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) August 8, 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))

Section 2 — Financial Information

     Item 2.02 Results of Operations and Financial Condition.

          On August 8, 2006, FelCor Lodging Trust Incorporated issued a press release announcing its results of operations for the three-and six-month periods ended June 30, 2006, and published supplemental information for the three-and six-month periods ended June 30, 2006. 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 contained 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 be subject to the liabilities of that section. Furthermore, the information contained 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 August 8, 2006, announcing its results of operations for the three-and six-month periods ended June 30, 2006.
99.2	Supplemental information for the three-and six-month periods ended June 30, 2006, published by FelCor Lodging Trust Incorporated on August 8, 2006.

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: August 8, 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 August 8, 2006, announcing its results of operations for the three-and six-month periods ended June 30, 2006.
99.2	Supplemental information for the three-and six-month periods ended June 30, 2006, published by FelCor Lodging Trust Incorporated on August 8, 2006.

EX-99.1

	Exhibit 99.1
For Immediate Release:

FELCOR EXCEEDS SECOND QUARTER ESTIMATES
Reports Adjusted FFO per share of $0.67

     IRVING, Texas...August 8, 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 second quarter and six months ended June 30, 2006.

Second Quarter Results:

• Revenue Per Available Room (“RevPAR”) increased 8.4 percent, compared to the same period in 2005. Average Daily Rate (“ADR”) increased 8.2 percent.

• Hotel Earnings Before Interest, Taxes, Depreciation and Amortization (“Hotel EBITDA”) increased to $92.6 million, compared to $80.7 million in the prior year quarter, an increase of 14.7 percent. Hotel EBITDA margin was 30.0 percent, representing a 178 basis point improvement to the prior year.

• Displacement from major renovations caused reductions to RevPAR (approximately 1 percent) and EBITDA (approximately $1.6 million), which negatively affected Hotel EBITDA margin by approximately 35 basis points.

• Adjusted Funds From Operations (“FFO”) was $42.1 million, an $8.1 million increase from the prior year period. Adjusted FFO per share increased to $0.67, compared to $0.54 in the prior year quarter, an increase of 24 percent.

• Same-Store EBITDA increased by $10.5 million, to $82.2 million, or 14.7 percent to prior year. Adjusted EBITDA (including sold hotels) increased $3.3 million, to $83.8 million, or 4.1 percent to prior year.

• Net income was $10 million for both second quarter 2006 and 2005. Net income applicable to common stockholders was $0.5 million, or $0.01 per share, compared to a net loss applicable to common stockholders of $4.7 million, or $0.08 per share, in the second quarter of 2005.

Six Month Results:

• RevPAR increased 11.5 percent, compared to the same period in 2005. ADR increased 8.2 percent.

• Hotel EBITDA increased to $176.6 million, compared to $145.0 million in the prior year period, an increase of 21.8 percent. Hotel EBITDA margin was 29.2 percent, representing a 241 basis point improvement to the prior year.

• Displacement from major renovations caused reductions to RevPAR (approximately 1 percent) and EBITDA (approximately $2.9 million), which negatively affected Hotel EBITDA margin by approximately 30 basis points.

• Adjusted FFO was $74.1 million, a $24.5 million increase from the prior year period. Adjusted FFO per share increased to $1.18, compared to $0.79 in the prior year period, an increase of 49 percent.

• Same-Store EBITDA increased by $29.1 million, to $156.1 million, or 22.9 percent to prior year. Adjusted EBITDA (including sold hotels) increased $17.2 million, to $159.7 million, or 12.1 percent to prior year.

• Net income was $20.0 million compared to $2.3 million for the six month period in 2005. Net income applicable to common stockholders was $0.6 million, or $0.01 per share, compared to a net loss applicable to common stockholders of $22.8 million, or $0.38 per share, in 2005.

-more-

FelCor Lodging Trust First Quarter 2006 Operating Results
August 8, 2006
Page 2

     Expenses, net of minority interest, related to the early retirement of $0.8 million and $1.5 million of debt, respectively, were excluded from Adjusted EBITDA and Adjusted FFO for the quarter and six months ended June 30, 2006. Similarly, we recorded an impairment charge, net of minority interest, or $8.3 million related to a hotel that was designated as non-strategic in the second quarter of 2006 and was excluded from Adjusted EBITDA and Adjusted FFO for that quarter.

Second Quarter Highlights:

     RevPAR growth continues to be strong across the entire portfolio and is attributable to a significant increase in ADR. Our ADR growth was very strong in a majority of our key markets as we are focused on managing our customer mix and taking advantage of the strong industry trends.

     RevPAR increased by double digits in a number of our key markets. Markets with the highest RevPAR gains for the quarter were Atlanta, Boston, Chicago, Dallas, Orlando, San Antonio, the San Francisco Bay area and Ventura, California.

     Many factors contributed to the 178 basis point improvement in our Hotel EBITDA margin for the quarter, including our improved RevPAR performance, changes in our asset management approach and our repositioning plan. The displacement from renovations in the quarter contributed to a reduction in revenue of approximately $2.4 million and erosion of Hotel EBITDA margins of approximately 35 basis points.

     “FelCor has a unique opportunity to add significant value through internal growth over the next few years as a consequence of the change in our asset management approach, our renovation program and redevelopment projects. We have begun to implement these initiatives and are just beginning to see the benefits. The transition of our asset management approach is now complete, and we expect continued improvement in Hotel EBITDA margins as a result of these changes,” said Richard A. Smith, FelCor’s President and Chief Executive Officer. “We are excited about implementing our renovation and redevelopment program over the next couple of years which will increase long-term shareholder value.”

     In the second quarter of 2006, we increased our common dividend to $0.20 per share, from $0.15 per share.

Capital Structure:

     At June 30, 2006, we had $1.4 billion of consolidated debt outstanding with a weighted average life of five years, compared to $1.7 billion outstanding at June 30, 2005. Our cash and cash equivalents totaled approximately $67 million at the end of the second quarter 2006.

     During the second quarter, we retired $58 million of net indebtedness, including $27 million of secured debt and repaid our line of credit balance. At June 30, 2006, consolidated debt to trailing twelve month Adjusted EBITDA was 5.0x, compared to 6.5x at June 30, 2005.

     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.

-more-

FelCor Lodging Trust First Quarter 2006 Operating Results
August 8, 2006
Page 3

     “We have paid down a total of $287 million of debt since September 30, 2005, and should reach our goal of $400 million of aggregate debt reduction by the end of this year. Our financial profile continues to improve and our leverage ratio is declining as a result of improved operating performance and debt reduction,” said Andrew J. Welch, FelCor’s Executive Vice President and Chief Financial Officer. “We are currently evaluating opportunities to refinance additional debt.”

Hotel Disposition Update:

     During the second quarter, we sold four non-strategic hotels for gross proceeds of $78 million. We have sold 15 hotels for gross proceeds of $256 million since we began the disposition program. There are 23 remaining from the original 38 hotels that were identified as non-strategic. At June 30, 2006, we had 20 hotels under contract to sell, and we are well ahead of the expected pace of the repositioning program.

     In connection with the finalization of our three year capital improvement program, during the second quarter, we identified seven additional hotels as non-strategic. The six Embassy Suites Hotels^® and one Sheraton Suites^® are primarily located in suburban locations generally within secondary markets. We recorded an impairment charge of $9 million, in the second quarter, related to one of these hotels.

     We expect total gross proceeds for the 45 non-strategic hotels to be between $650 and $700 million. The expected proceeds are toward the high end of our original expectations for the 38 hotels set forth in January. The proceeds from the seven additional non-strategic hotels will be used primarily to fund the redevelopment projects.

Renovation Program Update:

     We finalized the long-term capital plans for every hotel late in the second quarter. We are spending in excess of $400 million of capital between 2006 and 2008. The program will be extensive and will include guest room, guest bath, meeting space, public area, exterior and major mechanical upgrades at every hotel, where needed. At the end of the program, our entire portfolio will be completely renovated. More than 75 percent of these capital expenditures will have a positive guest impact, where additional rate and occupancy can be captured. As a result, we expect returns on that capital to be between 12 and 15 percent.

     Improvements and additions to consolidated hotels for the second quarter were $36 million and were $70 million, for the six months ended June 30, 2006. Hotel capital expenditures, including our pro rata share of joint ventures, totaled $38 million for the quarter and $76 million for the six months. We expect hotel capital expenditures of approximately $175 million for the full year.

     Our Royale Palms condominium project in Myrtle Beach, South Carolina, is more than 50 percent complete and scheduled to be completed in the third quarter 2007. At June 30, the balance on the construction loan was $34 million. We have pre sold approximately 98 percent of these condominiums. We currently expect to earn net income of approximately $16 million at the completion of the project, and we expect that between 50 and 60 percent of the condominium units will enter our rental pool.

-more-

FelCor Lodging Trust First Quarter 2006 Operating Results
August 8, 2006
Page 4

     We also have identified redevelopment opportunities at a number of our hotels and are currently in the pre-development phase for three projects: building a new convention center in Myrtle Beach at our Kingston Plantation complex, adding a new spa and fitness center at the Embassy Suites Resort in Deerfield Beach, Florida and adding 5,000 square feet of meeting space at the Doubletree Guest Suites^® in Dana Point, California.

2006 Guidance:

     We anticipate that during 2006, RevPAR will increase between 8 and 10 percent , with the majority of the increase attributable to gains in ADR. RevPAR during the third quarter is expected to increase between 6 and 8 percent compared to the same period in 2005. Based on these expectations, we currently anticipate:

• Adjusted EBITDA to be between $287 and $292 million for the full year and between $69 and $71 million for the third quarter;

• Adjusted FFO per share to be between $1.90 and $1.98 for the full year, and to be between $0.43 and $0.47 for the third quarter; and

• Hotel EBITDA margin to increase approximately 170 basis points for the year.

     We are leaving our guidance for the year unchanged for RevPAR, EBITDA and FFO, but are raising our estimates for Hotel EBITDA margin. The 2006 estimates assume higher RevPAR and Hotel EBITDA margin for the second half of the year as a result of stronger corporate transient and group demand and continued benefit from our new asset management approach. However, we anticipate a higher level of displacement from renovations than originally expected. Our renovation schedules were finalized in the second quarter, with some changes to the timelines. As a result of these changes, we anticipate displacement for the full year to negatively impact EBITDA by $7.6 million, or FFO of $0.12 per share, which is $3.6 million, or $0.06 per share, higher than originally expected. In addition, we sold two hotels in the second quarter, which was not previously reflected in our 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 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 Second Quarter and Six Months Supplemental Information, which provides additional corporate data, financial highlights and portfolio statistical data for the quarter and six months ended June 30, 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.

-more-

FelCor Lodging Trust First Quarter 2006 Operating Results
August 8, 2006
Page 5

     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 113 consolidated hotels, located in 27 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.

     We invite you to listen to our Second Quarter 2006 Conference Call on Wednesday, August 9, 2006, at 10:00 a.m. (Central 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, August 9, 2006, at 12:00 p.m. (Central Time), through Friday, September 1, 2006, at 7:00 p.m. (Central Time), by dialing 800-642-1687 (conference ID# 3236840). 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

-more-

FelCor Lodging Trust First Quarter 2006 Operating Results
August 8, 2006
Page 6

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Revenues:
Hotel operating revenue:
Room	$	251,114		$	231,936		$	495,839		$	439,995
Food and beverage		42,200			39,605			79,284			74,189
Other operating departments		15,179			14,234			29,657			27,081
Retail space rental and other revenue		157			120			291			276
Total revenues		308,650			285,895			605,071			541,541
Expenses:
Hotel departmental expenses:
Room		62,490			58,301			122,063			111,235
Food and beverage		31,740			30,076			61,217			57,450
Other operating departments		7,100			7,008			14,090			13,148
Other property related costs		81,257			78,349			164,794			153,253
Management and franchise fees		16,854			14,802			32,649			27,461
Taxes, insurance and lease expense		32,044			30,336			61,733			58,698
Corporate expenses		5,562			4,728			11,366			9,269
Impairment loss		9,268			—			9,268			—
Depreciation		27,604			26,579			53,802			52,256
Total operating expenses		273,919			250,179			530,982			482,770
Operating income		34,731			35,716			74,089			58,771
Interest expense, net		(28,561	)		(32,901	)		(59,325	)		(64,779	)
Charge-off of deferred financing costs		(295	)		—			(962	)		—
Early extinguishment of debt		(438	)		—			(438	)		—
Income (loss) before equity in income from unconsolidated entities, minority interests and gain on sale of assets		5,437			2,815			13,364			(6,008	)
Equity in income from unconsolidated entities		3,812			3,837			5,760			4,968
Minority interests		1,572			306			1,816			1,283
Gain on sale of assets		—			389			—			389
Income (loss) from continuing operations		10,821			7,347			20,940			632
Discontinued operations		(676	)		3,004			(943	)		1,705
Net income (loss)		10,145			10,351			19,997			2,337
Preferred dividends		(9,678	)		(9,809	)		(19,356	)		(19,900	)
Issuance costs of redeemed preferred stock		—			(5,198	)		—			(5,198	)
Net income (loss) applicable to common stockholders	$	467		$	(4,656	)	$	641		$	(22,761	)
Basic and diluted per common share data:
Net income (loss) from continuing operations	$	0.02		$	(0.13	)	$	0.03		$	(0.41	)
Net income (loss)	$	0.01		$	(0.08	)	$	0.01		$	(0.38	)
Basic weighted average common shares outstanding		60,355			59,404			60,066			59,363
Diluted weighted average common shares outstanding		60,626			59,404			60,326			59,363

-more-

FelCor Lodging Trust First Quarter 2006 Operating Results
August 8, 2006
Page 7

Discontinued Operations
(in thousands)

     Included in discontinued operations are the results of operations of four hotels disposed of in the second quarter of 2006, 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						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Operating revenue	$	8,704		$	45,944		$	27,691		$	93,457
Operating expenses		7,460			41,893			25,513			89,358
Operating income		1,244			4,051			2,178			4,099
Direct interest costs, net		(64	)		(610	)		(134	)		(1,972	)
Loss on sale of depreciable assets		(1,785	)		(234	)		(2,862	)		(214	)
Minority interests		(71	)		(203	)		(125	)		(208	)
Income (loss) from discontinued operations		(676	)		3,004			(943	)		1,705
Depreciation		469			4,173			1,596			8,961
Minority interest in FelCor LP		(23	)		139			(63	)		79
Interest expense		65			607			129			1,963
EBITDA from discontinued operations		(165	)		7,923			719			12,708
Loss on sale of assets		1,785			234			2,862			214
Impairment loss		—			732			—			1,291
Asset disposition costs		—			—			—			1,300
Adjusted EBITDA from discontinued operations	$	1,620		$	8,889		$	3,581		$	15,513

Selected Balance Sheet Data
(in thousands)

	June 30,			December 31
	2006			2005
Investment in hotels	$	3,045,042		$	3,341,881
Accumulated depreciation		(717,253	)		(754,502	)
Investments in hotels, net of accumulated depreciation	$	2,327,789		$	2,587,379
Total cash and cash equivalents	$	67,490		$	94,564
Total assets	$	2,686,756		$	2,919,093
Total debt	$	1,442,073		$	1,675,280
Total stockholders’ equity	$	1,028,566		$	1,031,793

     At June 30, 2006, we had an aggregate of 61,955,094 shares of FelCor common stock and 1,355,016 units of FelCor LP limited partnership interest outstanding.

-more-

FelCor Lodging Trust First Quarter 2006 Operating Results
August 8, 2006
Page 8

Debt Summary
(dollars in thousands)

	Encumbered	Interest Rate at	Maturity	Consolidated
	Hotels	June 30, 2006(a)	Date	Debt
Promissory note	none	LIBOR (L) + 2.00	June 2016	$650
Line of credit(b)	none	L + 2.00	January 2009	—
Senior unsecured term notes	none	7.63	October 2007	123,823
Senior unsecured term notes	none	8.50	June 2011	298,786
Senior unsecured term notes	none	L + 4.25	June 2011	190,000
Senior unsecured term notes(c)	none	7.80	June 2011	100,000
Total unsecured debt				713,259
Mortgage debt	9 hotels	6.53	July 2009 — 2014	103,144
Mortgage debt(d)	8 hotels	L + 1.25	May 2007	88,984
Mortgage debt	7 hotels	7.32	March 2009	125,888
Mortgage debt	4 hotels	7.55	June 2009	40,955
Mortgage debt	8 hotels	8.70	May 2010	171,035
Mortgage debt	7 hotels	8.73	May 2010	131,801
Mortgage debt	1 hotel	L + 2.85	August 2008	15,500
Mortgage debt	1 hotel	5.81	July 2016	13,000
Other	1 hotel	9.17	August 2011	4,832
Construction loan(e)	—	L + 2.25	August 2007	33,675
Total secured debt	46 hotels			728,814
				$1,442,073

(a)	Our weighted average interest rate as of June 30, 2006 was 8.16 percent.
(b)	We have a borrowing capacity of $125 million on our line of credit. The interest on this line can range from L + 175 to L + 225 basis points, based on our leverage ratio (as defined in our line of credit agreement).
(c)	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.
(d)	This debt has a one-year extension option, subject to certain contingencies.
(e)	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 being capitalized as part of the cost of the project. Effective July 1, 2006, the interest rate on this loan facility was reduced to L + 200 basis points.

Fixed interest rate debt to total debt		77.2	%
Weighted average maturity of debt	5 years
Secured debt to total assets		27.1	%

Preferred Stock
(dollars in thousands)

	Liquidation Value at
	June 30, 2006
Series A $1.95 Cumulative Convertible Preferred Stock	$	322,011
Series C 8% Cumulative Redeemable Preferred Stock	$	169,950

-more-

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

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 the limitations of such measures.

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

	Three Months Ended June 30,
	2006								2005
						Per Share								Per Share
	Dollars			Shares		Amount			Dollars			Shares		Amount
Net income	$	10,145							$	10,351
Preferred dividends		(9,678	)							(9,809	)
Issuance costs of redeemed preferred stock.		—								(5,198	)
Net income (loss) applicable to common stockholders		467			60,626	$	0.01			(4,656	)		59,404	$	(0.08	)
Depreciation, continuing operations		27,604			—		0.46			26,579			—		0.45
Depreciation, unconsolidated entities and discontinued operations		3,102			—		0.05			6,510			—		0.11
Loss (gain) on sale of depreciable assets		1,785			—		0.03			(155	)		—		—
Minority interest in FelCor LP		16			2,102		(0.02	)		(216	)		2,788		(0.03	)
Conversion of options and unvested restricted stock		—			—		—			—			339		—
FFO		32,974			62,728		0.53			28,062			62,531		0.45
Issuance costs of redeemed preferred stock.		—			—		—			5,198			—		0.08
Charge-off of deferred financing costs		295			—		—			—			—		—
Charge-off of deferred financing costs, unconsolidated entities		20			—		—			—			—		—
Early extinguishment of debt		438			—		0.01			—			—
Early extinguishment of debt, unconsolidated entities		165			—		—			—			—		—
Minority interest share of charge-off of financing costs and early extinguishment of debt		(115	)		—		—			—			—		—
Impairment loss, continuing operations		9,268			—		0.15			—			—		—
Impairment loss, discontinued operations		—			—		—			732			—		0.01
Minority interest share of impairment loss.		(927	)		—		(0.02	)		—			—		—
Adjusted FFO(a)	$	42,118			62,728	$	0.67		$	33,992			62,531	$	0.54

(a) It is more dilutive to assume the conversion of our Series A Preferred Stock into common stock when our quarterly adjusted FFO per share calculation exceeds 63 cents per share. For the three months ended June 30, 2006, the more dilutive calculation remains at 67 cents as shown below:

					Per Share
	Dollars		Shares		Amount
Adjusted FFO	$	42,118		62,728	$	0.67
Preferred dividends		6,279		9,985
Adjusted FFO assuming conversion of Series A Preferred Stock	$	48,397		72,713	$	0.67

-more-

FelCor Lodging Trust First Quarter 2006 Operating Results
August 8, 2006
Page 10

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

	Six Months Ended June 30,
	2006								2005
						Per Share								Per Share
	Dollars			Shares		Amount			Dollars			Shares		Amount
Net income	$	19,997							$	2,337
Preferred dividends		(19,356	)							(19,900	)
Issuance costs of redeemed preferred stock.		—								(5,198	)
Net income (loss) applicable to common stockholders		641			60,326	$	0.01			(22,761	)		59,363	$	(0.38	)
Depreciation, continuing operations		53,802			—		0.89			52,256			—		0.88
Depreciation, unconsolidated entities and discontinued operations		6,978			—		0.12			13,595			—		0.23
Loss (gain) on sale of depreciable assets		2,862			—		0.05			(175	)		—		—
Minority interest in FelCor LP		24			2,381		(0.04	)		(1,059	)		2,788		(0.06	)
Conversion of options and unvested restricted stock		—			—		—			—			319		—
FFO		64,307			62,707		1.03			41,856			62,470		0.67
Issuance costs of redeemed preferred stock		—			—		—			5,198			—		0.08
Charge-off of deferred financing costs		962			—		0.02			—			—		—
Charge-off of deferred financing costs, unconsolidated entities		20			—		—			—			—		—
Early extinguishment of debt		438			—		0.01			—					—
Early extinguishment of debt, unconsolidated entities		165			—		—			—			—		—
Minority interest share of charge-off of financing costs and early extinguishment of debt		(115	)		—		—			—			—		—
Impairment loss, continuing operations		9,268			—		0.15			—			—		—
Impairment loss, discontinued operations		—			—		—			1,291			—		0.02
Minority interest share of impairment loss		(927	)		—		(0.03	)		—			—		—
Asset disposition costs		—			—		—			1,300			—		0.02
Adjusted FFO	$	74,118			62,707	$	1.18		$	49,645			62,470	$	0.79

-more-

FelCor Lodging Trust First Quarter 2006 Operating Results
August 8, 2006
Page 11

Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Same-Store EBITDA

(in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Net income	$	10,145		$	10,351		$	19,997		$	2,337
Depreciation, continuing operations		27,604			26,579			53,802			52,256
Depreciation, unconsolidated entities and discontinued operations		3,102			6,510			6,978			13,595
Minority interest in FelCor Lodging LP		16			(216	)		24			(1,059	)
Interest expense		29,416			33,702			60,973			66,219
Interest expense, unconsolidated entities and discontinued operations		1,667			2,259			3,335			5,400
Amortization expense		908			755			1,897			1,354
EBITDA		72,858			79,939			147,006			140,102
Charge-off of deferred financing costs		295			—			962			—
Charge-off of deferred financing costs, unconsolidated entities		20			—			20			—
Early extinguishment of debt		438			—			438			—
Early extinguishment of debt, unconsolidated entities		165			—			165			—
Minority interest share of charge-off of financing costs and early extinguishment of debt		(115	)		—			(115	)		—
Impairment loss, continuing operations		9,268			—			9,268			—
Impairment loss, discontinued operations		—			732			—			1,291
Minority interest share of impairment loss		(927	)		—			(927	)		—
Asset disposition costs		—			—			—			1,300
Loss (gain) on sale of depreciable assets		1,785			(155	)		2,862			(175	)
Adjusted EBITDA		83,787			80,516			159,679			142,518
Adjusted EBITDA from discontinued operations		(1,620	)		(8,889	)		(3,581	)		(15,513	)
Same-Store EBITDA	$	82,167		$	71,627		$	156,098		$	127,005

-more-

FelCor Lodging Trust First Quarter 2006 Operating Results
August 8, 2006
Page 12

Reconciliation of Adjusted EBITDA to Hotel EBITDA
(in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Adjusted EBITDA	$	83,787		$	80,516		$	159,679		$	142,518
Retail space rental and other revenue		(157	)		(120	)		(291	)		(276	)
Adjusted EBITDA from discontinued operations		(1,620	)		(8,889	)		(3,581	)		(15,513	)
Equity in income from unconsolidated subsidiaries (excluding interest and depreciation expense)		(8,782	)		(8,477	)		(15,481	)		(14,269	)
Minority interest in other partnerships (excluding interest and depreciation expense)		(20	)		701			87			1,086
Consolidated hotel lease expense		17,056			15,387			31,388			28,051
Unconsolidated taxes, insurance and lease expense		(1,472	)		(1,598	)		(3,025	)		(3,053	)
Interest income		(854	)		(801	)		(1,648	)		(1,441	)
Corporate expenses (excluding amortization expense)		4,654			3,973			9,469			7,915
Hotel EBITDA	$	92,592		$	80,692		$	176,597		$	145,018

Reconciliation of Net Income to Hotel EBITDA
(in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Net income	$	10,145		$	10,351		$	19,997		$	2,337
Discontinued operations		676			(3,004	)		943			(1,705	)
Equity in income from unconsolidated entities		(3,812	)		(3,837	)		(5,760	)		(4,968	)
Minority interests		(1,572	)		(306	)		(1,816	)		(1,283	)
Consolidated hotel lease expense		17,056			15,387			31,388			28,051
Unconsolidated taxes, insurance and lease expense		(1,472	)		(1,598	)		(3,025	)		(3,053	)
Interest expense, net		28,561			32,901			59,325			64,779
Charge-off of deferred financing costs		295			—			962			—
Impairment loss		9,268			—			9,268			—
Early extinguishment of debt		438			—			438			—
Corporate expenses		5,562			4,728			11,366			9,269
Depreciation		27,604			26,579			53,802			52,256
Gain on sale of assets		—			(389	)		—			(389	)
Retail space rental and other revenue		(157	)		(120	)		(291	)		(276	)
Hotel EBITDA	$	92,592		$	80,692		$	176,597		$	145,018

-more-

FelCor Lodging Trust First Quarter 2006 Operating Results
August 8, 2006
Page 13

Hotel EBITDA and Hotel EBITDA Margin
(dollars in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Total revenue	$	308,650		$	285,895		$	605,071		$	541,541
Retail space rental and other revenue		(157	)		(120	)		(291	)		(276	)
Hotel operating revenue		308,493			285,775			604,780			541,265
Hotel operating expenses		(215,901	)		(205,083	)		(428,183	)		(396,247	)
Hotel EBITDA	$	92,592		$	80,692		$	176,597		$	145,018
Hotel EBITDA margin		30.0	%		28.2	%		29.2	%		26.8	%

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Ratio of operating income to total revenue		11.3	%		12.4	%		12.2	%		10.9	%
Retail space rental and other revenue		—			—			—			—
Unconsolidated taxes, insurance and lease expense		(0.5	)		(0.6	)		(0.5	)		(0.6	)
Consolidated hotel lease expense		5.5			5.4			5.2			5.2
Corporate expenses		1.8			1.7			1.9			1.7
Impairment loss		3.0			—			1.5			—
Depreciation		8.9			9.3			8.9			9.6
Hotel EBITDA margin		30.0	%		28.2	%		29.2	%		26.8	%

Hotel Operating Expense Composition
(dollars in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Reconciliation of total operating expense to hotel operating expense:
Total operating expenses	$	273,919		$	250,179		$	530,982		$	482,770
Unconsolidated taxes, insurance and lease expense		1,472			1,598			3,025			3,053
Consolidated hotel lease expense		(17,056	)		(15,387	)		(31,388	)		(28,051	)
Corporate expenses		(5,562	)		(4,728	)		(11,366	)		(9,269	)
Impairment loss		(9,268	)		—			(9,268	)		—
Depreciation		(27,604	)		(26,579	)		(53,802	)		(52,256	)
Hotel operating expenses	$	215,901		$	205,083		$	428,183		$	396,247
Supplemental information:
Compensation and benefits expense (included in hotel operating expenses)	$	90,370		$	86,074		$	177,246		$	167,353

-more-

FelCor Lodging Trust First Quarter 2006 Operating Results
August 8, 2006
Page 14

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

	3rd 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)	$	4					$	6					$	18					$	23
Preferred dividends		(10	)					(10	)					(39	)					(39	)
Net income (loss) applicable to common stockholders(b)		(6	)	$	(0.10	)		(4	)	$	(0.07	)		(21	)	$	(0.35	)		(16	)	$	(0.27	)
Loss on sale of assets		—						—						3						3
Depreciation		33						33						129						129
Minority interest in FelCor LP		—						—						(1	)					(1	)
FFO		27		$	0.43			29		$	0.47			110		$	1.75			115		$	1.83
Write off loan costs		—						—						1						1
Impairment		—						—						8						8
Early extinguishment of debt		—						—						—						—
Adjusted FFO	$	27		$	0.43		$	29		$	0.47		$	119		$	1.90		$	124		$	1.98
Net income(b)		3						5						18						23
Depreciation		33						33						129						129
Minority interest in FelCor LP		—						—						(1	)					(1	)
Interest expense		32						32						126						126
Amortization expense		1						1						3						3
EBITDA		69						71						275						280
Loss on sale of assets		—						—						3						3
Write off loan costs		—						—						1						1
Impairment		—						—						8						8
Adjusted EBITDA	$	69					$	71					$	287					$	292

(a)	Weighted average shares are 60.1 million. Adding minority interest and unvested restricted stock of 2.6 million shares to weighted average shares, provides the weighted average shares and units of 62.7 million used to compute FFO per share.
(b)	Excludes future gains or losses from asset sales and debt extinguishment.

     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.

-more-

FelCor Lodging Trust First Quarter 2006 Operating Results
August 8, 2006
Page 15

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.

-more-

FelCor Lodging Trust First Quarter 2006 Operating Results
August 8, 2006
Page 16

     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 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.

Limitations of Non-GAAP Measures

     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.

-more-

FelCor Lodging Trust First Quarter 2006 Operating Results
August 8, 2006
Page 17

     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 and Six Months Ended June 30, 2006

Date of Issuance August 8, 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 and Six Months Ended June 30, 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	17
PORTFOLIO DATA
Portfolio Distribution	19
Detailed Operating Statistics by Brand	20
Detailed Operating Statistics for FelCor’s Top Markets	21
Other Performance Statistics	22
Hotel Portfolio Information	23
Hotel Portfolio Listing	25

This supplement contains registered trademarks owned or licensed by companies other than us, which may include, but are not limited to, Crowne Plaza^®, Disneyland^®, Doubletree^®, Doubletree Guest Suites^®, Embassy Suites Hotels^®, Hampton Inn^®, Harvey Suites^®, Hilton^®, Hilton Suites^®, Holiday Inn^®, Holiday Inn & Suites^®, Holiday Inn Express^®, Holiday Inn Express & Suites^®, Holiday Inn Select^®, Homewood Suites^® by Hilton, InterContinental^®, 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 and Six Months Ended June 30, 2006

CORPORATE DATA

About the Company

In 1994, FelCor Lodging Trust Incorporated, a real estate investment trust (REIT), went public with six hotels, and a market capitalization of $120 million. We are now one of the nation’s largest public lodging REITs and the nation’s largest owner of upper upscale, all-suite hotels. At June 30, 2006, our portfolio was comprised of 110 consolidated hotels in continuing operations located in 27 states and Canada. For these hotels, the operating revenues and expenses are reflected in our consolidated statements of operations because of our majority 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 upper upscale, all-suite hotels, and were the largest owner of Embassy Suites Hotels and Doubletree Guest Suites hotels. 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, upper upscale 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	Ba3	B2
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
79

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

Investor Relations Contact	Media 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

Information Request
information@felcor.com

3

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 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

Robert F. Cotter
President and Chief Operating Officer, Starwood Hotels and Resorts (Retired)

Richard S. Ellwood
Retired

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

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

Jonathan H. Yellen, Executive Vice President, General Counsel and Secretary

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 and Six Months Ended June 30, 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
Friedman, Billings, Ramsey & Co.	Gustavo Sarago	(703) 469-1042
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 and Six Months Ended June 30, 2006

FINANCIAL HIGHLIGHTS

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

	June 30,			December 31,
Total Enterprise Value	2006			2005
Common shares outstanding		61,955			60,209
Units outstanding		1,355			2,763
Combined shares and units outstanding		63,310			62,972
Common stock price at end of period	$	21.74		$	17.21
Common equity capitalization	$	1,376,359		$	1,083,748
Series A preferred stock		309,362			309,362
Series C preferred stock		169,412			169,412
Consolidated debt		1,442,073			1,675,280
Minority interest of consolidated debt		(8,709	)		(8,137	)
Pro rata share of unconsolidated debt		102,591			101,940
Cash and cash equivalents		(67,490	)		(94,564	)
Total enterprise value (TEV)	$	3,323,598		$	3,237,041
Dividends Per Share
Dividends declared (quarter ended):
Common stock	$	0.20		$	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	$	2,327,789		$	2,587,379
Total cash and cash equivalents		67,490			94,564
Total assets		2,686,756			2,919,093
Total debt		1,442,073			1,675,280
Total stockholders’ equity		1,028,566			1,031,793
Total stockholders equity less preferred equity		549,792			553,019
Book value per common share outstanding		8.87			9.18

(a) Based on pro rata rooms owned

6

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Revenues:
Hotel operating revenue:
Room	$	251,114		$	231,936		$	495,839		$	439,995
Food and beverage		42,200			39,605			79,284			74,189
Other operating departments		15,179			14,234			29,657			27,081
Retail space rental and other revenue		157			120			291			276
Total revenues		308,650			285,895			605,071			541,541
Expenses:
Hotel departmental expenses:
Room		62,490			58,301			122,063			111,235
Food and beverage		31,740			30,076			61,217			57,450
Other operating departments		7,100			7,008			14,090			13,148
Other property related costs		81,257			78,349			164,794			153,253
Management and franchise fees		16,854			14,802			32,649			27,461
Taxes, insurance and lease expense		32,044			30,336			61,733			58,698
Corporate expenses		5,562			4,728			11,366			9,269
Impairment loss		9,268			—			9,268			—
Depreciation		27,604			26,579			53,802			52,256
Total operating expenses		273,919			250,179			530,982			482,770
Operating income		34,731			35,716			74,089			58,771
Interest expense, net		(28,561	)		(32,901	)		(59,325	)		(64,779	)
Charge-off of deferred financing costs		(295	)		—			(962	)		—
Early extinguishment of debt		(438	)		—			(438	)		—
Income (loss) before equity in income from unconsolidated entities, minority interests and gain on sale of assets		5,437			2,815			13,364			(6,008	)
Equity in income from unconsolidated entities		3,812			3,837			5,760			4,968
Minority interests		1,572			306			1,816			1,283
Gain on sale of assets		—			389			—			389
Income from continuing operations		10,821			7,347			20,940			632
Discontinued operations		(676	)		3,004			(943	)		1,705
Net income		10,145			10,351			19,997			2,337
Preferred dividends		(9,678	)		(9,809	)		(19,356	)		(19,900	)
Issuance costs of redeemed preferred stock		—			(5,198	)		—			(5,198	)
Net income (loss) applicable to common stockholders	$	467		$	(4,656	)	$	641		$	(22,761	)
Basic and diluted per common share data:
Net income (loss) from continuing operations	$	0.02		$	(0.13	)	$	0.03		$	(0.41	)
Net income (loss)	$	0.01		$	(0.08	)	$	0.01		$	(0.38	)
Basic weighted average common shares outstanding		60,355			59,404			60,066			59,363
Diluted weighted average common shares outstanding		60,626			59,404			60,326			59,363

7

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

Discontinued Operations
(in thousands)

     Included in discontinued operations are the results of operations of three hotels held for sale at June 30, 2006, four hotels disposed of in the second quarter of 2006, 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						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Operating revenue	$	8,704		$	45,944		$	27,691		$	93,457
Operating expenses		7,460			41,893			25,513			89,358
Operating income		1,244			4,051			2,178			4,099
Direct interest costs, net		(64	)		(610	)		(134	)		(1,972	)
Loss on sale of depreciable assets		(1,785	)		(234	)		(2,862	)		(214	)
Minority interests		(71	)		(203	)		(125	)		(208	)
Income (loss) from discontinued operations		(676	)		3,004			(943	)		1,705
Depreciation		469			4,173			1,596			8,961
Minority interest in FelCor LP		(23	)		139			(63	)		79
Interest expense		65			607			129			1,963
EBITDA from discontinued operations		(165	)		7,923			719			12,708
Loss on sale of assets		1,785			234			2,862			214
Impairment loss		—			732			—			1,291
Asset disposition costs		—			—			—			1,300
Adjusted EBITDA from discontinued operations	$	1,620		$	8,889		$	3,581		$	15,513

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 the limitations of such measures.

8

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

Non-GAAP Financial Measures (continued)

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

	Three Months Ended June 30,
	2006								2005
						Per Share								Per Share
	Dollars			Shares		Amount			Dollars			Shares		Amount
Net income	$	10,145							$	10,351
Preferred dividends		(9,678	)							(9,809	)
Issuance costs of redeemed preferred stock		—								(5,198	)
Net income (loss) applicable to common stockholders		467			60,626	$	0.01			(4,656	)		59,404	$	(0.08	)
Depreciation, continuing operations		27,604			—		0.46			26,579			—		0.45
Depreciation, unconsolidated entities and discontinued operations		3,102			—		0.05			6,510			—		0.11
Loss (gain) on sale of depreciable assets		1,785			—		0.03			(155	)		—		—
Minority interest in FelCor LP		16			2,102		(0.02	)		(216	)		2,788		(0.03	)
Conversion of options and unvested restricted stock		—			—		—			—			339		—
FFO		32,974			62,728		0.53			28,062			62,531		0.45
Issuance costs of redeemed preferred stock		—			—		—			5,198			—		0.08
Charge-off of deferred financing costs		295			—		—			—			—		—
Charge-off of deferred financing costs, unconsolidated entities		20			—		—			—			—		—
Early extinguishment of debt		438			—		0.01			—					—
Early extinguishment of debt, unconsolidated entities		165			—		—			—			—		—
Minority interest share of charge-off of financing costs and early extinguishment of debt		(115	)		—		—			—			—		—
Impairment loss, continuing operations		9,268			—		0.15			—					—
Impairment loss, discontinued operations		—			—		—			732			—		0.01
Minority interest share of impairment loss		(927	)		—		(0.02	)		—			—		—
Adjusted FFO(a)	$	42,118			62,728	$	0.67		$	33,992			62,531	$	0.54

(a) It is more dilutive to assume the conversion of our Series A Preferred Stock into common stock when our quarterly adjusted FFO per share calculation exceeds 63 cents per share. For the three months ended June 30, 2006, the more dilutive calculation remains at 67 cents as shown below:

					Per Share
	Dollars		Shares		Amount
Adjusted FFO	$	42,118		62,728	$	0.67
Preferred dividends		6,279		9,985
Adjusted FFO assuming conversion of Series A Preferred Stock	$	48,397		72,713	$	0.67

9

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

Non-GAAP Financial Measures (continued)

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

	Six Months Ended June 30,
	2006								2005
						Per Share								Per Share
	Dollars			Shares		Amount			Dollars			Shares		Amount
Net income	$	19,997							$	2,337
Preferred dividends		(19,356	)							(19,900	)
Issuance costs of redeemed preferred stock		—								(5,198	)
Net income (loss) applicable to common stockholders		641			60,326	$	0.01			(22,761	)		59,363	$	(0.38	)
Depreciation, continuing operations		53,802			—		0.89			52,256			—		0.88
Depreciation, unconsolidated entities and discontinued operations		6,978			—		0.12			13,595			—		0.23
Loss (gain) on sale of depreciable assets		2,862			—		0.05			(175	)		—		—
Minority interest in FelCor LP		24			2,381		(0.04	)		(1,059	)		2,788		(0.06	)
Conversion of options and unvested restricted stock		—			—		—			—			319		—
FFO		64,307			62,707		1.03			41,856			62,470		0.67
Issuance costs of redeemed preferred stock		—			—		—			5,198			—		0.08
Charge-off of deferred financing costs		962			—		0.02			—			—		—
Charge-off of deferred financing costs, unconsolidated entities		20			—		—			—			—		—
Early extinguishment of debt		438			—		0.01			—					—
Early extinguishment of debt, unconsolidated entities		165			—		—			—			—		—
Minority interest share of charge-off of financing costs and early extinguishment of debt		(115	)		—		—			—			—		—
Impairment loss, continuing operations		9,268			—		0.15			—			—		—
Impairment loss, discontinued operations		—			—		—			1,291			—		0.02
Minority interest share of impairment loss		(927	)		—		(0.03	)		—			—		—
Asset disposition costs		—			—		—			1,300			—		0.02
Adjusted FFO	$	74,118			62,707	$	1.18		$	49,645			62,470	$	0.79

10

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

Non-GAAP Financial Measures (continued)

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Net income	$	10,145		$	10,351		$	19,997		$	2,337
Depreciation, continuing operations		27,604			26,579			53,802			52,256
Depreciation, unconsolidated entities and discontinued operations		3,102			6,510			6,978			13,595
Minority interest in FelCor Lodging LP		16			(216	)		24			(1,059	)
Interest expense		29,416			33,702			60,973			66,219
Interest expense, unconsolidated entities and discontinued operations		1,667			2,258			3,335			5,400
Amortization expense		908			755			1,897			1,354
EBITDA		72,858			79,939			147,006			140,102
Charge-off of deferred financing costs		295			—			962			—
Charge-off of deferred financing costs, unconsolidated entities		20			—			20			—
Early extinguishment of debt		438			—			438			—
Early extinguishment of debt, unconsolidated entities		165			—			165			—
Minority interest share of charge-off of financing costs and early extinguishment of debt		(115	)		—			(115	)		—
Impairment loss, continuing operations		9,268			—			9,268			—
Impairment loss, discontinued operations		—			732			—			1,291
Minority interest share of impairment loss		(927	)		—			(927	)		—
Asset disposition costs		—			—			—			1,300
Loss (gain) on sale of depreciable assets		1,785			(155	)		2,862			(175	)
Adjusted EBITDA		83,787			80,516			159,679			142,518
Adjusted EBITDA from discontinued operations		(1,620	)		(8,889	)		(3,581	)		(15,513	)
Same-Store EBITDA	$	82,167		$	71,627		$	156,098		$	127,005

11

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

Non-GAAP Financial Measures (continued)

Reconciliation of Adjusted EBITDA to Hotel EBITDA
(in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Adjusted EBITDA	$	83,787		$	80,516		$	159,679		$	142,518
Retail space rental and other revenue		(157	)		(120	)		(291	)		(276	)
Adjusted EBITDA from discontinued operations		(1,620	)		(8,889	)		(3,581	)		(15,513	)
Equity in income from unconsolidated subsidiaries (excluding interest and depreciation expense)		(8,782	)		(8,477	)		(15,481	)		(14,269	)
Minority interest in other partnerships (excluding interest and depreciation expense)		(20	)		701			87			1,086
Consolidated hotel lease expense		17,056			15,387			31,388			28,051
Unconsolidated taxes, insurance and lease expense		(1,472	)		(1,598	)		(3,025	)		(3,053	)
Interest income		(854	)		(801	)		(1,648	)		(1,441	)
Corporate expenses (excluding amortization expense)		4,654			3,973			9,469			7,915
Hotel EBITDA	$	92,592		$	80,692		$	176,597		$	145,018

Reconciliation of Net Income to Hotel EBITDA
(in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Net income	$	10,145		$	10,351		$	19,997		$	2,337
Discontinued operations		676			(3,004	)		943			(1,705	)
Equity in income from unconsolidated entities		(3,812	)		(3,837	)		(5,760	)		(4,968	)
Minority interests		(1,572	)		(306	)		(1,816	)		(1,283	)
Consolidated hotel lease expense		17,056			15,387			31,388			28,051
Unconsolidated taxes, insurance and lease expense		(1,472	)		(1,598	)		(3,025	)		(3,053	)
Interest expense, net		28,561			32,901			59,325			64,779
Charge-off of deferred financing costs		295			—			962			—
Impairment loss		9,268			—			9,268			—
Early extinguishment of debt		438			—			438			—
Corporate expenses		5,562			4,728			11,366			9,269
Depreciation		27,604			26,579			53,802			52,256
Gain on sale of assets		—			(389	)		—			(389	)
Retail space rental and other revenue		(157	)		(120	)		(291	)		(276	)
Hotel EBITDA	$	92,592		$	80,692		$	176,597		$	145,018

12

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

Non-GAAP Financial Measures (continued)

Hotel EBITDA and Hotel EBITDA Margin
(dollars in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Total revenue	$	308,650		$	285,895		$	605,071		$	541,541
Retail space rental and other revenue		(157	)		(120	)		(291	)		(276	)
Hotel operating revenue		308,493			285,775			604,780			541,265
Hotel operating expenses		(215,901	)		(205,083	)		(428,183	)		(396,247	)
Hotel EBITDA	$	92,592		$	80,692		$	176,597		$	145,018
Hotel EBITDA margin		30.0	%		28.2	%		29.2	%		26.8	%

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Ratio of operating income to total revenue		11.3	%		12.4	%		12.2	%		10.9	%
Retail space rental and other revenue		—			—			—			—
Unconsolidated taxes, insurance and lease expense		(0.5	)		(0.6	)		(0.5	)		(0.6	)
Consolidated hotel lease expense		5.5			5.4			5.2			5.2
Corporate expenses		1.8			1.7			1.9			1.7
Impairment loss		3.0			—			1.5			—
Depreciation		8.9			9.3			8.9			9.6
Hotel EBITDA margin		30.0	%		28.2	%		29.2	%		26.8	%

Hotel Operating Expense Composition
(dollars in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Reconciliation of total operating expense to hotel operating expense:
Total operating expenses	$	273,919		$	250,179		$	530,982		$	482,770
Unconsolidated taxes, insurance and lease expense		1,472			1,598			3,025			3,053
Consolidated hotel lease expense		(17,056	)		(15,387	)		(31,388	)		(28,051	)
Corporate expenses		(5,562	)		(4,728	)		(11,366	)		(9,269	)
Impairment loss		(9,268	)		—			(9,268	)		—
Depreciation		(27,604	)		(26,579	)		(53,802	)		(52,256	)
Hotel operating expenses	$	215,901		$	205,083		$	428,183		$	396,247
Supplemental information:
Compensation and benefits expense (included in hotel operating expenses)	$	90,370		$	86,074		$	177,246		$	167,353

13

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

Non-GAAP Financial Measures (continued)

     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.

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.

14

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

Non-GAAP Financial Measures (continued)

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

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

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

     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 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.

15

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

Non-GAAP Financial Measures (continued)

Limitations of Non-GAAP Measures

     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.

16

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

Debt Summary
(dollars in thousands)

Debt Outstanding

	Encumbered	Interest Rate at		Maturity	Consolidated
	Hotels	June 30, 2006		Date	Debt
Promissory note	none	LIBOR (L) + 2.00		June 2016	$	650
Line of credit(a)	none		L + 2.00	January 2009		—
Senior unsecured term notes	none		7.63	October 2007		123,823
Senior unsecured term notes	none		8.50	June 2011		298,786
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						713,259
Mortgage debt	9 hotels		6.53	July 2009 — 2014		103,144
Mortgage debt(c)	8 hotels		L + 1.25	May 2007		88,984
Mortgage debt	7 hotels		7.32	March 2009		125,888
Mortgage debt	4 hotels		7.55	June 2009		40,955
Mortgage debt	8 hotels		8.70	May 2010		171,035
Mortgage debt	7 hotels		8.73	May 2010		131,801
Mortgage debt	1 hotel		L + 2.85	August 2008		15,500
Mortgage debt	1 hotel		5.81	July 2016		13,000
Other	1 hotel		9.17	August 2011		4,832
Construction loan(d)	—		L + 2.25	August 2007		33,675
Total secured debt	46 hotels					728,814
					$	1,442,073

(a)	We have a borrowing capacity of $125 million on our line of credit. The interest on this line can range from 175 to 225 basis points over LIBOR based on our leverage ratio as defined in our line of credit agreement.
(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.
(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 being capitalized as part of the cost of the project. Effective July 1, 2006, the interest rate on this loan facility was reduced to L + 200 basis points.

Weighted average interest at June 30, 2006		8.16	%
Fixed interest rate debt to total debt		77.2	%
Weighted average maturity of debt	5 years
Secured debt to total assets		27.1	%

17

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

Debt Summary (continued)

     At June 30, 2006, future scheduled principal payments on outstanding debt are as follows (in thousands):

	Secured			Unsecured
Year	Debt			Debt			Total
2006	$	8,426		$	—		$	8,426
2007		136,109	(a)		125,000			261,109
2008		31,842			—			31,842
2009		183,531			—			183,531
2010		282,245			—			282,245
2011 and thereafter		86,661			590,650			677,311
Discount		—			(2,391	)		(2,391	)
Total debt	$	728,814		$	713,259		$	1,442,073

(a) Included in this number is an $88,984 loan that has a one-year extension option, subject to certain contingencies.

     At June 30, 2006, we had unconsolidated 50 percent investments in ventures that owned an aggregate of 19 hotels. These ventures had approximately $205 million of non-recourse mortgage debt, all of which is secured by hotel assets. Our pro rata share of this non-recourse debt was $103 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 the outstanding balance on our line of credit.

     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.

18

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

PORTFOLIO DATA

Portfolio Distribution at June 30, 2006
(110 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	44	54
Holiday Inn-branded	29	9,846	31	22
Sheraton-branded	10	3,274	10	12
Doubletree-branded	7	1,471	5	6
Other	10	3,234	10	6
Top Markets
Atlanta	8	2,385	8	7
South Florida area	5	1,434	5	6
Los Angeles area	5	1,100	3	5
Orlando	5	1,690	5	5
Dallas	9	2,876	9	4
Minneapolis	4	955	3	4
New Orleans	2	746	2	4
Phoenix	3	798	3	4
Chicago	4	1,238	4	4
San Francisco Bay area	7	2,385	8	4
Washington, D.C.	1	443	1	3
San Diego	1	600	2	3
San Antonio	4	1,187	4	3
Northern New Jersey	3	757	2	3
Philadelphia	2	729	2	3
Location
Suburban	46	11,412	36	37
Urban	28	9,053	29	27
Airport	24	7,498	24	22
Resort	12	3,515	11	14
Segment
Upper-upscale all-suite	65	16,036	51	63
Full service	30	10,009	32	22
Upscale	14	5,124	16	14
Limited service	1	309	1	1
Core Hotels	83	24,084	77	89
Non-Strategic Hotels	27	7,394	23	11

^(a) Hotel EBITDA is more fully described on page 15 of this supplement.

19

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

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

	Occupancy (%)
	Three Months Ended June 30,			Six Months Ended June 30,
	2006	2005	%Variance	2006	2005	% Variance
Embassy Suites Hotels	76.4	76.8	(0.4)	76.0	74.1	2.6
Holiday Inn-branded hotels	73.0	72.5	0.7	71.1	68.3	4.0
Sheraton-branded hotels	63.5	67.3	(5.7)	62.5	64.5	(3.1)
Doubletree-branded hotels	78.7	76.7	2.6	76.6	72.5	5.6
Other hotels	68.9	64.8	6.4	65.2	61.2	6.6
Total hotels	73.3	73.2	0.2	72.0	69.9	3.0

	ADR ($)
	Three Months Ended June 30,			Six Months Ended June 30,
	2006	2005	% Variance	2006	2005	% Variance
Embassy Suites Hotels	131.71	121.38	8.5	133.58	123.82	7.9
Holiday Inn-branded hotels	98.96	93.59	5.7	97.52	91.36	6.7
Sheraton-branded hotels	125.82	111.02	13.3	124.90	109.48	14.1
Doubletree-branded hotels	130.87	117.39	11.5	132.23	120.49	9.7
Other hotels	118.65	110.48	7.4	112.50	103.28	8.9
Total hotels	119.68	110.60	8.2	119.62	110.51	8.2

	RevPAR ($)
	Three Months Ended June 30,			Six Months Ended June 30,
	2006	2005	% Variance	2006	2005	% Variance
Embassy Suites Hotels	100.65	93.16	8.0	101.48	91.72	10.6
Holiday Inn-branded hotels	72.23	67.86	6.4	69.29	62.40	11.1
Sheraton-branded hotels	79.86	74.70	6.9	78.10	70.62	10.6
Doubletree-branded hotels	102.93	90.04	14.3	101.23	87.36	15.9
Other hotels	81.79	71.58	14.3	73.36	63.20	16.1
Total hotels	87.77	80.97	8.4	86.08	77.22	11.5

20

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

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

	Occupancy (%)
	Three Months Ended June 30,							Six Months Ended June 30,
	2006		2005		% Variance			2006		2005		% Variance
Atlanta		69.4		71.0		(2.3	)		71.8		70.5		1.9
South Florida area		78.5		81.3		(3.4	)		83.5		86.0		(2.9	)
Los Angeles area		73.9		77.5		(4.7	)		76.0		74.8		1.7
Orlando		84.5		79.9		5.7			82.1		81.7		0.5
Dallas		58.2		50.1		16.2			59.1		51.0		15.8
Minneapolis		71.4		75.5		(5.4	)		67.9		70.5		(3.7	)
New Orleans		61.4		73.5		(16.5	)		76.2		73.7		3.4
Phoenix		74.1		74.9		(1.1	)		78.6		78.1		0.6
Chicago		80.4		80.9		(0.6	)		71.8		71.2		0.8
San Francisco Bay area		75.8		74.3		2.0			73.4		68.8		6.6
Washington, D.C.		70.9		83.0		(14.6	)		66.4		75.1		(11.6	)
San Diego		80.4		84.0		(4.3	)		81.3		82.8		(1.8	)
San Antonio		83.6		81.7		2.3			80.1		75.6		5.9
Northern New Jersey		74.5		77.1		(3.3	)		70.2		71.1		(1.3	)
Philadelphia		82.5		84.5		(2.4	)		71.2		73.8		(3.5	)

	ADR ($)
	Three Months Ended June 30,							Six Months Ended June 30,
	2006		2005		% Variance			2006		2005		% Variance
Atlanta		105.40		92.52		13.9			105.19		92.97		13.1
South Florida area		131.30		117.54		11.7			157.77		136.19		15.8
Los Angeles area		139.61		123.88		12.7			134.39		122.24		9.9
Orlando		98.39		91.61		7.4			105.27		98.81		6.5
Dallas		101.99		95.34		7.0			103.92		96.44		7.8
Minneapolis		135.74		123.75		9.7			132.75		123.30		7.7
New Orleans		123.37		135.87		(9.2	)		140.36		141.58		(0.9	)
Phoenix		122.69		111.95		9.6			142.68		129.83		9.9
Chicago		137.53		120.46		14.2			127.31		110.18		15.5
San Francisco Bay area		127.49		115.72		10.2			123.48		113.32		9.0
Washington, D.C.		166.46		147.80		12.6			165.76		147.86		12.1
San Diego		138.75		138.43		0.2			137.30		130.74		5.0
San Antonio		99.67		91.24		9.2			96.77		88.85		8.9
Northern New Jersey		148.57		139.54		6.5			147.48		136.97		7.7
Philadelphia		135.14		124.60		8.5			126.83		115.21		10.1

	RevPAR ($)
	Three Months Ended June 30,							Six Months Ended June 30,
	2006		2005		% Variance			2006		2005		% Variance
Atlanta		73.10		65.71		11.2			75.50		65.50		15.3
South Florida area		103.08		95.55		7.9			131.76		117.17		12.5
Los Angeles area		103.19		96.03		7.5			102.16		91.38		11.8
Orlando		83.10		73.20		13.5			86.41		80.71		7.1
Dallas		59.39		47.77		24.3			61.39		49.18		24.8
Minneapolis		96.95		93.43		3.8			90.14		86.93		3.7
New Orleans		75.69		99.82		(24.2	)		107.02		104.36		2.6
Phoenix		90.87		83.87		8.3			112.20		101.46		10.6
Chicago		110.57		97.45		13.5			91.43		78.48		16.5
San Francisco Bay area		96.63		85.98		12.4			90.63		78.00		16.2
Washington, D.C.		118.07		122.75		(3.8	)		110.05		111.10		(0.9	)
San Diego		111.55		116.35		(4.1	)		111.56		108.23		3.1
San Antonio		83.32		74.58		11.7			77.54		67.20		15.4
Northern New Jersey		110.70		107.52		3.0			103.53		97.42		6.3
Philadelphia		111.47		105.26		5.9			90.30		85.02		6.2

21

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 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		(2.2	)		9.0			6.6
May		1.9			7.6			9.7
June		0.9			8.0			8.9
Second Quarter		0.2			8.2			8.4
July		(1.2	)		7.9			6.6

22

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

Hotel Portfolio Information

Pro Rata Share of Rooms Owned

			Room Count at
	Hotels		June 30, 2006
Consolidated hotels in continuing operations		110		31,478
Unconsolidated hotel operations		5		761
Total hotels owned		115		32,239
50% joint ventures		19		(2,190	)
60% joint ventures		2		(390	)
75% joint ventures		1		(55	)
90% joint ventures		4		(94	)
97% joint venture		1		(11	)
Total joint venture owned rooms				(2,740	)
Pro rata share of rooms owned				29,499

Non-Strategic Hotels

     At June 30, 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 (12), Crowne Plaza-branded (4), Embassy Suites Hotel (7), Sheraton (2) and other brands (2).

     Operating statistics and Hotel EBITDA margins for the three and six months ended June 30, 2006, for our consolidated portfolio of 110 hotels included in continuing operations were as follows:

	Three Months Ended June 30, 2006						Six Months Ended June 30, 2006
	Core		Non-strategic				Core		Non-strategic
	Hotels		Hotels		Total		Hotels		Hotels		Total
Occupancy (%)		76.5		63.2		73.3		75.0		62.2		72.0
ADR ($)		126.09		94.41		119.68		126.56		92.40		119.62
RevPAR ($)		96.40		59.64		87.77		94.87		57.43		86.08
Hotel EBITDA margin(%)		31.3		23.1		30.0		30.7		20.8		29.2

23

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

Hotel Portfolio Information (continued)

Capital Expenditures (dollars in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Improvements and additions to hotels included in continuing operations		39,526			23,369			81,582			48,321
% of total revenue		12.8	%		8.2	%		13.5	%		8.9	%

     Improvements and additions to consolidated hotels for the six months ended June 30, 2006 were $69.7 million. Capital expenditures including our pro rata share of joint ventures totaled $75.5 million.

     At June 30, 2006, we had incurred $40.0 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 the quarter ended June 30, 2006:
Miami, FL — Crowne Plaza	Apr 2006		304
Philadelphia, PA — Crowne Plaza	Apr 2006		445
Orlando, FL — Holiday Inn	May 2006		530
Omaha, NE — Holiday Inn	May 2006		383
			1,662		78.2
Total 2006 year to date sales			3,863	$	240.8

24

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

Hotel Portfolio Listing
(as of June 30, 2006)

	State	Rooms	% Owned(a)	Brand
Consolidated 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 — 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
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	652		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
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	296		Sheraton Suites

25

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

Hotel Portfolio Listing
(as of June 30, 2006)

	State	Rooms	% Owned(a)	Brand
Indianapolis — North(b)	IN	221	75%	Embassy Suites Hotel
Kansas City — Overland Park(b)	KS	199	50%	Embassy Suites Hotel
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
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
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
Houston — Medical Center	TX	284		Holiday Inn & Suites
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

26

FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2006

Hotel Portfolio Listing
(as of June 30, 2006)

	State	Rooms	% Owned(a)	Brand
Non-Strategic Hotels
Montgomery — East I-85	AL	210		Holiday Inn
Los Angeles — Covina/I-10(b)	CA	202	50%	Embassy Suites Hotel
Palm Desert — Palm Desert Resort	CA	198		Embassy Suites Hotel
Pleasanton (San Ramon Area)	CA	244		Crowne Plaza
Denver — Aurora(b) (c)	CO	248	90%	Doubletree
Stamford	CT	380		Holiday Inn Select
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
Brunswick	GA	130		Embassy Suites Hotel
Columbus — North (I-185 at Peachtree Mall)	GA	224		Holiday Inn
Chicago — The Allerton	IL	443		Crowne Plaza
Lexington(b)	KY	155		Sheraton Suites
Troy — North (Auburn Hills) (b)	MI	251	90%	Embassy Suites Hotel
Minneapolis — Downtown	MN	216		Embassy Suites Hotel
Kansas City — NE I-435 North (At Worlds of Fun)	MO	165		Holiday Inn
Omaha — Old Mill	NE	223		Crowne Plaza
Tulsa — I-44	OK	244		Embassy Suites Hotel
Knoxville — Central At Papermill Road	TN	240		Holiday Inn
Amarillo — I-40(c)	TX	248		Holiday Inn
Austin — Town Lake (Downtown Area)	TX	320		Holiday Inn
Dallas — At Campbell Centre(c)	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 — Park Central Area	TX	279		Embassy Suites Hotel
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	313		Holiday Inn
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 included in discontinued operations in the accompanying consolidated statement of operations.

27