodging Trust First Quarter 2005 Operating Results
May 2, 2005
Page 3

2005 Guidance:

As the result of our improving outlook, we have revised our guidance for the remainder of the year.

We currently anticipate:

•   Adjusted EBITDA to be between $264 and $268 million for the year and between $78 and $80 million for the second quarter. Our previous 2005 guidance was between $259 million and $265 million, and did not reflect the $2 million reduction in EBITDA related to the surrender of our eight joint venture hotels to their mortgage holders. Thus, our revised guidance represents approximately a $6 million improvement in EBITDA for the year;

•   RevPAR for the full year 2005 to increase six to seven percent over 2004 RevPAR. For the second quarter, we also expect RevPAR growth to be between six and seven percent;

•   Adjusted FFO per share to be between $1.24 and $1.30 for 2005 and to be between $0.49 and $0.52 for the second quarter;

•   Net gain (loss) applicable to common stockholders per share to be between $(0.89) and $(0.96) for the full year 2005 and $0.02 and $0.05 for the second quarter. Included in this number is a gain of $7 million or $0.11 per share, related to the sale of our Embassy Suites Hotel^® – St. Louis-Downtown; and

•   Capital expenditures for 2005 are still expected to total approximately $100 million.

“Our better than expected operating performance and trends have led us to increase guidance for the remainder of the year,” said Richard A. Smith, FelCor’s Executive Vice President and Chief Financial Officer. “We expect that the majority of our intermediate-term RevPAR growth will continue to come from increases in ADR, which should continue to improve our hotel operating margin.”

We have published our First Quarter 2005 Supplemental Information, which provides additional corporate data, financial highlights and portfolio statistical data for the quarter ended March 31, 2005. Investors are encouraged to access the Supplemental Information on our Web site at www.felcor.com, on the Investor Relations page in the “Financial Reports” section. The Supplemental Information also will be furnished upon request. Requests may be made by e-mail to information@felcor.com or by writing to the Vice President of Investor Relations, FelCor Lodging Trust Incorporated, 545 E. John Carpenter Freeway, Suite 1300, Irving, Texas, 75062.

FelCor is one of the nation’s largest public lodging REITs and the nation’s largest owner of full service, all-suite hotels. FelCor’s portfolio is comprised of 142 consolidated hotels, located in 31 states and Canada. FelCor owns 69 upscale, all-suite hotels, and is the largest owner of Embassy Suites Hotels and Doubletree Guest Suites^®hotels. FelCor’s portfolio also includes 63 hotels in the upscale and full service segments. FelCor has a current market capitalization of approximately $3.0 billion. Additional information can be found on the Company’s Web site at www.felcor.com.

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FelCor Lodging Trust First Quarter 2005 Operating Results
May 2, 2005
Page 4

We invite you to listen to our First Quarter 2005 Conference Call on Tuesday, May 3, 2005, at 9:00 a.m. (Central Daylight Time). The conference call will be webcast simultaneously via FelCor’s Web site at www.felcor.com. Interested investors and other parties who wish to access the call should go to FelCor’s Web site and click on the conference call microphone icon on either the “Investor Relations” or “FelCor News” pages. A phone replay will be available from Tuesday, May 3, 2005, at 12:00 noon (Central Daylight Time), through Friday, June 3, 2005, at 7:00 p.m. (Central Daylight Time), by dialing 866-816-8948 (access code is 4837). A recording of the call also will be archived and available at www.felcor.com.

With the exception of historical information, the matters discussed in this news release include “forward looking statements” within the meaning of the federal securities laws. Forward looking statements are not guarantees of future performance. Numerous risks and uncertainties, and the occurrence of future events, may cause actual results to differ materially from those currently anticipated. General economic conditions, including the anticipated continuation of the current economic recovery, the impact of U.S. military involvement in the Middle East and elsewhere, future acts of terrorism, the impact on the travel industry of increased fuel prices and security precautions, the availability of capital, the ability to effect sales of non-strategic hotels at anticipated prices, and numerous other factors may affect future results, performance and achievements. Certain of these risks and uncertainties are described in greater detail in our filings with the Securities and Exchange Commission. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that actual results will not differ materially.


Contact:
Thomas J. Corcoran, Jr., President and CEO	(972) 444-4901	tcorcoran@felcor.com
Richard A. Smith, Executive Vice President and CFO	(972) 444-4932	rsmith@felcor.com
Stephen A. Schafer, Vice President of Investor Relations	(972) 444-4912	sschafer@felcor.com
Monica L. Hildebrand, Vice President of Communications	(972) 444-4917	mhildebrand@felcor.com

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FelCor Lodging Trust First Quarter 2005 Operating Results
May 2, 2005
Page 5

Consolidated Statements of Operations
(in thousands, except per share data)


	Three Months
	Ended March 31,
	2005			2004
Revenues:
Hotel operating revenue:
Room	$	242,490		$	229,271
Food and beverage		42,410			41,063
Other operating departments		14,898			15,168
Retail space rental and other revenue		156			245

Total revenues		299,954			285,747

Expenses:
Hotel departmental expenses:
Room		62,961			61,031
Food and beverage		33,516			33,093
Other operating departments		7,369			7,536
Other property related costs		89,787			84,811
Management and franchise fees		15,116			14,678
Taxes, insurance and lease expense		31,135			30,226
Corporate expenses		4,544			3,386
Depreciation		30,054			28,944

Total operating expenses		274,482			263,705

Operating income		25,472			22,042
Interest expense, net		(33,241	)		(41,124	)
Charge-off of deferred financing costs		—			(230	)
Asset disposition costs		(1,300	)		—

Loss before equity in income from unconsolidated entities, minority interests and gain on sale of assets		(9,069	)		(19,312	)
Equity in income from unconsolidated entities		1,131			982
Minority interests		925			1,156

Loss from continuing operations		(7,013	)		(17,174	)
Discontinued operations		(1,001	)		(3,525	)

Net loss		(8,014	)		(20,699	)
Preferred dividends		(10,091	)		(6,726	)

Net loss applicable to common stockholders	$	(18,105	)	$	(27,425	)

Basic and diluted per common share data:
Net loss from continuing operations	$	(0.29	)	$	(0.41	)

Net loss applicable to common stockholders	$	(0.30	)	$	(0.47	)

Weighted average common shares outstanding		59,416			58,937

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FelCor Lodging Trust First Quarter 2005 Operating Results
May 2, 2005
Page 6

Discontinued Operations
(in thousands)

Included in discontinued operations are the results of operations of the 18 hotels disposed of in 2004, one hotel designated as held for sale at December 31, 2004, and 16 hotels sold in 2003. Condensed financial information for the hotels included in discontinued operations is as follows:


	Three Months Ended
	March 31,
	2005			2004
Hotel operating revenue	$	3,203		$	29,869
Hotel operating expenses		3,712			28,950

Operating income (loss)		(509	)		919
Direct interest costs		—			3
Impairment loss		(559	)		—
Lease termination expense from asset disposition		—			(4,900	)
Gain on sale of assets		20			272
Minority interest in FelCor LP		47			181

Income (loss) from discontinued operations		(1,001	)		(3,525	)
Depreciation		443			1,950
Minority interest		(47	)		(181	)
Interest expense		—			(1	)

EBITDA from discontinued operations		(605	)		(1,757	)
Gain on sale of assets		(20	)		(272	)
Impairment loss		559			—
Lease termination expense from asset disposition		—			4,900

Adjusted EBITDA from discontinued operations	$	(66	)	$	2,871

Selected Balance Sheet Data
(in thousands)


	March 31,			December 31,
	2005			2004
Investment in hotels	$	3,879,908		$	3,909,021
Accumulated depreciation		(966,081	)		(948,631	)

Investments in hotels, net of accumulated depreciation	$	2,913,827		$	2,960,390

Total cash and cash equivalents	$	125,506		$	119,310

Total assets	$	3,318,269		$	3,317,658

Total debt	$	1,762,209		$	1,767,122

Total stockholders’ equity	$	1,313,752		$	1,330,323

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FelCor Lodging Trust First Quarter 2005 Operating Results
May 2, 2005
Page 7

Non-GAAP Financial Measures

We refer in this press release to certain “non-GAAP financial measures.” These measures, including FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, hotel operating profit and hotel operating margin, are measures of our financial performance that are not calculated and presented in accordance with generally accepted accounting principles (“GAAP”). The following tables set forth the adjustments made and reconcile each of these non-GAAP measures to the most comparable GAAP financial measure. Immediately following the reconciliations, we include a discussion of why we believe these measures are useful supplemental measures of our performance and of the limitations upon such measures.

Reconciliation of Net Loss to FFO and Adjusted FFO
(in thousands, except per share and unit data)


	Three Months Ended March 31,
	2005								2004
						Per Share								Per Share
	Dollars			Shares		Amount			Dollars			Shares		Amount
Net loss	$	(8,014	)						$	(20,699	)
Preferred dividends		(10,091	)							(6,726	)

Net loss applicable to common stockholders		(18,105	)		59,416	$	(0.30	)		(27,425	)		58,937	$	(0.47	)
Depreciation from continuing operations		30,054			—		0.51			28,944			—		0.49
Depreciation from unconsolidated entities and discontinued operations		2,708			—		0.05			3,724			—		0.06
Gain on sale of assets		(20	)		—		—			(272	)		—		(0.01	)
Minority interest in FelCor LP		(843	)		2,788		(0.04	)		(1,407	)		3,033		(0.01	)
Conversion of options and unvested restricted stock		—			421		—			—			201		—

FFO		13,794			62,625		0.22			3,564			62,171		0.06
Charge-off of deferred debt costs		—			—		—			230			—		—
Asset disposition costs		1,300			—		0.02			4,900			—		0.08
Impairment loss		559			—		0.01			—			—		—

Adjusted FFO	$	15,653			62,625	$	0.25		$	8,694			62,171	$	0.14

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FelCor Lodging Trust First Quarter 2005 Operating Results
May 2, 2005
Page 8

Reconciliation of Net Loss to EBITDA, Adjusted EBITDA and Same-Store EBITDA
(in thousands)


	Three Months Ended
	March 31,
	2005			2004
Net loss	$	(8,014	)	$	(20,699	)
Depreciation from continuing operations		30,054			28,944
Depreciation from unconsolidated entities and discontinued operations		2,708			3,724
Minority interest in FelCor Lodging LP		(843	)		(1,407	)
Interest expense		33,883			41,845
Interest expense from unconsolidated entities and discontinued operations		1,778			1,319
Amortization expense		597			503

EBITDA		60,163			54,229
Charge-off of deferred debt costs		—			230
Asset disposition costs		1,300			4,900
Gain on sale of assets		(20	)		(272	)
Impairment loss		559			—

Adjusted EBITDA		62,002			59,087
Adjusted EBITDA from discontinued operations		66			(2,871	)

Same-Store EBITDA	$	62,068		$	56,216

Reconciliation of Estimated Net Loss to Estimated FFO and EBITDA
(in millions, except per share and unit data)


	Second Quarter 2005 Guidance										Full Year 2005 Guidance
	Low Guidance					High Guidance					Low Guidance						High Guidance
				Per Share					Per Share					Per Share						Per Share
	Dollars			Amount^(a)		Dollars			Amount^(a)		Dollars			Amount ^(a)			Dollars			Amount ^(a)
Net income (loss)	$	11				$	13				$	(18	)				$	(14	)
Preferred dividends		(10	)				(10	)				(39	)					(39	)

Net income (loss) applicable to common stockholders		1		$	0.02		3		$	0.05		(57	)	$	(0.96	)		(53	)	$	(0.89	)
Gain on sale of assets		(7	)				(7	)				(7	)					(7	)
Depreciation		37					37					142						142
Minority interest in FelCor LP		—					—					(2	)					(2	)

FFO		31					33					76						80
Asset disposition costs		—					—					1						1
Impairment		—					—					1						1

Adjusted FFO	$	31		$	0.49	$	33		$	0.52	$	78		$	1.24		$	82		$	1.30

Net income (loss)	$	11				$	13				$	(18	)				$	(14	)
Depreciation		37					37					142						142
Minority interest in FelCor LP		—					—					(2	)					(2	)
Interest expense		34					34					137						137
Interest expense from unconsolidated entities		2					2					7						7
Amortization expense		1					1					3						3

EBITDA		85					87					269						273
Gain on sale of assets		(7	)				(7	)				(7	)					(7	)
Asset disposition costs		—					—					1						1
Impairment		—					—					1						1

Adjusted EBITDA	$	78				$	80				$	264					$	268

(a) Weighted average shares are 59.4 million. Adding minority interest and unvested restricted stock of 3.4 million shares to weighted average shares, provides the weighted average shares and units of 62.8 million used to compute FFO per share.

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FelCor Lodging Trust First Quarter 2005 Operating Results
May 2, 2005
Page 9

Hotel Operating Profit and Hotel Operating Margin
(dollars in thousands)


	Three Months
	Ended March 31,
	2005			2004
Total revenue	$	299,954		$	285,747
Retail space rental and other revenue		(156	)		(245	)

Hotel revenue		299,798			285,502
Hotel operating expenses		(239,884	)		(231,375	)

Hotel operating profit	$	59,914		$	54,127

Hotel operating margin		20.0	%		19.0	%

Hotel Operating Expense Composition
(dollars in thousands)


	Three Months Ended March 31,
	2005			2004
Hotel departmental expenses:
Room	$	62,961		$	61,031
Food and beverage		33,516			33,093
Other operating departments		7,369			7,536
Other property related costs:
Administrative and general		29,149			27,730
Marketing and advertising		26,679			25,344
Repairs and maintenance		17,397			16,764
Energy		16,562			14,973
Taxes, insurance and lease expense		31,135			30,226

Total other property related costs		120,922			115,037
Management and franchise fees		15,116			14,678

Hotel operating expenses	$	239,884		$	231,375

Reconciliation of total operating expense to hotel operating expense:
Total operating expenses	$	274,482		$	263,705
Corporate expenses		(4,544	)		(3,386	)
Depreciation		(30,054	)		(28,944	)

Hotel operating expenses	$	239,884		$	231,375

Substantially all of our non-current assets consist of real estate. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to be helpful in evaluating a real estate company’s operations. These supplemental measures, including FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, hotel operating profit and hotel operating margin, are not measures of operating performance under GAAP. However, we consider these non-GAAP measures to be supplemental measures of a REIT’s performance and should be considered along with, but not as an alternative to, net income as a measure of our operating performance.

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FelCor Lodging Trust First Quarter 2005 Operating Results
May 2, 2005
Page 10

FFO and EBITDA

The White Paper on Funds From Operations approved by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), defines FFO as net income or loss (computed in accordance with GAAP), excluding gains or losses from sales of property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. We compute FFO in accordance with standards established by NAREIT. This may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition, or that interpret the current NAREIT definition differently than we do.

EBITDA is a commonly used measure of performance in many industries. We define EBITDA as net income or loss (computed in accordance with GAAP) plus interest expenses, income taxes, depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect EBITDA on the same basis.

Adjustments to FFO and EBITDA

We adjust FFO and EBITDA when evaluating our performance because management believes that the exclusion of certain additional recurring and non-recurring items described below provides useful supplemental information to investors regarding our ongoing operating performance and that the presentation of Adjusted FFO, Adjusted EBITDA and Same-Store EBITDA, when combined with GAAP net income, EBITDA and FFO, is beneficial to an investor’s better understanding of our operating performance.

•   Gains and losses related to early extinguishment of debt and interest rate swaps – We exclude gains and losses related to early extinguishment of debt and interest rate swaps from FFO and EBITDA because we believe that it is not indicative of ongoing operating performance of our hotel assets. This also represents an acceleration of interest expense or a reduction of interest expense, and interest expense is excluded from EBITDA.

•   Impairment losses – We exclude the effect of impairment losses and gains or losses on disposition of assets in computing Adjusted FFO and Adjusted EBITDA because we believe that including these is not consistent with reflecting the ongoing performance of our remaining assets. Additionally, we believe that impairment charges and gains or losses on disposition of assets represent accelerated depreciation, or excess depreciation, and depreciation is excluded from FFO by the NAREIT definition and from EBITDA.

•   Cumulative effect of a change in accounting principle – Infrequently, the Financial Accounting Standards Board promulgates new accounting standards that require the consolidated statements of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments in computing Adjusted FFO and Adjusted EBITDA because they do not reflect our actual performance for that period.

In addition, to derive Adjusted EBITDA, we exclude gains or losses on the sale of assets because we believe that including them in EBITDA is not consistent with reflecting the ongoing performance of our remaining assets. Additionally, the gain or loss on sale of depreciable assets represents either accelerated depreciation or excess depreciation in previous periods, and depreciation is excluded from EBITDA.

To derive Same-Store EBITDA, we make the same adjustments to EBITDA as for Adjusted EBITDA and, additionally, exclude EBITDA from discontinued operations and gains and losses on the disposition of non-hotel related assets.

-more-

FelCor Lodging Trust First Quarter 2005 Operating Results
May 2, 2005
Page 11

Hotel Operating Profit and Operating Margin

Hotel operating profit and operating margin are commonly used measures of performance in the industry and give investors a more complete understanding of the operating results over which our individual hotels and operating managers have direct control. We believe that hotel operating profit and operating margin is useful to investors by providing greater transparency with respect to two significant measures used by us in our financial and operational decision-making. Additionally, these measures facilitate comparisons with other hotel REITs and hotel owners. We present hotel operating profit and hotel operating margin by eliminating corporate-level expenses, depreciation and expenses related to our capital structure. We eliminate corporate-level costs and expenses because we believe property-level results provide investors with supplemental information with respect to the ongoing operating performance of our hotels and the effectiveness of management in running our business on a property-level basis. We eliminate depreciation and amortization, even though they are property-level expenses, because we do not believe that these non-cash expenses, which are based on historical cost accounting for real estate assets and implicitly assume that the value of real estate assets diminish predictably over time, accurately reflect an adjustment in the value of our assets.

Use and Limitations of Non-GAAP Measures

Our management and Board of Directors use FFO, Adjusted FFO, EBITDA and Adjusted EBITDA to evaluate the performance of our hotels and to facilitate comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital intensive companies. Same-Store EBITDA is used to provide investors with supplemental information as to the ongoing operating performance of our hotels without regard to those hotels sold or held for sale at the date of presentation.

The use of these non-GAAP financial measures has certain limitations. FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, hotel operating profit and hotel operating margin, as presented by us, may not be comparable to FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, hotel operating profit and hotel operating margin as calculated by other real estate companies. These measures do not reflect certain expenses that we incurred and will incur, such as depreciation, interest and capital expenditures. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our reconciliations to the GAAP financial measures, and our consolidated statements of operations and cash flows, include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures.

These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. They should not be considered as alternatives to operating profit, cash flow from operations, or any other operating performance measure prescribed by GAAP. Neither should FFO, FFO per share, Adjusted FFO, Adjusted FFO per share, EBITDA, Adjusted EBITDA or Same-Store EBITDA be considered as measures of our liquidity or indicative of funds available for our cash needs, including our ability to make cash distributions. FFO per share does not measure, and should not be used as a measure of, amounts that accrue directly to the benefit of stockholders. FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, hotel operating profit and hotel operating margin reflect additional ways of viewing our operations that we believe when viewed with our GAAP results and the reconciliations to the corresponding GAAP financial measures provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. Management strongly encourages investors to review our financial information in its entirety and not to rely on any single financial measure.

###

EX-99.2 3 d24912exv99w2.htm SUPPLEMENTAL INFORMATION exv99w2

Exhibit 99.2

(FELCOR LOGO)

FelCor Lodging Trust Incorporated

Supplemental Information

Three Months Ended March 31, 2005

Date of Issuance May 2, 2005

All dollar amounts shown in this report are in U.S. dollars unless otherwise noted.
This Supplemental Information is neither an offer to sell nor a solicitation to buy any securities
of FelCor. Any offers to sell or solicitations to buy any securities of FelCor shall be made only
by means of a prospectus.

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

TABLE OF CONTENTS


	PAGE
CORPORATE DATA
About the Company		3
Board of Directors and Executive Officers		4
Equity Research Coverage		5
FINANCIAL HIGHLIGHTS
Supplemental Financial Data		6
Consolidated Statements of Operations		7
Discontinued Operations		8
Non-GAAP Financial Measures		8
Reconciliation of Net Loss to FFO and Adjusted FFO		9
Reconciliation of Net Loss to EBITDA, Adjusted EBITDA and Same-Store EBITDA		10
Hotel Operating Profit and Hotel Operating Margin		11
Hotel Operating Expense Composition		11
Debt Summary		15
PORTFOLIO DATA
Portfolio Distribution		17
Detailed Operating Statistics by Brand		18
Detailed Operating Statistics for FelCor’s Top Markets		19
Other Performance Statistics		20
Hotel Portfolio Information		21
Hotel Portfolio Listing		24

This supplement contains registered trademarks owned or licensed by companies other than us, which may include, but are not limited to, Candlewood Suites^®, Courtyard by Marriott^®, Crowne Plaza^®, Disneyland^®, Doubletree^®, Doubletree Guest Suites^®, Embassy Suites Hotels^®, Fairfield Inn^®, Four Points^® by Sheraton, Hampton Inn^®, Harvey Hotel^®, Harvey Suites^®, Hilton^®, Hilton Grand Vacations Company^®, Hilton Suites^®, Holiday Inn^®, Holiday Inn & Suites^®, Holiday Inn Express^®, Holiday Inn Express & Suites^®, Holiday Inn Select^®, Homewood Suites^® by Hilton, InterContinental^®, Priority Club^®, Sheraton^®, Sheraton Suites^®, St. Regis^®, Staybridge Suites^®, The Luxury Collection^®, W^®, Walt Disney World^®, Worlds of Fun^®, Westin^®, and Wyndham^®.

With the exception of historical information, the matters discussed in this supplement include “forward looking statements” within the meaning of the federal securities laws. Forward looking statements are not guarantees of future performance. Numerous risks and uncertainties, and the occurrence of future events, may cause actual results to differ materially from those currently anticipated. General economic conditions, including the timing and magnitude of the current recovery in the economy, the realization of anticipated job growth, the impact of U.S. military involvement in the Middle East and elsewhere, future acts of terrorism, the impact on the travel industry of increased security precautions, the availability of capital, the ability to effect sales of non-strategic hotels at anticipated prices, and numerous other factors may affect our future results, performance and achievements. Certain of these risks and uncertainties are described in greater detail under “Cautionary Factors That May Affect Future Results” in Item 1 above, or in our other filings with the Securities and Exchange Commission. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that actual results will not differ materially.

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

CORPORATE DATA

About the Company

In 1994, FelCor Lodging Trust Incorporated went public as a real estate investment trust (REIT) with six hotels and a market capitalization of $120 million. At March 31, 2005, FelCor was one of the nation’s largest lodging REITs and the nations’s largest owner of full service, all-suite hotels. FelCor’s portfolio was comprised of 143 consolidated hotels, including 141 hotels in continuing operations and two hotels that were “held for sale” and included in discontinued operations. For the 141 hotels included in continuing operations, the operating revenues and expenses are reflected in FelCor’s consolidated statements of operations because of our ownership interests of the operating lessees of these hotels. FelCor also owned 50% joint venture interests in five hotels whose operations were accounted for using the equity method. FelCor owned 69 full service, all-suite hotels, and was the largest owner of Embassy SuitesHotels and independently owned Doubletree Guest Suiteshotels. FelCor’s portfolio also included 64 hotels in the upscale and full service segments. The Company’s hotels were located in 31 states and Canada. FelCor had a market capitalization of approximately $3.0 billion at March 31, 2005.

Strategy

FelCor’s hotels are generally managed by the brand owners such as Hilton Hotels Corporation, InterContinental Hotels Group, and Starwood Hotels & Resorts. FelCor is competitively positioned to deliver superior long-term stockholder returns through its strong management team, diversified upscale and full-service hotels, and strategic brand manager alliances.

Stock and Debt Ratings


	Senior Unsecured Debt	Preferred Stock
Moody’s	B1	B3
Standard & Poors	B-	CCC

Stock Exchange Listing
Common Stock (NYSE: FCH)
$1.95 Series A Cumulative Convertible Preferred Stock (NYSE: FCHPRA)
9% Series B Cumulative Redeemable Preferred Stock (NYSE: FCHPRB)
8% Series C Cumulative Redeemable Preferred Stock (NYSE:FCHPRC)

Fiscal Year End
December 31

Number of employees
73

Corporate Headquarters
545 E. John Carpenter Frwy., Suite 1300
Irving, TX 75062
(972) 444-4900


Investor Relations Contact Stephen A. Schafer Vice President of Investor Relations (972) 444-4912 sschafer@felcor.com		Media Contact Monica L. Hildebrand Vice President of Communications (972) 444-4917 mhildebrand@felcor.com

Information Request
information@felcor.com

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Board of Directors

Donald J. McNamara, Chairman of the Board
Principal, The Hampstead Group

Thomas J. Corcoran, Jr.
President and Chief Executive Officer, FelCor Lodging Trust Incorporated

Melinda J. Bush, C.H.A.
Chairman and Chief Executive Officer, HRW Holdings, LLC

Richard S. Ellwood
President, R.S. Ellwood and Co., Inc.

Richard O. Jacobson
Chairman of the Board, Jacobson Warehouse Company, Inc.

David C. Kloeppel
Executive Vice President and Chief Financial Officer, Gaylord Entertainment Company

Charles A. Ledsinger, Jr.
President and Chief Executive Officer, Choice Hotels International

Robert H. Lutz, Jr.
President, RL Investments, Inc.

Robert A. Mathewson
President, RGC, Inc.

Michael D. Rose
Chairman, Gaylord Entertainment Company

Executive Officers

Thomas J. Corcoran, Jr., President and Chief Executive Officer

Richard A. Smith, Executive Vice President and Chief Financial Officer

Michael A. DeNicola, Executive Vice President and Chief Investment Officer

Lawrence D. Robinson, Executive Vice President, General Counsel and Secretary

Jack Eslick, Senior Vice President, Director of Asset Management

Lester C. Johnson, Senior Vice President, Controller and Principal Accounting Officer

June C. McCutchen, Senior Vice President, Director of Design and Construction

Larry J. Mundy, Senior Vice President, Director of Business Initiatives and Assistant General Counsel

Andrew J. Welch, Senior Vice President and Treasurer

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Equity Research Coverage


Firm	Analyst	Telephone
Calyon Securities (USA)	Smedes Rose	(212) 408-5649
Deutsche Bank North America	Marc J. Falcone	(212) 469-7417
Friedman, Billings, Ramsey, & Co.	David Loeb	(703) 469-1289
Green Street Advisors	John V. Arabia	(949) 640-8780
JPMorgan Securities	Harry C. Curtis	(212) 622-6610
Legg Mason Wood Walker, Inc.	Rod F. Petrik	(410) 454-4131
Lehman Brothers	Felicia Kantor Hendrix	(212) 526-5562
Merrill Lynch	David W. Anders	(212) 449-2739
Prudential Equity Group, LLC	James W. Sullivan	(212) 778-2515
Smith Barney Citigroup	Michael J. Rietbrock	(212) 816-7777
UBS (US)	William B. Truelove	(212) 713-3098
Wachovia Securities	Jeffrey J. Donnelly	(617) 603-4262

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

FINANCIAL HIGHLIGHTS

Supplemental Financial Data
(in thousands, except per share information, ratios and percentages)


	March 31,			December 31,
Total Enterprise Value	2005			2004
Common shares outstanding		59,845			59,817
Units outstanding		2,788			2,788

Combined shares and units outstanding		62,633			62,605
Common stock price at end of period	$	12.43		$	14.65

Common equity capitalization	$	778,528		$	917,163
Series A preferred stock		309,362			309,362
Series B preferred stock		169,395			169,395
Consolidated debt		1,762,209			1,767,122
Minority interest of consolidated debt		(5,599	)		(5,618	)
Pro rata share of unconsolidated debt		108,202			109,146
Cash and cash equivalents		(125,506	)		(119,310	)

Total enterprise value (TEV)	$	2,996,591		$	3,147,260

TEV per room^(a)	$	81		$	84
Pro rata rooms owned		37,147			37,338
Dividends Per Share
Dividends declared (quarter ended):
Series A preferred stock	$	0.4875		$	0.4875
Series B preferred stock (depository shares)		0.5625			0.5625
Selected Balance Sheet Data
Investment in hotels, at cost^(b)	$	3,879,908		$	3,909,021
Total cash and cash equivalents		125,506			119,310
Total assets		3,318,269			3,317,658
Total debt		1,762,209			1,767,122
Total stockholders’ equity		1,313,752			1,330,323
Total stockholders equity less preferred equity		834,995			851,566
Book value per common share outstanding		13.95			14.24

(a) Based on pro rata ownership.

(b) Investment in hotels, at cost, is defined as consolidated hotel book value (after impairment charges but before accumulated depreciation).

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Consolidated Statements of Operations
(in thousands, except per share data)


	Three Months Ended
	March 31,
	2005			2004
Revenues:
Hotel operating revenue:
Room	$	242,490		$	229,271
Food and beverage		42,410			41,063
Other operating departments		14,898			15,168
Retail space rental and other revenue		156			245

Total revenues		299,954			285,747

Expenses:
Hotel departmental expenses:
Room		62,961			61,031
Food and beverage		33,516			33,093
Other operating departments		7,369			7,536
Other property related costs		89,787			84,811
Management and franchise fees		15,116			14,678
Taxes, insurance and lease expense		31,135			30,226
Corporate expenses		4,544			3,386
Depreciation		30,054			28,944

Total operating expenses		274,482			263,705

Operating income		25,472			22,042
Interest expense, net		(33,241	)		(41,124	)
Charge-off of deferred financing costs		—			(230	)
Asset disposition costs		(1,300	)		—

Loss before equity in income from unconsolidated entities, minority interests and gain on sale of assets		(9,069	)		(19,312	)
Equity in income from unconsolidated entities		1,131			982
Minority interests		925			1,156

Loss from continuing operations		(7,013	)		(17,174	)
Discontinued operations		(1,001	)		(3,525	)

Net loss		(8,014	)		(20,699	)
Preferred dividends		(10,091	)		(6,726	)

Net loss applicable to common stockholders		(18,105	)		(27,425	)

Basic and diluted per common share data:
Net loss from continuing operations	$	(0.29	)	$	(0.41	)

Net loss	$	(0.30	)	$	(0.47	)

Weighted average common shares outstanding		59,416			58,937

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Discontinued Operations
(in thousands)

Included in discontinued operations are the results of operations of the 18 hotels disposed of in 2004, two hotels designated as held for sale at March 31, 2005, and one hotel sold in the first quarter 2005. Condensed financial information for the hotels included in discontinued operations is as follows:


	Three Months Ended
	March 31,
	2005			2004
Hotel operating revenue	$	3,203		$	29,869
Hotel operating expenses		3,712			28,950

Operating income		(509	)		919
Direct interest costs, net		—			3
Impairment loss		(559	)		—
Lease termination expense from asset disposition		—			(4,900	)
Gain (loss) on sale of assets		20			272
Minority interest in FelCor LP		47			181

Loss from discontinued operations		(1,001	)		(3,525	)
Depreciation		443			1,950
Minority interest		(47	)		(181	)
Interest expense		—			(1	)

EBITDA from discontinued operations		(605	)		(1,757	)
Loss (gain) on sale of assets		(20	)		(272	)
Impairment loss		559			—
Lease termination expense from asset disposition		—			4,900

Adjusted EBITDA from discontinued operations	$	(66	)	$	2,871

Non-GAAP Financial Measures

We refer in this Supplemental Information to certain “non-GAAP financial measures.” These measures, including FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, hotel operating profit and hotel operating margin are measures of our financial performance that are not calculated and presented in accordance with generally accepted accounting principles (“GAAP”). The following tables set forth the adjustments made and reconcile each of these non-GAAP measures to the most comparable GAAP financial measure. Immediately following the reconciliations, we include a discussion of why we believe these measures are useful supplemental measures of our performance and of the limitations upon such measures.

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Non-GAAP Financial Measures (continued)

Reconciliation of Net Loss to FFO and Adjusted FFO
(in thousands, except per share data)


	Three Months Ended March 31,
	2005								2004
						Per Share								Per Share
	Dollars			Shares		Amount			Dollars			Shares		Amount
Net loss	$	(8,014	)						$	(20,699	)
Preferred dividends		(10,091	)							(6,726	)

Net loss applicable to common stockholders		(18,105	)		59,416	$	(0.30	)		(27,425	)		58,937	$	(0.47	)
Depreciation from continuing operations		30,054			—		0.51			28,944			—		0.49
Depreciation from unconsolidated entities and discontinued operations		2,708			—		0.05			3,724			—		0.06
Loss (gain) on sale of assets		(20	)		—		—			(272	)		—		(0.01	)
Minority interest in FelCor LP		(843	)		2,788		(0.04	)		(1,407	)		3,033		(0.01	)
Conversion of options and unvested restricted stock		—			421		—			—			201		—

FFO		13,794			62,625		0.22			3,564			62,171		0.06
Charge off of deferred debt costs		—			—		—			230			—		—
Asset disposition costs		1,300			—		0.02			4,900			—		0.08
Impairment		559			—		0.01			—			—		—

Adjusted FFO	$	15,653			62,625	$	0.25		$	8,694			62,171	$	0.14

Reconciliation of Net Loss to EBITDA, Adjusted EBITDA and Same-Store EBITDA
(in thousands)


	Three Months Ended
	March 31,
	2005			2004
Net loss	$	(8,014	)	$	(20,699	)
Depreciation from continuing operations		30,054			28,944
Depreciation from unconsolidated entities and discontinued operations		2,708			3,724
Minority interest in FelCor Lodging LP		(843	)		(1,407	)
Interest expense		33,883			41,845
Interest expense from unconsolidated entities and discontinued operations		1,778			1,319
Amortization expense		597			503

EBITDA		60,163			54,229
Charge off of deferred debt costs		—			230
Asset disposition costs		1,300			4,900
Gain on sale of assets		(20	)		(272	)
Impairment		559			—

Adjusted EBITDA		62,002			59,087
Adjusted EBITDA from discontinued operations		66			(2,871	)

Same-Store EBITDA	$	62,068		$	56,216

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Non-GAAP Financial Measures (continued)

Hotel Operating Profit and Hotel Operating Margin
(dollars in thousands)


	Three Months Ended
	March 31,
	2005			2004
Total revenue	$	299,954		$	285,747
Retail space rental and other revenue		(156	)		(245	)

Hotel revenue		299,798			285,502
Hotel operating expenses		(239,884	)		(231,375	)

Hotel operating profit	$	59,914		$	54,127

Hotel operating margin		20.0	%		19.0	%

Hotel Operating Expense Composition
(dollars in thousands)


	Three Months Ended
	March 31,
	2005			2004
Hotel departmental expenses:
Room	$	62,961		$	61,031
Food and beverage		33,516			33,093
Other operating departments		7,369			7,536
Other property related costs:
Administrative and general		29,149			27,730
Marketing and advertising		26,679			25,344
Repairs and maintenance		17,397			16,764
Energy		16,562			14,973
Taxes, insurance and lease expense		31,135			30,226

Total other property related costs		120,922			115,037
Management and franchise fees		15,116			14,678

Hotel operating expenses	$	239,884		$	231,375

Reconciliation of total operating expense to hotel operating expense:
Total operating expenses	$	274,482		$	263,705
Corporate expenses		(4,544	)		(3,386	)
Depreciation		(30,054	)		(28,944	)

Hotel operating expenses	$	239,884		$	231,375

Supplemental information:
Compensation and benefits expense (included in hotel operating expenses)	$	97,903		$	94,458

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Non-GAAP Financial Measures (continued)

FFO and EBITDA

Adjustments to FFO and EBITDA

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Non-GAAP Financial Measures (continued)

• Impairment losses – We exclude the effect of impairment losses and gains or losses on disposition of assets in computing Adjusted FFO and Adjusted EBITDA because we believe that including these is not consistent with reflecting the ongoing performance of our remaining assets. Additionally, we believe that impairment charges and gains or losses on disposition of assets represent accelerated depreciation or excess depreciation, and depreciation is excluded from FFO by the NAREIT definition and from EBITDA.

• Cumulative effect of a change in accounting principle – Infrequently, the Financial Accounting Standards Board promulgates new accounting standards that require the consolidated statements of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments in computing Adjusted FFO and Adjusted EBITDA because they do not reflect our actual performance for that period.

In addition, to derive Adjusted EBITDA, we adjust EBITDA for Gains or losses on the sale of assets because we believe that including them in EBITDA is not consistent with reflecting ongoing performance of our remaining assets. Additionally, the gain or loss on sale of depreciable assets represents either accelerated depreciation or excess depreciation in previous periods, and depreciation is excluded from EBITDA.

Hotel Operating Profit and Operating Margin

Hotel operating profit and operating margin are commonly used measures of performance in the industry and give investors a more complete understanding of the operating results over which our individual hotels and operating managers have direct control. We believe that hotel operating profit and operating margin is useful to investors by providing greater transparency with respect to two significant measures used by us in our financial and operational decision-making. Additionally, using these measures facilitate comparisons with other hotel REITs and hotel owners. We present hotel operating profit and hotel operating margin by eliminating corporate-level expenses, depreciation and expenses related to our capital structure. We eliminate-corporate-level costs and expenses because we believe property-level results provide investors with supplemental information into the ongoing operation performance of our hotels and the effectiveness of management in running our business on a property-level basis. We eliminate depreciation and amortization because, even though depreciation and amortization are property-level expenses, these non-cash expenses, which are based on historical cost accounting for real estate assets, implicitly assumes that the value of real estate assets diminishes predictably over time.

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Non-GAAP Financial Measures (continued)

Use and Limitations of Non-GAAP Measures.

The use of these non-GAAP financial measures have certain limitations. FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, hotel operating profit and hotel operating margin, as presented by us, may not be comparable to FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, hotel operating profit and hotel operating margin as calculated by other real estate companies. These measures do not reflect certain expenses that we incurred and will incur, such as depreciation, interest and capital expenditures. Management compensates for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our reconciliations to the GAAP financial measures, and our consolidated statements of operations and cash flows, include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures.

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Debt Summary
(dollars in thousands)

Debt Outstanding


	Encumbered	Interest Rate At			Maturity	Consolidated
	Hotels	March 31, 2005			Date	Debt
Promissory note	none		4.72	%	June 2016	$	650
Senior unsecured term notes	none		7.63		Oct. 2007		122,659
Senior unsecured term notes	none		9.00		June 2011		298,472
Senior unsecured term notes^(a)	none		7.19		June 2011		290,000

Total unsecured debt			8.02				711,781

Mortgage debt	15 hotels		5.72		July 2009-2014		191,587
Mortgage debt	1 hotel		7.23		Sept. 2005		10,380
Mortgage debt ^(b)	10 hotels		5.13		May 2006		143,792
Mortgage debt	15 hotels		7.24		Nov. 2007		126,528
Mortgage debt	1 hotel		5.81		August 2008		15,500
Mortgage debt	7 hotels		7.32		April 2009		129,713
Mortgage debt	6 hotels		7.55		June 2009		67,700
Mortgage debt	8 hotels		8.70		May 2010		174,742
Mortgage debt	7 hotels		8.73		May 2010		135,283
Mortgage debt	8 hotels		7.48		April 2011		49,244
Other	1 hotel		9.17		August 2011		5,959

Total secured debt	79 hotels		7.14				1,050,428

Total			7.50	%		$	1,762,209

(a) The stated interest rate on this debt is LIBOR (2.6% at March 31, 2005) plus 4.25%. We have swapped $100 million of this floating rate debt for a fixed rate of 7.80%. The resulting weighted average rate on these notes was 7.19% at March 31, 2005.

(b) This debt has two, one-year extension options, subject to certain contingencies.


Fixed interest rate debt to total debt		74.9	%
Weighted average maturity of debt	5 years
Secured debt to total assets		31.7	%

At March 31, 2005, future scheduled principal payments on outstanding debt are as follows (in thousands):


	Secured			Unsecured
Year	Debt			Debt			Total
2005	$	27,019		$	—		$	27,019
2006		161,043	^(a)		—			161,043
2007		138,798			125,000			263,798
2008		34,595			—			34,595
2009 and thereafter		689,344			590,650			1,279,994
Premium/(discount)		(371	)		(3,869	)		(4,240	)

Total debt	$	1,050,428		$	711,781		$	1,762,209

(a) Included is a $145 million non-recourse mortgage loan maturing in 2006, that has two, one-year extension options, subject to certain contingencies.

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Debt Summary (continued)

At March 31, 2005, we had unconsolidated 50 percent investments in ventures that owned an aggregate of 20 hotels. These ventures had approximately $216 million of non-recourse mortgage debt, all of which is secured by hotel assets. Our pro rata share of this non-recourse debt is $108 million.

Financing transactions in 2005:

On April 8, 2005, we completed the issuance of 5.4 million depositary shares, each representing 1/100 of a share of our 8% Series C Cumulative Redeemable Preferred Stock, with gross proceeds of $135 million. The gross proceeds were used to redeem a like number of our 9% Series B Cumulative Redeemable Preferred Stock. The redemption of the Series B shares will result in a second quarter 2005 charge to income available to common shareholders of $5.2 million related to original issuance cost of the Series B shares redeemed.

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

PORTFOLIO DATA
Portfolio Distribution at March 31, 2005
(133 consolidated hotels included in continuing operations^(a), same store basis)


								% of 2004 Hotel
					% of			Operating
Brand	Hotels		Rooms		Total Rooms			Profit^(b)
Embassy Suites		55		13,982		37	%		51	%
Holiday Inn-branded		39		12,769		33			23
Sheraton-branded		10		3,269		9			10
Doubletree-branded		10		2,206		6			6
Crowne Plaza		12		4,025		10			5
Other		7		1,811		5			5


					% of			% of 2004 Hotel
Top Markets	Hotels		Rooms		Total Rooms			Operating Profit
Atlanta		10		3,061		8	%		9	%
Dallas		12		3,586		9			5
Los Angeles Area		6		1,492		4			5
Orlando		6		2,219		6			5
Boca Raton/Ft. Lauderdale		4		1,118		3			4
New Orleans		2		746		2			4
Minneapolis		4		955		3			4
Philadelphia		3		1,174		3			3
San Diego		1		600		2			3
Phoenix		3		798		2			3
San Antonio		4		1,189		3			3
Chicago		4		1,239		3			3
San Francisco Bay Area		8		2,690		7			3
Houston		4		1,403		4			3
Washington DC		1		437		1			3


					% of			% of 2004 Hotel
Top Four States	Hotels		Rooms		Total Rooms			Operating Profit
California		19		5,593		15	%		16	%
Texas		26		7,515		20			14
Florida		16		5,343		14			12
Georgia		12		3,415		9			9


					% of			% of 2004 Hotel
Location	Hotels		Rooms		Total Rooms			Operating Profit
Suburban		59		15,022		39	%		39	%
Urban		31		10,069		26			27
Airport		28		8,509		23			22
Resort		13		4,044		11			12
Interstate		2		418		1			0


					% of			% of 2004 Hotel
Segment	Hotels		Rooms		Total Rooms			Operating Profit
Upscale all-suite		68		16,848		44	%		59	%
Full service		39		12,823		34			23
Upscale		23		7,843		21			17
Limited service		3		548		1			1

^(a) We have excluded eight hotels, which we anticipate surrendering to the non-recourse debt holder during the second quarter of 2005.

^(b) Hotel operating profit is more fully described on page 10 of this supplement.

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Detailed Operating Statistics by Brand
(133 consolidated hotels included in continuing operations, same store basis)


	Occupancy (%)
	Three Months Ended March 31,
	2005		2004		% Variance
Embassy Suites Hotels		70.7		69.5		1.7
Holiday Inn-branded hotels		62.8		61.8		1.7
Sheraton-branded hotels		61.7		64.1		(3.7	)
Doubletree-branded hotels		65.1		68.6		(5.2	)
Crowne Plaza hotels		63.4		61.6		2.8
Other hotels		56.8		54.3		4.6
Total hotels		65.5		64.8		1.0


	ADR ($)
	Three Months Ended March 31,
	2005		2004		% Variance
Embassy Suites Hotels		126.15		119.27		5.8
Holiday Inn-branded hotels		83.19		80.35		3.5
Sheraton-branded hotels		107.78		97.57		10.5
Doubletree-branded hotels		113.77		103.79		9.6
Crowne Plaza hotels		92.35		88.94		3.8
Other hotels		91.39		86.55		5.6
Total hotels		105.24		99.68		5.6


	RevPAR ($)
	Three Months Ended March 31,
	2005		2004		% Variance
Embassy Suites Hotels		89.14		82.87		7.6
Holiday Inn-branded hotels		52.28		49.63		5.3
Sheraton-branded hotels		66.50		62.54		6.3
Doubletree-branded hotels		74.02		71.23		3.9
Crowne Plaza hotels		58.53		54.83		6.7
Other hotels		51.89		47.00		10.4
Total hotels		68.94		64.63		6.7

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Detailed Operating Statistics for FelCor’s Top Markets
(133 consolidated hotels included in continuing operations, same store basis)


	Occupancy (%)
	Three Months Ended March 31,
	2005		2004		% Variance
Atlanta		70.7		67.6		4.6
Dallas		53.3		52.4		1.7
Los Angeles Area		68.6		70.2		(2.3	)
Orlando		80.0		75.9		5.3
Boca Raton/Ft. Lauderdale		90.2		87.0		3.7
New Orleans		73.9		66.1		11.8
Minneapolis		65.5		62.6		4.5
Philadelphia		60.7		56.2		8.1
San Diego		81.5		86.4		(5.7	)
Phoenix		81.4		81.2		0.3
San Antonio		69.5		69.3		0.2
Chicago		61.4		62.2		(1.2	)
San Francisco Bay Area		62.3		61.7		0.8
Houston		69.3		73.7		(6.0	)
Washington DC		67.1		70.3		(4.6	)


	ADR ($)
	Three Months Ended March 31,
	2005		2004		% Variance
Atlanta		91.15		89.02		2.4
Dallas		95.55		90.87		5.1
Los Angeles Area		114.47		107.40		6.6
Orlando		94.97		83.80		13.3
Boca Raton/Ft. Lauderdale		159.94		139.05		15.0
New Orleans		147.33		147.76		(0.3	)
Minneapolis		122.77		120.42		2.0
Philadelphia		102.54		96.14		6.7
San Diego		122.73		114.93		6.8
Phoenix		146.46		137.44		6.6
San Antonio		86.00		84.96		1.2
Chicago		96.51		94.27		2.4
San Francisco Bay Area		110.69		108.04		2.4
Houston		70.01		74.16		(5.6	)
Washington DC		147.94		125.96		17.4


	RevPAR ($)
	Three Months Ended March 31,
	2005		2004		% Variance
Atlanta		64.47		60.17	7.1
Dallas		50.89		47.60	6.9
Los Angeles Area		78.48		75.36	4.1
Orlando		75.95		63.64	19.4
Boca Raton/Ft. Lauderdale		144.21		120.90	19.3
New Orleans		108.95		97.74	11.5
Minneapolis		80.36		75.43	6.5
Philadelphia		62.24		54.00	15.3
San Diego		100.03		99.28	0.8
Phoenix		119.25		111.61	6.8
San Antonio		59.73		58.88	1.5
Chicago		59.30		58.63	1.1
San Francisco Bay Area		68.91		66.71	3.3
Houston		48.50		54.63	(11.2	)
Washington DC		99.32		88.61	12.1

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Other Performance Statistics
(Consolidated hotels included in continuing operations, for period presented)

Variance to Prior Year


	Occupancy			ADR			RevPAR
	% Variance			% Variance			% Variance
2002:
First Quarter		(11.2	)		(7.8	)		(18.2	)
Second Quarter		(5.1	)		(6.3	)		(11.1	)
Third Quarter		2.4			(4.8	)		(2.4	)
Fourth Quarter		4.4			(1.3	)		3.1
Year 2002		(2.8	)		(5.5	)		(8.1	)
2003:
First Quarter		(1.2	)		(4.1	)		(5.3	)
Second Quarter		(3.0	)		(4.8	)		(7.6	)
Third Quarter		0.3			(2.7	)		(2.4	)
Fourth Quarter		0.6			(2.3	)		(1.7	)
Year 2003		(0.6	)		(3.8	)		(4.4	)
2004:
First Quarter 2004		5.2			(0.7	)		4.4
Second Quarter 2004		5.5			1.7			7.3
Third Quarter 2004		1.9			2.7			4.6
Fourth Quarter 2004		0.9			2.9			3.9
Year 2004		3.1			1.7			4.9
2005
January		1.9			5.1			7.1
February		0.8			6.2			7.0
March		0.4			5.2			5.7
First Quarter 2005		1.0			5.6			6.7
Estimated April 2005								11.0

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Hotel Portfolio Information

Pro Rata Share of Rooms Owned


			Room Count at
	Hotels		March 31, 2005
Consolidated hotels in continuing operations^(a)		141		39,502
Hotels held for sale		2		478
Unconsolidated hotel operations		5		761

Total hotels owned		148		40,741
50% and 51% joint ventures		28		(3,046	)
60% joint ventures		2		(390	)
90% joint ventures		6		(148	)
97% joint venture		1		(10	)

Total joint venture owned rooms				(3,594	)

Pro rata share of rooms owned				37,147

Capital Expenditures (dollars in thousands)


	Three Months Ended			Year Ended
	March 31, 2005			December 31, 2004
Consolidated hotels:
Improvements and additions to hotels	$	26,723		$	95,833
% of total revenue		8.8	%		7.6	%
Unconsolidated hotels (pro rata share):
Improvements and additions to hotels	$	1,484		$	6,359
% of total revenue		4.0	%		4.3	%

^(a) Eight of these 141 hotels have been excluded from the operating statistics on pages 16 – 18 of this supplemental information. These eight hotels are expected to be surrendered to the non-recourse mortgage lender in the second quarter of 2005. Under generally accepted accounting principles, hotels to be disposed of other than by sale continue to be included in continuing operations until the actual disposition date. The eight hotels, which are owned by our consolidated partnership with Interstate Hotels & Resorts, are as follows: Fairfield Inn Phoenix, Courtyard by Marriott Atlanta, Fairfield Inn Atlanta, Fairfield Inn Dallas, Fairfield Inn Houston I-10E, Hampton Inn Houston I-10E, Courtyard by Marriott Houston Galleria and Fairfield Inn Houston Galleria.

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Hotel Portfolio Information

Sale Hotels

At March 31, 2005, we included in continuing operations 16 hotels that we are actively marketing for sale. The composition, by brand, of the 16 sale hotels is as follows: Holiday Inn-branded (11), Doubletree branded (2) Embassy Suites (2), and Hampton Inn (1).

Operating statistics for our consolidated portfolio of 133 hotels included in continuing operations:


	Three Months Ended March 31,
	2005		2004		% Variance
Consolidated in Continuing Operations (133 hotels)
Occupancy (%)		65.5		64.8		1.0
ADR ($)		105.24		99.68		5.6
RevPAR ($)		68.94		64.63		6.7
Sale Hotels (16 hotels)
Occupancy (%)		58.3		54.7		6.5
ADR ($)		71.11		69.29		2.6
RevPAR ($)		41.44		37.90		9.3
Core Hotels (117 hotels)
Occupancy (%)		66.4		66.1		0.5
ADR ($)		109.00		102.84		6.0
RevPAR ($)		72.40		67.98		6.5

For the quarter ended March 31, 2005, the hotel operating margins for the Core Hotels were 21%, while the operating margins for the Sale Hotels were 10%.

Portfolio Changes in 2005

Dispositions:

• In January 2004 we disposed of the 191-room Holiday Inn in Salt Lake City for gross proceeds of $1.2 million.

• In April 2005 we disposed of the 181-room Olive Branch Whispering Woods Hotel and Conference Center for gross proceeds of $9.0 million.

Portfolio Changes in 2004

Acquisitions:

• In March 2004, we purchased the 132-room Santa Monica Holiday Inn for $27 million. This hotel has a premier location across from the Santa Monica Pier and the Santa Monica beaches and will continue to be operated as a full service upscale hotel. This hotel is classified as an upscale hotel by STR because of the high room rates charged in this market.


Dispositions:

• In 2004 we sold 17 non-strategic hotels for gross proceeds of approximately $157 million.

• On June 30, 2004, we transferred our leasehold interest in the San Francisco Holiday Inn Select Downtown & Spa to the lessor.

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Hotel Portfolio Listing
(as of March 31, 2005)

State

Rooms

% Owned^(a)

Brand

Consolidated Continuing Operations

Birmingham^(b)

242

Embassy Suites

Montgomery – East I-85^(b)

210

Holiday Inn

Phoenix – Biltmore^(b)

232

Embassy Suites

Phoenix Crescent Hotel^(b)

342

Sheraton

Phoenix Scottsdale/Downtown^(b)(c)

218

Fairfield Inn

Phoenix Tempe^(b)

224

Embassy Suites

Dana Point – Doheny Beach

195

Doubletree Guest Suites

Irvine – Orange County Airport (Newport Beach)

335

Crowne Plaza

Los Angeles – Anaheim (Located near
Disneyland Park)^(b)

222

Embassy Suites

Los Angeles – Covina/I-10^(b)

259

Embassy Suites

Los Angeles – El Segundo – International Airport –
South

349

Embassy Suites

Milpitas – Silicon Valley^(b)

266

Embassy Suites

Milpitas – San Jose-North (Milpitas – Silicon Valley)

305

Crowne Plaza

Napa Valley^(b)

205

Embassy Suites

Oxnard – Mandalay Beach Resort & Conference Center^(b)

248

Embassy Suites

Palm Desert – Palm Desert Resort^(b)

198

Embassy Suites

Pleasanton (San Ramon Area)

244

Crowne Plaza

San Diego – On the Bay

600

Holiday Inn

San Francisco – Burlingame Airport

340

Embassy Suites

San Francisco – South San Francisco Airport^(b)

312

Embassy Suites

San Francisco – Fisherman’s Wharf

585

Holiday Inn

San Francisco – Union Square

403

Crowne Plaza

San Rafael – Marin County/Conference Center^(b)

235

Embassy Suites

Santa Barbara – Goleta^(b)

160

Holiday Inn

Santa Monica – Beach at the Pier

132

Holiday Inn

Denver – Aurora^(b)

248

Doubletree

Stamford

380

Holiday Inn Select

Wilmington^(b)

244

Doubletree

Boca Raton^(b)

263

Embassy Suites

Cocoa Beach – Oceanfront

500

Holiday Inn

Deerfield Beach – Boca Raton/Deerfield Beach Resort^(b)

244

Embassy Suites

Ft. Lauderdale – 17th Street^(b)

358

Embassy Suites

Ft. Lauderdale – Cypress Creek^(b)

253

Sheraton Suites

Jacksonville – Baymeadows^(b)

277

Embassy Suites

Miami – International Airport^(b)

316

Embassy Suites

Miami – International Airport (LeJeune Center)

304

Crowne Plaza

Orlando – International Airport^(b)

288

Holiday Inn Select

Orlando – International Drive – Resort^(b)

651

Holiday Inn

Orlando – International Drive South/Convention Center^(b)

244

Embassy Suites

Orlando– Nikki Bird (Maingate – Walt Disney
World Area)

530

Holiday Inn

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Hotel Portfolio Listing
(as of March 31, 2005)

State

Rooms

% Owned^(a)

Brand

Orlando– (North)

277

Embassy Suites

Orlando – Walt Disney World Resort^(b)

229

Doubletree Guest Suites

Tampa – Busch Gardens

406

Holiday Inn

Tampa– On Tampa Bay^(b)

203

Doubletree Guest Suites

Atlanta – Airport^(b)

378

Crowne Plaza

Atlanta – Airport^(b)

233

Embassy Suites

Atlanta – Airport-North^(b)

493

Holiday Inn

Atlanta – Buckhead^(b)

317

Embassy Suites

Atlanta – Downtown^(b)(c)

211

Courtyard by Marriott

Atlanta – Downtown^(b)(c)

242

Fairfield Inn

Atlanta – Galleria^(b)

278

Sheraton Suites

Atlanta – Gateway – Atlanta Airport

395

Sheraton

Atlanta – Perimeter – Dunwoody^(b)

250

Holiday Inn Select

Atlanta – Perimeter Center^(b)

241

Embassy Suites

Atlanta – Powers Ferry^(b)

296

Crowne Plaza

Atlanta – South (I-75 & US 41)^(b)

180

Holiday Inn

Brunswick^(b)

130

Embassy Suites

Columbus – North (I-185 at Peachtree Mall)

224

Holiday Inn

Davenport

288

Holiday Inn

Chicago – The Allerton

443

Crowne Plaza

Chicago – Lombard/Oak Brook^(b)

262

Embassy Suites

Chicago – Northshore/Deerfield (Northbrook)^(b)

237

Embassy Suites

Chicago O’Hare Airport^(b)

297

Sheraton Suites

Moline – Airport

216

Holiday Inn

Moline – Airport Area

110

Holiday Inn Express

Indianapolis – North^(b)

221

Embassy Suites

Kansas City – Overland Park^(b)

199

Embassy Suites

Lexington^(b)

155

Sheraton Suites

Lexington – Lexington Green^(b)

174

Hilton Suites

Baton Rouge^(b)

223

Embassy Suites

New Orleans^(b)

372

Embassy Suites

New Orleans – French Quarter^(b)

374

Holiday Inn

Boston – Government Center

303

Holiday Inn Select

Boston – Marlborough^(b)

229

Embassy Suites

Baltimore – BWI Airport^(b)

251

Embassy Suites

Troy – North (Auburn Hills)^(b)

251

Embassy Suites

Bloomington^(b)

219

Embassy Suites

Minneapolis – Airport^(b)

310

Embassy Suites

Minneapolis – Downtown

216

Embassy Suites

St. Paul – Downtown^(b)

210

Embassy Suites

Kansas City – NE I-435 North (At Worlds of Fun)^(b)

165

Holiday Inn

Kansas City – Plaza^(b)

266

Embassy Suites

Jackson – North

222

Holiday Inn & Suites

Charlotte^(b)

274

Embassy Suites

Charlotte SouthPark

208

Doubletree Guest Suites

Raleigh^(b)

203

Doubletree Guest Suites

Raleigh – Crabtree^(b)

225

Embassy Suites

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Hotel Portfolio Listing
(as of March 31, 2005)

State

Rooms

% Owned^(a)

Brand

Omaha – Central

187

Doubletree Guest Suites

Omaha – Central

129

Hampton Inn

Omaha – Central (I-80)

383

Holiday Inn

Omaha – Old Mill^(b)

223

Crowne Plaza

Parsippany^(b)

274

Embassy Suites

Piscataway – Somerset^(b)

224

Embassy Suites

Secaucus – Meadowlands^(b)

261

Embassy Suites

Cleveland – Downtown

268

Embassy Suites

Tulsa – I-44^(b)

244

Embassy Suites

Philadelphia – Center City

445

Crowne Plaza

Philadelphia – Historic District^(b)

364

Holiday Inn

Philadelphia – Society Hill^(b)

365

Sheraton

Pittsburgh – At University Center (Oakland)^(b)

251

Holiday Inn Select

Charleston – Mills House (Historic Downtown)^(b)

214

Holiday Inn

Myrtle Beach – At Kingston Plantation

255

Embassy Suites

Myrtle Beach Resort

385

Hilton

Knoxville – Central At Papermill Road^(b)

240

Holiday Inn

Nashville – Airport/Opryland Area

296

Embassy Suites

Nashville – Opryland/Airport (Briley Parkway)

382

Holiday Inn Select

Amarillo – I-40

248

Holiday Inn

Austin^(b)

189

Doubletree Guest Suites

Austin – North^(b)

260

Embassy Suites

Austin – Town Lake (Downtown Area)^(b)

320

Holiday Inn

Corpus Christi^(b)

150

Embassy Suites

Dallas

295

Crowne Plaza Suites

Dallas – At Campbell Centre

300

Doubletree

Dallas – Dallas Park Central

114

Staybridge Suites

Dallas – DFW International Airport-North^(b)

164

Harvey Suites

Dallas – DFW International Airport-South^(b)

305

Embassy Suites

Dallas – Love Field^(b)

248

Embassy Suites

Dallas – Market Center^(b)

354

Crowne Plaza

Dallas – Market Center^(b)

244

Embassy Suites

Dallas – Park Central

438

Sheraton

Dallas – Park Central

536

Westin

Dallas – Park Central Area^(b)

279

Embassy Suites

Dallas – Regal Row^(b)(c)

203

Fairfield Inn

Dallas – West End/Convention Center

309

Hampton Inn

Houston – Greenway Plaza Area^(b)

355

Holiday Inn Select

Houston – I-10 East^(b)(c)

160

Fairfield Inn

Houston – I-10 East^(b)(c)

Hampton Inn

Houston – I-10 West & Hwy. 6 (Park 10 Area)

349

Holiday Inn Select

Houston – Intercontinental Airport^(b)

415

Holiday Inn

Houston – Medical Center^(b)

284

Holiday Inn & Suites

Houston – Near the Galleria^(b)(c)

209

Courtyard by Marriott

Houston – Near the Galleria^(b)(c)

107

Fairfield Inn

San Antonio – Downtown (Market Square)

315

Holiday Inn

San Antonio – International Airport^(b)

261

Embassy Suites

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2005

Hotel Portfolio Listing
(as of March 31, 2005)

State

Rooms

% Owned^(a)

Brand

San Antonio – International Airport^(b)

397

Holiday Inn Select

San Antonio – N.W. I-10^(b)

216

Embassy Suites

Waco – I-35

170

Holiday Inn

Burlington Hotel & Conference Center^(b)

309

Sheraton

Vienna – At Tysons Corner^(b)

437

Sheraton

Canada

Toronto – Airport

Ontario

445

Holiday Inn Select

Toronto – Yorkdale

Ontario

370

Holiday Inn

Hotel Included in Discontinued Operations

St. Louis – Downtown

297

Embassy Suites

Olive Branch Whispering Woods Hotel and Conference Center^(d)

181

Independent

Unconsolidated Operations

Hays^(b)

114

Hampton Inn

Hays^(b)

191

Holiday Inn

Salina^(b)

192

Holiday Inn

Salina – I-70^(b)

Holiday Inn Express & Suites

New Orleans – Chateau LeMoyne (In French
Quarter/Historic Area)^(b)

171

Holiday Inn

(a)   We own 100% of the real estate interests unless otherwise noted.

(b)   This hotel is encumbered by mortgage debt or capital lease obligation.

(c)   We currently expect to surrender this hotel to the non-recourse debt holder in the second quarter of 2005.

(d)   This hotel was sold subsequent to March 31, 2005.

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	(a)	Financial statements of businesses acquired.

		Not applicable.

	(b)	Pro forma financial information.

		Not applicable.

	(c)	Exhibits.

	•	Same-Store EBITDA increased to $62 million from $56 million in the first quarter of 2004, a 10.4 percent increase. Adjusted EBITDA grew from $59 million in the first quarter of 2004 to $62 million in 2005 and exceeded the high end of guidance.

	•	Adjusted FFO was $16 million, compared to $9 million for the same period last year and Adjusted FFO per share was $0.25, compared to $0.14 for the same period last year, an increase of 79 percent. Results for the first quarter exceeded our previous guidance of $0.19 to $0.22 per share.

	•	Net loss applicable to common stockholders was $18 million, or a net loss of $0.30 per share, compared to the prior year first quarter net loss of $27 million, or $0.47 per share.

	•	Revenue per available room (“RevPAR”) for the quarter increased 6.7 percent, compared to the same period in 2004, exceeding our original first quarter forecast RevPAR growth of between four and five percent. Average daily rate (“ADR”) made up 84 percent of our RevPAR growth for the quarter.

	•	Hotel operating profit increased to $60 million for the quarter, compared to $54 million in the prior year, an increase of 10.7 percent. Hotel operating profit margin during the quarter was 20 percent, an increase of 100 basis points over the 19 percent margin last year.

	•	Adjusted EBITDA to be between $264 and $268 million for the year and between $78 and $80 million for the second quarter. Our previous 2005 guidance was between $259 million and $265 million, and did not reflect the $2 million reduction in EBITDA related to the surrender of our eight joint venture hotels to their mortgage holders. Thus, our revised guidance represents approximately a $6 million improvement in EBITDA for the year;

	•	RevPAR for the full year 2005 to increase six to seven percent over 2004 RevPAR. For the second quarter, we also expect RevPAR growth to be between six and seven percent;

	•	Adjusted FFO per share to be between $1.24 and $1.30 for 2005 and to be between $0.49 and $0.52 for the second quarter;

	•	Net gain (loss) applicable to common stockholders per share to be between $(0.89) and $(0.96) for the full year 2005 and $0.02 and $0.05 for the second quarter. Included in this number is a gain of $7 million or $0.11 per share, related to the sale of our Embassy Suites Hotel^® – St. Louis-Downtown; and

	•	Capital expenditures for 2005 are still expected to total approximately $100 million.

	•	Gains and losses related to early extinguishment of debt and interest rate swaps – We exclude gains and losses related to early extinguishment of debt and interest rate swaps from FFO and EBITDA because we believe that it is not indicative of ongoing operating performance of our hotel assets. This also represents an acceleration of interest expense or a reduction of interest expense, and interest expense is excluded from EBITDA.

	•	Impairment losses – We exclude the effect of impairment losses and gains or losses on disposition of assets in computing Adjusted FFO and Adjusted EBITDA because we believe that including these is not consistent with reflecting the ongoing performance of our remaining assets. Additionally, we believe that impairment charges and gains or losses on disposition of assets represent accelerated depreciation, or excess depreciation, and depreciation is excluded from FFO by the NAREIT definition and from EBITDA.

	•	Cumulative effect of a change in accounting principle – Infrequently, the Financial Accounting Standards Board promulgates new accounting standards that require the consolidated statements of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments in computing Adjusted FFO and Adjusted EBITDA because they do not reflect our actual performance for that period.

(a)	Based on pro rata ownership.

(b)	Investment in hotels, at cost, is defined as consolidated hotel book value (after impairment charges but before accumulated depreciation).

(a)	The stated interest rate on this debt is LIBOR (2.6% at March 31, 2005) plus 4.25%. We have swapped $100 million of this floating rate debt for a fixed rate of 7.80%. The resulting weighted average rate on these notes was 7.19% at March 31, 2005.

(b)	This debt has two, one-year extension options, subject to certain contingencies.

	•	In January 2004 we disposed of the 191-room Holiday Inn in Salt Lake City for gross proceeds of $1.2 million.

	•	In April 2005 we disposed of the 181-room Olive Branch Whispering Woods Hotel and Conference Center for gross proceeds of $9.0 million.

	•	In 2004 we sold 17 non-strategic hotels for gross proceeds of approximately $157 million.

	•	On June 30, 2004, we transferred our leasehold interest in the San Francisco Holiday Inn Select Downtown & Spa to the lessor.

(a)	We own 100% of the real estate interests unless otherwise noted.

(b)	This hotel is encumbered by mortgage debt or capital lease obligation.

(c)	We currently expect to surrender this hotel to the non-recourse debt holder in the second quarter of 2005.

(d)	This hotel was sold subsequent to March 31, 2005.