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) May 9, 2006

FelCor Lodging Trust Incorporated

(Exact name of registrant as specified in its charter)

Maryland	001-14236	75-2541756
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	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))

TABLE OF CONTENTS

Press Release

Supplemental Information

Section 2 – Financial Information

Item 2.02 Results of Operations and Financial Condition.

     On May 9, 2006, FelCor Lodging Trust Incorporated issued a press release announcing its results of operations for the three months ended March 31, 2006, and published its Supplemental Information for the three months ended March 31, 2006, which provides additional corporate data, financial highlights and portfolio statistical data. Copies of the press release and the Supplemental Information are furnished as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K. Copies of the foregoing are also available on FelCor Lodging Trust Incorporated’s website at www.felcor.com, on its Investor Relations page in the “Financial Reports” section.

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

Section 9 – Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

     (a) Financial statements of businesses acquired.

Not applicable.

     (b) Pro forma financial information.

Not applicable.

     (c) Exhibits.

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

Exhibit
Number	Description of Exhibit
99.1	Press release issued by FelCor Lodging Trust Incorporated on May 9, 2006, announcing its results of operations for the three months ended March 31, 2006.
99.2	Supplemental Information for the three months ended March 31, 2006, published by FelCor Lodging Trust Incorporated on May 9, 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: May 9, 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 May 9, 2006, announcing its results of operations for the three months ended March 31, 2006.
99.2	Supplemental Information for the three months ended March 31, 2006, published by FelCor Lodging Trust Incorporated on May 9, 2006, providing additional corporate data, financial highlights and portfolio statistical data.

EX-99.1

Exhibit 99.1

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

For Immediate Release:

FELCOR’S FFO PER SHARE INCREASES 104%
• Common Dividend Increased to $0.20 Per Share

     IRVING, Texas...May 9, 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 first quarter ended March 31, 2006.

First Quarter Results:

• Revenue Per Available Room (“RevPAR”) increased 15.0 percent, compared to the same period in 2005. Average Daily Rate (“ADR”) increased 8.6 percent.

• Hotel Earnings Before Interest, Taxes, Depreciation and Amortization (“Hotel EBITDA”) increased to $86.0 million, compared to $65.5 million in the prior year quarter, an increase of 31.2 percent. Hotel EBITDA margin was 27.6 percent, representing a 321 basis point improvement to the prior year first quarter Hotel EBITDA margin of 24.4 percent.

• Adjusted Funds From Operations (“FFO”) was $32.0 million, a $16.3 million increase from the prior year period. Adjusted FFO per share increased to $0.51, compared to $0.25 in the prior year quarter, an increase of 104 percent.

• Same-Store EBITDA increased by $19.3 million, to $75.8 million, or 34.2 percent to prior year. Adjusted EBITDA increased $13.9 million, to $75.9 million, or 22.4 percent to prior year.

• Net income was $10 million, compared to a net loss of $8 million in the first quarter of 2005. Net income applicable to common stockholders was $0.2 million, compared to a net loss applicable to common stockholders of $18.1 million, or $0.30 per share, in the first quarter of 2005.

• Based on these strong first quarter results, we have increased our dividend to $0.20 per share, effective the second quarter 2006.

     Included in the first quarter Adjusted EBITDA, Adjusted FFO and net income applicable to common stockholders for 2006 are business interruption insurance proceeds aggregating $3.2 million, related to 2005 hurricane losses, which was included in our original guidance. Excluded from first quarter Adjusted EBITDA and Adjusted FFO is $1 million loss on sale of hotels and $1 million in expense from the early retirement of debt.

First Quarter Highlights:

     During the first quarter, we sold eight non-strategic hotels for gross proceeds of $163 million, and retired net indebtedness totaling $180 million using proceeds from hotel sales and excess cash. Subsequent to the end of the quarter, we sold two additional non-strategic hotels for gross proceeds of $63 million.

     RevPAR growth was strong across the entire portfolio as a result of a strong increase in ADR for both the transient and group segments as well as an increase in occupancy.

     RevPAR increased by double digits in nearly all of our key markets. Markets with the highest RevPAR gains for the quarter were San Francisco, Chicago, Dallas and New Orleans, all with RevPAR increases of more than 20 percent and Southern Florida had a RevPAR increase of nearly 20 percent.

FelCor Lodging Trust First Quarter 2006 Operating Results
May 9, 2006
Page 2

     Our improved RevPAR performance contributed to a 321 basis point improvement in our Hotel EBITDA margin for the quarter, of which 50 basis points is attributed to business interruption proceeds from 2005 hurricanes.

     Market share for our consolidated hotels increased during the first quarter compared to prior year against their respective competitive set. On average, our Hilton, InterContinental Hotels Group and Starwood managed hotels improved market share for the quarter.

     “Our renewed focus on asset management, our portfolio repositioning program and capital improvements are showing up in strong operating results. We anticipate that we will continue to outperform the industry as we complete these initiatives,” said Richard A. Smith, FelCor’s President and Chief Executive Officer. “Based on our strong first quarter performance, we are pleased to announce an increase in our common dividend to $0.20 per share, starting with second quarter 2006.”

Capital Structure:

     At March 31, 2006, we had $1.5 billion of consolidated debt outstanding with a weighted average life of five years, compared to $1.8 billion outstanding at March 31, 2005. Our cash and cash equivalents totaled approximately $76 million at the end of the first quarter 2006.

     In January, we retired our $225 million unsecured term loan facility and established a new $125 million unsecured line of credit. In April 2006, we retired an additional $27 million of secured indebtedness and repaid our line of credit balance.

     In April, Moody’s Investors Service upgraded our corporate rating from B1 to Ba3. As a result, the interest rate on our $300 million of Senior Notes due 2011 was reduced by 50 basis points to 8.5 percent, resulting in an annual interest rate savings of $1.5 million.

     “We are pleased with the Moody’s upgrade. Not only does it reduce our cost of capital, but it is a testament to our recent performance and strategic initiatives,” said Andrew J. Welch, FelCor’s Executive Vice President and Chief Financial Officer.

Hotel Dispositions:

     In conjunction with the agreement with InterContinental Hotels to amend our management contracts, we announced that 38 hotels are expected to be sold for proceeds of between $500 and $550 million. The proceeds from these asset sales will be used to pay down $400 million of indebtedness with the balance used to fund a portion of our renovation program. To date, we have sold 13 hotels for $241 million. Gross proceeds from the remaining 25 hotels are expected to be approximately $260 to $310 million.

Other Highlights:

     Improvements and additions to consolidated hotels for the first quarter were $35 million. Capital expenditures, including our pro rata share of joint ventures, totaled $39 million.

     In the first quarter of 2006, we declared a common dividend of $0.15 per share and declared first quarter dividends on our Series A and Series C preferred stock, which were paid on May 1, 2006.

FelCor Lodging Trust First Quarter 2006 Operating Results
May 9, 2006
Page 3

2006 Guidance:

     We anticipate that during 2006, RevPAR will increase between 8 and 10 percent for the consolidated hotels, with the majority of the increase attributable to gains in ADR. RevPAR during the second quarter is expected to increase between 7 and 9 percent to prior year. Based on these expectations, we currently anticipate:

• Adjusted EBITDA to be between $287 and $292 million for the full year and between $81 and $83 million for the second quarter;

• Adjusted FFO per share to be between $1.90 and $1.98 for the full year, and to be between $0.63 and $0.66 for the second quarter;

• Hotel EBITDA margin to increase at least 150 basis points for the year; and

• Capital expenditures to remain consistent with our previous guidance of between $175 and $200 million for the full year.

     Adjusted EBITDA guidance for 2006 has been reduced by $3 million for the two hotels sold in April, which was not assumed in our previous guidance.

     There are no further 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 8 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 First Quarter 2006 Supplemental Information, which provides additional corporate data, financial highlights and portfolio statistical data for the quarter ended March 31, 2006. 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 115 consolidated hotels, located in 28 states and Canada. FelCor’s portfolio includes 65 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 $3.3 billion. Additional information can be found on the Company’s Web site at www.felcor.com.

FelCor Lodging Trust First Quarter 2006 Operating Results
May 9, 2006
Page 4

     We invite you to listen to our First Quarter 2006 Conference Call on Wednesday, May 10, 2006, at 10:00 a.m. (Central Daylight 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, May 10, 2006, at 12:00 p.m. (Central Daylight Time), through Friday, June 2, 2006, at 7:00 p.m. (Central Daylight Savings Time), by dialing 866-631-6911 (access code is 9385#). 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:
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

FelCor Lodging Trust First Quarter 2006 Operating Results
May 9, 2006
Page 5

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

	Three Months Ended
	March 31,
	2006			2005
Revenues:
Hotel operating revenue	$	311,876		$	268,985
Retail space rental and other revenue		134			156
Total revenues		312,010			269,141
Expenses:
Hotel departmental expenses		102,410			92,146
Other property operating costs		89,085			79,999
Management and franchise fees		16,569			13,321
Taxes, insurance and lease expense		30,631			29,224
Corporate expenses		5,804			4,540
Depreciation		27,351			26,922
Total operating expenses		271,850			246,152
Operating income		40,160			22,989
Interest expense, net		(30,834	)		(31,869	)
Charge-off of deferred financing costs		(667	)		—
Income (loss) from continuing operations before equity in income of unconsolidated entities and minority interests		8,659			(8,880	)
Equity in income from unconsolidated entities		1,948			1,131
Minority interests		150			917
Income (loss) from continuing operations		10,757			(6,832	)
Discontinued operations		(905	)		(1,182	)
Net income (loss)		9,852			(8,014	)
Preferred dividends		(9,678	)		(10,091	)
Net income (loss) applicable to common stockholders	$	174		$	(18,105	)
Basic and diluted earnings (loss) per common share data:
Net earnings (loss) from continuing operations	$	0.02		$	(0.28	)
Net earnings (loss)	$	—		$	(0.30	)
Basic weighted average common shares outstanding		59,660			59,416
Diluted weighted average common shares outstanding		59,976			59,416

FelCor Lodging Trust First Quarter 2006 Operating Results
May 9, 2006
Page 6

Discontinued Operations
(in thousands)

     Included in discontinued operations are the results of operations through the date of disposition, of eight hotels sold in the first quarter of 2006 and 19 hotels sold or otherwise disposed of in 2005. Condensed financial information for the hotels included in discontinued operations is as follows:

	Three Months Ended
	March 31,
	2006			2005
Operating revenue	$	3,398		$	34,016
Operating expenses		3,267			33,343
Operating income		131			673
Direct interest costs, net		1			(1,371	)
Impairment loss		—			(559	)
Gain (loss) on sale of depreciable assets		(1,077	)		20
Minority interests		40			55
Loss from discontinued operations		(905	)		(1,182	)
Depreciation		—			3,574
Minority interest in FelCor LP		(40	)		(55	)
Interest expense		(1	)		1,374
EBITDA from discontinued operations		(946	)		3,711
Gain (loss) on sale of assets		1,077			(20	)
Impairment loss		—			559
Asset disposition costs		—			1,300
Adjusted EBITDA from discontinued operations	$	131		$	5,550

Selected Balance Sheet Data
(in thousands)

	March 31			December 31
	2006			2005
Investment in hotels	$	3,161,468		$	3,341,881
Accumulated depreciation		(731,277	)		(754,502	)
Investments in hotels, net of accumulated depreciation	$	2,430,191		$	2,587,379
Total cash and cash equivalents	$	75,796		$	94,564
Total assets	$	2,757,537		$	2,919,093
Total debt	$	1,500,266		$	1,675,280
Total stockholders’ equity	$	1,028,462		$	1,031,793

     At March 31, 2006, we had an aggregate of 60,922,271 shares of FelCor common stock and 2,355,016 units of FelCor LP limited partnership interest outstanding.

FelCor Lodging Trust First Quarter 2006 Operating Results
May 9, 2006
Page 7

Debt Summary
(dollars in thousands)

	Encumbered	Interest Rate at	Maturity	Consolidated Debt
	Hotels	March 31, 2006	Date	at March 31, 2006
Promissory note	none	LIBOR (L) + 2.00	June 2016	$	650
Senior unsecured term notes	none	7.63	October 2007		123,591
Senior unsecured term notes	none	9.00	June 2011		298,723
Line of credit(a)	none	L + 2.00	January 2009		45,000
Senior unsecured term notes	none	L + 4.25	June 2011		190,000
Senior unsecured term notes(b)	none	7.80	June 2011		100,000
Total unsecured debt					757,964
Mortgage debt	9 hotels	6.52	July 2009 - 2014		103,629
Mortgage debt(c)	8 hotels	L + 2.50	May 2007		116,996
Mortgage debt	7 hotels	7.32	March 2009		126,678
Mortgage debt	4 hotels	7.55	June 2009		41,370
Mortgage debt	8 hotels	8.70	May 2010		171,788
Mortgage debt	7 hotels	8.73	May 2010		132,485
Mortgage debt	1 hotel	L + 2.85	August 2008		15,500
Mortgage debt	1 hotel	7.91	December 2007		10,388
Other	1 hotel	9.17	August 2011		5,031
Construction loan(d)	—	L + 2.25	August 2007		18,437
Total secured debt	46 hotels				742,302
				$	1,500,266
	April 2006 debt reduction from asset sale proceeds			$	(72,301	)

(a)	Our line of credit has a borrowing capacity of $125 million. The $45 million outstanding at March 31, 2006 was repaid in April 2006 from asset sale proceeds.
(b)	We have swapped $100 million of floating rate debt, at L + 4.25 percent, for a fixed rate of 7.80 percent. This interest rate swap expires in December 2007.
(c)	This debt has a one-year extension option, subject to certain contingencies. In April 2006, we repaid $27.3 million of this debt from asset sale proceeds. The interest rate on the remaining $89.7 million is L + 1.25 percent.
(d)	We have 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 L + 225 basis points and is being capitalized as part of the cost of the project. The interest rate may be reduced to L + 200 basis points when the project is 55 percent complete and upon satisfaction of certain other requirements.

Weighted average interest rate at March 31, 2006	8.12%
Fixed interest rate debt to total debt	77.7%
Weighted average maturity of debt	5 years
Secured debt to total assets	26.9%

FelCor Lodging Trust First Quarter 2006 Operating Results
May 9, 2006
Page 8

Preferred Stock
(dollars in thousands)

	Liquidation Value at
	March 31, 2006
Series A Cumulative Convertible Preferred Stock	$	322,011
Series C Cumulative Redeemable Preferred Stock	$	169,950

Non-GAAP Financial Measures

     We refer in this release 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 Income (Loss) to FFO and Adjusted FFO
(in thousands, except per share and unit data)

	Three Months Ended March 31,
	2006								2005
						Per Share								Per Share
	Dollars			Shares		Amount			Dollars			Shares		Amount
Net income (loss)	$	9,852							$	(8,014	)
Preferred dividends		(9,678	)							(10,091	)
Net income (loss) applicable to common stockholders		174			59,976	$	—			(18,105	)		59,416	$	(0.30	)
Depreciation from continuing operations		27,351			—		0.46			26,922			—		0.45
Depreciation from unconsolidated entities and discontinued operations		2,723			—		0.05			5,839			—		0.10
Loss (gain) on sale of depreciable assets		1,077			—		0.02			(20	)		—		—
Minority interest in FelCor LP		8			2,663		(0.03	)		(843	)		2,788		(0.03	)
Conversion of options and unvested restricted stock		—			—		—			—			421		—
FFO		31,333			62,639		0.50			13,793			62,625	$	0.22
Charge-off of deferred financing costs		667			—		0.01			—			—		—
Abandoned projects		—			—		—			1,300			—		0.02
Impairment loss on discontinued operations		—			—		—			559			—		0.01
Adjusted FFO	$	32,000			62,639	$	0.51		$	15,652			62,625	$	0.25

FelCor Lodging Trust First Quarter 2006 Operating Results
May 9, 2006
Page 9

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

	Three Months Ended
	March 31,
	2006			2005
Net income (loss)	$	9,852		$	(8,014	)
Depreciation from continuing operations		27,351			26,922
Depreciation from unconsolidated entities and discontinued operations		2,723			5,839
Minority interest in FelCor Lodging LP		8			(843	)
Interest expense		31,629			32,510
Interest expense from unconsolidated entities and discontinued operations		1,596			3,152
Amortization expense		990			597
EBITDA		74,149			60,163
Charge-off of deferred financing costs		667			—
Impairment loss on discontinued operations		—			559
Asset disposition costs		—			1,300
Gain (loss) on sale of depreciable assets		1,077			(20	)
Adjusted EBITDA		75,893			62,002
Adjusted EBITDA from discontinued operations		(131	)		(5,550	)
Same-Store EBITDA	$	75,762		$	56,452

Reconciliation of Adjusted EBITDA to Hotel EBITDA
(in thousands)

	Three Months Ended
	March 31,
	2006			2005
Adjusted EBITDA	$	75,893		$	62,002
Retail space rental and other revenue		(134	)		(156	)
Adjusted EBITDA from discontinued operations		(131	)		(5,550	)
Equity in income from unconsolidated entities (excluding interest and depreciation expense)		(6,699	)		(5,793	)
Minority interest in other partnerships (excluding interest and depreciation expense)		233			490
Consolidated hotel lease expense		14,333			12,665
Unconsolidated taxes, insurance and lease expense		(1,553	)		(1,455	)
Interest income		(794	)		(641	)
Corporate expenses (excluding amortization expense)		4,813			3,943
Hotel EBITDA	$	85,961		$	65,505

FelCor Lodging Trust First Quarter 2006 Operating Results
May 9, 2006
Page 10

Reconciliation of Net Income (Loss) to Hotel EBITDA
(in thousands)

	Three Months Ended
	March 31,
	2006			2005
Net income (loss)	$	9,852		$	(8,014	)
Discontinued operations		905			1,182
Equity in income from unconsolidated entities		(1,948	)		(1,131	)
Minority interest		(150	)		(917	)
Consolidated hotel lease expense		14,333			12,665
Unconsolidated taxes, insurance and lease expense		(1,553	)		(1,455	)
Interest expense, net		30,834			31,869
Charge-off of deferred financing costs		667			—
Corporate expenses		5,804			4,540
Depreciation		27,351			26,922
Retail space rental and other revenue		(134	)		(156	)
Hotel EBITDA	$	85,961		$	65,505

Hotel EBITDA and Hotel EBITDA Margin
(dollars in thousands)

	Three Months Ended
	March 31,
	2006			2005
Total revenue	$	312,010		$	269,141
Retail space rental and other revenue		(134	)		(156	)
Hotel operating revenue		311,876			268,985
Hotel operating expenses		(225,915	)		(203,480	)
Hotel EBITDA	$	85,961		$	65,505
Hotel EBITDA margin		27.6	%		24.4	%

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

	Three Months Ended
	March 31,
	2006			2005
Ratio of operating income to total revenue		12.9	%		8.5	%
Retail space rental and other revenue		—			—
Unconsolidated taxes, insurance and lease expense		(0.6	)		(0.5	)
Consolidated hotel lease expense		4.6			4.7
Corporate expenses		1.9			1.7
Depreciation		8.8			10.0
Hotel EBITDA margin		27.6	%		24.4	%

FelCor Lodging Trust First Quarter 2006 Operating Results
May 9, 2006
Page 11

Hotel Operating Expense Composition
(dollars in thousands)

	Three Months Ended
	March 31,
	2006			2005
Reconciliation of total operating expense to hotel operating expense:
Total operating expenses	$	271,850		$	246,152
Unconsolidated taxes, insurance and lease expense		1,553			1,455
Consolidated hotel lease expense		(14,333	)		(12,665	)
Corporate expenses		(5,804	)		(4,540	)
Depreciation		(27,351	)		(26,922	)
Hotel operating expenses	$	225,915		$	203,480
Supplemental information:
Compensation and benefits expense (included in hotel operating expenses)	$	93,036		$	86,955

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

	2nd Quarter 2006 Guidance										Full Year 2006 Guidance
	Low Guidance					High Guidance					Low Guidance						Hgh Guidance
				Per Share					Per Share					Per Share						Per Share
	Dollars			Amount(a)		Dollars			Amount(a)		Dollars			Amount (a)			Dollars			Amount (a)
Net income (b)	$	17				$	19				$	27					$	32
Preferred dividends		(10	)				(10	)				(39	)					(39	)
Net income (loss) applicable to common stockholders(b)		7		$	0.12		9		$	0.15		(12	)	$	(0.20	)		(7	)	$	(0.12	)
Loss on sale of assets		—					—					1						1
Depreciation		33					33					131						131
Minority interest in FelCor LP		—					—					(1	)					(1	)
Preferred A dividends		—					6					—						—
FFO		40		$	0.63		48		$	0.66		119		$	1.89			124		$	1.97
Write off loan costs		—					—					1						1
Adjusted FFO	$	40		$	0.63	$	48		$	0.66	$	120		$	1.90		$	125		$	1.98
Net income(b)	$	17				$	19				$	27					$	32
Depreciation		33					33					131						131
Minority interest in FelCor LP		—					—					(1	)					(1	)
Interest expense		30					30					124						124
Amortization expense		1					1					4						4
EBITDA		81					83					285						290
Loss on sale of assets		—					—					1						1
Write off loan costs		—					—					1						1
Adjusted EBITDA	$	81				$	83				$	287					$	292

(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. We have assumed the conversion of our Preferred A stock to common stock on the high end of our second quarter 2006 guidance because it is dilutive. This increases our weighted average shares from 63.1 million to 73.1 million.

(b)

Excludes future gains or losses from asset sales and debt extinguishment.

FelCor Lodging Trust First Quarter 2006 Operating Results
May 9, 2006
Page 12

     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.

FelCor Lodging Trust First Quarter 2006 Operating Results
May 9, 2006
Page 13

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

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

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

     To derive Same-Store EBITDA, we make the same adjustments to EBITDA as for Adjusted EBITDA and, additionally, exclude EBITDA from discontinued operations and gains and losses 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 are 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. We also 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.

FelCor Lodging Trust First Quarter 2006 Operating Results
May 9, 2006
Page 14

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 Ended March 31, 2006

Date of Issuance May 9, 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 Ended March 31, 2006

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
Debt Summary	15
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, Candlewood Suites®, Conrad®, Crowne Plaza®, Disneyland®, Doubletree®, Doubletree Guest Suites®, Embassy Suites Hotels®, Four Points® by Sheraton, Hampton Inn®, Harvey Suites®, Hilton®, Hilton Garden Inn®, Hilton Suites®, Holiday Inn®, Holiday Inn & Suites®, Holiday Inn Express®, Holiday Inn Express & Suites®, Holiday Inn Select®, Homewood Suites® by Hilton, InterContinental®, Priority Club®, Sheraton®, Sheraton Suites®, St. Regis®, Staybridge Suites®, The Luxury Collection®, W®, Walt Disney World®, Worlds of Fun® 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 Ended March 31, 2006

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. We are one of the nation’s largest lodging REITs and the nation’s largest owner of full service, all-suite hotels. At March 31, 2006, our portfolio was comprised of 117 consolidated hotels located in 28 states and Canada. For the 117 hotels included in continuing operations, the operating revenues and expenses are reflected in our consolidated statements of operations because of our ownership interests of the operating lessees of these hotels. We also owned 50 percent joint venture interests in five hotels whose operations were accounted for using the equity method. We owned 65 full service, all-suite hotels, and were the largest owner of Embassy Suites Hotels and Doubletree Guest Suites hotels. Our portfolio also included 51 hotels in the upscale and full service segments. We had a market capitalization of approximately $3.3 billion.

Strategy

We have strategic relationships with brand owners, including Hilton Hotels Corporation, InterContinental Hotels Group and Starwood Hotels & Resorts. The brand owners manage our diversified portfolio of nationally branded, upscale, full service hotels. We have identified three long-term strategic objectives: above average earnings growth; improvement in our return on invested capital; and a reduction in our overall financial leverage. To achieve these strategic objectives our business strategy is: to dispose of non-strategic hotels; acquire hotels that meet our refined investment strategy; to improve the competitive positioning of our core hotels through aggressive asset management and the judicious application of capital; and to pay down debt through a combination of operational cash flow and the sale of non-strategic hotels.

	Stock and Debt Ratings
	Senior Unsecured Debt	Preferred Stock
Moody’s Standard & Poors	Ba3 B	B2 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	Media Contact
Stephen A. Schafer	Monica L. Hildebrand
Vice President of Investor Relations	Vice President of Communications
(972) 444-4912	(972) 444-4917
sschafer@felcor.com	mhildebrand@felcor.com

Information Request
information@felcor.com

3

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

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

Troy A. Pentecost, Executive Vice President, Director of Asset Management

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

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

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 Ended March 31, 2006

Equity Research Coverage

Firm	Analyst	Telephone
Citigroup Smith Barney	Joshua Attie	(212) 816-1533
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
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 Ended March 31, 2006

FINANCIAL HIGHLIGHTS

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

	March 31			December 31,
	2006			2005
Total Enterprise Value
Common shares outstanding		60,922			60,209
Units outstanding		2,355			2,763
Combined shares and units outstanding		63,277			62,972
Common stock price at end of period	$	21.10		$	17.21
Common equity capitalization	$	1,335,145		$	1,083,748
Series A preferred stock		309,362			309,362
Series C preferred stock		169,412			169,412
Consolidated debt		1,500,266			1,675,280
Minority interest of consolidated debt		(8,084	)		(8,137	)
Pro rata share of unconsolidated debt		100,435			101,940
Cash and cash equivalents		(75,796	)		(94,564	)
Total enterprise value (TEV)	$	3,330,740		$	3,237,041
TEV per room(a)	$	104		$	95
Pro rata rooms owned		31,904			34,103
Dividends Per Share
Dividends declared (quarter ended):
Common stock	$	0.15		$	0.15
Series A preferred stock		0.4875			0.4875
Series C preferred stock (depositary shares)		0.50			0.50
Selected Balance Sheet Data
Investment in hotels, net	$	2,430,191		$	2,587,379
Total cash and cash equivalents		75,796			94,564
Total assets		2,757,537			2,919,093
Total debt		1,500,266			1,675,280
Total stockholders’ equity		1,028,462			1,031,793
Total stockholders equity less preferred equity		549,688			553,019
Book value per common share outstanding		9.02			9.18

(a) Based on pro rata rooms owned.

6

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

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

	Three Months Ended
	March 31,
	2006			2005
Revenues:
Hotel operating revenue	$	311,876		$	268,985
Retail space rental and other revenue		134			156
Total revenues		312,010			269,141
Expenses:
Hotel departmental expenses		102,410			92,146
Other property operating costs		89,085			79,999
Management and franchise fees		16,569			13,321
Taxes, insurance and lease expense		30,631			29,224
Corporate expenses		5,804			4,540
Depreciation		27,351			26,922
Total operating expenses		271,850			246,152
Operating income		40,160			22,989
Interest expense, net		(30,834	)		(31,869	)
Charge-off of deferred financing costs		(667	)		—
Income (loss) before equity in income of unconsolidated entities, minority interests and gain on sales of assets		8,659			(8,880	)
Equity in income from unconsolidated entities		1,948			1,131
Minority interests		150			917
Income (loss) from continuing operations		10,757			(6,832	)
Discontinued operations		(905	)		(1,182	)
Net income (loss)		9,852			(8,014	)
Preferred dividends		(9,678	)		(10,091	)
Net income (loss) applicable to common stockholders	$	174		$	(18,105	)
Basic and diluted loss per common share data:
Net income (loss) from continuing operations	$	0.02		$	(0.28	)
Net income (loss)		—		$	(0.30	)
Basic weighted average common shares outstanding		59,660			59,416
Diluted weighted average common shares outstanding		59,976			59,416

7

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

Discontinued Operations
(in thousands)

     Included in discontinued operations are the results of operations of eight hotels disposed of in the first quarter of 2006, and 19 hotels disposed of in 2005. Condensed financial information for the hotels included in discontinued operations is as follows:

	Three Months Ended
	March 31,
	2006			2005
Operating revenue	$	3,398		$	34,016
Operating expenses		3,267			33,343
Operating income (loss)		131			673
Direct interest costs, net		1			(1,371	)
Impairment loss		—			(559	)
Gain (loss) on sale of depreciable assets		(1,077	)		20
Minority interests		40			55
Income (loss) from discontinued operations		(905	)		(1,182	)
Depreciation		—			3,574
Minority interest in FelCor LP		(40	)		(55	)
Interest expense		(1	)		1,374
EBITDA from discontinued operations		(946	)		3,711
Gain on sale of assets		1,077			(20	)
Impairment loss		—			559
Asset disposition costs		—			1,300
Adjusted EBITDA from discontinued operations	$	131		$	5,550

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 Ended March 31, 2006

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

	Three Months Ended March 31,
	2006								2005
						Per Share								Per Share
	Dollars			Shares		Amount			Dollars			Shares		Amount
Net income (loss)	$	9,852							$	(8,014	)
Preferred dividends		(9,678	)							(10,091	)
Net income (loss) applicable to common stockholders		174			59,976	$	—			(18,105	)		59,416	$	(0.30	)
Depreciation from continuing operations		27,351			—		0.46			26,922			—		0.45
Depreciation from unconsolidated entities and discontinued operations		2,723			—		0.05			5,839			—		0.10
Loss (gain) on sale of depreciable assets		1,077			—		0.02			(20	)		—		—
Minority interest in FelCor LP		8			2,663		(0.03	)		(843	)		2,788		(0.03	)
Conversion of options and unvested restricted stock		—			—		—			—			421		—
FFO		31,333			62,639		0.50			13,793			62,625		0.22
Charge-off of deferred financing costs		667			—		0.01			—			—		—
Abandoned projects		—			—		—			1,300			—		0.02
Impairment loss on discontinued operations		—			—		—			559			—		0.01
Minority interest share of impairment loss		—			—		—			—			—		—
Adjusted FFO	$	32,000			62,639	$	0.51		$	15,652			62,625	$	0.25

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

	Three Months Ended
	March 31,
	2006			2005
Net income (loss)	$	9,852		$	(8,014	)
Depreciation from continuing operations		27,351			26,922
Depreciation from unconsolidated entities and discontinued operations		2,723			5,839
Minority interest in FelCor Lodging LP		8			(843	)
Interest expense		31,629			32,510
Interest expense from unconsolidated entities and discontinued operations		1,596			3,152
Amortization expense		990			597
EBITDA		74,149			60,163
Charge-off of deferred financing costs		667			—
Impairment loss on discontinued operations		—			559
Asset disposition costs		—			1,300
Loss (gain) on sale of depreciable assets		1,077			(20	)
Adjusted EBITDA		75,893			62,002
Adjusted EBITDA from discontinued operations		(131	)		(5,550	)
Same-Store EBITDA	$	75,762		$	56,452

9

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

Non-GAAP Financial Measures (continued)

Reconciliation of Adjusted EBITDA to Hotel EBITDA
(in thousands)

	Three Months Ended
	March 31,
	2006			2005
Adjusted EBITDA	$	75,893		$	62,002
Retail space rental and other revenue		(134	)		(156	)
Adjusted EBITDA from discontinued operations		(131	)		(5,550	)
Equity in income from unconsolidated entities (excluding interest and depreciation expense)		(6,699	)		(5,793	)
Minority interest in other partnerships (excluding interest and depreciation expense)		233			490
Consolidated hotel lease expense		14,333			12,665
Unconsolidated taxes, insurance and lease expense		(1,553	)		(1,455	)
Interest income		(794	)		(641	)
Corporate expenses (excluding amortization expense)		4,813			3,943
Hotel EBITDA	$	85,961		$	65,505

Reconciliation of Net Income (Loss) to Hotel EBITDA
(in thousands)

	Three Months Ended
	March 31,
	2006			2005
Net income (loss)	$	9,852		$	(8,014	)
Discontinued operations		905			1,182
Equity in income from unconsolidated entities		(1,948	)		(1,131	)
Minority interest		(150	)		(917	)
Consolidated hotel lease expense		14,333			12,665
Unconsolidated taxes, insurance and lease expense		(1,553	)		(1,455	)
Interest expense, net		30,834			31,869
Charge-off of deferred financing costs		667			—
Corporate expenses		5,804			4,540
Depreciation		27,351			26,922
Retail space rental and other revenue		(134	)		(156	)
Hotel EBITDA	$	85,961		$	65,505

Hotel EBITDA and Hotel EBITDA Margin
(dollars in thousands)

	Three Months Ended
	March 31,
	2006			2005
Total revenue	$	312,010		$	269,141
Retail space rental and other revenue		(134	)		(156	)
Hotel operating revenue		311,876			268,985
Hotel operating expenses		(225,915	)		(203,480	)
Hotel EBITDA	$	85,961		$	65,505
Hotel EBITDA margin		27.6	%		24.4	%

10

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

Non-GAAP Financial Measures (continued)

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

	Three Months Ended
	March 31,
	2006			2005
Ratio of operating income to total revenue		12.9	%		8.5	%
Retail space rental and other revenue		—			—
Unconsolidated taxes, insurance and lease expense		(0.6	)		(0.5	)
Consolidated hotel lease expense		4.6			4.7
Corporate expenses		1.9			1.7
Depreciation		8.8			10.0
Hotel EBITDA margin		27.6	%		24.4	%

Hotel Operating Expense Composition
(dollars in thousands)

	Three Months Ended
	March 31,
	2006			2005
Reconciliation of total operating expense to hotel operating expense:
Total operating expenses	$	271,850		$	246,152
Unconsolidated taxes, insurance and lease expense		1,553			1,455
Consolidated hotel lease expense		(14,333	)		(12,665	)
Corporate expenses		(5,804	)		(4,540	)
Depreciation		(27,351	)		(26,922	)
Hotel operating expenses	$	225,915		$	203,480
Supplemental information:
Compensation and benefits expense (included in hotel operating expenses)	$	93,036		$	86,955

     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.

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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

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.

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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

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 are 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. We also 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.

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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

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.

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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

Debt Summary
(dollars in thousands)

Debt Outstanding

	Encumbered	Interest Rate at	Maturity	Consolidated
	Hotels	March 31, 2006	Date	Debt
Promissory note	none	LIBOR (L) + 2.00	June 2016	$	650
Senior unsecured term notes	none	7.63	October 2007		123,591
Senior unsecured term notes	none	9.00	June 2011		298,723
Line of credit(a)	none	L + 2.00	January 2009		45,000
Senior unsecured term notes	none	L + 4.25	June 2011		190,000
Senior unsecured term notes(b)	none	7.80	June 2011		100,000
Total unsecured debt					757,964
Mortgage debt	9 hotels	6.52	July 2009 - 2014		103,629
Mortgage debt(c)	8 hotels	L + 2.50	May 2007		116,996
Mortgage debt	7 hotels	7.32	March 2009		126,678
Mortgage debt	4 hotels	7.55	June 2009		41,370
Mortgage debt	8 hotels	8.70	May 2010		171,788
Mortgage debt	7 hotels	8.73	May 2010		132,485
Mortgage debt	1 hotel	L + 2.85	August 2008		15,500
Mortgage debt	1 hotel	7.91	December 2007		10,388
Other	1 hotel	9.17	August 2011		5,031
Construction loan(d)	—	L + 2.25	August 2007		18,437
Total secured debt	46 hotels				742,302
				$	1,500,266
April 2006 debt reduction from asset sale proceeds				$	(72,301	)

(a)	We have a borrowing capacity of $125 million on our line of credit. The $45 million outstanding at March 31, 2006 was repaid in April 2006 from asset sale proceeds.
(b)	We have swapped this $100 million of floating rate debt of L + 4.25 percent for a fixed rate of 7.80 percent. This interest rate swap expires in December 2007.
(c)	This debt has a one-year extension option, subject to certain contingencies. In April 2006, we repaid $27.3 million of this debt from asset sale proceeds. The interest rate on the remaining $89.7 million is L + 1.25 percent.
(d)	We have 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 L + 225 basis points and is being capitalized as part of the cost of the project. The interest rate may be reduced to L + 200 basis points when the project is 55 percent complete and upon satisfaction of certain other requirements.

Weighted average interest at March 31, 2006		8.12	%
Fixed interest rate debt to total debt		77.7	%
Weighted average maturity of debt	5 years
Secured debt to total assets		26.9	%

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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

Debt Summary (continued)

     At March 31, 2006, future scheduled principal payments on outstanding debt are as follows (in thousands):

	Secured		Unsecured
Year	Debt		Debt			Total
2006	$	39,266	$	—		$	39,266
2007		112,274		125,000			237,274
2008		49,632		—			49,632
2009		176,560		45,000			221,560
2010		281,843		—			281,843
2011 and thereafter		82,727		590,650			673,377
Discount		—		(2,686	)		(2,686	)
Total debt	$	742,302	$	757,964		$	1,500,266

     At March 31, 2006, we had unconsolidated 50 percent investments in ventures that owned an aggregate of 19 hotels. These ventures had approximately $201 million of non-recourse mortgage debt, all of which is secured by hotel assets. Our pro rata share of this non-recourse debt was $100 million.

Financing transactions in 2006:

     In January, we retired our $225 million unsecured term loan facility and established a new $125 million unsecured line of credit. In April 2006, we retired an additional $27 million of secured indebtedness and repaid our line of credit balance.

     In April, Moody’s Investors Service upgraded our corporate rating from B1 to Ba3. As a result, the interest rate on our $300 million of Senior Notes due 2011 was reduced by 50 basis points to 8.5%, resulting in an annual interest rate savings of $1.5 million.

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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

PORTFOLIO DATA
Portfolio Distribution at March 31, 2006
(117 consolidated hotels included in continuing operations, same store basis)

					% of		% of 2005
	Hotels		Rooms		Total Rooms		Hotel EBITDA(a)
Brand
Embassy Suites Hotels		54		13,653		40		54
Holiday Inn-branded		32		11,007		32		22
Sheraton-branded		10		3,275		10		11
Doubletree-branded		9		2,019		6		6
Crowne Plaza		7		2,416		7		3
Other		5		1,567		5		4
Top Markets
Atlanta		8		2,385		7		7
South Florida area		6		1,738		5		6
Los Angeles area		5		1,100		3		5
Dallas		10		3,176		9		5
Orlando		6		2,219		7		5
Minneapolis		4		955		3		4
New Orleans		2		746		2		4
Phoenix		3		798		2		4
Philadelphia		3		1,174		3		4
Chicago		4		1,239		4		3
San Francisco Bay area		7		2,385		7		3
Washington, D.C.		1		443		1		3
San Diego		1		600		2		3
San Antonio		4		1,188		4		3
Northern New Jersey		3		757		2		3
Top Four States
California		17		4,896		14		17
Texas		22		6,585		19		13
Florida		15		4,937		15		13
Georgia		10		2,739		8		8
Location
Suburban		48		12,043		35		38
Urban		30		9,799		29		27
Airport		25		7,803		23		22
Resort		13		4,044		12		13
Highway		1		248		1		0
Segment
Upscale all-suite		65		16,037		47		61
Full service		33		11,170		33		22
Upscale		18		6,421		19		16
Limited service		1		309		1		1
Core Hotels		90		25,543		75		91
Non-Strategic Hotels		27		8,394		25		9

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

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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

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

	Occupancy (%)
	Three Months Ended March 31,
	2006		2005		%Variance
Embassy Suites Hotels		75.5		71.4		5.8
Holiday Inn-branded hotels		67.7		63.3		7.0
Sheraton-branded hotels		61.6		61.7		(0.2	)
Doubletree-branded hotels		71.3		65.2		9.3
Crowne Plaza hotels		65.3		61.4		6.2
Other hotels		60.0		55.7		7.7
Total hotels		69.9		66.0		5.9

	ADR ($)
	Three Months Ended March 31,
	2006		2005		% Variance
Embassy Suites Hotels		135.49		126.47		7.1
Holiday Inn-branded hotels		92.87		85.88		8.1
Sheraton-branded hotels		123.93		107.78		15.0
Doubletree-branded hotels		124.99		116.27		7.5
Crowne Plaza hotels		109.77		94.12		16.6
Other hotels		102.86		94.84		8.5
Total hotels		117.49		108.19		8.6

	RevPAR ($)
	Three Months Ended March 31,
	2006		2005		% Variance
Embassy Suites Hotels		102.31		90.27		13.3
Holiday Inn-branded hotels		62.87		54.33		15.7
Sheraton-branded hotels		76.33		66.50		14.8
Doubletree-branded hotels		89.08		75.81		17.5
Crowne Plaza hotels		71.63		57.81		23.9
Other hotels		61.76		52.85		16.9
Total hotels		82.17		71.42		15.0

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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

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

	Occupancy (%)
	Three Months Ended March 31,
	2006		2005		% Variance
Atlanta		74.2		69.9		6.2
South Florida area		89.4		88.9		0.6
Los Angeles area		78.1		72.0		8.6
Dallas		60.4		52.2		15.8
Orlando		76.2		80.0		(4.7	)
Minneapolis		64.3		65.5		(1.7	)
New Orleans		91.3		73.9		23.5
Phoenix		83.3		81.4		2.3
Philadelphia		58.1		60.7		(4.3	)
Chicago		63.1		61.4		2.8
San Francisco Bay area		71.0		63.3		12.1
Washington, D.C.		61.8		67.1		(7.9	)
San Diego		82.1		81.5		0.7
San Antonio		76.6		69.5		10.3
Northern New Jersey		65.8		65.1		1.1

	ADR ($)
	Three Months Ended March 31,
	2006		2005		% Variance
Atlanta		104.99		93.43		12.4
South Florida area		168.24		141.65		18.8
Los Angeles area		129.39		120.46		7.4
Dallas		106.17		97.97		8.4
Orlando		100.37		94.97		5.7
Minneapolis		129.39		122.77		5.4
New Orleans		151.90		147.33		3.1
Phoenix		160.65		146.46		9.7
Philadelphia		116.44		102.54		13.6
Chicago		114.16		96.51		18.3
San Francisco Bay area		119.15		110.47		7.9
Washington, D.C.		164.94		147.94		11.5
San Diego		135.86		122.73		10.7
San Antonio		93.58		86.00		8.8
Northern New Jersey		146.23		133.90		9.2

	RevPAR ($)
	Three Months Ended March 31,
	2006		2005		% Variance
Atlanta		77.92		65.29		19.3
South Florida area		150.45		125.94		19.5
Los Angeles area		101.11		86.68		16.7
Dallas		64.15		51.11		25.5
Orlando		76.53		75.95		0.8
Minneapolis		83.25		80.36		3.6
New Orleans		138.70		108.95		27.3
Phoenix		133.77		119.25		12.2
Philadelphia		67.65		62.24		8.7
Chicago		72.09		59.30		21.6
San Francisco Bay area		84.58		69.94		20.9
Washington, D.C.		101.94		99.32		2.6
San Diego		111.56		100.03		11.5
San Antonio		71.69		59.73		20.0
Northern New Jersey		96.27		87.21		10.4

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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

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

Variance to Prior Year

	Occupancy			ADR			RevPAR
	% Variance			% Variance			% Variance
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:
First Quarter		1.0			5.6			6.7
Second Quarter		3.7			5.7			9.6
Third Quarter		4.6			5.9			10.8
Fourth Quarter		8.5			7.1			16.2
Year 2005		4.4			6.2			10.8
2006:
January		9.7			7.8			18.2
February		4.5			8.1			13.0
March		4.2			9.8			14.3
First Quarter		5.9			8.6			15.0
April		(1.2	)		8.0			6.7

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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

Hotel Portfolio Information

Pro Rata Share of Rooms Owned

			Room Count at
	Hotels		March 31, 2006
Consolidated hotels in continuing operations		117		33,937
Unconsolidated hotel operations		5		761
Total hotels owned		122		34,698
50% joint ventures		19		(2,190	)
60% joint ventures		2		(390	)
75% joint ventures		1		(55	)
90% joint ventures		6		(148	)
97% joint venture		1		(11	)
Total joint venture owned rooms				(2,794	)
Pro rata share of rooms owned				31,904

Non-Strategic Hotels

     At March 31, 2006, we included in continuing operations 27 hotels that we are marketing for sale. The composition, by brand, of the 27 sale hotels is as follows: Holiday Inn-branded (15), Crowne Plaza-branded (6), Doubletree-branded (2) Embassy Suites Hotel (1), Sheraton (1) and other brands (2).

     Operating statistics and Hotel EBITDA margins for the three months ended March 31, 2006, for our consolidated portfolio of 117 hotels included in continuing operations were as follows:

	Core Hotels		Non-strategic Hotels		Total
Occupancy (%)		73.2		60.1		69.9
ADR ($)		126.33		84.72		117.49
RevPAR ($)		92.44		50.90		82.17
Hotel EBITDA margin (%)		30.0		14.3		27.6

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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

Hotel Portfolio Information (continued)

Capital Expenditures (dollars in thousands)

	Three Months Ended March 31,
	2006			2005
Improvements and additions to hotels included in continuing operations	$	42,886		$	27,389
% of total revenue		13.8	%		10.2	%

     Improvements and additions to consolidated hotels for the first quarter were $35 million. Capital expenditures including our pro rata share of joint ventures totaled $39 million.

     At March 31, 2006, we had incurred $23.4 million of capital expenditures associated with our condominium development project in Myrtle Beach, South Carolina.

Portfolio Changes in 2006

				Total Gross Sales
	Date			Price Per Quarter
Property	Sold	Rooms		(in millions)
Hotels sold during the quarter ended March 31, 2006:
Atlanta, GA — Crowne Plaza (Airport)	Jan 2006		378
Atlanta, GA — Crowne Plaza (Powers Ferry)	Jan 2006		296
Dallas, TX — Crowne Plaza Suites	Jan 2006		295
Dallas, TX — Staybridge Suites	Jan 2006		114
Houston, TX — Holiday Inn Select	Jan 2006		349
Irvine, CA — Crowne Plaza	Jan 2006		335
San Jose, CA — Crowne Plaza	Jan 2006		305
Omaha, NE — Hampton Inn	Jan 2006		129
			2,201	$	162.6
Hotels sold during April 2006:
Miami, FL — Crowne Plaza	Apr 2006		304
Philadelphia, PA — Crowne Plaza	Apr 2006		445		63.0
Total 2006 year to date sales			2,950	$	225.6

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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

Hotel Portfolio Listing
(as of March 31, 2006)

	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	316		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

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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

Hotel Portfolio Listing
(as of March 31, 2006)

	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

24

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

Hotel Portfolio Listing
(as of March 31, 2006)

	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	443	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
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) (c)	FL	304		Crowne Plaza
Orlando — Nikki Bird (Maingate — Walt Disney World Area)	FL	530		Holiday Inn
Atlanta — Airport-North	GA	493		Holiday Inn
Atlanta — Perimeter — Dunwoody	GA	250		Holiday Inn Select
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 (I-80)	NE	383		Holiday Inn
Omaha — Old Mill	NE	223		Crowne Plaza
Philadelphia — Center City(c)	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 — At Campbell Centre	TX	300	90%	Doubletree
Dallas — DFW International Airport-North	TX	163		Harvey Suites
Dallas — Market Center	TX	354		Crowne Plaza
Dallas — Park Central	TX	438	60%	Sheraton
Dallas — West End/Convention Center	TX	309		Hampton Inn
Houston — Greenway Plaza Area	TX	355		Holiday Inn Select
Houston — Intercontinental Airport	TX	415		Holiday Inn
San Antonio — Downtown (Market Square)	TX	314		Holiday Inn

25

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2006

Hotel Portfolio Listing
(as of March 31, 2006)

	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 April 2006.

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