8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) February 21, 2007

FelCor Lodging Trust Incorporated

(Exact name of registrant as specified in its charter)

Maryland	001-14236	75-2541756
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

545 E. John Carpenter Frwy., Suite 1300 Irving, Texas	75062
(Address of principal executive offices)	(Zip Code)

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

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

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

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

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

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

(17 CFR 240.14d-2(b))

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

(17 CFR 240.13e-4(c))

Section 2 – Financial Information

Item 2.02 Results of Operations and Financial Condition.

On February 21, 2007, FelCor Lodging Trust Incorporated issued a press release announcing its results of operations for the three months and year ended December 31, 2006, and published supplemental information for the three months and year ended December 31, 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 9.01Financial Statements and Exhibits.

(a) Financial statements of businesses acquired.

Not applicable.

(b) Pro forma financial information.

Not applicable.

(c) Exhibits.

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

Exhibit Number	Description of Exhibit
99.1	Press release issued by FelCor Lodging Trust Incorporated on February 21, 2007, announcing its results of operations for the three months and year ended December 31, 2006.
99.2	Supplemental information for the three months and year ended December 31, 2006, published by FelCor Lodging Trust Incorporated on February 21, 2007.

SIGNATURES

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

		FELCOR LODGING TRUST INCORPORATED
Date: February 21, 2007	By:	/s/ Lester C. Johnson
		Name:  Lester C. Johnson Title:    Senior Vice President and Controller

INDEX TO EXHIBITS

Exhibit Number	Description of Exhibit
99.1	Press release issued by FelCor Lodging Trust Incorporated on February 21, 2007, announcing its results of operations for the three months and year ended December 31, 2006.
99.2	Supplemental information for the three months and year ended December 31, 2006, published by FelCor Lodging Trust Incorporated on February 21, 2007.

EX-99

Exhibit 99.1

For Immediate Release:

FELCOR EXCEEDS ITS 2006 GOALS - GROWTH PLANS ON TRACK

IRVING, Texas...February 21, 2007 - FelCor Lodging Trust Incorporated (NYSE: FCH) today reported operating results for the fourth quarter and year ended December 31, 2006.

Fourth Quarter Results:

• Adjusted Funds From Operations (“FFO”) was $21.0 million, a $7.6 million increase from the prior year period. Adjusted FFO per share increased to $0.33, compared to $0.21 in the prior year quarter, an increase of 57 percent.

• Hotel Earnings Before Interest, Taxes, Depreciation and Amortization (“Hotel EBITDA”) increased to $62.3 million, compared to $58.6 million in the prior year quarter, an increase of 6.3 percent. Hotel EBITDA margin was 26.7 percent, representing a 41 basis point improvement to the prior year.

• Revenue Per Available Room (“RevPAR”) increased 3.4 percent, compared to the same period in 2005. Average Daily Rate (“ADR”) increased 7.7 percent, in line with prior expectations.

• Displacement as a result of major renovations caused reductions to RevPAR (approximately 3 percent) and Adjusted EBITDA (approximately $3.5 million), which negatively affected Hotel EBITDA margin by approximately 85 basis points.

• Same-Store EBITDA increased by $7.2 million, to $53.1 million, or 15.7 percent to prior year. Adjusted EBITDA (including sold hotels) remained essentially flat at $59.0 million.

• Net income was $11.0 million for fourth quarter 2006, a $276.2 million increase over the same period in 2005. Net income applicable to common stockholders was $1.3 million, or $0.02 per share, compared to a net loss applicable to common stockholders of $274.9 million, or $4.62 per share, in the fourth quarter of 2005. Included in the current year net income was a net gain from the sale of hotels of $25.9 million. Included in the prior year net loss was $264.9 million of impairment charges.

Full Year Results:

• Adjusted FFO was $124.9 million, a $38.9 million increase from the prior year. Adjusted FFO per share increased to $1.98, compared to $1.37 in the prior year, an increase of 45 percent.

• Hotel EBITDA increased to $292.4 million, compared to $252.8 million in the prior year, an increase of 15.7 percent. Hotel EBITDA margin was 29.5 percent, representing a 182 basis point improvement to the prior year.

• RevPAR increased 7.8 percent, compared to the same period in 2005. ADR increased 8.5 percent.

• Displacement as a result of major renovations caused reductions to RevPAR (approximately 1 percent) and Adjusted EBITDA (approximately $8.7 million), which negatively affected Hotel EBITDA margin by approximately 51 basis points.

• Same-Store EBITDA increased by $39.4 million, to $255.0 million, or 18.3 percent to prior year. Adjusted EBITDA (including sold hotels) increased $20.2 million, to $291.2 million, or 7.5 percent to prior year.

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FelCor Lodging Trust 2006 Operating Results

February 21, 2007

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• Net income was $51.0 million for the year, a $302.7 million increase over 2005. Net income applicable to common stockholders was $12.3 million, or $0.20 per share, compared to a net loss applicable to common stockholders of $297.5 million, or $5.01 per share, in 2005. A $40.7 million net gain from the sale of hotels was included in current year net income. A $266.8 million impairment charge was included in the prior year net loss.

Operating statistics and Same Store EBITDA are presented for our 83 core hotels. We consider our 11 non-strategic hotels owned at December 31, 2006 to be held for sale and presented in discontinued operations.

Fourth Quarter Highlights:

RevPAR growth remains strong across the portfolio with the exception of those hotels undergoing renovation and our New Orleans hotels. RevPAR increased 8.1 percent excluding displacement from renovations and New Orleans. RevPAR declined 38.3 percent in New Orleans, which impacted our portfolio RevPAR by 210 basis points. Occupancy declined primarily as a result of renovations; however, ADR grew 7.7 percent with double digit increases in a majority of our largest markets. ADR growth in our key markets is accelerating as hotels complete renovation and as we focus on our customer mix and take advantage of industry trends.

We paid a common dividend of $0.25 per share for the fourth quarter of 2006, which represented a $0.05 increase from our third quarter dividend of $0.20.

“Our goal at the beginning of 2006 was to continue the transformation to the New FelCor, and we accomplished all of our objectives for the year. We are ahead of schedule on asset sales, completed our debt reduction plan and increased the dividend twice during 2006. 2006 was a great year for FelCor as the benefits of the portfolio repositioning were evident in the strong operating results. We surpassed our original operating expectations in every category,” said Richard A. Smith, FelCor’s President and Chief Executive Officer. “We are embarking on the next phase of our strategic plan. We believe we have a unique opportunity for significant growth relative to our peers as we execute our internal growth plans including the renovation and redevelopment programs.”

Capital Structure:

At December 31, 2006, we had $1.37 billion of consolidated debt outstanding with a weighted average life of five years, including construction debt on our Royale Palms condominium development of $58.6 million, which we anticipate repaying in the second quarter 2007. At September 30, 2005, when we began our disposition program, we had $1.71 billion of consolidated debt outstanding. Our cash and cash equivalents totaled approximately $124.2 million at December 31, 2006.

In October 2006, we sold $215 million of senior floating rate notes. These notes bear interest at LIBOR plus 1.875 percent and mature in 2011 including extension options. We also finalized a $250 million mortgage facility bearing interest at LIBOR plus 0.93 percent, which we closed in November 2006. Proceeds from these two financings along with cash from hotel sales were used in the fourth quarter to: (i) redeem our $290 million senior floating rate notes due 2011 paying LIBOR plus 4.25 percent interest and $125 million senior notes due 2007 paying 7.625 percent interest; and (ii) repay $129 million of mortgage indebtedness.

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FelCor Lodging Trust 2006 Operating Results

February 21, 2007

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“We have completed the $400 million debt reduction plan and taken advantage of the strong capital market environment by refinancing $465 million in debt, which lowered our weighted average cost of funds by more than 50 basis points. We now have a stronger and more flexible balance sheet,” said Andrew J. Welch, FelCor’s Executive Vice President and Chief Financial Officer. “This allows us to focus our attention on the remainder of our strategic plan.”

Hotel Disposition Update:

During the year ended December 31, 2006, we sold 31 non-strategic hotels for gross proceeds of $514 million, and in 2007 through the date of this release, we have sold two additional hotels for gross proceeds of $42.7 million. We have now sold 36 of the 45 hotels for total proceeds of approximately $572 million. We currently have nine non-strategic hotels remaining to sell, of which we have three hotels under hard contract, and are in negotiations on the remaining six hotels. We are on target to substantially complete our disposition program in the first part of 2007.

Renovation Program Update:

Improvements and additions to hotels for the fourth quarter, including our pro rata share of joint ventures, totaled $62.1 million for the quarter, and $178.9 million for the year. We completed major renovations at eight of our hotels in 2006. We expect revenue growth in these renovated hotels to substantially exceed the growth in their respective markets in 2007. The budgeted RevPAR growth for these eight hotels is more than double that of the remainder of our core portfolio, and the EBITDA growth is nearly triple that of the remainder of the core portfolio. While displacement is included in these numbers, the budgeted growth, in excess of market gains, represents a 12 percent cash on cash return on the funds spent on customer impact areas, as expected. Customer impact areas represent approximately 75 percent of the renovation dollars spent. We also started renovations at 20 hotels during 2006 that we expect to complete in the first quarter of 2007.

Our Royale Palms condominium project in Myrtle Beach, South Carolina, is scheduled to be completed in the second quarter 2007. At December 31, 2006, the balance on the construction loan was $58.6 million. We have pre sold approximately 98 percent of these condominiums. We currently expect to earn net income of approximately $18 million at the completion of the project, and we expect that between 50 and 60 percent of the condominium units will enter our rental program, which will result in additional continuing income.

2007 Guidance:

Our 2007 guidance assumes that we sell the remaining 11 non-strategic hotels owned at December 31, 2006 in the first part of 2007. Therefore, our operating statistics are shown for our 83 core hotels, and our non-strategic hotels were included in discontinued operations at December 31, 2006. In the past, we have not typically included projections of asset sales in our guidance, but rather have adjusted our guidance as sales occurred. Given the success of our disposition program and the status of the sale negotiations on the remaining nine non-strategic hotels, we have included these sales in our guidance. Consequently, the earnings from these hotels reflect only the earnings through the projected date of sale.

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FelCor Lodging Trust 2006 Operating Results

February 21, 2007

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For 2007, we currently anticipate:

• RevPAR to increase between 6.5 to 7.5 percent for the full year and approximately 2 percent for the first quarter;

• Adjusted EBITDA to be between $293 and $300 million for the full year and between $63 and $64 million for the first quarter;

• Adjusted FFO per share to be between $2.30 and $2.40 for the full year and between $0.42 and $0.44 for the first quarter;

• Hotel EBITDA margins to increase approximately 30 basis points for the full year; and

• Capital expenditures of approximately $225 million.

FFO and EBITDA for 2007 are being impacted by the following:

• The asset sale program is being completed sooner than anticipated, and these proceeds are being redeployed throughout 2007 to complete our renovation program. The opportunity cost of redeployment of asset sale proceeds over the course of 2007 will negatively impact our 2007 EBITDA and FFO. Assuming the renovations at the 64 hotels being completed in 2007, were completed on January 1, 2007, EBITDA and FFO would be higher by an estimated $17.5 million or $0.28 per share. This opportunity cost is based on factoring in returns to be realized on projects that will come back on line throughout the course of 2007, and interest income earned in 2007 on the cash prior to reinvestment.

• Disruption from renovations is expected to negatively impact EBITDA and FFO by approximately $12.2 million or $0.19 per share, RevPAR by 2 percent, and Hotel EBITDA margin growth by 70 basis points, as we complete renovations at 64 hotels.

• Included in our FFO and EBITDA guidance is a gain of approximately $18 million or $0.28 per share from the Royale Palms condominium development that will be completed during the second quarter.

“The completion of the Royale Palms project creates an effective bridge for our earnings in a year where displacement and opportunity cost will negatively impact our results,” said Richard A. Smith. “We are pleased with the initial results of the renovation program. Our primary focus this year is to mitigate disruption caused by renovations and assist our hotels in pre-sales efforts so that we can maximize returns on renovations as quickly as possible. We are excited to see the eight hotels that completed renovations in the fourth quarter of 2006 hitting our return expectations. We expect to see significant growth in the latter part of this year and in 2008 as the bulk of our portfolio will be fully renovated.”

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 10 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.

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We have published our Fourth Quarter and Year End Supplemental Information, which provides additional corporate data, financial highlights and portfolio statistical data for the quarter and year ended December 31, 2006. Investors are encouraged to access the Supplemental Information on our Web site at www.felcor.com, on the Investor Relations page in the “Financial Reports” section. The Supplemental Information also will be furnished upon request. Requests may be made by e-mail to information@felcor.com or by writing to the Vice President of Investor Relations, FelCor Lodging Trust Incorporated, 545 E. John Carpenter Freeway, Suite 1300, Irving, Texas, 75062.

FelCor, a real estate investment trust, is the nation’s largest owner of upscale, all-suite hotels. FelCor’s portfolio is comprised of 92 consolidated hotels, located in 26 states and Canada. FelCor’s portfolio includes 71 upper upscale 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.

This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks has any responsibility or liability for any information contained in this press release.

We invite you to listen to our 2006 Conference Call on Thursday, February 22, 2007, at 10:00 a.m. (Central Time). The conference call will be webcast simultaneously via FelCor’s Web site at www.felcor.com. Interested investors and other parties who wish to access the call should go to FelCor’s Web site and click on the conference call microphone icon on either the “Investor Relations” or “FelCor News” pages. A phone replay will be available from Thursday, February 22, 2007, at 12:00 p.m. (Central Time), through Thursday, March 22, at 7:00 p.m. (Central Time), by dialing 800-642-1687 (conference ID# 6432871). 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. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “will,” “continue” and other similar terms and phrases, including references to assumption and forecasts of future results. 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 anticipated at the time the forward-looking statements are made. General economic conditions, operating risks associated with the hotel business, 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, the cyclical nature of the real estate markets, our ability to continue to qualify as a Real Estate Investment Trust for federal income tax purposes and numerous other factors may affect future results, performance

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FelCor Lodging Trust 2006 Operating Results

February 21, 2007

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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. We undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.

Contact:

Stephen A. Schafer, Vice President of Investor Relations (972) 444-4912 sschafer@felcor.com

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FelCor Lodging Trust 2006 Operating Results

February 21, 2007

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Consolidated Statements of Operations

(in thousands, except per share data)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2006			2005			2006			2005
Revenues:
Hotel operating revenue:
Room	$	185,491		$	177,340		$	809,466		$	742,882
Food and beverage		34,928			33,710			129,200			121,836
Other operating departments		12,473			11,582			52,293			48,431
Retail space rental and other revenue		10			23			79			1,506
Total revenues		232,902			222,655			991,038			914,655
Expenses:
Hotel departmental expenses:
Room		47,690			46,575			199,283			187,872
Food and beverage		25,249			25,376			97,012			93,136
Other operating departments		5,602			5,503			23,436			22,446
Other property related costs		66,168			63,492			270,301			255,626
Management and franchise fees		11,775			10,801			51,237			45,215
Taxes, insurance and lease expense		27,926			24,928			112,052			104,852
Abandoned projects		33			265			33			265
Corporate expenses		4,778			4,917			23,308			19,025
Depreciation		24,483			21,733			94,579			84,448
Total operating expenses		213,704			203,590			871,241			812,885
Operating income		19,198			19,065			119,797			101,770
Interest expense, net		(24,021	)		(31,191	)		(110,867	)		(121,668	)
Hurricane loss		-			(4,172	)		-			(6,481	)
Charge-off of deferred financing costs		(2,599	)		(1,448	)		(3,562	)		(1,448	)
Early extinguishment of debt, net		(12,033	)		(4,037	)		(12,471	)		(4,037	)
Gain on swap terminations		1,715			-			1,715			-
Loss before equity in income from unconsolidated entities, minority interests and gain (loss) on sale of assets		(17,740	)		(21,783	)		(5,388	)		(31,864	)
Equity in income from unconsolidated entities		1,829			1,941			11,537			10,169
Minority interests		867			1,799			2,508			4,310
Gain (loss) on sale of assets		-			-			(92	)		469
Income (loss) from continuing operations		(15,044	)		(18,043	)		8,565			(16,916	)
Discontinued operations		26,030			(247,167	)		42,480			(234,699	)
Net income (loss)		10,986			(265,210	)		51,045			(251,615	)
Preferred dividends		(9,691	)		(9,679	)		(38,713	)		(39,408	)
Issuance costs of redeemed preferred stock		-			-			-			(6,522	)
Net income (loss) applicable to common stockholders	$	1,295		$	(274,889	)	$	12,332		$	(297,545	)
Basic and diluted per common share data:
Loss from continuing operations	$	(0.40	)	$	(0.47	)	$	(0.50	)	$	(1.06	)
Net income (loss)	$	0.02		$	(4.62	)	$	0.20		$	(5.01	)
Basic and diluted weighted average common shares outstanding		61,268			59,453			60,734			59,436

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FelCor Lodging Trust 2006 Operating Results

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Discontinued Operations

(in thousands)

Discontinued operations include the results of operations of 11 hotels held for sale at December 31, 2006, 11 hotels disposed of in the fourth quarter, eight hotels disposed of in the third quarter of 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						Year Ended
	December 31,						December 31,
	2006			2005			2006				2005
Operating revenue	$	32,268		$	81,019		$	204,494		$	343,492
Operating expenses		31,891			341,604			200,958			593,211
Operating income (loss)		377			(260,585	)		3,536			(249,719	)
Direct interest costs, net		(259	)		(757	)		(1,206	)		(10,203	)
Gain on sale of hotels, net of income tax		25,902			2,501			41,222			11,736
Gain on sale of land		1,958			-			1,958			317
Debt extinguishment		(1,071	)		(8,353	)		(1,311	)		(5,815	)
Minority interests		(877	)		20,027			(1,719	)		18,985
Income (loss) from discontinued operations		26,030			(247,167	)		42,480			(234,699	)
Depreciation, net of minority interest		2,548			8,869			15,451			37,501
Minority interest in FelCor LP		569			(11,349	)		903			(10,776	)
Interest expense, net of minority interest		241			748			1,168			10,191
EBITDA from discontinued operations		29,388			(248,899	)		60,002			(197,783	)
Gain on sale of hotels, net of income tax and minority interests		(25,902	)		(2,501	)		(40,650	)		(11,736	)
Impairment loss, net of minority interests		1,332			255,915			15,547			257,7755
Debt extinguishment, net of minority interests		1,069			8,353			1,285			5,815
Abandoned projects		79			-			79			-
Asset disposition costs		-			-			-			1,300
Adjusted EBITDA from discontinued operations	$	5,966		$	12,868		$	36,263		$	55,371

Selected Balance Sheet Data

(in thousands)

	December 31,			December 31,
	2006			2005
Investment in hotels	$	2,656,571		$	3,338,881
Accumulated depreciation		(612,286	)		(754,502	)
Investments in hotels, net of accumulated depreciation	$	2,044,285		$	2,584,379
Total cash and cash equivalents	$	124,179		$	94,564
Total assets	$	2,583,249		$	2,920,263
Total debt	$	1,369,153		$	1,675,280
Total stockholders’ equity	$	1,010,931		$	1,031,793

At December 31 2006, we had an aggregate of 62,052,183 shares of FelCor common stock and 1,355,016 limited partnership units of FelCor Lodging Limited Partnership outstanding.

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Debt Summary

(dollars in thousands)

		EncumberedHotels			Interest Rate at December 31, 2006		Final Maturity	Consolidated Debt
Line of credit(a)	none			L + 1.75		January 2009		$	-
Senior term notes	none			8.50		June 2011			298,911
Senior term notes	none			L + 1.875		December 2011			215,000
Total line of credit and senior debt									513,911
Mortgage debt	12 hotels			L + 0.93		November 2011(b)			250,000
Mortgage debt	8 hotels			6.56		July 2009 - 2014			97,553
Mortgage debt	7 hotels			7.32		March 2009			124,263
Mortgage debt	8 hotels			8.70		May 2010			169,438
Mortgage debt	7 hotels			8.73		May 2010			122,578
Mortgage debt	1 hotel			L + 2.85		August 2008			15,500
Mortgage debt	1 hotel			5.81		July 2016			12,861
Other	1 hotel			9.17		August 2011			4,452
Construction loan(c)			-	L + 2.00		October 2007			58,597
Total mortgage debt			45 hotels						855,242
								$	1,369,153

(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) This maturity date assumes three, one-year extension options extending the maturity of this debt from 2008 to 2011, are exercised by us.

(c) We have a 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. We have pre sold approximately 98 percent of these condominiums and expect to start repaying the construction loan as the units sales are finalized, beginning in the second quarter of 2007.

Weighted average interest at December 31, 2006	7.62%
Fixed interest rate debt to total debt at December 31, 2006	60.6%
Weighted average maturity of debt at December 31, 2006	5 years
Mortgage debt to total assets at December 31, 2006	33.1%

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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 (Loss) to FFO and Adjusted FFO

(in thousands, except per share and unit data)

	Three Months Ended December 31,
	2006							2005
	Dollars			Shares	Per Share Amount			Dollars			Shares	Per Share Amount
Net income (loss)	$	10,986						$	(265,210	)
Preferred dividends		(9,691	)						(9,679	)
Net income (loss) applicable to common stockholders		1,295		61,268	$	0.02			(274,889	)	59,453	$	(4.62	)
Depreciation, continuing operations		24,483		-		0.40			21,733		-		0.37
Depreciation, unconsolidated entities and discontinued operations		5,533		-		0.09			11,579		-		0.19
Gain on sale of hotels, net of income tax		(25,902	)	-		(0.43	)		(2,501	)	-		(0.04	)
Minority interest in FelCor LP		28		1,355		0.01			(12,623	)	2,763		(0.03	)
Conversion of options and unvested restricted stock		-		371		-			-		-		-
FFO		5,437		62,994		0.09			(256,701	)	62,216		(4.13	)
Impairment loss, discontinued operations		1,332		-		0.02			255,915		-		4.11
Abandoned projects		112		-		-			265		-		0.01
Debt extinguishment loss		15,786		-		0.25			13,839		-		0.22
Gain on swap termination		(1,715	)	-		(0.03	)		-		-		-
Unvested restricted stock		-		-		-			-		787		-
Adjusted FFO	$	20,952		62,994	$	0.33		$	13,318		63,003	$	0.21

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FelCor Lodging Trust 2006 Operating Results

February 21, 2007

Page 11

Reconciliation of Net Income (Loss) to FFO and Adjusted FFO

(in thousands, except per share and unit data)

	Year Ended December 31,
	2006							2005
	Dollars			Shares	Per Share Amount			Dollars			Shares	Per Share Amount
Net income (loss)	$	51,045						$	(251,615	)
Preferred dividends		(38,713	)						(39,408	)
Issuance costs of redeemed preferred stock		-							(6,522	)
Net income (loss) applicable to common stockholders		12,332		60,734	$	0.20			(297,545	)	59,436	$	(5.01	)
Depreciation, continuing operations		94,579		-		1.56			84,448		-		1.42
Depreciation, unconsolidated entities and discontinued operations		26,911		-		0.44			47,759		-		0.80
Gain on sale of hotels, net of income tax		(40,650	)	-		(0.67	)		(12,124	)	-		(0.20	)
Minority interest in FelCor LP		279		1,864		(0.04	)		(13,677	)	2,778		(0.08	)
Conversion of options and unvested restricted stock		-		327		-			-		-		-
FFO		93,451		62,925		1.49			(191,139	)	62,214		(3.07	)
Issuance costs of redeemed preferred stock		-		-		-			6,522		-		0.10
Impairment loss, discontinued operations		15,547		-		0.24			257,775		-		4.14
Abandoned projects		112		-		-			265		-		0.01
Asset disposition		-		-		-			1,300		-		0.01
Debt extinguishment loss		17,472		-		0.28			11,300		-		0.18
Gain on swap termination		(1,715	)	-		(0.03	)		-		-		-
Unvested restricted stock		-		-		-			-		647		-
Adjusted FFO	$	124,867		62,925	$	1.98		$	86,023		62,861	$	1.37

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FelCor Lodging Trust 2006 Operating Results

February 21, 2007

Page 12

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

(in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2006			2005			2006			2005
Net income (loss)	$	10,986		$	(265,210	)	$	51,045		$	(251,615	)
Depreciation, continuing operations		24,483			21,733			94,579			84,448
Depreciation, unconsolidated entities and discontinued operations		5,533			11,579			26,911			47,759
Minority interest in FelCor Lodging LP		28			(12,623	)		279			(13,677	)
Interest expense		25,538			32,646			114,909			125,707
Interest expense, unconsolidated entities and discontinued operations		2,104			2,349			7,657			16,949
Amortization expense		741			733			5,080			2,904
EBITDA		69,413			(208,793	)		300,460			12,475
Gain on sale of hotels, net of income tax		(25,902	)		(2,501	)		(40,650	)		(12,124	)
Impairment loss, discontinued operations		1,332			255,915			15,547			257,775
Abandoned projects		112			265			112			265
Asset disposition costs		-			-			-			1,300
Debt extinguishment loss		15,786			13,839			17,472			11,300
Gain on swap termination		(1,715	)		-			(1,715	)		-
Adjusted EBITDA		59,026			58,725			291,226			270,991
Adjusted EBITDA from discontinued operations		(5,966	)		(12,868	)		(36,263	)		(55,371	)
Same-Store EBITDA	$	53,060		$	45,857		$	254,963		$	215,620

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FelCor Lodging Trust 2006 Operating Results

February 21, 2007

Page 13

Reconciliation of Adjusted EBITDA to Hotel EBITDA

(in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2006			2005			2006			2005
Adjusted EBITDA	$	59,026		$	58,725		$	291,226		$	270,991
Retail space rental and other revenue		(10	)		(23	)		(79	)		(1,506	)
Adjusted EBITDA from discontinued operations		(5,966	)		(12,868	)		(36,263	)		(55,371	)
Equity in income from unconsolidated subsidiaries (excluding interest and depreciation expense)		(7,139	)		(6,637	)		(31,309	)		(28,859	)
Minority interest in other partnerships (excluding interest and depreciation expense)		51			(141	)		(215	)		264
Consolidated hotel lease expense		15,190			13,695			61,054			54,689
Unconsolidated taxes, insurance and lease expense		(1,377	)		(1,019	)		(6,273	)		(5,881	)
Interest income		(1,517	)		(1,455	)		(4,042	)		(4,039	)
Corporate expenses (excluding amortization expense)		4,037			4,184			18,228			16,121
Hurricane loss		-			4,172			-			6,481
Loss (gain) on sale of other assets		-			-			92			(80	)
Hotel EBITDA	$	62,295		$	58,633		$	292,419		$	252,810

Reconciliation of Net Income (Loss) to Hotel EBITDA

(in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2006			2005			2006			2005
Netincome (loss)	$	10,986		$	(265,210	)	$	51,045		$	(251,615	)
Discontinued operations		(26,030	)		247,167			(42,480	)		234,699
Equity in income from unconsolidated entities		(1,829	)		(1,941	)		(11,537	)		(10,169	)
Minority interests		(867	)		(1,799	)		(2,508	)		(4,310	)
Consolidated hotel lease expense		15,190			13,695			61,054			54,689
Unconsolidated taxes, insurance and lease expense		(1,377	)		(1,019	)		(6,273	)		(5,881	)
Interest expense, net		24,021			31,191			110,867			121,668
Charge-off of deferred financing costs		2,599			1,448			3,562			1,448
Early extinguishment of debt		12,033			4,037			12,471			4,037
Gain on swap termination		(1,715	)		-			(1,715	)		-
Corporate expenses		4,778			4,917			23,308			19,025
Hurricane loss		-			4,172			-			6,481
Depreciation		24,483			21,733			94,579			84,448
Abandoned projects		33			265			33			265
Loss (gain) on sale of assets		-			-			92			(469	)
Retail space rental and other revenue		(10	)		(23	)		(79	)		(1,506	)
Hotel EBITDA	$	62,295		$	58,633		$	292,419		$	252,810

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FelCor Lodging Trust 2006 Operating Results

February 21, 2007

Page 14

Hotel EBITDA and Hotel EBITDA Margin

(dollars in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2006			2005			2006			2005
Total revenue	$	232,902		$	222,655		$	991,038		$	914,655
Retail space rental and other revenue		(10	)		(23	)		(79	)		(1,506	)
Hotel operating revenue		232,892			222,632			990,959			913,149
Hotel operating expenses		(170,597	)		(163,999	)		(698,540	)		(660,339	)
Hotel EBITDA	$	62,295		$	58,633		$	292,419		$	252,810
Hotel EBITDA margin		26.7%			26.3%			29.5%			27.7%

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

	Three Months Ended December 31,				Year Ended December 31,
	2006		2005		2006		2005
Ratio of operating income to total revenue	8.2	%	8.6	%	12.1	%	11.1	%
Retail space rental and other revenue	-		-		-		(0.1	)
Unconsolidated taxes, insurance and lease expense	(0.6	)	(0.5	)	(0.6	)	(0.6	)
Consolidated hotel lease expense	6.5		6.2		6.2		6.0
Corporate expenses	2.1		2.2		2.3		2.1
Depreciation	10.5		9.8		9.5		9.2
Hotel EBITDA margin	26.7	%	26.3	%	29.5	%	27.7	%

Hotel Operating Expense Composition

(dollars in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2006			2005			2006			2005
Reconciliation of total operating expense to hotel operating expense:
Total operating expenses	$	213,704		$	203,590		$	871,241		$	812,885
Unconsolidated taxes, insurance and lease expense		1,377			1,019			6,273			5,881
Consolidated hotel lease expense		(15,190	)		(13,695	)		(61,054	)		(54,689	)
Corporate expenses		(4,778	)		(4,917	)		(23,308	)		(19,025	)
Abandoned projects		(33	)		(265	)		(33	)		(265	)
Depreciation		(24,483	)		(21,733	)		(94,579	)		(84,448	)
Hotel operating expenses	$	170,597		$	163,999		$	698,540		$	660,339
		69,713
Supplemental information:
Compensation and benefits expense (included in hotel operating expenses)	$	69,713		$	68,629		$	281,711		$	273,478

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FelCor Lodging Trust 2006 Operating Results

February 21, 2007

Page 15

Reconciliation of Forecasted Net Income to Forecasted FFO, Adjusted FFO, EBITDA

and Adjusted EBITDA

(in millions, except per share and unit data)

	First Quarter 2007 Guidance
	Low Guidance						High Guidance
	Dollars			Per Share Amount(a)			Dollars				Per Share Amount(a)
Net income	$	13					$	14
Preferred dividends		(10	)					(10		)
Net income applicable to common stockholders		3		$		0.05		4			$		0.07
Gain on sale of assets		(6	)					(6		)
Depreciation		30						30
FFO and Adjusted FFO	$	27		$		0.42	$	28			$		0.44
Net income	$	13					$	14
Depreciation		30						30
Interest expense		25						25
Amortization expense		1						1
EBITDA		69						70
Gain on sale of hotels		(6	)					(6		)
Adjusted EBITDA	$	63					$	64
	Full Year 2007 Guidance
	Low Guidance						High Guidance
	Dollars				Per Share Amount(a)		Dollars					Per Share Amount(a)
Net income	$	96					$		103
Preferred dividends		(39	)						(39	)
Net income applicable to common stockholders		57			$	0.94			64			$	1.04
Gain on sale of assets		(31	)						(31	)
Depreciation		117							117
Minority interest in FelCor LP		2							2
FFO and Adjusted FFO	$	145			$	2.30	$		152			$	2.40
Net income	$	96					$		103
Depreciation		117							117
Interest expense		105							105
Minority interest in FelCor LP		2							2
Amortization expense		4							4
EBITDA		324							331
Gain on sale of assets		(31	)						(31	)
Adjusted EBITDA	$	293					$		300

(a) Weighted average shares and units are 63.1 million.

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FelCor Lodging Trust 2006 Operating Results

February 21, 2007

Page 16

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

FFO and EBITDA

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

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

Adjustments to FFO and EBITDA

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

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

• Impairment losses – We exclude the effect of impairment losses and gains or losses on disposition of assets in computing Adjusted FFO and Adjusted EBITDA because we believe that including these is not consistent with reflecting the ongoing performance of our remaining assets. Additionally, we believe that impairment 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

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FelCor Lodging Trust 2006 Operating Results

February 21, 2007

Page 17

consolidated statements of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments in computing Adjusted FFO and Adjusted EBITDA because they do not reflect our actual performance for that period.

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

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

Hotel EBITDA and Hotel EBITDA Margin

Hotel EBITDA and Hotel EBITDA margin are commonly used measures of performance in the industry and give investors a more complete understanding of the operating results over which our individual hotels and operating managers have direct control. We believe that Hotel EBITDA and Hotel EBITDA margin are useful to investors by providing greater transparency with respect to two significant measures used by us in our financial and operational decision-making. Additionally, these measures facilitate comparisons with other hotel REITs and hotel owners. We present Hotel EBITDA and Hotel EBITDA margin by eliminating corporate-level expenses, depreciation and expenses related to our capital structure. We eliminate corporate-level costs and expenses because we believe property-level results provide investors with supplemental information with respect to the ongoing operating performance of our hotels and the effectiveness of management 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.

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FelCor Lodging Trust 2006 Operating Results

February 21, 2007

Page 18

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

Exhibit 99.2

 

FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Date of Issuance February 21, 2007

All dollar amounts shown in this report are in U.S. dollars unless otherwise noted.

This Supplemental Information is neither an offer to sell nor a solicitation to buy any securities of FelCor. Any offers to sell or solicitations to buy any securities of FelCor shall be made only by means of a prospectus.

FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 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

Hotel Portfolio Information 22

Capital Expenditures 22

Renovation Completion Schedule 23

Projected Renovation Program Summary 25

Non-Strategic Hotels Designated as Held for Sale 26

Unconsolidated Operations 26

Hotels Sold in 2006 27

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®, InterContinental®, Sheraton®, Sheraton Suites®, Staybridge Suites®, Walt Disney World® and Westin®.

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. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “will,” “continue” and other similar terms and phrases, including references to assumption and forecasts of future results. 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 anticipated at the time the forward-looking statements are made. General economic conditions, operating risks associated with the hotel business, 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, the cyclical nature of the real estate markets, our ability to continue to qualify as a Real Estate Investment Trust for federal income tax purposes 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. We undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.

2

FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 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 December 31, 2006, our portfolio was comprised of 83 consolidated hotels in continuing operations located in 23 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 hotels and were the largest owner of Embassy Suites Hotels and Doubletree Guest Suites hotels. We had a market capitalization of approximately $3.2 billion.

Strategy

Our long-term strategic plan is to own a diversified portfolio of high quality, upscale hotels flagged under leading brands and then increase shareholder value and return on invested capital by maximizing the use of our real estate and enhancing cash flow. We continually examine our portfolio to address issues of market supply and concentration of risk. In order to achieve our strategic objectives, we have identified four goals: Portfolio Repositioning and Debt Reduction, Internal Growth consisting of a comprehensive renovation program, Redevelopment Projects at 15 hotels and a new asset management approach, and External Growth.

		Public Ratings
	Corporate	Senior Unsecured Debt	Preferred Stock
Moody’s	Ba3	Ba3	B2
Standard & Poors	BB-	B+	B-

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

74

Corporate Headquarters

545 E. John Carpenter Frwy., Suite 1300

Irving, TX 75062

(972) 444-4900

Investor/Media Relations Contact

Stephen A. Schafer

Vice President of Investor Relations

(972) 444-4912

sschafer@felcor.com

Information Request

information@felcor.com

3

FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Board of Directors

Thomas J. Corcoran, Jr.

Chairman of the Board, FelCor Lodging Trust Incorporated

Melinda J. Bush, C.H.A.

Chairman and Chief Executive Officer, HRW Holdings, LLC

Robert F. Cotter

President and Chief Operating Officer, Starwood Hotels and Resorts (Retired)

Richard S. Ellwood

Private Investor

Thomas C. Hendrick

Executive Vice President of Acquisitions and Development, Kor Group

David C. Kloeppel

Executive Vice President and Chief Financial Officer, Gaylord Entertainment Company

Charles A. Ledsinger, Jr.

Vice Chairman and Chief Executive Officer, Choice Hotels International

Robert H. Lutz, Jr.

President, RL Investments, Inc.

Robert A. Mathewson

President, RGC, Inc.

Richard A. Smith

President and Chief Executive Officer, FelCor Lodging Trust Incorporated

Executive Officers

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

4

FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Equity Research Coverage

Firm Analyst Telephone

Citigroup Smith Barney Joshua Attie (212) 816-1533

Deutsche Bank North America Chris Woronka (212) 250-5815

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

Morgan, Keegan & Co. Napoleon Overton (901) 579-4865

Stifel, Nicolaus & Company Rod F. Petrik (410) 454-4131

UBS (US) William B. Truelove (212) 713-8825

Wachovia Securities Jeffrey J. Donnelly (617) 603-4262

5

FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

FINANCIAL HIGHLIGHTS

Supplemental Financial Data

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

	December 31,
Total Enterprise Value	2006			2005
Common shares outstanding		62,052			60,209
Units outstanding		1,355			2,763
Combined shares and units outstanding		63,407			62,972
Common stock price at end of period	$	21.84		$	17.21
Common equity capitalization	$	1,384,809		$	1,083,748
Series A preferred stock		309,362			309,362
Series C preferred stock		169,412			169,412
Consolidated debt		1,369,153			1,675,280
Minority interest of consolidated debt		(8,150	)		(8,137	)
Pro rata share of unconsolidated debt		98,731			101,940
Cash and cash equivalents		(124,179	)		(94,564	)
Total enterprise value (TEV)	$	3,199,138		$	3,237,041
Dividends Per Share
Dividends declared (full year):
Common stock	$	0.80		$	0.15
Series A preferred stock		1.95			1.95
Series C preferred stock (depositary shares)		2.00			1.63
Selected Balance Sheet Data
Investment in hotels, net	$	2,044,285		$	2,584,379
Hotels held for sale		133,801			-
Total cash and cash equivalents		124,179			94,564
Total assets		2,583,249			2,920,263
Total debt		1,369,153			1,675,280
Total stockholders’ equity		1,010,931			1,031,793
Total stockholders equity less preferred equity		532,157			553,019
Book value per common share outstanding		8.58			9.18

.

6

FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Consolidated Statements of Operations

(in thousands, except per share data)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2006			2005			2006			2005
Revenues:
Hotel operating revenue:
Room	$	185,491		$	177,340		$	809,466		$	742,882
Food and beverage		34,928			33,710			129,200			121,836
Other operating departments		12,473			11,582			52,293			48,431
Retail space rental and other revenue		10			23			79			1,506
Total revenues		232,902			222,655			991,038			914,655
Expenses:
Hotel departmental expenses:
Room		47,690			46,575			199,283			187,872
Food and beverage		25,249			25,376			97,012			93,136
Other operating departments		5,602			5,503			23,436			22,446
Other property related costs		66,168			63,492			270,301			255,626
Management and franchise fees		11,775			10,801			51,237			45,215
Taxes, insurance and lease expense		27,926			24,928			112,052			104,852
Abandoned projects		33			265			33			265
Corporate expenses		4,778			4,917			23,308			19,025
Depreciation		24,483			21,733			94,579			84,448
Total operating expenses		213,704			203,590			871,241			812,885
Operating income		19,198			19,065			119,797			101,770
Interest expense, net		(24,021	)		(31,191	)		(110,867	)		(121,668	)
Hurricane loss		-			(4,172	)		-			(6,481	)
Charge-off of deferred financing costs		(2,599	)		(1,448	)		(3,562	)		(1,448	)
Early extinguishment of debt		(12,033	)		(4,037	)		(12,471	)		(4,037	)
Gain on swap terminations		1,715			-			1,715			-
Loss before equity in income from unconsolidated entities, minority interests and gain (loss) on sale of assets		(17,740	)		(21,783	)		(5,388	)		(31,864	)
Equity in income from unconsolidated entities		1,829			1,941			11,537			10,169
Minority interests		867			1,799			2,508			4,310
Gain (loss) on sale of assets		-			-			(92	)		469
Income (loss) from continuing operations		(15,044	)		(18,043	)		8,565			(16,916	)
Discontinued operations		26,030			(247,167	)		42,480			(234,699	)
Net income (loss)		10,986			(265,210	)		51,045			(251,615	)
Preferred dividends		(9,691	)		(9,679	)		(38,713	)		(39,408	)
Issuance costs of redeemed preferred stock		-			-			-			(6,522	)
Net income (loss) applicable to common stockholders	$	1,295		$	(274,889	)	$	12,332		$	(297,545	)
Basic and diluted per common share data:
Net income (loss) from continuing operations	$	(0.40	)	$	(0.47	)	$	(0.50	)	$	(1.06	)
Net income (loss)	$	0.02		$	(4.62	)	$	0.20		$	(5.01	)
Basic and diluted weighted average common shares outstanding		61,268			59,453			60,734			59,436

7

FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Discontinued Operations

(in thousands)

Included in discontinued operations are the results of operations of 11 hotels held for sale at December 31, 2006, 11 hotels disposed of in the fourth quarter, eight hotels disposed of in the third quarter of 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						Year Ended
	December 31,						December 31,
	2006			2005			2006			2005
Operating revenue	$	32,268		$	81,019		$	204,494		$	343,492
Operating expenses		31,891			341,604			200,958			593,211
Operating income (loss)		377			(260,585	)		3,536			(249,719	)
Direct interest costs, net		(259	)		(757	)		(1,206	)		(10,203	)
Gain on sale of hotels, net of income tax		25,902			2,501			41,222			11,736
Gain on sale of land		1,958			-			1,958			317
Debt extinguishment		(1,071	)		(8,353	)		(1,311	)		(5,815	)
Minority interests		(877	)		20,027			(1,719	)		18,985
Income (loss) from discontinued operations		26,030			(247,167	)		42,480			(234,699	)
Depreciation, net of minority interests		2,548			8,869			15,451			37,501
Minority interest in FelCor LP		569			(11,349	)		903			(10,776	)
Interest expense, net of minority interests		241			748			1,168			10,191
EBITDA from discontinued operations		29,388			(248,899	)		60,002			(197,783	)
Gain on sale of hotels, net of income tax and minority interests		(25,902	)		(2,501	)		(40,650	)		(11,736	)
Impairment loss, net of minority interests		1,332			255,915			15,547			257,7755
Debt extinguishment, net of minority interests		1,069			8,353			1,285			5,815
Abandoned projects		79			-			79			-
Asset disposition costs		-			-			-			1,300
Adjusted EBITDA from discontinued operations	$	5,966		$	12,868		$	36,263		$	55,371

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 Months and Year Ended December 31, 2006

Non-GAAP Financial Measures (continued)

Reconciliation of Net Income (Loss) to FFO and Adjusted FFO

(in thousands, except per share and unit data)

	Three Months Ended December 31,
	2006							2005
	Dollars			Shares	Per Share Amount			Dollars			Shares	Per Share Amount
Net income (loss)	$	10,986						$	(265,210	)
Preferred dividends		(9,691	)						(9,679	)
Net income (loss) applicable to common stockholders		1,295		61,268	$	0.02			(274,889	)	59,453	$	(4.62	)
Depreciation, continuing operations		24,483		-		0.40			21,733		-		0.37
Depreciation, unconsolidated entities and discontinued operations		5,533		-		0.09			11,579		-		0.19
Gain on sale of hotels, net of income tax		(25,902	)	-		(0.43	)		(2,501	)	-		(0.04	)
Minority interest in FelCor LP		28		1,355		0.01			(12,623	)	2,763		(0.03	)
Conversion of options and unvested restricted stock		-		371		-			-		-		-
FFO		5,437		62,994		0.09			(256,701	)	62,216		(4.13	)
Impairment loss, discontinued operations		1,332		-		0.02			255,915		-		4.11
Abandoned projects		112		-		-			265		-		0.01
Debt extinguishment loss		15,786		-		0.25			13,839		-		0.22
Gain on swap termination		(1,715	)	-		(0.03	)		-		-		-
Unvested restricted stock		-		-		-			-		787		-
Adjusted FFO	$	20,952		62,994	$	0.33		$	13,318		63,003	$	0.21

9

FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Non-GAAP Financial Measures (continued)

Reconciliation of Net Income (Loss) to FFO and Adjusted FFO

(in thousands, except per share and unit data)

	Year Ended December 31,
	2006							2005
	Dollars			Shares	Per Share Amount			Dollars			Shares	Per Share Amount
Net income (loss)	$	51,045						$	(251,615	)
Preferred dividends		(38,713	)						(39,408	)
Issuance costs of redeemed preferred stock		-							(6,522	)
Net income (loss) applicable to common stockholders		12,332		60,734	$	0.20			(297,545	)	59,436	$	(5.01	)
Depreciation, continuing operations		94,579		-		1.56			84,448		-		1.42
Depreciation, unconsolidated entities and discontinued operations		26,911		-		0.44			47,759		-		0.80
Gain on sale of hotels, net of income tax		(40,650	)	-		(0.67	)		(12,124	)	-		(0.20	)
Minority interest in FelCor LP		279		1,864		(0.04	)		(13,677	)	2,778		(0.08	)
Conversion of options and unvested restricted stock		-		327		-			-		-		-
FFO		93,451		62,925		1.49			(191,139	)	62,214		(3.07	)
Issuance costs of redeemed preferred stock		-		-		-			6,522		-		0.10
Impairment loss, discontinued operations		15,547		-		0.24			257,775		-		4.14
Abandoned projects		112		-		-			265		-		0.01
Asset disposition		-		-		-			1,300		-		0.01
Debt extinguishment loss		17,472		-		0.28			11,300		-		0.18
Gain on swap termination		(1,715	)	-		(0.03	)		-		-		-
Unvested restricted stock		-		-		-			-		647		-
Adjusted FFO	$	124,867		62,925	$	1.98		$	86,023		62,861	$	1.37

10

FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Non-GAAP Financial Measures (continued)

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

(in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2006			2005			2006			2005
Net income (loss)	$	10,986		$	(265,210	)	$	51,045		$	(251,615	)
Depreciation, continuing operations		24,483			21,733			94,579			84,448
Depreciation, unconsolidated entities and discontinued operations		5,533			11,579			26,911			47,759
Minority interest in FelCor Lodging LP		28			(12,623	)		279			(13,677	)
Interest expense		25,538			32,646			114,909			125,707
Interest expense, unconsolidated entities and discontinued operations		2,104			2,349			7,657			16,949
Amortization expense		741			733			5,080			2,904
EBITDA		69,413			(208,793	)		300,460			12,475
Gain on sale of hotels, net of income tax		(25,902	)		(2,501	)		(40,650	)		(12,124	)
Impairment loss, discontinued operations		1,332			255,915			15,547			257,775
Abandoned projects		112			265			112			265
Asset disposition costs		-			-			-			1,300
Debt extinguishment loss		15,786			13,839			17,472			11,300
Gain on swap termination		(1,715	)		-			(1,715	)		-
Adjusted EBITDA		59,026			58,725			291,226			270,991
Adjusted EBITDA from discontinued operations		(5,966	)		(12,868	)		(36,263	)		(55,371	)
Same-Store EBITDA	$	53,060		$	45,857		$	254,963		$	215,620

11

FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Non-GAAP Financial Measures (continued)

Reconciliation of Adjusted EBITDA to Hotel EBITDA

(in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2006			2005			2006			2005
Adjusted EBITDA	$	59,026		$	58,725		$	291,226		$	270,991
Retail space rental and other revenue		(10	)		(23	)		(79	)		(1,506	)
Adjusted EBITDA from discontinued operations		(5,966	)		(12,868	)		(36,263	)		(55,371	)
Equity in income from unconsolidated subsidiaries (excluding interest and depreciation expense)		(7,139	)		(6,637	)		(31,309	)		(28,859	)
Minority interest in other partnerships (excluding interest and depreciation expense)		51			(141	)		(215	)		264
Consolidated hotel lease expense		15,190			13,695			61,054			54,689
Unconsolidated taxes, insurance and lease expense		(1,377	)		(1,019	)		(6,273	)		(5,881	)
Interest income		(1,517	)		(1,455	)		(4,042	)		(4,039	)
Corporate expenses (excluding amortization expense)		4,037			4,184			18,228			16,121
Hurricane loss		-			4,172			-			6,481
Loss (gain) on sale of other assets		-			-			92			(80	)
Hotel EBITDA	$	62,295		$	58,633		$	292,419		$	252,810

Reconciliation of Net Income (Loss) to Hotel EBITDA

(in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2006			2005			2006			2005
Netincome (loss)	$	10,986		$	(265,210	)	$	51,045		$	(251,615	)
Discontinued operations		(26,030	)		247,167			(42,480	)		234,699
Equity in income from unconsolidated entities		(1,829	)		(1,941	)		(11,537	)		(10,169	)
Minority interests		(867	)		(1,799	)		(2,508	)		(4,310	)
Consolidated hotel lease expense		15,190			13,695			61,054			54,689
Unconsolidated taxes, insurance and lease expense		(1,377	)		(1,019	)		(6,273	)		(5,881	)
Interest expense, net		24,021			31,191			110,867			121,668
Charge-off of deferred financing costs		2,599			1,448			3,562			1,448
Early extinguishment of debt		12,033			4,037			12,471			4,037
Gain on swap termination		(1,715	)		-			(1,715	)		-
Corporate expenses		4,778			4,917			23,308			19,025
Hurricane loss		-			4,172			-			6,481
Depreciation		24,483			21,733			94,579			84,448
Abandoned projects		33			265			33			265
Loss (gain) on sale of assets		-			-			92			(469	)
Retail space rental and other revenue		(10	)		(23	)		(79	)		(1,506	)
Hotel EBITDA	$	62,295		$	58,633		$	292,419		$	252,810

12

FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Non-GAAP Financial Measures (continued)

Hotel EBITDA and Hotel EBITDA Margin

(dollars in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2006			2005			2006			2005
Total revenue	$	232,902		$	222,655		$	991,038		$	914,655
Retail space rental and other revenue		(10	)		(23	)		(79	)		(1,506	)
Hotel operating revenue		232,892			222,632			990,959			913,149
Hotel operating expenses		(170,597	)		(163,999	)		(698,540	)		(660,339	)
Hotel EBITDA	$	62,295		$	58,633		$	292,419		$	252,810
Hotel EBITDA margin		26.7%			26.3%			29.5%			27.7%

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

	Three Months Ended December 31,				Year Ended December 31,
	2006		2005		2006		2005
Ratio of operating income to total revenue	8.2	%	8.6	%	12.1	%	11.1	%
Retail space rental and other revenue	-		-		-		(0.1	)
Unconsolidated taxes, insurance and lease expense	(0.6	)	(0.5	)	(0.6	)	(0.6	)
Consolidated hotel lease expense	6.5		6.2		6.2		6.0
Corporate expenses	2.1		2.2		2.3		2.1
Depreciation	10.5		9.8		9.5		9.2
Hotel EBITDA margin	26.7	%	26.3	%	29.5	%	27.7	%

Hotel Operating Expense Composition

(dollars in thousands)

	Three Months Ended December 31,						Year Ended December 31,
	2006			2005			2006			2005
Reconciliation of total operating expense to hotel operating expense:
Total operating expenses	$	213,704		$	203,590		$	871,241		$	812,885
Unconsolidated taxes, insurance and lease expense		1,377			1,019			6,273			5,881
Consolidated hotel lease expense		(15,190	)		(13,695	)		(61,054	)		(54,689	)
Corporate expenses		(4,778	)		(4,917	)		(23,308	)		(19,025	)
Abandoned projects		(33	)		(265	)		(33	)		(265	)
Depreciation		(24,483	)		(21,733	)		(94,579	)		(84,448	)
Hotel operating expenses	$	170,597		$	163,999		$	698,540		$	660,339
		69,713
Supplemental information:
Compensation and benefits expense (included in hotel operating expenses)	$	69,713		$	68,629		$	281,711		$	273,478

13

FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 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 Months and Year Ended December 31, 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 Months and Year Ended December 31, 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.

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FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Debt Summary

(dollars in thousands)

Debt Outstanding

		EncumberedHotels			Interest Rate at December 31, 2006		Final Maturity	Consolidated Debt
Line of credit(a)	none			L + 1.75		January 2009		$	-
Senior term notes	none			8.50		June 2011			298,911
Senior term notes	none			L + 1.875		December 2011			215,000
Total line of credit and senior debt									513,911
Mortgage debt(b)	12 hotels			L + 0.93		November 2011			250,000
Mortgage debt	8 hotels			6.56		July 2009 – 2014			97,553
Mortgage debt	7 hotels			7.32		March 2009			124,263
Mortgage debt	8 hotels			8.70		May 2010			169,438
Mortgage debt	7 hotels			8.73		May 2010			122,578
Mortgage debt	1 hotel			L + 2.85		August 2008			15,500
Mortgage debt	1 hotel			5.81		July 2016			12,861
Other	1 hotel			9.17		August 2011			4,452
Construction loan(c)			-	L + 2.00		October 2007			58,597
Total mortgage debt			45 hotels						855,242
								$	1,369,153

(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) This includes three, one-year extension options extending the maturity of this debt from 2008 to 2011.

(c) We have a 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. We have pre sold approximately 98 percent of these condominiums and expect to start repaying the construction loan as the unit sales are finalized, beginning in the second quarter of 2007.

Debt Statistics at December 31, 2006

Weighted average interest	7.62%
Fixed interest rate debt to total debt	60.6%
Weighted average maturity of debt	5 years
Mortgage debt to total assets	33.1%

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FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Debt Summary (continued)

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

Year		Secured Debt		Unsecured Debt			Total
2007	$	71,336	$	-		$	71,336
2008		29,233		-			29,233
2009		142,240		-			142,240
2010		274,535		-			274,535
2011(a)		253,030		515,000			768,030
2012 and thereafter		84,868		-			84,868
Discount		-		(1,089	)		(1,089	)
Total debt	$	855,242	$	513,911		$	1,369,153

(a) Included in this amount is a $250,000 loan that has three, one-year extension options extending the maturity of this debt from 2008 to 2011.

At December 31, 2006, we had unconsolidated 50 percent investments in ventures that owned an aggregate of 18 hotels. These ventures had approximately $197 million of non-recourse mortgage debt, all of which is secured by hotel assets. Our pro rata share of this non-recourse debt was $99 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.

In October 2006, we sold $215 million of senior secured floating rate notes. These notes bear interest at LIBOR plus 1.875% and mature in 2011. We finalized a $250 million mortgage facility at LIBOR plus 0.93%, which we closed in November 2006.

Proceeds from these two financings along with cash from hotel sales was used to: (i) redeem our $290 million senior floating rate notes due 2011 paying LIBOR plus 4.25% interest and $125 million senior notes due 2007 paying 7.625% interest, and (ii) repay $129 million of mortgage indebtedness.

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FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

PORTFOLIO DATA

Portfolio Distribution at December 31, 2006

(83 consolidated hotels included in continuing operations, same store basis)

Brand	Hotels	Rooms	% of Total Rooms	% of 2006 HotelEBITDA(a)
Embassy Suites Hotels	47	12,130	51	57
Holiday Inn-branded	17	6,301	26	18
Starwood-branded	9	3,217	13	15
Doubletree-branded	7	1,471	6	7
Hilton-branded	2	559	2	2
Other	1	403	2	1
Top Markets
South Florida area	5	1,434	6	7
Atlanta	5	1,462	6	7
San Francisco Bay area	6	2,141	9	6
Los Angeles area	4	898	4	5
Orlando	5	1,690	7	5
Dallas	4	1,333	6	5
Phoenix	3	798	3	4
San Diego	1	600	2	4
Minneapolis	3	739	3	4
Northern New Jersey	3	756	3	3
Washington, D.C.	1	443	2	3
Philadelphia	2	729	3	3
Chicago	3	795	3	3
San Antonio	3	874	4	3
Boston	2	532	2	3
Location
Suburban	32	8,200	34	37
Urban	20	6,361	26	25
Airport	20	6,203	26	24
Resort	11	3,317	14	14
Segment
Upper-upscale	65	17,377	72	81
Full service	17	6,301	26	18
Upscale	1	403	2	1

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

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FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Detailed Operating Statistics by Brand^(a)

(83 consolidated hotels included in continuing operations, same store basis)

	Occupancy (%)
	Three Months Ended December 31,				Year Ended December 31,
	2006	2005	%Variance		2006	2005	%Variance
Embassy Suites Hotels	71.0	70.3	0.9		75.1	74.3	1.1
Holiday Inn-branded hotels	58.8	67.9	(13.4	)	69.3	72.1	(3.9	)
Sheraton-branded hotels	68.6	71.0	(3.2	)	72.0	74.1	(2.8	)
Doubletree-branded hotels	67.5	69.0	(2.2	)	74.2	72.3	2.7
Other hotels(b)	58.2	63.6	(8.4	)	66.9	67.3	(0.6	)
Total hotels	66.5	69.2	(4.0	)	72.6	73.1	(0.7	)
	ADR ($)
	Three Months Ended December 31,				Year Ended December 31,
	2006	2005	%Variance		2006	2005	%Variance
Embassy Suites Hotels	132.38	124.37	6.4		134.01	124.36	7.8
Holiday Inn-branded hotels	109.46	102.45	6.8		109.59	101.77	7.7
Sheraton-branded hotels	124.83	116.31	7.3		123.85	111.20	11.4
Doubletree-branded hotels	129.91	115.82	12.2		130.27	117.35	11.0
Other hotels(b)	120.06	109.16	10.0		123.23	114.34	7.8
Total hotels	125.30	116.34	7.7		125.93	116.04	8.5
	RevPAR ($)
	Three Months Ended December 31,				Year Ended December 31,
	2006	2005	%Variance		2006	2005	%Variance
Embassy Suites Hotels	93.94	87.43	7.4		100.60	92.36	8.9
Holiday Inn-branded hotels	64.38	69.58	(7.5	)	75.93	73.41	3.4
Sheraton-branded hotels	85.69	82.53	3.8		89.15	82.35	8.3
Doubletree-branded hotels	87.69	79.95	9.7		96.68	84.81	14.0
Other hotels(b)	69.92	69.43	0.7		82.50	77.01	7.1
Total hotels	83.28	80.55	3.4		91.49	84.86	7.8

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

(b) Other hotels include two Hilton-branded, one Westin and one Crowne Plaza.

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FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Detailed Operating Statistics for FelCor’s Top Markets

(83 consolidated hotels included in continuing operations, same store basis)

	Occupancy (%)
	Three Months Ended December 31,						Year Ended December 31,
	2006	2005	%Variance				2006	2005		%Variance
South Florida area	79.6	61.7	29.1				79.8	78.2		2.1
Atlanta	68.5	76.3	(10.3	)			75.2	78.1		(3.8			)
San Francisco Bay area	70.3	71.8	(2.1	)			76.0	74.8		1.7
Los Angeles area	70.0	71.1	(1.6	)			75.2	76.2		(1.3			)
Orlando	69.8	72.7	(4.1	)			76.6	77.6		(1.3			)
Dallas	64.3	69.3	(7.2	)			69.9	66.2		5.6
Phoenix	69.9	69.1	1.1				72.9	72.4		0.6
San Diego	74.9	72.7	3.0				81.5	81.6		(0.2			)
Minneapolis	66.4	62.2	6.9				70.2	71.7		(2.1			)
Northern New Jersey	66.3	69.1	(4.0	)			69.3	70.3		(1.3			)
Washington, D.C.	63.3	70.9	(10.8	)			66.4	74.3		(10.6			)
Philadelphia	68.8	71.6	(3.9	)			73.4	74.5		(1.5			)
Chicago	70.8	72.3	(2.0	)			74.9	74.9		0.0
San Antonio	66.8	71.4	(6.3	)			76.1	76.4		(0.3			)
Boston	62.8	68.7	(8.5	)			73.0	71.0		2.7
	ADR ($)
	Three Months Ended December 31,						Year Ended December 31,
	2006	2005	%Variance				2006	2005		%Variance
South Florida area	130.00	129.20	0.6				139.51	126.38		10.4
Atlanta	116.89	111.35	5.0				118.35	106.28		11.4
San Francisco Bay area	132.82	118.29	12.3				130.97	119.14		9.9
Los Angeles area	139.11	125.15	11.2				142.74	128.02		11.5
Orlando	99.77	90.90	9.8				100.24	93.41		7.3
Dallas	113.71	108.31	5.0				112.87	105.34		7.2
Phoenix	138.53	126.06	9.9				133.17	121.78		9.3
San Diego	142.75	123.46	15.6				140.40	128.47		9.3
Minneapolis	137.70	131.95	4.4				137.72	129.39		6.4
Northern New Jersey	153.89	142.82	7.7				148.76	138.67		7.3
Washington, D.C.	164.03	144.42	13.6				161.75	145.47		11.2
Philadelphia	138.13	128.60	7.4				130.00	118.35		9.8
Chicago	127.64	110.31	15.7				123.78	107.56		15.1
San Antonio	102.31	89.36	14.5				103.94	92.27		12.6
Boston	153.41	141.89	8.1				151.65	137.68		10.1
	RevPAR ($)
	Three Months Ended December 31,					Year Ended December 31,
	2006	2005	%Variance			2006			2005		%Variance
South Florida area	103.50	79.69	29.9			111.31			98.78		12.7
Atlanta	80.05	84.99	(5.8		)	88.95			83.04		7.1
San Francisco Bay area	93.34	84.93	9.9			99.53			89.06		11.8
Los Angeles area	97.32	88.96	9.4			107.36			97.56		10.1
Orlando	69.63	66.13	5.3			76.78			72.51		5.9
Dallas	73.11	75.01	(2.5		)	78.94			69.77		13.1
Phoenix	96.81	87.10	11.1			97.05			88.21		10.0
San Diego	106.92	89.78	19.1			114.36			104.86		9.1
Minneapolis	91.46	82.01	11.5			96.69			92.82		4.2
Northern New Jersey	102.05	98.67	3.4			103.16			97.47		5.8
Washington, D.C.	103.76	102.37	1.4			107.42			108.09		(0.6	)
Philadelphia	95.10	92.13	3.2			95.36			88.18		8.1
Chicago	90.38	79.71	13.4			92.75			80.60		15.1
San Antonio	68.39	63.76	7.3			79.14			70.49		12.3
Boston	96.35	97.41	(1.1		)	110.67			97.80		13.2

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FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Hotel Portfolio Information

Pro Rata Share of Rooms Owned

	Hotels	Room Countat December31,2006
Consolidated hotels in continuing operations	83		24,081
Unconsolidated hotel operations	5		761
Total hotels	88		24,842
50% joint ventures	18		(2,089	)
60% joint ventures	1		(214	)
75% joint ventures	1		(55	)
90% joint ventures	3		(68	)
97% joint venture	1		(11	)
Total owned rooms by joint venture partners			(2,437	)
Pro rata share of rooms owned			22,405

Capital Expenditures (dollars in thousands)

	Three Months Ended December 31,				Year Ended December 31,
	2006		2005		2006		2005
Improvements and additions to consolidated hotels	$60,285		$34,677		$169,284		$111,496
Joint venture partners’ prorata share of additions to hotels	(810	)	(479	)	(1,840	)	(1,215	)
Prorata share of unconsolidated additions to hotels	2,653		2,682		11,483		7,587
Total additions to hotels(1)	$62,128		$36,880		$178,927		$117,868

(1) Includes capitalized interest, property taxes, ground leases and certain employee costs.

At December 31, 2006, we had incurred $70.7 million of capital expenditures associated with our condominium development project in Myrtle Beach, South Carolina.

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FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Hotel Portfolio Information (continued)

Hotel Renovation Status at December 31, 2006

	Rooms	% Owned(a)
Renovation Completion Schedule
Fourth Quarter 2006
Charleston (Mills House - Historic Downtown), SC - Holiday Inn(b)	214
Dana Point (Doheny Beach), CA - Doubletree Guest Suites	195
Minneapolis (Airport), MN - Embassy Suites(b)	310
Napa Valley, CA - Embassy Suites(b)	205
Nashville (Airport/Opryland Area), TN - Embassy Suites	296
Nashville (Opryland/Airport Briley Parkway), TN - Holiday Inn Select	382
Piscataway (Somerset), NJ - Embassy Suites(b)	221
Vienna (Tysons Corner), VA - Sheraton(b)	443	50%
First Quarter 2007
Atlanta (Airport), GA - Embassy Suites(b)	232
Atlanta (Galleria), GA - Sheraton Suites(b)	278
Austin, TX - Doubletree Guest Suites(b)	189	90%
Baltimore (BWI Airport), MD - Embassy Suites(b)	251	90%
Baton Rouge, LA - Embassy Suites(b)	223
Boston (Government Center), MA - Holiday Inn Select	303
Charlotte (Southpark), NC - Doubletree Guest Suites	208
Chicago (Northshore/Deerfield-Northbrook), IL - Embassy Suites(b)	237
Houston (Medical Center), TX - Holiday Inn & Suites	284
Lexington (Lexington Green), KY - Hilton Suites(b)	174
Orlando (International Airport), FL - Holiday Inn Select(b)	288
Orlando (Walt Disney World Resort), FL - Doubletree Guest Suites	229
Philadelphia (Historic District), PA - Holiday Inn	364
Pittsburgh (At University Center-Oakland), PA - Holiday Inn Select(b)	251
San Antonio (International Airport), TX - Holiday Inn Select(b)	397
San Francisco (Burlingame Airport), CA - Embassy Suites	340
San Francisco (Fisherman's Wharf), CA - Holiday Inn	585
San Francisco (South San Francisco Airport), CA - Embassy Suites(b)	312
St. Paul (Downtown), MN - Embassy Suites(b)	210
Toronto (Airport), CAN - Holiday Inn Select	445
Toronto (Yorkdale), CAN - Holiday Inn	370

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FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Hotel Portfolio Information (continued)

Renovation Completion Schedule – (continued)

Second Quarter 2007	Rooms	% Owned
Atlanta (Gateway-Atlanta Airport), GA - Sheraton	395
Boston (Marlborough), MA – Embassy Suites(b)	229
Burlington (Hotel & Conference Center), VT - Sheraton(b)	309
Chicago (Lombard/Oak Brook), IL - Embassy Suites(b)	262	50%
Chicago (O'Hare Airport), IL - Sheraton Suites(b)	296
Dallas (DFW International Airport-South), TX - Embassy Suites(b)	305
Dallas (Market Center), TX – Embassy Suites	244
Indianapolis (North), IN - Embassy Suites(b)	221	75%
Milpitas (Silicon Valley), CA - Embassy Suites(b)	266
Parsippany, NJ - Embassy Suites(b)	274	50%
Philadelphia (Society Hill), PA - Sheraton(b)	365
Raleigh, NC - Doubletree Guest Suites(b)	203
San Diego (On the Bay), CA - Holiday Inn	600
San Rafael (Marin County/Conference Center), CA - Embassy Suites(b)	235	50%
Secaucus (Meadowlands), NJ - Embassy Suites(b)	261	50%
Santa Barbara (Goleta), CA - Holiday Inn	160
Tampa (On Tampa Bay), FL - Doubletree Guest Suites(b)	203
Wilmington, DE - Doubletree(b)	244	90%
Third Quarter 2007
Birmingham, AL - Embassy Suites(b)	242
Boca Raton, FL - Embassy Suites(b)	263
Dallas (Love Field), TX - Embassy Suites(b)	248
Ft. Lauderdale (Cypress Creek), FL - Sheraton Suites(b)	253
Jacksonville (Baymeadows), FL - Embassy Suites(b)	277
Kansas City (Plaza), MO - Embassy Suites(b)	266	50%
Miami (International Airport), FL - Embassy Suites(b)	316
Orlando (International Drive South), FL - Embassy Suites(b)	244
Orlando (North), FL - Embassy Suites	277
Phoenix (Biltmore), AZ - Embassy Suites(b)	232
Phoenix (Tempe), AZ - Embassy Suites(b)	224
Raleigh (Crabtree), NC - Embassy Suites(b)	225	50%

24

FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Hotel Portfolio Information (continued)

Renovation Completion Schedule – (continued)

	Rooms	% Owned(a)
Fourth Quarter 2007
Atlanta (Perimeter Center), GA - Embassy Suites(b)	241	50%
Austin (North), TX - Embassy Suites(b)	260	50%
Bloomington, MN - Embassy Suites(b)	219
Cocoa Beach (Oceanfront), FL - Holiday Inn	500
Corpus Christi, TX - Embassy Suites(b)	150
Deerfield Beach (Boca Raton/Deerfield Beach Resort), FL - Embassy Suites(b)	244
Ft. Lauderdale (17th Street), FL - Embassy Suites(b)	358
Los Angeles (Anaheim Located near Disneyland Park), CA - Embassy Suites(b)	222
Los Angeles (El Segundo International Airport South), CA - Embassy Suites	349	97%
Myrtle Beach Resort, SC - Hilton	385
Orlando (International Drive Resort), FL - Holiday Inn	652
San Antonio (International Airport), TX - Embassy Suites(b)	261	50%
San Antonio (N.W. I-10), TX - Embassy Suites(b)	216	50%
2008
Atlanta (Buckhead), GA – Embassy Suites(b)	316
Charlotte, NC – Embassy Suites(b)	274	50%
Dallas (Park Central), TX – Westin	536	60%
Kansas City (Overland Park), KS – Embassy Suites(b)	199	50%
Myrtle Beach (At Kingston Plantation), SC - Embassy Suites	255
New Orleans, LA – Embassy Suites(b)	370
New Orleans (French Quarter), LA – Holiday Inn	374
Oxnard (Mandalay Beach Resort & Conference Center), CA – Embassy Suites	248
Phoenix (Crescent Hotel), AZ – Sheraton(b)	342
San Francisco (Union Square), CA – Crowne Plaza	403
Santa Monica (Beach at the Pier), CA – Holiday Inn	132

Projected Renovation Program Summary ($ in millions)
Completion Date	Project Cost			Hotels Completed		Rooms Completed
Fourth Quarter 2006		$	42		8		2,266
First Quarter 2007			101		21		6,170
Second Quarter 2007			88		18		5,072
Third Quarter 2007			71		12		3,067
Fourth Quarter 2007			74		13		4,057
2008			54		11		3,449
Total(1)		$	430		83		24,081

(1) Does not include redevelopment costs and represents our prorata share of project costs.

25

FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Hotel Portfolio Information (continued)

Non-Strategic Hotels designated as Held for Sale	Rooms	% Owned(a)
Brunswick, GA – Embassy Suites	130
Dallas (Park Central), TX – Sheraton	438		60%
Dallas (Park Central Area), TX – Embassy Suites	279
Dallas (West End/Convention Center) TX – Hampton Inn	309
Houston (Intercontinental Airport), TX – Holiday Inn	415
Lexington, KY – Sheraton Suites	155
Los Angeles (Covina/I-10), CA – Embassy Suites(d)	202		50%
Palm Desert (Palm Desert Resort) CA – Embassy Suites(d)	198
Stamford, CT – Holiday Inn Select	380
Troy – (North - Auburn Hills), MI – Embassy Suites (b)	251		90%
Tulsa (I-44), OK – Embassy Suites	244
Unconsolidated Operations
Hays, KS – Hampton Inn(b)	114		50%
Hays, KS – Holiday Inn(b)	191		50%
New Orleans (Chateau LeMoyne -In French Quarter/Historic Area), LA – Holiday Inn(b)	171		50%
Salina, KS – Holiday Inn(b)	192		50%
Salina (I-70), KS – Holiday Inn Express & Suites(b)	93		50%

(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) These hotels were included in discontinued operations in the accompanying consolidated statement of operations at December 31, 2006.

(d) This hotel was sold subsequent to December 31, 2006.

26

FelCor Lodging Trust Incorporated

Supplemental Information

Three Months and Year Ended December 31, 2006

Hotel Portfolio Information (continued)

Hotels Sold in 2006

Property	Date Sold	Rooms	Total Gross Sales Price Per Quarter (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
Hotels sold during the quarter ended September 30, 2006:
Denver, CO – Doubletree	Aug 2006	248
Amarillo, TX – Holiday Inn	Aug 2006	248
Dallas, TX – Doubletree	Aug 2006	300
Austin, TX – Holiday Inn	Sept 2006	320
Dallas, TX – Harvey Suites	Sept 2006	163
Dallas, TX – Crowne Plaza	Sept 2006	354
Houston, TX – Holiday Inn Select	Sept 2006	355
Pleasanton, CA – Crowne Plaza	Sept 2006	244
		2,232			99.7
Hotels sold during the quarter ended December 31, 2006:
Chicago, IL – Crowne Plaza	Nov 2006	443
Atlanta, GA – Holiday Inn (Airport North)	Dec 2006	493
Atlanta, GA – Crowne Plaza	Dec 2006	250
Atlanta, GA – Holiday Inn (South)	Dec 2006	180
Columbus, GA – Holiday Inn	Dec 2006	224
Kansas City, MO – Holiday Inn	Dec 2006	165
Knoxville, TN – Holiday Inn	Dec 2006	240
Minneapolis, MN – Embassy Suites	Dec 2006	216
Montgomery, AL – Holiday Inn	Dec 2006	210
Omaha, NE – Crowne Plaza	Dec 2006	223
San Antonio, TX – Holiday Inn	Dec 2006	313
		2,957			173.9
Total sales during year ended December 31, 2006		9,052		$	514.4

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