8-K

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) February 7, 2006

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 February 7, 2006, FelCor Lodging Trust Incorporated issued a press release announcing its results of operations for the three months and year ended December 31, 2005, and published its Supplemental Information for the three months and year ended December 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 February 7, 2006, announcing its results of operations for the three months and year ended December 31, 2005.
99.2	Supplemental Information for the three months and year ended December 31, 2005, published by FelCor Lodging Trust Incorporated on February 7, 2006, 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: February 7, 2006	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 February 7, 2006, announcing its results of operations for the three months and year ended December 31, 2005.
99.2	Supplemental Information for the three months and year ended December 31, 2005, published by FelCor Lodging Trust Incorporated on February 7, 2006, providing additional corporate data, financial highlights and portfolio statistical data.

EX-99.1

     

For Immediate Release: Exhibit 99.1

FELCOR EXCEEDS FOURTH QUARTER EXPECTATIONS
• RevPAR Increases 16 Percent

     IRVING, Texas...February 7, 2006 - FelCor Lodging Trust Incorporated (NYSE: FCH), one of the nation’s largest hotel real estate investment trusts (REITs), today reported operating results for the fourth quarter and year ended December 31, 2005.

Fourth Quarter Results:

• Revenue Per Available Room (“RevPAR”) increased 16.2 percent, compared to the same period in 2004. Average Daily Rate (“ADR”) increased 7.1 percent.

• Hotel Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) increased to $72.2 million, compared to $60.1 million in the prior year quarter, an increase of 20.2 percent. Hotel EBITDA margin was 24.1 percent, representing a 166 basis point improvement to the prior year Hotel EBITDA margin of 22.4 percent.

• Adjusted Funds From Operations (“FFO”) were $13.3 million, an $8.3 million increase from the prior year period. Adjusted FFO per share increased to $0.21, compared to $0.08 in the prior year, an increase of 163 percent.

• Same-Store EBITDA increased by $6.7 million to $58.5 million, or 13.0 percent to prior year. Adjusted EBITDA increased $6.2 million to $58.7 million, or 11.7 percent to prior year.

• Included in Adjusted EBITDA and Adjusted FFO is a $4.2 million, or $0.07 per share, negative impact stemming from hurricane losses related to insurance deductibles as a result of Hurricane Wilma.

• Net loss applicable to common stockholders was $274.9 million, or $4.62 per share, compared to a net loss of $20.9 million, or $0.35 per share, in the fourth quarter of 2004.

• Included in the net loss applicable to common stockholders was a fourth quarter impairment charge of $263.1 million associated with the repositioning of our portfolio and the identification of additional non-strategic hotels following an amendment of the InterContinental Hotels Group (“IHG”) agreements.

Full Year Results:

• RevPAR for the year increased 10.8 percent, compared to 2004. ADR increased 6.2 percent.

• Hotel EBITDA increased to $305.4 million, compared to $268.1 million in the prior year, an increase of 13.9 percent. Hotel EBITDA margin was 25.2 percent, an increase of 115 basis points over the 24.1 percent prior year margin.

• Adjusted FFO was $86.0 million, a $23.3 million improvement from the prior year period. Adjusted FFO per share was $1.37, an increase of $0.36 per share, or 35.6 percent over the prior year.

• Same-Store EBITDA increased $31.7 million, to $264.8 million, or 13.6 percent to prior year. Adjusted EBITDA grew by $12.1 million, to $271.0 million, a 4.7 percent increase to prior year.

• Included in Adjusted EBITDA and Adjusted FFO is a $6.5 million negative impact stemming from hurricane losses related to insurance deductibles in 2005 and $2.1 million in 2004.

• Net loss applicable to common stockholders was $297.5 million, or $5.01 per share, compared to a net loss of $135.3 million, or $2.29 per share, in 2004.

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FelCor Lodging Trust 2005 Operating Results
February 7, 2006
Page 2

• Included in the net loss applicable to common stockholders was a fourth quarter impairment charge of $263.1 million associated with the repositioning of our portfolio and the identification of additional non-strategic hotels following an amendment of the IHG agreements.

Fourth Quarter Events:

     Included in the fourth quarter Adjusted EBITDA, Adjusted FFO and net loss applicable to common stockholders are hurricane losses aggregating $4.2 million, representing our best estimate of uninsured losses at five of our hotels in southern Florida (including our insurance deductible) from Hurricane Wilma.

     In the fourth quarter, we recorded an impairment charge in continuing operations associated with the repositioning of our portfolio following an agreement with IHG amending our management agreements. This resulted in the identification of 38 non-strategic hotels owned on December 1, 2005, 31 of which were IHG-managed hotels. These non-strategic hotels are located primarily in secondary and tertiary markets, including Texas and Atlanta, Georgia, where we have an excess concentration of hotels. Although these hotels represent 31 percent of our hotel rooms, they represent only 15 percent of our Hotel EBITDA. These hotels have significantly lower RevPAR and Hotel EBITDA margins than our remaining 90 core hotels.

     During the fourth quarter, we refinanced or retired indebtedness totaling $259 million which was secured by 25 of our hotels using a $225 million unsecured term loan facility and excess cash. In conjunction with the refinancing and the debt retirement, we incurred $14.5 million of costs associated with the early extinguishment of debt.

     Better than expected increases in the number of room nights sold and in ADR, in both the transient and group segments, resulted in double digit RevPAR increases in most of our key markets, including Atlanta, Los Angeles, Dallas, Phoenix, New Orleans, Washington D.C., San Francisco Bay area, Philadelphia and Chicago.

     RevPAR was especially strong in Atlanta and Texas, following Hurricane Katrina, as RevPAR increased 29 percent in Atlanta and 31 percent in Texas during the fourth quarter, primarily from gains in average occupancy. This was partially offset by the softness in Florida, as the hotels there were recovering from the effects of Hurricane Wilma. We had rooms out of service in the fourth quarter at our three New Orleans hotels and certain Florida hotels as a result of damage sustained from hurricanes Katrina and Wilma.

     Notwithstanding the unusually high increases in utility and property and liability insurance expense, the strong RevPAR performance provided a 166 basis point improvement in our Hotel EBITDA margin for the quarter.

     “This is an exciting time for FelCor. We are pleased with our continued strong performance in RevPAR and ADR in 2005, as well as far exceeding our expectations. Our repositioning plan has set the stage for further growth,” said Thomas J. Corcoran, Jr., FelCor’s Chairman of the Board. “FelCor has entered a new era and the future is very bright for our Company.”

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FelCor Lodging Trust 2005 Operating Results
February 7, 2006
Page 3

Capital Structure:

     At December 31, 2005, we had $1.7 billion of debt outstanding with a weighted average life of five years, compared to $1.8 billion at December 31, 2004. Our cash and cash equivalents totaled approximately $95 million at the end of 2005.

     During 2005, we issued 6.8 million depositary shares representing our 8% Series C Preferred Stock, with gross proceeds of $169.4 million. The proceeds were used to redeem all of the shares outstanding of our 9% Series B Preferred Stock. As a result of this redemption, we recorded a reduction in net income applicable to common stockholders of $6.5 million for the original issuance cost of the Series B preferred stock which was redeemed.

     In January, we retired our $225 million unsecured term loan facility and established a new $125 million unsecured line of credit.

The New FelCor:

     On January 25, 2006, we announced the completion of an agreement modifying the current management agreements covering all our owned hotels managed by IHG. This agreement enables us to complete our repositioning program and creates the “New FelCor.”

     The completion of the agreement with IHG enables us to sell our non-strategic hotels and use the proceeds to reduce debt and invest in high return-on-investment capital projects at our remaining core hotels. The New FelCor will be a lower-leveraged company with a much stronger and fully renovated portfolio. Our repositioned portfolio will provide a solid platform for future growth in today’s strong RevPAR environment.

     Following the sale of the non-strategic hotels, New FelCor will have significantly lower exposure to markets with low barriers to entry, such as Atlanta, Dallas, Houston and Omaha and will be more geographically diverse with no market contributing more than six percent of EBITDA.

     “Our asset disposition program continues to be a success. As we complete our repositioning program and focus on improving the existing portfolio through renovations and repositionings, our portfolio will be positioned to have above average growth,” said Richard A. Smith, FelCor’s President and CEO.

Hotel Dispositions:

     In 2005, we disposed of 19 hotels for gross proceeds and forgiveness of debt aggregating $128 million. During January 2006, we sold eight hotels for gross proceeds of $163 million.

     We currently have 27 hotels that we are actively marketing for sale. Gross proceeds from the disposition of these hotels are expected to be approximately $325 and $375 million.

Other Highlights:

     In 2005, we started construction on the Royale Palms condominium development in Myrtle Beach, South Carolina. This project is more than 90 percent pre-sold and is expected to be completed in the summer of 2007.

     Our consolidated capital expenditures for the fourth quarter and full year totaled $38 million and $124 million, respectively.

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FelCor Lodging Trust 2005 Operating Results
February 7, 2006
Page 4

     In the fourth quarter of 2005 we resumed paying a common dividend, with a $0.15 per share dividend paid on December 1, 2005, and declared and paid fourth quarter dividends on our Series A and Series C preferred stock. We will evaluate the level of the common dividend each quarter.

2006 Guidance:

     We anticipate that during 2006, RevPAR will increase 7 to 9 percent for the consolidated hotels, with the majority of the increase attributable to gains in ADR. RevPAR during the first quarter is expected to increase between 10 and 12 percent to prior year. Based on those expectations, we currently anticipate:

• Adjusted EBITDA to be between $282 and $289 million for the full year and between $70 and $72 million for the first quarter;

• Adjusted FFO per share to be between $1.79 and $1.90 for the full year, and to be between $0.42 and $0.45 for the first quarter;

• Hotel EBITDA margin will increase at least 100 basis points for the year; and

• Capital expenditures to be between $175 and $200 million for the full year.

     Our January RevPAR increased approximately 18 percent to prior year.

     Our first quarter estimates include the receipt of $5 million in business interruption proceeds as a result of hurricane losses from 2005.

     There are no future asset sales assumed in our guidance. We will adjust our quarterly guidance as asset sales occur. Consequently, we are assuming no further debt reduction, beyond what has occurred to date.

     EBITDA, Adjusted EBITDA, Same-Store EBITDA, Hotel EBITDA, Hotel EBITDA margin, FFO and Adjusted FFO are all non-GAAP financial measures. See our discussion of “Non-GAAP Financial Measures” beginning on page 9 for a reconciliation of each of these measures to our net income and for information regarding the use, limitations and importance of these non-GAAP financial measures.

     We have published our Year End 2005 Supplemental Information, which provides additional corporate data, financial highlights and portfolio statistical data for the quarter and year ended December 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 hotel REITs and the nation’s largest owner of full service, all-suite hotels. FelCor’s portfolio is comprised of 117 consolidated hotels, located in 28 states and Canada. FelCor’s portfolio includes 64 upper upscale, all-suite hotels, and FelCor is the largest owner of Embassy Suites Hotels^® and Doubletree Guest Suites^® hotels. FelCor’s hotels are flagged under global brands such as Embassy Suites Hotels, Doubletree^®, Hilton^®, Sheraton^®, Westin^®, and Holiday Inn^®. FelCor has a current market capitalization of approximately $3.2 billion. Additional information can be found on the Company’s Web site at www.felcor.com.

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FelCor Lodging Trust 2005 Operating Results
February 7, 2006
Page 5

     We invite you to listen to our 2005 Conference Call on Wednesday, February 8, 2006, at 9:00 a.m. (Central Standard Time). The conference call will be Web cast 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 Wednesday, February 8, 2006, at 12:00 p.m. (Central Standard Time), through Friday, March 3, 2006, at 7:00 p.m. (Central Standard Time), by dialing 877-461-2816 (access code is 1180#). 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 impact that the bankruptcy of additional major air carriers may have on our revenues and receivables, 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., Chairman of the Board	(972) 444-4901	tcorcoran@felcor.com
Richard A. Smith, President and CEO	(972) 444-4932	rsmith@felcor.com
Andrew J. Welch, Executive Vice President and CFO	(972) 444-4982	awelch@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 2005 Operating Results
February 7, 2006
Page 6

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

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Revenues:
Hotel operating revenue:
Room	$	237,041		$	208,121		$	975,128		$	886,478
Food and beverage		48,200			45,919			174,537			168,391
Other operating departments		14,479			13,796			60,465			58,284
Retail space rental and other revenue		141			129			2,049			2,721
Total revenues		299,861			267,965			1,212,179			1,115,874
Expenses:
Hotel departmental expenses:
Room		63,183			58,235			253,563			238,807
Food and beverage		36,546			34,967			135,558			132,561
Other operating departments		7,492			7,220			30,356			29,028
Other property related costs		89,556			81,342			353,070			323,587
Management and franchise fees		14,854			13,161			61,348			57,305
Taxes, insurance and lease expense		29,181			23,513			122,186			109,310
Abandoned projects		265			—			265			—
Corporate expenses		4,917			5,506			19,025			17,035
Depreciation		30,528			28,668			119,323			111,836
Total operating expenses		276,522			252,612			1,094,694			1,019,469
Operating income		23,339			15,353			117,485			96,405
Interest expense, net		(31,948	)		(32,552	)		(130,954	)		(145,666	)
Impairment loss		(263,091	)		(3,494	)		(263,091	)		(3,494	)
Hurricane loss		(4,172	)		—			(6,481	)		(2,125	)
Loss on early extinguishment of debt		(11,921	)		(4,983	)		(11,921	)		(44,216	)
Charge-off of deferred financing costs		(2,659	)		(866	)		(2,659	)		(6,960	)
Gain on swap termination		—			—			—			1,005
Loss before equity in income from unconsolidated entities, minority interests and gain on sale of assets		(290,452	)		(26,542	)		(297,621	)		(105,051	)
Equity in income from unconsolidated entities		1,941			1,428			10,169			17,121
Minority interests		21,891			1,923			23,813			5,229
Gain on sale of assets		—			73			733			1,167
Loss from continuing operations		(266,620	)		(23,118	)		(262,906	)		(81,534	)
Discontinued operations		1,410			12,348			11,291			(18,593	)
Net loss		(265,210	)		(10,770	)		(251,615	)		(100,127	)
Preferred dividends		(9,679	)		(10,091	)		(39,408	)		(35,130	)
Issuance costs of redeemed preferred stock		—			—			(6,522	)		—
Net loss applicable to common stockholders	$	(274,889	)	$	(20,861	)	$	(297,545	)	$	(135,257	)
Basic and diluted per common share data:
Net loss from continuing operations	$	(4.65	)	$	(0.56	)	$	(5.20	)	$	(1.98	)
Net loss	$	(4.62	)	$	(0.35	)	$	(5.01	)	$	(2.29	)
Weighted average common shares outstanding		59,453			59,192			59,436			59,045

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FelCor Lodging Trust 2005 Operating Results
February 7, 2006
Page 7

Discontinued Operations
(in thousands)

     Included in discontinued operations are the results of operations of the 18 hotels disposed of in 2004, and 19 hotels disposed of in 2005. Condensed financial information for the hotels included in discontinued operations is as follows:

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Operating revenue	$	3,813		$	22,333		$	45,970		$	145,007
Operating expenses		(3,781	)		(24,087	)		(43,299	)		(141,530	)
Operating income (loss)		32			(1,754	)		2,671			3,477
Direct interest costs, net		—			(861	)		(918	)		(3,943	)
Impairment loss		(1,800	)		(1,768	)		(3,660	)		(34,795	)
Asset disposition costs		—			—			(1,300	)		(4,900	)
Gain on early extinguishment of debt		742			—			3,280			—
Gain on sale of depreciable assets		2,501			17,306			11,736			19,422
Minority interests		(65	)		(575	)		(518	)		2,146
Income (loss) from discontinued operations		1,410			12,348			11,291			(18,593	)
Depreciation		212			1,742			3,212			9,680
Minority interest in FelCor LP		65			575			518			(865	)
Interest expense		—			864			922			2,465
EBITDA from discontinued operations		1,687			15,529			15,943			(7,313	)
Gain on sale of assets		(2,501	)		(17,306	)		(11,736	)		(19,422	)
Impairment loss		1,800			1,768			3,660			34,795
Gain on early extinguishment of debt		(742	)		—			(3,280	)		—
Asset disposition costs		—			—			1,300			4,900
Adjusted EBITDA from discontinued operations	$	244		$	(9	)	$	5,887		$	12,960

Selected Balance Sheet Data
(in thousands)

	December 31,			December 31,
	2005			2004
Investment in hotels	$	3,606,502		$	3,904,397
Accumulated depreciation		(1,019,123	)		(948,631	)
Investments in hotels, net of accumulated depreciation	$	2,587,379		$	2,955,766
Total cash and cash equivalents	$	94,564		$	119,310
Total assets	$	2,919,094		$	3,317,658
Total debt	$	1,675,280		$	1,767,122
Total stockholders’ equity	$	1,031,793		$	1,330,323

     At December 31, 2005, we had an aggregate of 60,209,499 shares of FelCor common stock and 2,762,540 units of FelCor LP limited partnership interest outstanding.

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FelCor Lodging Trust 2005 Operating Results
February 7, 2006
Page 8

Debt Summary
(dollars in thousands)

	Encumbered		Interest Rate at			Maturity	Consolidated
	Hotels		December 31, 2005			Date	Debt
Promissory note	none			6.31		June 2016	$	650
Senior unsecured term notes	none			7.63		October 2007		123,358
Senior unsecured term notes	none			9.00		June 2011		298,660
Term loan(a)	none			5.81		October 2006		225,000
Senior unsecured term notes	none			8.48	(b)	June 2011		290,000
Total unsecured debt				7.89				937,668
Mortgage debt	9 hotels			6.52		July 2014		104,282
Mortgage debt	8 hotels			6.63		May 2006(c)		117,913
Mortgage debt	7 hotels			7.32		April 2009		127,455
Mortgage debt	4 hotels			7.55		June 2009		41,912
Mortgage debt	8 hotels			8.70		May 2010		172,604
Mortgage debt	7 hotels			8.73		May 2010		133,374
Mortgage debt	1 hotel			6.77		August 2008		15,500
Mortgage debt	1 hotel			7.91		December 2007		10,457
Other	1 hotel			9.17		August 2011		5,204
Construction loan(d)		—		6.47		October 2007		8,911
Total secured debt	46 hotels			7.69				737,612
Total				7.80	%		$	1,675,280

(a)	This note was paid off in January 2006.
(b)	The stated interest rate on this debt is six month LIBOR (4.58% at December 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 8.48% at December 31, 2005.
(c)	This debt has two, one-year extension options, subject to certain contingencies.
(d)	The Company has a $69.8 million recourse construction loan facility for the development of a 184-unit condominium project in Myrtle Beach, South Carolina. The interest on this facility is currently based on LIBOR plus 225 basis points and is being capitalized as part of the cost of the project. The interest rate may be reduced to LIBOR plus 200 basis points when the project is 55% complete and upon satisfaction of certain other requirements.

Fixed interest rate debt to total debt		67.2	%
Weighted average maturity of debt	5 years
Secured debt to total assets		25.3	%

Preferred Stock
(dollars in thousands)

	Liquidation Value at
	December 31, 2005
Series A Cumulative Convertible Preferred Stock	$	322,012
Series C Cumulative Redeemable Preferred Stock	$	169,950

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FelCor Lodging Trust 2005 Operating Results
February 7, 2006
Page 9

Non-GAAP Financial Measures

     We refer in this supplement to certain “non-GAAP financial measures.” These measures, including FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, Hotel EBITDA and Hotel EBITDA margin, are measures of our financial performance that are not calculated and presented in accordance with generally accepted accounting principles (“GAAP”). The following tables 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 December 31,
	2005								2004
						Per Share								Per Share
	Dollars			Shares		Amount			Dollars			Shares		Amount
Net loss	$	(265,210	)						$	(10,770	)
Preferred dividends		(9,679	)							(10,091	)
Net loss applicable to common stockholders		(274,889	)		59,453	$	(4.62	)		(20,861	)		59,192	$	(0.35	)
Depreciation from continuing operations		30,528					0.51			28,668					0.48
Depreciation from unconsolidated entities and discontinued operations		2,784					0.05			4,401					0.07
Gain on sale of depreciable assets		(2,501	)				0.04			(17,306	)				(0.29	)
Minority interest in FelCor LP		(12,623	)		2,763		(0.11	)		(974	)		2,789		(0.01	)
FFO		(256,701	)		62,216		(4.13	)		(6,072	)		61,981		(0.10	)
Charge-off of deferred financing costs		2,659					0.04			866					0.01
Loss on early extinguishment of debt		11,180					0.18			4,983					0.08
Abandoned projects		265					—			—					—
Impairment loss		263,091					4.23			3,494					0.05
Impairment loss on discontinued operations		1,800					0.03			1,768					0.03
Minority interest share of impairment loss		(8,976	)				(0.14	)		—					—
Unvested restricted stock		—			787		—			—			438		0.01
Adjusted FFO	$	13,318			63,003	$	0.21		$	5,039			62,419	$	0.08

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FelCor Lodging Trust 2005 Operating Results
February 7, 2006
Page 10

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

	Year Ended December 31,
	2005								2004
						Per Share								Per Share
	Dollars			Shares		Amount			Dollars			Shares		Amount
Net loss	$	(251,615	)						$	(100,127	)
Preferred dividends		(39,408	)							(35,130	)
Issuance costs of redeemed preferred stock		(6,522	)							—
Net loss applicable to common stockholders		(297,545	)		59,436	$	(5.01	)		(135,257	)		59,045	$	(2.29	)
Depreciation from continuing operations		119,323					2.01			111,836					1.89
Depreciation from unconsolidated entities and discontinued operations		12,884					0.22			18,916					0.32
Gain on sale of depreciable assets		(12,124	)				(0.20	)		(19,422	)				(0.33	)
Minority interest in FelCor LP		(13,677	)		2,778		(0.09	)		(6,681	)		2,939		(0.08	)
FFO		(191,139	)		62,214	$	(3.07	)		(30,608	)		61,984		(0.49	)
Charge-off of deferred financing costs		2,659					0.04			6,960					0.11
Loss on early extinguishment of debt		8,641					0.14			44,216					0.71
Abandoned projects		265					—			—					—
Impairment loss		263,091					4.23			3,494					0.06
Impairment loss on discontinued operations		3,660					0.06			34,795					0.56
Minority interest share of impairment		(8,976	)				(0.14	)		—					—
Asset disposition costs		1,300					0.02			4,900					0.08
Issuance costs of redeemed preferred stock		6,522					0.10			—					—
Gain on swap termination		—					—			(1,005	)				(0.02	)
Unvested restricted stock		—			647		(0.01	)		—			359		—
Adjusted FFO	$	86,023			62,861	$	1.37		$	62,752			62,343	$	1.01

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FelCor Lodging Trust 2005 Operating Results
February 7, 2006
Page 11

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

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Net loss	$	(265,210	)	$	(10,770	)	$	(251,615	)	$	(100,127	)
Depreciation from continuing operations		30,528			28,668			119,323			111,836
Depreciation from unconsolidated entities and discontinued operations		2,783			4,401			12,884			18,916
Minority interest in FelCor Lodging LP		(12,623	)		(974	)		(13,677	)		(6,681	)
Interest expense		33,414			33,459			135,054			148,430
Interest expense from unconsolidated entities and discontinued operations		1,580			2,636			7,602			9,631
Amortization expense		733			1,330			2,904			2,945
EBITDA	$	(208,795	)	$	58,750		$	12,475		$	184,950
Charge-off of deferred financing costs		2,659			866			2,659			6,960
Loss on early extinguishment of debt		11,180			4,983			8,641			44,216
Abandoned projects		265			—			265			—
Impairment loss		263,091			3,494			263,091			3,494
Impairment loss on discontinued operations		1,800			1,768			3,660			34,795
Minority interest share of impairment		(8,976	)		—			(8,976	)		—
Asset disposition costs		—			—			1,300			4,900
Gain on swap termination		—			—			—			(1,005	)
Gain on sale of depreciable assets		(2,501	)		(17,306	)		(12,124	)		(19,422	)
Adjusted EBITDA	$	58,723		$	52,555		$	270,991		$	258,888
Adjusted EBITDA from discontinued operations		(244	)		9			(5,887	)		(12,960	)
Gain on development and sale of Margate condos		—			(808	)		—			(11,664	)
Gain on sale of land		—			—			(344	)		(1,167	)
Same-Store EBITDA	$	58,479		$	51,756		$	264,760		$	233,097

Reconciliation of Adjusted EBITDA to Hotel EBITDA
(in thousands)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Adjusted EBITDA	$	58,723		$	52,555		$	270,991		$	258,888
Retail space rental and other revenue		(141	)		(129	)		(2,049	)		(2,721	)
Adjusted EBITDA from discontinued operations		(244	)		9			(5,887	)		(12,960	)
Equity in income from unconsolidated entities (excluding interest and depreciation expense)		(6,635	)		(6,476	)		(28,858	)		(35,764	)
Minority interest in other partnerships (excluding interest and depreciation expense)		315			243			1,694			2,828
Consolidated hotel lease expense		14,243			12,256			57,004			51,261
Unconsolidated taxes, insurance and lease expense		(964	)		(1,577	)		(5,673	)		(5,737	)
Interest income		(1,466	)		(907	)		(4,100	)		(2,764	)
Hurricane loss		4,172			—			6,481			2,125
Corporate expenses (excluding amortization expense)		4,184			4,176			16,121			14,090
Gain on sale of land		—			(73	)		(344	)		(1,167	)
Hotel EBITDA	$	72,187		$	60,077		$	305,380		$	268,079

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FelCor Lodging Trust 2005 Operating Results
February 7, 2006
Page 12

Reconciliation of Net Loss to Hotel EBITDA
(in thousands)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Net loss	$	(265,210	)	$	(10,770	)	$	(251,615	)	$	(100,127	)
Discontinued operations		(1,410	)		(12,348	)		(11,291	)		18,593
Equity in income from unconsolidated entities		(1,941	)		(1,428	)		(10,169	)		(17,121	)
Minority interest		(21,891	)		(1,923	)		(23,813	)		(5,229	)
Consolidated hotel lease expense		14,243			12,256			57,004			51,261
Unconsolidated taxes, insurance and lease expense		(964	)		(1,577	)		(5,673	)		(5,737	)
Interest expense, net		31,948			32,552			130,954			145,666
Impairment loss		263,091			3,494			263,091			3,494
Hurricane loss		4,172			—			6,481			2,125
Loss on early extinguishment of debt		11,921			4,983			11,921			44,216
Charge-off of deferred financing costs		2,659			866			2,659			6,960
Gain on swap termination		—			—			—			(1,005	)
Corporate expenses		4,917			5,506			19,025			17,035
Depreciation		30,528			28,668			119,323			111,836
Retail space rental and other revenue		(141	)		(129	)		(2,049	)		(2,721	)
Abandoned projects		265			—			265			—
Gain on sale of assets		—			(73	)		(733	)		(1,167	)
Hotel EBITDA	$	72,187		$	60,077		$	305,380		$	268,079

Hotel EBITDA and Hotel EBITDA Margin
(dollars in thousands)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Total revenue	$	299,861		$	267,965		$	1,212,179		$	1,115,874
Retail space rental and other revenue		(141	)		(129	)		(2,049	)		(2,721	)
Hotel operating revenue		299,720			267,836			1,210,130			1,113,153
Hotel operating expenses		227,533			207,759			904,750			845,074
Hotel EBITDA	$	72,187			60,077		$	305,380			268,079
Hotel EBITDA margin		24.1	%		22.4	%		25.2	%		24.1	%

Reconciliation of Ratio of Operating Income to Total Revenue to Hotel EBITDA Margin

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Ratio of operating income to total revenue.		7.8	%		5.7	%		9.7	%		8.6	%
Retail space rental and other revenue		—			—			(0.2	)		(0.2	)
Unconsolidated taxes, insurance and lease expense		(0.3	)		(0.7	)		(0.4	)		(0.5	)
Consolidated hotel lease expense		4.7			4.6			4.7			4.6
Corporate expenses		1.6			2.1			1.6			1.5
Depreciation		10.2			10.7			9.8			10.1
Abandoned projects		0.1			—			—			—
Hotel EBITDA margin		24.1	%		22.4	%		25.2	%		24.1	%

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FelCor Lodging Trust 2005 Operating Results
February 7, 2006
Page 13

Hotel Operating Expense Composition
(dollars in thousands)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Reconciliation of total operating expense to hotel operating expense:
Total operating expenses	$	276,522		$	252,612		$	1,094,694		$	1,019,469
Unconsolidated taxes, insurance and lease expense		964			1,577			5,673			5,737
Consolidated hotel lease expense		(14,243	)		(12,256	)		(57,004	)		(51,261	)
Corporate expenses		(4,917	)		(5,506	)		(19,025	)		(17,035	)
Depreciation		(30,528	)		(28,668	)		(119,323	)		(111,836	)
Abandoned projects		(265	)		—			(265	)		—
Hotel operating expenses	$	227,533		$	207,759		$	904,750		$	845,074
Supplemental information:
Compensation and benefits expense (included in hotel operating expenses)	$	96,188		$	89,122		$	383,632		$	364,299

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

	First Quarter 2006 Guidance												Full Year 2006 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(b)	$	6					$	8					$	23					$	30
Preferred dividends		(10	)					(10	)					(39	)					(39	)
Net loss applicable to common stockholders(b)		(4	)	$	(0.07	)		(2	)	$	(0.04	)		(16	)	$	(0.27	)		(9	)	$	(0.15	)
Depreciation		31						31						130						130
Minority interest in FelCor LP		—						—						(1	)					(1	)
FFO	$	27		$	0.42		$	29		$	0.45		$	113		$	1.79		$	120		$	1.90
Net income(b)	$	6					$	8					$	23					$	30
Depreciation		31						31						130						130
Minority interest in FelCor LP		—						—						(1	)					(1	)
Interest expense		32						32						126						126
Amortization expense		1						1						4						4
EBITDA	$	70					$	72					$	282					$	289

(a)	Weighted average shares are 59.7 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 63.1 million used to compute FFO per share.
(b)	Excludes gains or losses from asset sales and debt extinguishment.

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FelCor Lodging Trust 2005 Operating Results
February 7, 2006
Page 14

     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 EBITDA and Hotel EBITDA margin, are not measures of operating performance under GAAP. However, we consider these non-GAAP measures to be supplemental measures of a hotel REIT’s performance and should be considered along with, but not as an alternative to, net income as a measure of our operating performance.

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

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FelCor Lodging Trust 2005 Operating Results
February 7, 2006
Page 15

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 from the disposition of non-hotel related assets.

Hotel EBITDA and Hotel EBITDA Margin

     Hotel EBITDA and Hotel EBITDA 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 EBITDA and Hotel EBITDA 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 EBITDA and Hotel EBITDA 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. To enhance the comparability of our hotel-level operating results with other hotel REITs and hotel owners, we are now disclosing Hotel EBITDA and Hotel EBITDA margin rather than hotel operating profit and hotel operating margin, previously disclosed. The purpose of the change is to remove any distortion created by unconsolidated entities and to reflect hotel-level operations as if they were fully consolidated. To reflect this, we eliminate consolidated percentage rent paid to unconsolidated entities, which is effectively eliminated by minority interest expense and equity in income from unconsolidated subsidiaries, and include the cost of unconsolidated taxes, insurance and lease expense, to reflect the entire operating costs applicable to our hotels.

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FelCor Lodging Trust 2005 Operating Results
February 7, 2006
Page 16

Use and Limitations of Non-GAAP Measures

     Our management and Board of Directors use FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Hotel EBITDA and Hotel EBITDA margin 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 EBITDA and Hotel EBITDA margin, as presented by us, may not be comparable to FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, Hotel EBITDA and Hotel EBITDA margin as calculated by other real estate companies. These measures do not reflect certain expenses that we incurred and will incur, such as depreciation and interest or 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 EBITDA and Hotel EBITDA 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

Exhibit 99.2

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Date of Issuance February 7, 2006

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 and Year Ended December 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 EBITDA and Hotel EBITDA Margin	11
Hotel Operating Expense Composition	11
Debt Summary	16
PORTFOLIO DATA
Portfolio Distribution	18
Detailed Operating Statistics by Brand	19
Detailed Operating Statistics for FelCor’s Top Markets	20
Other Performance Statistics	21
Hotel Portfolio Information	22
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, Courtyard by Marriott^®, Crowne Plaza^®, Disneyland^®, Doubletree^®, Doubletree Guest Suites^®, Embassy Suites Hotel^®, Fairfield Inn^®, Hampton Inn^®, Harvey Suites^®, Hilton^®, Hilton Suites^®, Holiday Inn^®, Holiday Inn & Suites^®, Holiday Inn Express^®, Holiday Inn Express & Suites^®, Holiday Inn Select^®, Sheraton^®, Sheraton Suites^®, Staybridge Suites^®, Walt Disney World^®, Worlds of Fun^® and Westin^®.

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 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 increased security precautions, the impact that the bankruptcy of additional major air carriers may have on our revenues and receivables, 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 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.

2

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 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 December 31, 2005, FelCor was one of the nation’s largest lodging REITs and the nation’s largest owner of full service, all-suite hotels. FelCor’s portfolio was comprised of 125 consolidated hotels in continuing operations. For the 125 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 66 full service, all-suite hotels, and was the largest owner of Embassy Suites Hotels and Doubletree Guest Suites hotels. FelCor’s portfolio also included 57 hotels in the upscale and full service segments. At December 31, 2005, the Company’s hotels were located in 29 states and Canada. FelCor had a market capitalization of approximately $3.2 billion at December 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)
8% Series C Cumulative Redeemable Preferred Stock (NYSE: FCHPRC)

Fiscal Year End
December 31

Number of employees
76

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

3

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Board of Directors

Thomas J. Corcoran, Jr., Chairman of the Board.
FelCor Lodging Trust Incorporated

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

Richard S. Ellwood
Retired

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.

Donald J. McNamara
Principal, The Hampstead Group

Richard A. Smith
President and Chief Executive Officer, FelCor Lodging Trust Incorporated

Executive Officers

Thomas J. Corcoran, Jr., Chairman of the Board

Richard A. Smith, President and Chief Executive Officer

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

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

Andrew J. Welch, Executive Vice President, Chief Financial Officer and Treasurer

Jack Eslick, Senior Vice President, Director of Asset Management

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

Jack Marraccini, Senior Vice President of Engineering

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

4

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Equity Research Coverage

Firm	Analyst	Telephone
Citigroup Smith Barney	Michael J. Rietbrock	(212) 816-7777
Deutsche Bank North America	Marc J. Falcone	(212) 469-7417
Green Street Advisors	John V. Arabia	(949) 640-8780
JPMorgan	Harry C. Curtis	(212) 622-6610
Lehman Brothers	Felicia Kantor Hendrix	(212) 526-5562
Merrill Lynch	David W. Anders	(212) 449-2739
Prudential Equity Group, LLC	James Feldman	(212) 778-1724
Stifel, Nicolaus & Company	Rod F. Petrik	(410) 454-4131
UBS (US)	William B. Truelove	(212) 713-8825
Wachovia Securities	Jeffrey J. Donnelly	(617) 603-4262

5

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

FINANCIAL HIGHLIGHTS

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

	December 31,
	2005			2004
Total Enterprise Value
Common shares outstanding		60,209			59,817
Units outstanding		2,763			2,788
Combined shares and units outstanding		62,972			62,605
Common stock price at end of period	$	17.21		$	14.65
Common equity capitalization	$	1,083,748		$	917,163
Series A preferred stock		309,362			309,362
Series B preferred stock		—			169,395
Series C preferred stock		169,412			—
Consolidated debt		1,675,280			1,767,122
Minority interest of consolidated debt		(8,137	)		(5,618	)
Pro rata share of unconsolidated debt		101,940			109,146
Cash and cash equivalents		(94,564	)		(119,310	)
Total enterprise value (TEV)	$	3,237,041		$	3,147,260
TEV per room(a)	$	95		$	84
Pro rata rooms owned		34,103			37,338
Dividends Per Share
Dividends declared (full year):
Common stock	$	0.15		$	—
Series A preferred stock		1.95			1.95
Series B preferred stock (depositary shares)(b)		1.125			2.25
Series C preferred stock (depositary shares)(c)		1.6333			—
Selected Balance Sheet Data
Investment in hotels, at cost(d)	$	3,606,503		$	3,904,397
Total cash and cash equivalents		94,564			119,310
Total assets		2,919,094			3,317,658
Total debt		1,675,280			1,767,122
Total stockholders’ equity		1,031,793			1,330,323
Total stockholders equity less preferred equity		553,019			851,566
Book value per common share outstanding		9.18			14.24

(a)	Based on pro rata rooms owned.
(b)	The Series B preferred stock was retired in 2005.
(c)	The Series C preferred stock was issued in 2005.
(d)	Investment in hotels, at cost, is defined as consolidated hotel book value (after impairment charges but before accumulated depreciation).

6

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

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

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Revenues:
Hotel operating revenue:
Room	$	237,041		$	208,121		$	975,128		$	886,478
Food and beverage		48,200			45,919			174,537			168,391
Other operating departments		14,479			13,796			60,465			58,284
Retail space rental and other revenue		141			129			2,049			2,721
Total revenues		299,861			267,965			1,212,179			1,115,874
Expenses:
Hotel departmental expenses:
Room		63,183			58,235			253,563			238,807
Food and beverage		36,546			34,967			135,558			132,561
Other operating departments		7,492			7,220			30,356			29,028
Other property related costs		89,556			81,342			353,070			323,587
Management and franchise fees		14,854			13,161			61,348			57,305
Taxes, insurance and lease expense		29,181			23,513			122,186			109,310
Abandoned projects		265			—			265			—
Corporate expenses		4,917			5,506			19,025			17,035
Depreciation		30,528			28,668			119,323			111,836
Total operating expenses		276,522			252,612			1,094,694			1,019,469
Operating income		23,339			15,353			117,485			96,405
Interest expense, net		(31,948	)		(32,552	)		(130,954	)		(145,666	)
Impairment loss		(263,091	)		(3,494	)		(263,091	)		(3,494	)
Hurricane loss		(4,172	)		—			(6,481	)		(2,125	)
Loss on early extinguishment of debt		(11,921	)		(4,983	)		(11,921	)		(44,216	)
Charge-off of deferred financing costs		(2,659	)		(866	)		(2,659	)		(6,960	)
Gain on swap termination		—			—			—			1,005
Loss before equity in income from unconsolidated entities, minority interests and gain on sale of assets		(290,452	)		(26,542	)		(297,621	)		(105,051	)
Equity in income from unconsolidated entities		1,941			1,428			10,169			17,121
Minority interests		21,891			1,923			23,813			5,229
Gain on sale of assets		—			73			733			1,167
Loss from continuing operations		(266,620	)		(23,118	)		(262,906	)		(81,534	)
Discontinued operations		1,410			12,348			11,291			(18,593	)
Net loss		(265,210	)		(10,770	)		(251,615	)		(100,127	)
Preferred dividends		(9,679	)		(10,091	)		(39,408	)		(35,130	)
Issuance costs of redeemed preferred stock		—			—			(6,522	)		—
Net loss applicable to common stockholders	$	(274,889	)	$	(20,861	)	$	(297,545	)	$	(135,257	)
Basic and diluted per common share data:
Net loss from continuing operations	$	(4.65	)	$	(0.56	)	$	(5.20	)	$	(1.98	)
Net loss	$	(4.62	)	$	(0.35	)	$	(5.01	)	$	(2.29	)
Weighted average common shares outstanding		59,453			59,192			59,436			59,045

7

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Discontinued Operations
(in thousands)

     Included in discontinued operations are the results of operations of the 18 hotels disposed of in 2004, and 19 hotels disposed of in 2005. Condensed financial information for the hotels included in discontinued operations is as follows:

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Operating revenue	$	3,813		$	22,333		$	45,970		$	145,007
Operating expenses		(3,781	)		(24,087	)		(43,299	)		(141,530	)
Operating income (loss)		32			(1,754	)		2,671			3,477
Direct interest costs, net		—			(861	)		(918	)		(3,943	)
Impairment loss		(1,800	)		(1,768	)		(3,660	)		(34,795	)
Asset disposition costs		—			—			(1,300	)		(4,900	)
Gain on early extinguishment of debt		742			—			3,280			—
Gain on sale of depreciable assets		2,501			17,306			11,736			19,422
Minority interests		(65	)		(575	)		(518	)		2,146
Income (loss) from discontinued operations		1,410			12,348			11,291			(18,593	)
Depreciation		212			1,742			3,212			9,680
Minority interest in FelCor LP		65			575			518			(865	)
Interest expense		—			864			922			2,465
EBITDA from discontinued operations		1,687			15,529			15,943			(7,313	)
Gain on sale of assets		(2,501	)		(17,306	)		(11,736	)		(19,422	)
Impairment loss		1,800			1,768			3,660			34,795
Gain on early extinguishment of debt		(742	)		—			(3,280	)		—
Asset disposition costs		—			—			1,300			4,900
Adjusted EBITDA from discontinued operations	$	244		$	(9	)	$	5,887		$	12,960

Non-GAAP Financial Measures

     We refer in this supplement to certain “non-GAAP financial measures.” These measures, including FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, Hotel EBITDA and Hotel EBITDA margin, are measures of our financial performance that are not calculated and presented in accordance with generally accepted accounting principles (“GAAP”). The following tables 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.

8

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Non-GAAP Financial Measures (continued)
Reconciliation of Net Loss to FFO and Adjusted FFO
(in thousands, except per share and unit data)

	Three Months Ended December 31,
	2005								2004
						Per Share								Per Share
	Dollars			Shares		Amount			Dollars			Shares		Amount
Net loss	$	(265,210	)						$	(10,770	)
Preferred dividends		(9,679	)							(10,091	)
Net loss applicable to common stockholders		(274,889	)		59,453	$	(4.62	)		(20,861	)		59,192	$	(0.35	)
Depreciation from continuing operations		30,528					0.51			28,668					0.48
Depreciation from unconsolidated entities and discontinued operations		2,784					0.05			4,401					0.07
Gain on sale of depreciable assets		(2,501	)				0.04			(17,306	)				(0.29	)
Minority interest in FelCor LP		(12,623	)		2,763		(0.11	)		(974	)		2,789		(0.01	)
FFO		(256,701	)		62,216		(4.13	)		(6,072	)		61,981		(0.10	)
Charge-off of deferred financing costs		2,659					0.04			866					0.01
Loss on early extinguishment of debt		11,180					0.18			4,983					0.08
Abandoned projects		265					—								—
Impairment loss		263,091					4.23			3,494					0.05
Impairment loss on discontinued operations		1,800					0.03			1,768					0.03
Minority interest share of impairment loss		(8,976	)				(0.14	)		—					—
Unvested restricted stock		—			787		—			—			438		0.01
Adjusted FFO	$	13,318			63,003	$	0.21		$	5,039			62,419	$	0.08

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

	Year Ended December 31,
	2005								2004
						Per Share								Per Share
	Dollars			Shares		Amount			Dollars			Shares		Amount
Net loss	$	(251,615	)						$	(100,127	)
Preferred dividends		(39,408	)							(35,130	)
Issuance costs of redeemed preferred stock		(6,522	)							—
Net loss applicable to common stockholders		(297,545	)		59,436	$	(5.01	)		(135,257	)		59,045	$	(2.29	)
Depreciation from continuing operations		119,323					2.01			111,836					1.89
Depreciation from unconsolidated entities and discontinued operations		12,884					0.22			18,916					0.32
Gain on sale of depreciable assets		(12,124	)				(0.20	)		(19,422	)				(0.33	)
Minority interest in FelCor LP		(13,677	)		2,778		(0.09	)		(6,681	)		2,939		(0.08	)
FFO		(191,139	)		62,214	$	(3.07	)		(30,608	)		61,984		(0.49	)
Charge-off of deferred financing costs		2,659					0.04			6,960					0.11
Loss on early extinguishment of debt		8,641					0.14			44,216					0.71
Abandoned projects		265					—			—					—
Impairment loss		263,091					4.23			3,494					0.06
Impairment loss on discontinued operations		3,660					0.06			34,795					0.56
Minority interest share of impairment		(8,976	)				(0.14	)		—					—
Asset disposition costs		1,300					0.02			4,900					0.08
Issuance costs of redeemed preferred stock		6,522					0.10			—					—
Gain on swap termination		—					—			(1,005	)				(0.02	)
Unvested restricted stock		—			647		(0.01	)		—			359		—
Adjusted FFO	$	86,023			62,861	$	1.37		$	62,752			62,343	$	1.01

9

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Non-GAAP Financial Measures (continued)

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

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Net loss	$	(265,210	)	$	(10,770	)	$	(251,615	)	$	(100,127	)
Depreciation from continuing operations		30,528			28,668			119,323			111,836
Depreciation from unconsolidated entities and discontinued operations		2,783			4,401			12,884			18,916
Minority interest in FelCor Lodging LP		(12,623	)		(974	)		(13,677	)		(6,681	)
Interest expense		33,414			33,459			135,054			148,430
Interest expense from unconsolidated entities and discontinued operations		1,580			2,636			7,602			9,631
Amortization expense		733			1,330			2,904			2,945
EBITDA	$	(208,795	)	$	58,750		$	12,475		$	184,950
Charge-off of deferred financing costs		2,659			866			2,659			6,960
Loss on early extinguishment of debt		11,180			4,983			8,641			44,216
Abandoned projects		265			—			265			—
Impairment loss		263,091			3,494			263,091			3,494
Impairment loss on discontinued operations		1,800			1,768			3,660			34,795
Minority interest share of impairment		(8,976	)		—			(8,976	)		—
Asset disposition costs		—			—			1,300			4,900
Gain on swap termination		—			—			—			(1,005	)
Gain on sale of depreciable assets		(2,501	)		(17,306	)		(12,124	)		(19,422	)
Adjusted EBITDA	$	58,723		$	52,555		$	270,991		$	258,888
Adjusted EBITDA from discontinued operations		(244	)		9			(5,887	)		(12,960	)
Gain on development and sale of Margate condos		—			(808	)		—			(11,664	)
Gain on sale of land		—			—			(344	)		(1,167	)
Same-Store EBITDA	$	58,479		$	51,756		$	264,760		$	233,097

10

Felcor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Non-GAAP Financial Measures (continued)

Reconciliation of Adjusted EBITDA to Hotel EBITDA
(in thousands)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Adjusted EBITDA	$	58,723		$	52,555		$	270,991		$	258,888
Retail space rental and other revenue		(141	)		(129	)		(2,049	)		(2,721	)
Adjusted EBITDA from discontinued operations		(244	)		9			(5,887	)		(12,960	)
Equity in income from unconsolidated subsidiaries (excluding interest and depreciation expense)		(6,635	)		(6,476	)		(28,858	)		(35,764	)
Minority interest in other partnerships (excluding interest and depreciation expense)		315			243			1,694			2,828
Consolidated hotel lease expense		14,243			12,256			57,004			51,261
Unconsolidated taxes, insurance and lease expense		(964	)		(1,577	)		(5,673	)		(5,737	)
Interest income		(1,466	)		(907	)		(4,100	)		(2,764	)
Hurricane loss		4,172			—			6,481			2,125
Corporate expenses (excluding amortization expense)		4,184			4,176			16,121			14,090
Gain on sale of land		—			(73	)		(344	)		(1,167	)
Hotel EBITDA	$	72,187		$	60,077		$	305,380		$	268,079

Hotel EBITDA and Hotel EBITDA Margin
(dollars in thousands)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Total revenue	$	299,861		$	267,965		$	1,212,179		$	1,115,874
Retail space rental and other revenue		(141	)		(129	)		(2,049	)		(2,721	)
Hotel operating revenue		299,720			267,836			1,210,130			1,113,153
Hotel operating expenses		227,533			207,759			904,750			845,074
Hotel EBITDA	$	72,187		$	60,077		$	305,380		$	268,079
Hotel EBITDA margin		24.1	%		22.4	%		25.2	%		24.1	%

Hotel Operating Expense Composition
(dollars in thousands)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Reconciliation of total operating expense to hotel operating expense:
Total operating expenses	$	276,522		$	252,612		$	1,094,694		$	1,019,469
Unconsolidated taxes, insurance and lease expense		964			1,577			5,673			5,737
Consolidated hotel lease expense		(14,243	)		(12,256	)		(57,004	)		(51,261	)
Corporate expenses		(4,917	)		(5,506	)		(19,025	)		(17,035	)
Depreciation		(30,528	)		(28,668	)		(119,323	)		(111,836	)
Abandoned projects		(265	)		—			(265	)		—
Hotel operating expenses	$	227,533		$	207,759		$	904,750		$	845,074
Supplemental information:
Compensation and benefits expense (included in hotel operating expenses)	$	96,188		$	89,122		$	383,632		$	364,299

11

Felcor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Non-GAAP Financial Measures (continued)

Reconciliation of Net Loss to Hotel EBITDA
(in thousands)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Net loss	$	(265,210	)	$	(10,770	)	$	(251,615	)	$	(100,127	)
Discontinued operations		(1,410	)		(12,348	)		(11,291	)		18,593
Equity in income from unconsolidated entities		(1,941	)		(1,428	)		(10,169	)		(17,121	)
Minority interests		(21,891	)		(1,923	)		(23,813	)		(5,229	)
Consolidated hotel lease expense		14,243			12,256			57,004			51,261
Unconsolidated taxes, insurance and lease expense		(964	)		(1,577	)		(5,673	)		(5,737	)
Interest expense, net		31,948			32,552			130,954			145,666
Impairment loss		263,091			3,494			263,091			3,494
Hurricane loss		4,172			—			6,481			2,125
Loss on early extinguishment of debt		11,921			4,983			11,921			44,216
Charge-off of deferred financing costs		2,659			866			2,659			6,960
Gain on swap termination		—			—			—			(1,005	)
Corporate expenses		4,917			5,506			19,025			17,035
Depreciation		30,528			28,668			119,323			111,836
Retail space rental and other revenue		(141	)		(129	)		(2,049	)		(2,721	)
Abandoned projects		265			—			265			—
Gain on sale of assets		—			(73	)		(733	)		(1,167	)
Hotel EBITDA	$	72,187		$	60,077		$	305,380		$	268,079

Reconciliation of Ratio of Operating Income to Total Revenue to Hotel EBITDA Margin

	Three Months Ended						Year Ended
	December 31,						December 31,
	2005			2004			2005			2004
Ratio of operating income to total revenue		7.8	%		5.7	%		9.7	%		8.6	%
Retail space and rental and other revenue		0.0			0.0			(0.2	)		(0.2	)
Unconsolidated taxes, insurance and lease expense		(0.3	)		(0.7	)		(0.4	)		(0.5	)
Consolidated hotel lease expense		4.7			4.6			4.7			4.6
Corporate expenses		1.6			2.1			1.6			1.5
Depreciation		10.2			10.7			9.8			10.1
Abandoned projects		0.1			—			0.0			—
Hotel EBITDA margin		24.1	%		22.4	%		25.2	%		24.1	%

     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 diminish 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 EBITDA and Hotel EBITDA margin, are not measures of operating performance under GAAP. However, we consider these non-GAAP measures to be supplemental measures of a hotel REIT’s performance and should be considered along with, but not as an alternative to, net income as a measure of our operating performance.

12

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Non-GAAP Financial Measures (continued)

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.

13

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Non-GAAP Financial Measures (continued)

     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.

     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 from the disposition of non-hotel related assets.

Hotel EBITDA and Hotel EBITDA Margin

     Hotel EBITDA and Hotel EBITDA 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 EBITDA and Hotel EBITDA 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 EBITDA and Hotel EBITDA 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. To enhance the comparability of our hotel-level operating results with other hotel REITs and hotel owners, we are now disclosing Hotel EBITDA and Hotel EBITDA margin rather than the hotel operating profit and hotel operating margin previously disclosed. The purpose of the change is to remove any distortion created by unconsolidated entities and to reflect hotel-level operations as if they were fully consolidated. To reflect this, we eliminate consolidated percentage rent paid to unconsolidated entities, which is effectively eliminated by minority interest expense and equity in income from unconsolidated subsidiaries, and include the cost of unconsolidated taxes, insurance and lease expense, to reflect the entire operating costs applicable to our hotels.

Use and Limitations of Non-GAAP Measures

     Our management and Board of Directors use FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, Hotel EBITDA and Hotel EBITDA margin 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. We use hotel operating margin in evaluating hotel-level performance and the operating efficiency of our hotel managers.

14

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Non-GAAP Financial Measures (continued)

     The use of these non-GAAP financial measures has certain limitations. FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, Hotel EBITDA and Hotel EBITDA margin, as presented by us, may not be comparable to FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, Hotel EBITDA and Hotel EBITDA margin as calculated by other real estate companies. These measures do not reflect certain expenses that we incurred and will incur, such as depreciation and interest or 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 EBITDA and Hotel EBITDA 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 a single financial measure.

15

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Debt Summary
(dollars in thousands)

Debt Outstanding

	Encumbered		Interest Rate at			Maturity	Consolidated
	Hotels		December 31, 2005			Date	Debt
Promissory note	none			6.31		June 2016	$	650
Senior unsecured term notes	none			7.63		October 2007		123,358
Senior unsecured term notes	none			9.00		June 2011		298,660
Term loan(a)	none			5.81		October 2006		225,000
Senior unsecured term notes	none			8.48	(b)	June 2011		290,000
Total unsecured debt				7.89				937,668
Mortgage debt	9 hotels			6.52		July 2014		104,282
Mortgage debt	8 hotels			6.63		May 2006(c)		117,913
Mortgage debt	7 hotels			7.32		April 2009		127,455
Mortgage debt	4 hotels			7.55		June 2009		41,912
Mortgage debt	8 hotels			8.70		May 2010		172,604
Mortgage debt	7 hotels			8.73		May 2010		133,374
Mortgage debt	1 hotel			6.77		August 2008		15,500
Mortgage debt	1 hotel			7.91		December 2007		10,457
Other	1 hotel			9.17		August 2011		5,204
Construction loan(d)		—		6.47		October 2007		8,911
Total secured debt	46 hotels			7.69				737,612
Total				7.80	%		$	1,675,280

(a)	This note was paid off in January 2006.
(b)	The stated interest rate on this debt is six month LIBOR (4.58% at December 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 8.48% at December 31, 2005.
(c)	This debt has two, one-year extension options, subject to certain contingencies.
(d)	The Company has a $69.8 million recourse construction loan facility for the development of a 184-unit condominium project in Myrtle Beach, South Carolina. The interest on this facility is currently based on LIBOR plus 225 basis points and is being capitalized as part of the cost of the project. The interest rate may be reduced to LIBOR plus 200 basis points when the project is 55% complete and upon satisfaction of certain other requirements.

Fixed interest rate debt to total debt		67.2	%
Weighted average maturity of debt	5 years
Secured debt to total assets		25.3	%

16

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Debt Summary (continued)

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

	Secured		Unsecured
Year	Debt		Debt			Total
2006	$	131,639	$	225,000		$	356,639
2007		24,737		125,000			149,737
2008		40,106		—			40,106
2009		176,560		—			176,560
2010 and thereafter		364,570		590,650			955,220
Premium/(discount)		—		(2,982	)		(2,982	)
Total debt	$	737,612	$	937,668		$	1,675,280

     At December 31, 2005, we had unconsolidated 50 percent investments in ventures that owned an aggregate of 19 hotels. These ventures had approximately $204 million of non-recourse mortgage debt, all of which is secured by hotel assets. Our pro rata share of this non-recourse debt is $102 million.

Financing transactions in 2005:

     During 2005, we issued 6.8 million depositary shares representing our 8% Series C Preferred Stock, with gross proceeds of $169.4 million. The proceeds were used to redeem all of the shares outstanding of our 9% Series B Preferred Stock. As a result of this redemption we recorded a reduction in net income applicable to common stockholders of $6.5 million for the original issuance cost of the Series B preferred stock which was redeemed.

     In 2005, we obtained a $69.8 million recourse construction loan for the development of a 184-unit condominium project in Myrtle Beach, South Carolina. Through December 31, 2005, we have made draws of $8.9 million on this loan.

     During the fourth quarter, we refinanced or retired indebtedness totaling $259 million which was secured by 25 of our hotels using a $225 million unsecured term loan facility and excess cash. In conjunction with the refinancing and the debt retirement, we incurred $14.5 million of costs associated with the early extinguishment of debt.

     In January, we retired our $225 million unsecured term loan facility and established a new $125 million unsecured line of credit.

17

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

PORTFOLIO DATA

Portfolio Distribution at December 31, 2005
(125 consolidated hotels included in continuing operations, same store basis)

					% of			% of 2005
Brand	Hotels		Rooms		Total Rooms			Hotel EBITDA(a)
Embassy Suites Hotels		54		13,653		38	%		51	%
Holiday Inn-branded		33		11,356		31			22
Sheraton-branded		10		3,269		9			11
Doubletree-branded		9		2,019		6			6
Crowne Plaza		12		4,025		11			6
Other		7		1,810		5			4

					% of			% of 2005
Top Markets	Hotels		Rooms		Total Rooms			Hotel EBITDA
Atlanta		10		3,059		8	%		9	%
Los Angeles Area		6		1,435		4			6
Dallas		12		3,585		10			5
Orlando		6		2,219		6			4
Boca Raton/Ft. Lauderdale		4		1,118		3			4
San Francisco Bay Area		8		2,690		7			4
Minneapolis		4		955		3			4
New Orleans		2		746		2			3
Phoenix		3		798		2			3
Philadelphia		3		1,174		3			3
Chicago		4		1,239		3			3
Washington, D.C.		1		437		1			3
San Diego		1		600		2			3
San Antonio		4		1,188		3			3
Northern New Jersey		3		757		2			3
Houston		4		1,403		4			3

					% of			% of 2005
Top Four States	Hotels		Rooms		Total Rooms			Hotel EBITDA
California		19		5,536		15	%		17	%
Texas		25		7,343		20			13
Florida		15		4,937		14			13
Georgia		12		3,413		9			10

					% of			% of 2005
Location	Hotels		Rooms		Total Rooms			Hotel EBITDA
Suburban		55		13,860		38	%		39	%
Urban		30		9,799		27			26
Airport		26		8,181		23			22
Resort		13		4,044		11			13
Highway		1		248		1			0

					% of			% of 2005
Segment	Hotels		Rooms		Total Rooms			Hotel EBITDA
Upscale all-suite		66		16,332		45	%		58	%
Full service		34		11,519		32			22
Upscale		23		7,843		22			19
Limited service		2		438		1			1

					% of			% of 2005
	Hotels		Rooms		Total Rooms			Hotel EBITDA
Core Hotels		90		25,537		71	%		87	%
Non-Strategic Hotels		35		10,595		29			13

^(a) Hotel EBITDA is more fully described on page 13 of this supplement.

18

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

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

	Occupancy (%)
	Three Months Ended December 31,						Year Ended December 31,
	2005		2004		%Variance		2005		2004		% Variance
Embassy Suites Hotels		69.6		65.4		6.4		73.2		69.9		4.7
Holiday Inn-branded hotels		66.2		59.9		10.6		68.2		65.7		3.7
Sheraton-branded hotels		61.0		57.7		5.7		64.3		63.0		2.0
Doubletree-branded hotels		65.3		58.8		11.1		68.3		65.7		4.1
Crowne Plaza hotels		66.5		60.4		10.0		67.9		63.4		7.0
Other hotels		57.6		52.0		10.8		60.3		57.9		4.0
Total hotels		66.6		61.4		8.5		69.3		66.4		4.4

	ADR ($)
	Three Months Ended December 31,						Year Ended December 31,
	2005		2004		% Variance		2005		2004		% Variance
Embassy Suites Hotels		122.74		116.84		5.0		122.84		117.48		4.6
Holiday Inn-branded hotels		90.20		83.12		8.5		89.07		83.25		7.0
Sheraton-branded hotels		115.06		101.89		12.9		109.88		98.38		11.7
Doubletree-branded hotels		111.96		105.13		6.5		111.78		105.39		6.1
Crowne Plaza hotels		105.46		95.78		10.1		100.03		93.83		6.6
Other hotels		93.15		85.54		8.9		97.94		91.79		6.7
Total hotels		108.24		101.07		7.1		107.18		100.94		6.2

	RevPAR ($)
	Three Months Ended December 31,						Year Ended December 31,
	2005		2004		% Variance		2005		2004		% Variance
Embassy Suites Hotels		85.40		76.40		11.8		89.91		82.11		9.5
Holiday Inn-branded hotels		59.75		49.78		20.0		60.76		54.74		11.0
Sheraton-branded hotels		70.23		58.84		19.4		70.68		62.01		14.0
Doubletree-branded hotels		73.09		61.79		18.3		76.40		69.20		10.4
Crowne Plaza hotels		70.10		57.85		21.2		67.90		59.53		14.1
Other hotels		53.65		44.46		20.7		59.03		53.18		11.0
Total hotels		72.05		62.03		16.2		74.29		67.03		10.8

^(a) Hotels have been excluded in both the current and prior year during the months in which the hotels were impacted by a hurricane in either 2005 or 2004.

19

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

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

	Occupancy (%)
	Three Months Ended December 31,							Year Ended December 31,
	2005		2004		% Variance			2005		2004		% Variance
Atlanta		73.9		64.0		15.4			72.8		68.5		6.3
Dallas		55.3		44.6		24.0			53.4		49.9		7.2
Los Angeles Area		68.6		67.1		2.2			74.0		71.5		3.5
Orlando		67.5		70.8		(4.6	)		73.0		76.1		(4.1	)
Boca Raton/Ft. Lauderdale		56.9		72.8		(21.9	)		77.1		78.6		(2.0	)
Minneapolis		62.2		62.1		0.3			70.7		68.0		4.1
Philadelphia		69.7		71.4		(2.4	)		71.6		68.0		5.4
San Diego		72.7		70.3		3.4			81.6		80.9		0.8
Phoenix		69.1		63.9		8.2			72.4		69.7		4.0
San Antonio		70.6		63.3		11.5			75.5		70.0		7.9
Northern New Jersey		69.1		66.2		4.4			70.3		66.9		5.0
Chicago		70.0		67.0		4.3			73.0		69.7		4.6
San Francisco Bay Area		69.0		58.8		17.3			71.2		65.3		9.1
Houston		75.8		61.8		22.6			72.4		67.5		7.2
Washington, D.C.		70.9		68.0		4.3			74.3		73.3		1.4

	ADR ($)
	Three Months Ended December 31,						Year Ended December 31,
	2005		2004		% Variance		2005		2004		% Variance
Atlanta		96.79		86.68		11.7		92.51		86.93		6.4
Dallas		99.45		91.36		8.9		95.31		90.98		4.8
Los Angeles Area		117.18		106.64		9.9		118.05		110.30		7.0
Orlando		82.77		80.33		3.0		85.06		77.32		10.0
Boca Raton/Ft. Lauderdale		134.36		110.86		21.3		129.89		113.85		14.1
Minneapolis		131.11		127.47		2.9		128.32		125.48		2.3
Philadelphia		130.42		107.17		21.7		118.52		105.99		11.8
San Diego		123.46		121.75		1.4		128.47		120.16		6.9
Phoenix		126.06		118.36		6.5		121.78		113.38		7.4
San Antonio		84.88		81.46		4.2		87.82		84.01		4.5
Northern New Jersey		142.82		136.27		4.8		138.67		135.32		2.5
Chicago		123.59		112.50		9.9		116.18		106.44		9.1
San Francisco Bay Area		115.07		110.89		3.8		115.72		112.44		2.9
Houston		79.66		65.66		21.3		74.31		68.87		7.9
Washington, D.C.		144.42		127.71		13.1		145.47		125.57		15.8

	RevPAR ($)
	Three Months Ended December 31,							Year Ended December 31,
	2005		2004		% Variance			2005		2004		% Variance
Atlanta		71.48		55.49		28.8			67.33		59.50		13.2
Dallas		54.99		40.75		34.9			50.93		45.36		12.3
Los Angeles Area		80.35		71.58		12.2			87.32		78.84		10.8
Orlando		55.91		56.86		(1.7	)		62.10		58.85		5.5
Boca Raton/Ft. Lauderdale		76.39		80.65		(5.3	)		100.13		89.52		11.8
Minneapolis		81.58		79.10		3.1			90.77		85.30		6.4
Philadelphia		90.89		76.51		18.8			84.90		72.07		17.8
San Diego		89.78		85.59		4.9			104.86		97.26		7.8
Phoenix		87.10		75.59		15.2			88.21		78.97		11.7
San Antonio		59.94		51.60		16.2			66.29		58.79		12.8
Northern New Jersey		98.67		90.21		9.4			97.47		90.58		7.6
Chicago		86.46		75.42		14.6			84.75		74.22		14.2
San Francisco Bay Area		79.36		65.17		21.8			82.40		73.39		12.3
Houston		60.38		40.58		48.8			53.81		46.52		15.7
Washington, D.C.		102.37		86.81		17.9			108.09		91.99		17.5

^(a) Hotels have been excluded in both the current and prior year during the months in which the hotels were impacted by a hurricane in either 2005 or 2004.

20

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

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

Variance to Prior Year

	Occupancy			ADR			RevPAR
	% Variance			% Variance			% Variance
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		5.2			(0.7	)		4.4
Second Quarter		5.5			1.7			7.3
Third Quarter		1.9			2.7			4.6
Fourth Quarter		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		1.0			5.6			6.7
April		6.3			5.4			12.0
May		2.1			6.2			8.5
June		2.6			5.5			8.3
Second Quarter		3.7			5.7			9.6
July		1.7			6.3			8.1
August		4.6			6.1			11.0
September		8.2			6.1			14.8
Third Quarter		4.6			5.9			10.8
October		5.0			5.6			10.8
November		10.9			8.4			20.2
December		9.6			7.7			18.1
Fourth Quarter		8.5			7.1			16.2
Year 2005		4.4			6.2			10.8
Estimated January 2006		9.1			7.8			17.6

21

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Hotel Portfolio Information

Pro Rata Share of Rooms Owned

			Room Count at
	Hotels		December 31, 2005
Consolidated hotels in continuing operations		125		36,132
Unconsolidated hotel operations		5		761
Total hotels owned		130		36,893
50% joint ventures		19		(2,187	)
60% joint ventures		2		(390	)
75% joint ventures		1		(55	)
90% joint ventures		6		(148	)
97% joint venture		1		(10	)
Total joint venture owned rooms				(2,790	)
Pro rata share of rooms owned				34,103

Non-Strategic Hotels

     At December 31, 2005, we included in continuing operations 35 hotels that we are marketing for sale. The composition, by brand, of the 35 sale hotels is as follows: Holiday Inn-branded (16), Crowne Plaza branded (11), Doubletree branded (2) Embassy Suites Hotel (1), Sheraton (1) and other brands (4).

Operating statistics for our consolidated portfolio of 125^(a) hotels included in continuing operations:

	Three Months Ended December 31,						Year Ended December 31,
	2005		2004		%Variance		2005		2004		% Variance
Core Hotels (90 hotels)
Occupancy (%)		69.5		64.9		7.1		72.8		69.9		4.1
ADR ($)		116.05		108.98		6.5		115.58		108.87		6.2
RevPAR ($)		80.68		70.71		14.1		84.18		76.14		10.6
Non-Strategic Hotels (35 hotels)
Occupancy (%)		59.7		53.2		12.2		60.9		58.0		5.0
ADR ($)		87.06		78.62		10.7		83.25		78.18		6.5
RevPAR ($)		51.97		41.82		24.3		50.73		45.35		11.9

^(a) Hotels have been excluded in both the current and prior year for those months directly impacted by hurricanes.

     Hotel EBITDA margins for our consolidated portfolio of 125 hotels included in continuing operations:

	Three Months Ended December 31,								Year Ended December 31,
	2005			2004			bps variance		2005			2004			bps variance
Core Hotels (90 hotels)		26.3	%		24.5	%		180		27.6	%		26.4	%		120
Non-Strategic Hotels (35 hotels)		16.3	%		16.3	%		—		16.6	%		15.6	%		100

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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Hotel Portfolio Information (continued)

Capital Expenditures (dollars in thousands)

	Three Months Ended			Year Ended			Year Ended
	December 31, 2005			December 31, 2005			December 31, 2004
Consolidated and unconsolidated hotels:
Improvements and additions to hotels	$	40,040		$	126,671		$	108,491
% of total revenue		13.2	%		10.1	%		8.6	%

     Improvements and additions to consolidated hotels for the years ended December 31, 2005 and 2004 were $111.5 and $95.6 million, respectively.

     As of December 31, 2005, we have incurred $13.1 million of capital expenditures associated with our condominium development project in Myrtle Beach, South Carolina.

Portfolio Changes in 2005

Hotel Sales:

				Total Gross Sales
	Date			Price Per Quarter
Property	Sold	Rooms		(in millions)
Hotels sold during the quarter ended March 31, 2005:
Salt Lake City, UT — Holiday Inn	Jan 2005		191	$	1.2
Hotels sold during the quarter ended June 30, 2005:
Olive Branch, MS — Whispering Woods Hotel & Conference Center	Apr 2005		181
Moline, IL — Holiday Inn	May 2005		216
Moline, IL — Holiday Inn Express	May 2005		110
			507		12.3
Hotels sold during the quarter ended September 30, 2005:
Jackson, MS — Holiday Inn	July 2005		222
Waco, TX — Holiday Inn	Aug 2005		170
St. Louis, MO — Embassy Suites Downtown	Sept 2005		297
			689		44.1
Hotels sold during the quarter ended December 31, 2005:
Tampa, FL — Holiday Inn	Nov 2005		406
Davenport, IA — Holiday Inn	Dec 2005		288
Omaha, NE — Doubletree	Dec 2005		187
Cleveland, OH — Embassy Suites	Dec 2005		268
			1,149		21.6
Total sales during year ended December 31, 2005			2,536	$	79.2

Other Dispositions:

• In 2005, eight limited service hotels owned by a consolidated joint venture were surrendered to their non-recourse mortgage holders in exchange for $49.2 million forgiveness of debt.

23

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Hotel Portfolio Listing
(as of December 31, 2005)

	State	Rooms	% Owned(a)	Brand
Consolidated Continuing Operations
Core Hotels
Birmingham(b)	AL	242		Embassy Suites Hotel
Phoenix — Biltmore(b)	AZ	232		Embassy Suites Hotel
Phoenix Crescent Hotel(b)	AZ	342		Sheraton
Phoenix Tempe(b)	AZ	224		Embassy Suites Hotel
Dana Point — Doheny Beach	CA	195		Doubletree Guest Suites
Los Angeles — Anaheim (Located near Disneyland Park)(b)	CA	222		Embassy Suites Hotel
Los Angeles — Covina/I-10(b)	CA	202	50%	Embassy Suites Hotel
Los Angeles — El Segundo — International Airport — South	CA	349	97%	Embassy Suites Hotel
Milpitas — Silicon Valley(b)	CA	266		Embassy Suites Hotel
Napa Valley(b)	CA	205		Embassy Suites Hotel
Oxnard — Mandalay Beach Resort & Conference Center	CA	248		Embassy Suites Hotel
Palm Desert — Palm Desert Resort	CA	198		Embassy Suites Hotel
San Diego — On the Bay	CA	600		Holiday Inn
San Francisco — Burlingame Airport	CA	340		Embassy Suites Hotel
San Francisco — South San Francisco Airport(b)	CA	312		Embassy Suites Hotel
San Francisco — Fisherman’s Wharf	CA	585		Holiday Inn
San Francisco — Union Square	CA	403		Crowne Plaza
San Rafael — Marin County/Conference Center(b)	CA	235	50%	Embassy Suites Hotel
Santa Barbara — Goleta	CA	160		Holiday Inn
Santa Monica — Beach at the Pier	CA	132		Holiday Inn
Wilmington(b)	DE	244	90%	Doubletree
Boca Raton(b)	FL	263		Embassy Suites Hotel
Cocoa Beach — Oceanfront	FL	500		Holiday Inn
Deerfield Beach — Boca Raton/Deerfield Beach Resort(b)	FL	244		Embassy Suites Hotel
Ft. Lauderdale — 17th Street(b)	FL	358		Embassy Suites Hotel
Ft. Lauderdale — Cypress Creek(b)	FL	253		Sheraton Suites
Jacksonville — Baymeadows(b)	FL	277		Embassy Suites Hotel
Miami — International Airport(b)	FL	316		Embassy Suites Hotel
Orlando — International Airport(b)	FL	288		Holiday Inn Select
Orlando — International Drive — Resort	FL	651		Holiday Inn
Orlando — International Drive South/Convention Center(b)	FL	244		Embassy Suites Hotel
Orlando — (North)	FL	277		Embassy Suites Hotel
Orlando — Walt Disney World Resort	FL	229		Doubletree Guest Suites
Tampa — On Tampa Bay(b)	FL	203		Doubletree Guest Suites
Atlanta — Airport(b)	GA	232		Embassy Suites Hotel
Atlanta — Buckhead(b)	GA	317		Embassy Suites Hotel
Atlanta — Galleria(b)	GA	278		Sheraton Suites
Atlanta — Gateway — Atlanta Airport	GA	395		Sheraton
Atlanta — Perimeter Center(b)	GA	241	50%	Embassy Suites Hotel
Brunswick	GA	130		Embassy Suites Hotel

24

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Hotel Portfolio Listing
(as of December 31, 2005)

	State	Rooms	% Owned(a)	Brand
Chicago — Lombard/Oak Brook(b)	IL	262	50%	Embassy Suites Hotel
Chicago — Northshore/Deerfield (Northbrook) (b)	IL	237		Embassy Suites Hotel
Chicago O’Hare Airport(b)	IL	297		Sheraton Suites
Indianapolis — North(b)	IN	221	75%	Embassy Suites Hotel
Kansas City — Overland Park(b)	KS	199	50%	Embassy Suites Hotel
Lexington(b)	KY	155		Sheraton Suites
Lexington — Lexington Green(b)	KY	174		Hilton Suites
Baton Rouge(b)	LA	223		Embassy Suites Hotel
New Orleans(b)	LA	372		Embassy Suites Hotel
New Orleans — French Quarter	LA	374		Holiday Inn
Boston — Government Center	MA	303		Holiday Inn Select
Boston — Marlborough(b)	MA	229		Embassy Suites Hotel
Baltimore — BWI Airport(b)	MD	251	90%	Embassy Suites Hotel
Troy — North (Auburn Hills) (b)	MI	251	90%	Embassy Suites Hotel
Bloomington(b)	MN	219		Embassy Suites Hotel
Minneapolis — Airport(b)	MN	310		Embassy Suites Hotel
St. Paul — Downtown(b)	MN	210		Embassy Suites Hotel
Kansas City — Plaza(b)	MO	266	50%	Embassy Suites Hotel
Charlotte(b)	NC	274	50%	Embassy Suites Hotel
Charlotte SouthPark	NC	208		Doubletree Guest Suites
Raleigh(b)	NC	203		Doubletree Guest Suites
Raleigh — Crabtree(b)	NC	225	50%	Embassy Suites Hotel
Parsippany(b)	NJ	274	50%	Embassy Suites Hotel
Piscataway — Somerset(b)	NJ	222		Embassy Suites Hotel
Secaucus — Meadowlands(b)	NJ	261	50%	Embassy Suites Hotel
Tulsa — I-44	OK	244		Embassy Suites Hotel
Philadelphia — Historic District	PA	364		Holiday Inn
Philadelphia — Society Hill(b)	PA	365		Sheraton
Pittsburgh — At University Center (Oakland)(b)	PA	251		Holiday Inn Select
Charleston — Mills House (Historic Downtown)(b)	SC	214		Holiday Inn
Myrtle Beach — At Kingston Plantation	SC	255		Embassy Suites Hotel
Myrtle Beach Resort	SC	385		Hilton
Nashville — Airport/Opryland Area	TN	296		Embassy Suites Hotel
Nashville — Opryland/Airport (Briley Parkway)	TN	382		Holiday Inn Select
Austin(b)	TX	189	90%	Doubletree Guest Suites
Austin — North(b)	TX	260	50%	Embassy Suites Hotel
Corpus Christi(b)	TX	150		Embassy Suites Hotel
Dallas — DFW International Airport—South(b)	TX	305		Embassy Suites Hotel
Dallas — Love Field(b)	TX	248		Embassy Suites Hotel
Dallas — Market Center	TX	244		Embassy Suites Hotel
Dallas — Park Central	TX	536	60%	Westin
Dallas — Park Central Area	TX	279		Embassy Suites Hotel
Houston — Medical Center	TX	284		Holiday Inn & Suites

25

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Hotel Portfolio Listing
(as of December 31, 2005)

	State	Rooms	% Owned(a)	Brand
San Antonio — International Airport(b)	TX	261	50%	Embassy Suites Hotel
San Antonio — International Airport(b)	TX	397		Holiday Inn Select
San Antonio — N.W. I-10(b)	TX	216	50%	Embassy Suites Hotel
Burlington Hotel & Conference Center(b)	VT	309		Sheraton
Vienna — At Tysons Corner(b)	VA	437	50%	Sheraton
Canada
Toronto — Airport	Ontario	445		Holiday Inn Select
Toronto — Yorkdale	Ontario	370		Holiday Inn
Non-Strategic Hotels
Montgomery — East I-85	AL	210		Holiday Inn
Irvine — Orange County Airport (Newport Beach)(c)	CA	335		Crowne Plaza
Milpitas — San Jose-North (Milpitas — Silicon Valley)(c)	CA	305		Crowne Plaza
Pleasanton (San Ramon Area)	CA	244		Crowne Plaza
Denver — Aurora(b)	CO	248	90%	Doubletree
Stamford	CT	380		Holiday Inn Select
Miami — International Airport (LeJeune Center)	FL	304		Crowne Plaza
Orlando— Nikki Bird (Maingate — Walt Disney World Area)	FL	530		Holiday Inn
Atlanta — Airport(c)	GA	378		Crowne Plaza
Atlanta — Airport-North	GA	493		Holiday Inn
Atlanta — Perimeter — Dunwoody	GA	250		Holiday Inn Select
Atlanta — Powers Ferry(c)	GA	296		Crowne Plaza
Atlanta — South (I-75 & US 41)	GA	180		Holiday Inn
Columbus — North (I-185 at Peachtree Mall)	GA	224		Holiday Inn
Chicago — The Allerton	IL	443		Crowne Plaza
Minneapolis — Downtown	MN	216		Embassy Suites Hotel
Kansas City — NE I-435 North (At Worlds of Fun)	MO	165		Holiday Inn
Omaha — Central(c)	NE	129		Hampton Inn
Omaha — Central (I-80)	NE	383		Holiday Inn
Omaha — Old Mill	NE	223		Crowne Plaza
Philadelphia — Center City	PA	445		Crowne Plaza
Knoxville — Central At Papermill Road	TN	240		Holiday Inn
Amarillo — I-40	TX	248		Holiday Inn
Austin — Town Lake (Downtown Area)	TX	320		Holiday Inn
Dallas(c)	TX	295		Crowne Plaza Suites
Dallas — At Campbell Centre	TX	300	90%	Doubletree
Dallas — DFW International Airport-North	TX	164		Harvey Suites
Dallas — Market Center	TX	354		Crowne Plaza
Dallas — Park Central	TX	438	60%	Sheraton
Dallas — Park Central(c)	TX	114		Staybridge Suites
Dallas — West End/Convention Center	TX	309		Hampton Inn
Houston — Greenway Plaza Area	TX	355		Holiday Inn Select
Houston — I-10 West & Hwy. 6 (Park 10 Area)(c)	TX	349		Holiday Inn Select
Houston — Intercontinental Airport	TX	415		Holiday Inn
San Antonio — Downtown (Market Square)	TX	314		Holiday Inn

26

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2005

Hotel Portfolio Listing
(as of December 31, 2005)

	State	Rooms	% Owned(a)	Brand
Unconsolidated Operations
Hays(b)	KS	114	50%	Hampton Inn
Hays(b)	KS	191	50%	Holiday Inn
Salina(b)	KS	192	50%	Holiday Inn
Salina — I-70(b)	KS	93	50%	Holiday Inn Express & Suites
New Orleans — Chateau LeMoyne (In French Quarter/Historic Area)(b)	LA	171	50%	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) This hotel was sold in January 2006.

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