EX-99 4 earnings8-kexh992q1_2008htm.htm

Exhibit 99.2

 

 

FelCor Lodging Trust Incorporated

Supplemental Information
Three Months Ended March 31, 2008

Date of Issuance May 7, 2008

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

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

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  
Pro Rata Share of Rooms Owned       22  
Capital Expenditures       22  
Hotel Portfolio Listing       23  

This supplement contains registered trademarks owned or licensed by companies other than us, which may include, but are not limited to, Disneyland®, Doubletree®, Doubletree Guest Suites®, Embassy Suites Hotels®, Hilton®, Hilton Suites®, Holiday Inn®, Holiday Inn Express & Suites®, Holiday Inn Select®, Marriott®, Renaissance®, Sheraton®, Sheraton 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 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 Ended March 31, 2008

CORPORATE DATA

About the Company

In 1994, FelCor Lodging Trust Incorporated, a real estate investment trust (REIT), went public with six hotels.  We are the nation’s largest owner of upper-upscale, all-suite hotels. FelCor’s portfolio consists primarily of upper-upscale hotels, which are flagged under global brands. At March 31, 2008, our portfolio was comprised of 85 consolidated hotels and resorts 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 four hotels whose operations were accounted for using the equity method.

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, capital needs, changes in demand patterns and concentration of risk. In order to achieve our strategic objectives, we have identified four goals: portfolio repositioning; debt reduction; internal growth consisting of a comprehensive renovation program, redevelopment projects and a new asset management approach; and external growth.

Public Ratings
   

Corporate

  

Senior 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

72

Corporate Headquarters

545 E. John Carpenter Frwy., Suite 1300

Irving, TX 75062
(972) 444-4900

Investor/Media Relations Contact

Stephen A. Schafer

Vice President Strategic Planning & Investor Relations
(972) 444-4912

sschafer@felcor.com

 

Information Request

information@felcor.com

3

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

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, Kerzner International Holdings Limited
 

Richard S. Ellwood

Private Investor

Thomas C. Hendrick

President and Partner, Sagewood Partners, LLC
 

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.

Mark D. Rozells

President, Inversiones Latinoamericanas S.A.

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 Ended March 31, 2008

Equity Research Coverage

Firm     Analyst     Telephone    
Citigroup     Joshua Attie     (212) 816-1533    
Deutsche Bank     Chris Woronka     (212) 250-5815    
Friedman, Billings, Ramsey & Co.     Wilkes Graham     (703) 312-9737    
Green Street Advisors     John V. Arabia     (949) 640-8780    
JPMorgan     C. Patrick Scholes     (212) 622-6656    
KeyBanc     Dennis I. Forst     (310) 407-6733    
Lehman Brothers     Felicia R. Kantor     (212) 526-5562    
Merrill Lynch     Amanda Bryant     (212) 449-2922    
Morgan, Keegan & Co.     Napoleon H. Overton     (901) 579-4865    
Stifel, Nicolaus & Company     Rod F. Petrik     (443) 224-1306    
UBS     William B. Truelove     (212) 713-8825    
Wachovia Securities     Jeffrey J. Donnelly     (617) 603-4262    


 

5

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

FINANCIAL HIGHLIGHTS

Supplemental Financial Data

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

 

March 31,

  

December 31,

Total Enterprise Value

2008

  

2007

Common shares outstanding

 

63,195

      

62,707

  

Units outstanding

 

1,354

      

1,354

  

Combined shares and units outstanding

 

64,549

      

64,061

  

Common stock price at end of period

$

12.03

    

$

15.59

  

Common equity capitalization

$

776,524

    

$

998,711

  

Series A preferred stock

 

309,362

      

309,362

  

Series C preferred stock

 

169,412

      

169,412

  

Consolidated debt

 

1,498,800

      

1,475,607

  

Minority interest of consolidated debt

 

(4,153

)

    

(7,305

)

Pro rata share of unconsolidated debt

 

113,936

      

94,181

  

Cash and cash equivalents

 

(71,325

)

    

(57,609

)

Total enterprise value (TEV)

$

2,792,556

    

$

2,982,359

  
               

Dividends Per Share

             

Dividends declared (year-to-date):

             

Common stock

$

0.35

    

$

1.20

  

Series A preferred stock

 

0.4875

      

1.95

  

Series C preferred stock (depositary shares)

 

0.50

      

2.00

  
               

Selected Balance Sheet Data

              

Investment in hotels, net

$

2,384,516

    

$

2,400,057

  

Cash and cash equivalents

  

71,325

      

57,609

  

Total assets

  

2,672,453

      

2,683,835

  

Total debt

  

1,498,800

      

1,475,607

  

Total stockholders’ equity

  

962,672

      

1,006,914

  

Total stockholders equity less preferred equity

  

483,898

      

528,140

  

Book value per common share outstanding

  

7.66

      

8.42

  

.

6

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

 

Consolidated Statements of Operations

(in thousands, except per share data)
 

 

Three Months Ended
 

March 31,
 

2008

  

2007

Revenues:

              

Hotel operating revenue:

              

Room     

$

230,132

    

$

204,323

  

Food and beverage     

  

46,508

      

31,773

  

Other operating departments     

  

14,907

      

12,445

  

Other revenue     

  

328

      

131

  

Total revenues     

  

291,875

      

248,672

  
               

Expenses:

              

Hotel departmental expenses:

              

Room     

$

54,651

    

$

48,783

  

Food and beverage     

  

35,446

      

24,535

  

Other operating departments     

  

7,029

      

4,947

  

Other property related costs     

  

77,125

      

68,557

  

Management and franchise fees     

  

15,902

      

13,123

  

Taxes, insurance and lease expense     

  

29,304

      

29,229

  

Corporate expenses     

  

6,827

      

6,787

  

Depreciation and amortization     

  

33,768

      

25,051

  

Impairment loss     

  

17,131

      

-   

  

Other expenses     

  

933

      

22

  

Total operating expenses     

  

278,116

      

221,034

  
               

Operating income     

  

13,759

      

27,638

  

Interest expense, net     

  

(26,003

)

    

(22,872

)

Income (loss) before equity in income from unconsolidated entities, minority

interests and gain on sale of assets      

  

(12,244

)

    

4,766

  

Equity in income (loss) from unconsolidated entities     

  

(622

)

    

12,771

  

Gain on sale of condominiums     

  

-   

      

3,281

  

Minority interests     

  

406

      

37

  

Income (loss) from continuing operations     

  

(12,460

)

    

20,855

  

Discontinued operations     

  

(13

)

    

8,307

  

Net income (loss)     

  

(12,473

)

    

29,162

  

Preferred dividends     

  

(9,678

)

    

(9,678

)

Net income (loss) applicable to common stockholders     

$

(22,151

)

  

$

19,484

  
               

Basic and diluted per common share data:

              

Net income (loss) from continuing operations     

$

(0.36

)

  

$

0.18

  

Net income (loss)     

$

(0.36

)

  

$

0.32

  

Basic weighted average common shares outstanding     

  

61,714

      

61,374

  

Diluted weighted average common shares outstanding     

  

61,714

      

61,762

  

Cash dividends declared on common stock     

$

0.35

    

$

0.25

  

7

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

Discontinued Operations

(in thousands)

Discontinued operations include the results of operations of 11 hotels sold in 2007. Condensed financial information for the hotels included in discontinued operations is as follows:

 

Three Months Ended
March 31,
 

2008

  

2007

Operating revenue     

$

-   

    

$

15,498

  

Operating expenses     

  

(13

)

    

(11,879

)

Operating income (loss)     

  

(13

)

    

3,619

  

Interest expense, net     

  

-   

      

(25

)

Gain on sale of hotels     

  

-   

      

6,031

  

Loss on the early extinguishment of debt     

  

-   

      

(901

)

Minority interests     

  

-   

      

(417

)

Income (loss) from discontinued operations     

  

(13

)

    

8,307

  

Minority interest in FelCor LP     

  

-   

      

182

  

Interest expense, net of minority interests     

  

-   

      

27

  

EBITDA from discontinued operations     

  

(13

)

    

8,516

  

Gain on sale of hotels     

  

-   

      

(6,031

)

Charges related to early extinguishment of debt, net of minority interests     

  

-   

      

811

  

Adjusted EBITDA from discontinued operations     

$

(13

)

  

$

3,296

  

Non-GAAP Financial Measures

     We refer in this supplement to certain “non-GAAP financial measures.” These measures, including FFO, Adjusted FFO, Adjusted FFO per share, Same-Store Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store Adjusted EBITDA, Same-Store Hotel EBITDA and Same-Store 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 Ended March 31, 2008

Non-GAAP Financial Measures (continued)

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

(in thousands, except per share and unit data)

 

Three Months Ended March 31,
 

2008

  

2007
 

Dollars

  

Shares

  

Per Share Amount

  

Dollars

  

Shares

  

Per Share Amount

Net income (loss)     

$

(12,473

)

              

$

29,162

              

Preferred dividends     

  

(9,678

)

                

(9,678

)

            

Net income (loss) applicable to common stockholders     

  

(22,151

)

  

61,714

  

$

(0.36

)

    

19,484

    

61,762

  

$

0.32

  

Depreciation and amortization     

  

33,768

    

-   

    

0.55

      

25,051

    

-   

    

0.41

  

Depreciation, unconsolidated entities and discontinued operations     

  

3,549

    

-   

    

0.06

      

2,863

    

-   

    

0.05

  

Gain on sale of hotels     

  

-   

    

-   

    

-   

      

(6,031

)

  

-   

    

(0.10

)

Gain on sale of hotels in unconsolidated entities     

  

-   

    

-   

    

-   

      

(11,182

)

  

-   

    

(0.18

)

Minority interest in FelCor LP     

  

(477

)

  

1,354

    

(0.02

)

    

426

    

1,355

    

(0.02

)

Conversion of options and unvested restricted stock     

  

-   

    

126

    

-   

      

-   

    

-   

    

-   

  

FFO     

  

14,689

    

63,194

    

0.23

      

30,611

    

63,117

    

0.48

  

Abandoned projects     

  

-   

    

-   

    

-   

      

22

    

-   

    

-   

  

Charges related to early extinguishment of debt, net of minority interests     

  

-   

    

-   

    

-   

      

811

    

-   

    

0.02

  

Impairment loss     

  

17,131

    

-   

    

0.27

      

-   

    

-   

    

-   

  

Conversion costs(a)     

  

259

    

-   

    

0.01

      

-   

    

-   

    

-   

  

Adjusted FFO     

  

32,079

    

63,194

    

0.51

      

31,444

    

63,117

    

0.50

  

FFO from discontinued operations     

  

13

    

-   

    

-   

      

(3,269

)

  

-   

    

(0.05

)

FFO from acquired hotels(b)     

  

-   

    

-   

    

-   

      

3,385

    

-   

    

0.05

  

Gain on sale of condominiums     

  

-   

    

-   

    

-   

      

(3,281

)

  

-   

    

(0.05

)

Same-Store Adjusted FFO     

$

32,092

    

63,194

  

$

0.51

    

$

28,279

    

63,117

  

$

0.45

  

(a)     

These costs relate to the conversion of our Hotel 480 Union Square in San Francisco to a Marriott. The conversion is expected to be completed by early 2009.

(b)     

We have included amounts for two Renaissance hotels acquired in December 2007, prior to our ownership of these hotels, for comparison purposes.

9

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

Non-GAAP Financial Measures (continued)

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

(in thousands)

 

Three Months Ended
March 31,
 

2008

  

2007

Net income (loss)     

$

(12,473

)

  

$

29,162

  

Depreciation and amortization     

  

33,768

      

25,051

  

Depreciation, unconsolidated entities and discontinued operations     

  

3,549

      

2,863

  

Minority interest in FelCor Lodging LP     

  

(477

)

    

426

  

Interest expense     

  

26,549

      

24,118

  

Interest expense, unconsolidated entities and discontinued operations     

  

1,596

      

1,574

  

Amortization of stock compensation     

  

1,265

      

1,407

  

EBITDA     

  

53,777

      

84,601

  

Gain on sale of hotels     

  

-   

      

(6,031

)

Gain on sale of hotels in unconsolidated entities     

  

-   

      

(11,182

)

Abandoned projects     

  

-   

      

22

  

Charges related to debt extinguishment, net of minority interests     

  

-   

      

811

  

Impairment loss     

  

17,131

      

-   

  

Conversion costs(a)     

  

259

      

-   

  

Adjusted EBITDA     

  

71,167

      

68,221

  

Adjusted EBITDA from discontinued operations     

  

13

      

(3,296

)

EBITDA from acquired hotels(b)     

  

-   

      

6,505

  

Gain on sale of condominiums     

  

-   

      

(3,281

)

Same-Store Adjusted EBITDA     

$

71,180

    

$

68,149

  

(a)     

These costs relate to the conversion of our Hotel 480 Union Square in San Francisco to a Marriott. The conversion is expected to be completed by early 2009.

(b)     

We have included amounts for two Renaissance hotels acquired in December 2007, prior to our ownership of these hotels, for comparison purposes.

Same-Store Hotel EBITDA and Same-Store Hotel EBITDA Margin

(dollars in thousands)

 

Three Months Ended
March 31,
 

2008

  

2007

Total revenues     

$

291,875

    

$

248,672

  

Other revenue     

  

(328

)

    

(131

)

Revenue from acquired hotels(a)     

  

-   

      

27,985

  

Same-Store hotel operating revenue     

  

291,547

      

276,526

  

Same-Store hotel operating expenses     

  

(209,382

)

    

(198,098

)

Same-Store Hotel EBITDA     

$

82,165

    

$

78,428

  

Same-Store Hotel EBITDA margin     

  

28.2%

      

28.4%

  

(a)     We have included amounts for two Renaissance hotels acquired in December 2007, prior to our ownership of these hotels, for comparison purposes.

10

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

Non-GAAP Financial Measures (continued)

Reconciliation of Same-Store Adjusted EBITDA to Same-Store Hotel EBITDA

(in thousands)

 

Three Months Ended
March 31,
 

2008

  

2007

Same-Store Adjusted EBITDA     

$

71,180

    

$

68,149

  

Other revenue     

  

(328

)

    

(131

)

Equity in income from unconsolidated subsidiaries (excluding interest and depreciation expense)     

  

(5,022

)

    

(6,404

)

Minority interest in other partnerships (excluding interest and depreciation expense)     

  

570

      

125

  

Consolidated hotel lease expense     

  

12,197

      

14,259

  

Unconsolidated taxes, insurance and lease expense     

  

(2,122

)

    

(1,703

)

Interest income     

  

(545

)

    

(1,247

)

Other expenses     

  

673

      

-   

  

Corporate expenses (excluding amortization of stock compensation)     

  

5,562

      

5,380

  

Same-Store Hotel EBITDA     

$

82,165

    

$

78,428

  

(a)     

We have included amounts for two Renaissance hotels acquired in December 2007, prior to our ownership of these hotels, for comparison purposes.

11

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

Non-GAAP Financial Measures (continued)

Reconciliation of Net Income (Loss) to Same-Store Hotel EBITDA

(in thousands)

 

Three Months Ended
March 31,
 

2008

  

2007

Net income (loss)     

$

(12,473

)

  

$

29,162

  

Discontinued operations     

  

13

      

(8,307

)

EBITDA from acquired hotels(a)     

  

-   

      

6,505

  

Equity in loss (income) from unconsolidated entities     

  

622

      

(12,771

)

Minority interests     

  

(406

)

    

(37

)

Consolidated hotel lease expense     

  

12,197

      

14,259

  

Unconsolidated taxes, insurance and lease expense     

  

(2,122

)

    

(1,703

)

Interest expense, net     

  

26,003

      

22,872

  

Corporate expenses     

  

6,827

      

6,787

  

Depreciation and amortization     

  

33,768

      

25,051

  

Impairment loss     

  

17,131

      

-   

  

Other expenses     

  

933

      

-   

  

Abandoned projects     

  

-   

      

22

  

Gain on sale of condominiums     

  

-   

      

(3,281

)

Other revenue     

  

(328

)

    

(131

)

Same-Store Hotel EBITDA     

$

82,165

    

$

78,428

  

(a)     

We have included amounts for two Renaissance hotels acquired in December 2007, prior to our ownership of these hotels, for comparison purposes.

12

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

Non-GAAP Financial Measures (continued)

Reconciliation of Ratio of Operating Income to Total Revenues to Same-Store Hotel EBITDA Margin

 

Three Months Ended
March 31,
 

2008

 

2007

Ratio of operating income to total revenues     

4.7

%

  

10.0

%

Other revenue     

(0.1

)

  

-   

  

Revenue from acquired hotels(a)     

-   

    

10.1

  

Unconsolidated taxes, insurance and lease expense     

(0.7

)

  

(0.6

)

Consolidated hotel lease expense     

4.2

    

5.2

  

Other expenses     

0.3

    

-   

  

Corporate expenses     

2.3

    

2.4

  

Depreciation and amortization     

11.6

    

9.1

  

Impairment loss     

5.9

    

-   

  

Expenses from acquired hotels(a)     

-   

    

(7.8

)

Same-Store Hotel EBITDA margin     

28.2

%

  

28.4

%

(a)     

We have included amounts for two Renaissance hotels acquired in December 2007, prior to our ownership of these hotels, for comparison purposes.

Reconciliation of Total Operating Expenses to Same-Store Hotel Operating Expenses

(in thousands)

 

Three Months Ended
March 31,

  
 

2008

  

2007

  

Total operating expenses     

$

278,116

    

$

221,034

  

Unconsolidated taxes, insurance and lease expense     

  

2,122

      

1,703

  

Consolidated hotel lease expense     

  

(12,197

)

    

(14,259

)

Corporate expenses     

  

(6,827

)

    

(6,787

)

Other expenses     

  

(933

)

    

-   

  

Abandoned projects     

  

-   

      

(22

)

Depreciation and amortization     

  

(33,768

)

    

(25,051

)

Impairment loss     

  

(17,131

)

    

-   

  

Expenses from acquired hotels(a)     

  

-   

      

21,480

  

Same-Store hotel operating expenses     

$

209,382

    

$

198,098

  

(a)     

We have included amounts for two Renaissance hotels acquired in December 2007, prior to our ownership of these hotels, for comparison purposes.

13

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

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, Same-Store Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store Adjusted EBITDA, Same-Store Hotel EBITDA and Same-Store 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 such as those described below provides useful supplemental information to investors regarding our ongoing operating performance and that the presentation of Adjusted FFO, Same-Store Adjusted FFO, Adjusted EBITDA and Same-Store Adjusted 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 – We exclude gains and losses related to early extinguishment of debt 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 Ended March 31, 2008

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

Hotel 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 Ended March 31, 2008

Non-GAAP Financial Measures (continued)

Same-Store Comparisons
 

     To derive same-store comparisons, we have adjusted the numbers to remove discontinued operations and gains on sales of condominium units; and have added the historical results of operations from the two Renaissance hotels acquired in December 2007.

Limitations of Non-GAAP Measures

The use of these non-GAAP financial measures has certain limitations. FFO, Adjusted FFO, Same-Store Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store Adjusted EBITDA, Same-Store Hotel EBITDA and Same-Store Hotel EBITDA margin, as presented by us, may not be comparable to FFO, Adjusted FFO, Same-Store Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store Adjusted EBITDA, Same-Store Hotel EBITDA and Same-Store 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, Adjusted FFO, Adjusted FFO per share, Same-Store Adjusted FFO, EBITDA, Adjusted EBITDA or Same-Store Adjusted EBITDA be considered as measures of our liquidity or indicative of funds available for our cash needs, including our ability to make cash distributions. Adjusted 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, Same-Store Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store Adjusted EBITDA, Same-Store Hotel EBITDA and Same-Store Hotel EBITDA margin reflect additional ways of viewing our operations that we believe when viewed with our GAAP results and the reconciliations to the corresponding GAAP financial measures provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. Management strongly encourages investors to review our financial information in its entirety and not to rely on a single financial measure.

16

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

Debt Summary

(dollars in thousands)

 

 

 

Encumbered

  

Interest Rate at

  

Maturity

  

Consolidated
 

Hotels

  

March 31, 2008

  

Date

  

Debt

Line of credit(a)

none

  

L + 0.80

  

August 2011

$

30,000

Senior term notes

none

  

8.50(b)

  

June 2011

  

299,225

Senior term notes

none

  

L + 1.875

  

December 2011

  

215,000

Other

none

  

L + 0.40

  

June 2008

  

4,799

Total line of credit and senior debt(c)

    

6.62

      

549,024
               

Mortgage debt

12 hotels

  

L + 0.93(d)

  

November 2008(e)

  

250,000

Mortgage debt

7 hotels

  

6.57

  

June 2009-2014

  

88,617

Mortgage debt

7 hotels

  

7.32

  

March 2009

  

119,928

Mortgage debt

8 hotels

  

8.70

  

May 2010

  

165,060

Mortgage debt

6 hotels

  

8.73

  

May 2010

  

118,774

Mortgage debt

2 hotels

  

L + 1.55(f)

  

May 2009(g)

  

176,052

Mortgage debt

1 hotel

  

L + 2.85

  

August 2008

  

15,500

Mortgage debt

1 hotel

  

5.81

  

July 2016

  

12,417

Other

1 hotel

  

9.17

  

August 2011

  

3,428

Total mortgage debt(c)

45 hotels

  

6.09

  

 

949,776
         

   

Total

    

6.28 %

  

$

1,498,800

 

(a)     

We have a borrowing capacity of $250 million on our line of credit. The interest rate on this line can range from 80 to 150 basis points over LIBOR, based on our leverage ratio as defined in our line of credit agreement.

(b)     

The interest rate on these senior notes will increase to 9.0% if the credit rating on our senior debt is downgraded by Moody’s to B1 and Standard & Poor’s rating remains below BB-.

(c)     

Interest rates are calculated based on the weighted average debt outstanding at March 31, 2008.

(d)     

We have purchased an interest rate cap for this notional amount with a cap rate of 7.8% that expires in November 2008.

(e)     

This loan provides us, in our sole discretion, three one-year extension options that permit the maturity to be extended to 2011.

(f)     

We have purchased interest rate caps for $177 million aggregate notional amounts with cap rates of 6.25% which expire in May 2009.

(g)     

These loans provide us, in our sole discretion, three one-year extension options that permit the maturity to be extended to 2012.

Debt Statistics at March 31, 2008

Weighted average interest

6.28%

Fixed interest rate debt to total debt

53.9%

Weighted average maturity of debt

4 years

Mortgage debt to total assets

35.5%

17

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

Debt Summary (continued)

     At March 31, 2008, future scheduled principal payments on outstanding debt are as follows (in thousands):

Year

    

Secured

Debt

      

Unsecured
Debt

      

Total

  

2008

$

276,004

    

$

34,799

    

$

310,803

(a)

2009

  

319,652

      

-   

      

319,652

(b)

2010

  

274,014

      

-   

      

274,014

  

2011

  

3,028

      

515,000

      

518,028

  

2012

  

2,415

      

-   

      

2,415

  

2013 and thereafter

  

75,836

      

-   

      

75,836

  

Discount

  

(1,173

)

    

(775

)

    

(1,948

)

Total debt

$

949,776

    

$

549,024

    

$

1,498,800

  

(a)     

Includes $250,000 of mortgage debt that has three one-year extension options that permit the maturity to be extended 2011 at our sole discretion.

(b)     

Includes $177 million of mortgage debt that has three one-year extension options that permit the maturity to be extended 2011 at our sole discretion.

At March 31, 2008, we had unconsolidated 50 percent investments in ventures that owned an aggregate of 17 hotels. These ventures had approximately $228 million of non-recourse mortgage debt, all of which is secured by hotel assets. Our pro rata share of this non-recourse debt was $114 million.

18

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

PORTFOLIO DATA

Portfolio Distribution at March 31, 2008

(85 consolidated hotels)

 

Brand

 

Hotels

  

 

Rooms

  

% of

Total Rooms

  

% of 2007

Hotel EBITDA (a) (b)

Embassy Suites Hotels

47

  

12,129

  

49

  

58

  

Holiday Inn

17

  

6,305

  

25

  

19

  

Sheraton and Westin

9

  

3,217

  

13

  

14

  

Doubletree

7

  

1,471

  

6

  

7

  

Renaissance and Hotel 480

3

  

1,324

  

5

  

-

(b)

Hilton

2

  

559

  

2

  

2

  
                 
                 

Top Markets

                

South Florida

5

  

1,436

  

6

  

7

  

Atlanta

5

  

1,462

  

6

  

7

  

Los Angeles area

4

  

898

  

4

  

6

  

San Francisco area

6

  

2,141

  

8

  

6

  

Orlando

5

  

1,690

  

7

  

5

  

Dallas

4

  

1,333

  

5

  

4

  

Minneapolis

3

  

736

  

3

  

4

  

Phoenix

3

  

798

  

3

  

4

  

Northern New Jersey

3

  

756

  

3

  

4

  

San Diego

1

  

600

  

2

  

3

  

Washington, D.C.

1

  

443

  

2

  

3

  

Chicago

3

  

795

  

3

  

3

  

San Antonio

3

  

874

  

4

  

3

  

Philadelphia

2

  

729

  

3

  

3

  

Boston

2

  

532

  

2

  

2

  
                 

Location

                

Suburban

33

  

8,360

  

33

  

36

  

Airport

20

  

6,205

  

26

  

26

  

Urban

20

  

6,362

  

25

  

25

  

Resort

12

  

4,078

  

16

  

13

  
                 

Segment

                

Upper-upscale

68

  

18,700

  

75

  

81

  

Full service

17

  

6,305

  

25

  

19

  


(a)     

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

(b)     

We acquired the Renaissance Esmeralda Resort & Spa and the Renaissance Vinoy Resort & Golf Club in December 2007. They did not make a significant contribution to our 2007 Hotel EBITDA.

19

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

Detailed Operating Statistics by Brand

(85 consolidated hotels)

 

Occupancy (%)
 

Three Months Ended March 31,
 

2008

  

2007

  

%Variance

Embassy Suites Hotels

73.0

  

72.5

  

0.7

  

Holiday Inn

70.0

  

63.4

  

10.4

  

Sheraton and Westin

66.1

  

68.8

  

(3.8

)

Doubletree

75.6

  

71.7

  

5.5

  

Renaissance and Hotel 480(a)

70.7

  

73.5

  

(3.9

)

Hilton

52.3

  

38.9

  

34.5

  
             

Total hotels

70.9

  

69.0

  

2.8

  
             
             
             
 

ADR ($)
 

Three Months Ended March 31,
 

2008

  

2007

  

%Variance

Embassy Suites Hotels

152.21

  

148.43

  

2.5

  

Holiday Inn

117.89

  

112.82

  

4.5

  

Sheraton and Westin

130.15

  

131.69

  

(1.2

)

Doubletree

153.99

  

149.54

  

3.0

  

Renaissance and Hotel 480(a)

210.97

  

208.20

  

1.3

  

Hilton

106.35

  

106.22

  

0.1

  
             

Total hotels

143.21

  

140.76

  

1.7

  
             
             
             
 

RevPAR ($)
 

Three Months Ended March 31,
 

2008

  

2007

  

%Variance

Embassy Suites Hotels

111.09

  

107.55

  

3.3

  

Holiday Inn

82.50

  

71.54

  

15.3

  

Sheraton and Westin

86.06

  

90.56

  

(5.0

)

Doubletree

116.42

  

107.18

  

8.6

  

Renaissance and Hotel 480(a)

149.09

  

153.05

  

(2.6

)

Hilton

55.62

  

41.30

  

34.7

  
             

Total hotels

101.55

  

97.06

  

4.6

  

(a)     Decreases in occupancy and RevPAR are principally related to renovation-related disruption at Hotel 480 Union Square. We have included historical room statistics for the two Renaissance hotels acquired in December 2007, prior to our ownership of these hotels, for comparison purposes.

20

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

Detailed Operating Statistics for FelCor’s Top Markets

(85 consolidated hotels)

 

Occupancy (%)
 

Three Months Ended March 31,
 

2008

  

2007

  

%Variance

South Florida

87.1

  

86.8

  

0.3

  

Atlanta

76.3

  

74.5

  

2.4

  

Los Angeles area

73.6

  

77.5

  

(5.1

)

San Francisco area

71.0

  

66.8

  

6.3

  

Orlando

81.9

  

79.2

  

3.5

  

Dallas

69.9

  

70.4

  

(0.8

)

Minneapolis

67.0

  

69.1

  

(3.1

)

Phoenix

75.9

  

81.9

  

(7.4

)

Northern New Jersey

66.4

  

59.8

  

10.9

  

San Diego

80.5

  

78.5

  

2.6

  

Washington, D.C.

43.9

  

62.7

  

(29.9

)

Chicago

65.0

  

60.0

  

8.4

  

San Antonio

77.1

  

71.9

  

7.3

  

Philadelphia

62.5

  

55.8

  

11.9

  

Boston

69.0

  

51.9

  

32.9

  
 

ADR ($)
 

Three Months Ended March 31,
 

2008

  

2007

  

%Variance

South Florida

199.14

  

198.07

  

0.5

  

Atlanta

127.06

  

125.34

  

1.4

  

Los Angeles area

156.95

  

150.64

  

4.2

  

San Francisco area

136.24

  

131.09

  

3.9

  

Orlando

124.53

  

122.71

  

1.5

  

Dallas

130.17

  

130.64

  

(0.4

)

Minneapolis

145.02

  

139.03

  

4.3

  

Phoenix

186.19

  

180.43

  

3.2

  

Northern New Jersey

161.98

  

152.06

  

6.5

  

San Diego

152.80

  

152.53

  

0.2

  

Washington, D.C.

162.65

  

172.96

  

(6.0

)

Chicago

120.74

  

122.42

  

(1.4

)

San Antonio

113.77

  

109.50

  

3.9

  

Philadelphia

136.34

  

122.85

  

11.0

  

Boston

136.39

  

140.39

  

(2.8

)
 

RevPAR ($)
 

Three Months Ended March 31,
 

2008

  

2007

  

%Variance

South Florida

173.37

  

171.95

  

0.8

  

Atlanta

96.90

  

93.32

  

3.8

  

Los Angeles area

115.45

  

116.81

  

(1.2

)

San Francisco area

96.69

  

87.51

  

10.5

  

Orlando

102.05

  

97.17

  

5.0

  

Dallas

90.96

  

92.01

  

(1.1

)

Minneapolis

97.14

  

96.13

  

1.1

  

Phoenix

141.34

  

147.85

  

(4.4

)

Northern New Jersey

107.47

  

90.95

  

18.2

  

San Diego

123.01

  

119.68

  

2.8

  

Washington, D.C.

71.44

  

108.36

  

(34.1

)

Chicago

78.53

  

73.46

  

6.9

  

San Antonio

87.75

  

78.71

  

11.5

  

Philadelphia

85.16

  

68.60

  

24.1

  

Boston

94.10

  

72.87

  

29.1

  

21

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

Pro Rata Share of Rooms Owned

 

Hotels

  

Room Count at

March 31, 2008

Consolidated hotels in continuing operations

85

      

25,005

  

Unconsolidated hotel operations

4

      

647

  

Total hotels

89

      

25,652

  
             

50% joint ventures

17

      

(2,032

)

60% joint ventures

1

      

(214

)

75% joint ventures

1

      

(55

)

90% joint ventures

3

      

(68

)

97% joint venture

1

      

(10

)

Total owned rooms by joint venture partners

        

(2,379

)

Pro rata share of rooms owned

        

23,273

  

Capital Expenditures (dollars in thousands)

 

Three Months Ended March 31,
 

2008

  

2007

Improvements and additions to consolidated hotels

$

42,673

    

$

66,903

  

Joint venture partners’ prorata share of additions to hotels

  

(1,257

)

    

(1,238

)

Prorata share of unconsolidated additions to hotels

  

6,971

      

3,693

  

Total additions to hotels(1)

$

48,387

    

$

69,358

  

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

22

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

Hotel Portfolio Listing

   

State

    

Rooms

    

% Owned

(a)

  

Brand

  

Consolidated Hotels

          

Birmingham(b)

AL

242

  

Embassy Suites Hotel

Phoenix – Biltmore(b)

AZ

232

  

Embassy Suites Hotel

Phoenix Crescent Hotel(b)

AZ

342

  

Sheraton

Phoenix Tempe(b)

AZ

224

  

Embassy Suites Hotel

Dana Point – Doheny Beach

CA

195

  

Doubletree Guest Suites

Indian Wells – Esmeralda Resort & Spa(b)

CA

560

  

Renaissance Resort

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

CA

222

  

Embassy Suites Hotel

Los Angeles – El Segundo – International Airport –South

CA

349

97%

Embassy Suites Hotel

Milpitas – Silicon Valley(b)

CA

266

  

Embassy Suites Hotel

Napa Valley(b)

CA

205

  

Embassy Suites Hotel

Oxnard – Mandalay Beach Resort & Conference Center

CA

248

  

Embassy Suites Hotel

San Diego – On the Bay

CA

600

  

Holiday Inn

San Francisco – Burlingame Airport

CA

340

  

Embassy Suites Hotel

San Francisco – South San Francisco Airport(b)

CA

312

  

Embassy Suites Hotel

San Francisco – Fisherman’s Wharf

CA

585

  

Holiday Inn

San Francisco – Hotel 480 Union Square

CA

403

  

Independent(c)

San Rafael – Marin County/Conference Center(b)

CA

235

50%

Embassy Suites Hotel

Santa Barbara – Goleta

CA

160

  

Holiday Inn

Santa Monica – Beach at the Pier

CA

132

  

Holiday Inn

Wilmington(b)

DE

244

90%

Doubletree

Boca Raton(b)

FL

263

  

Embassy Suites Hotel

Cocoa Beach – Oceanfront

FL

500

  

Holiday Inn

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

FL

244

  

Embassy Suites Hotel

Ft. Lauderdale – 17th Street(b)

FL

358

  

Embassy Suites Hotel

Ft. Lauderdale – Cypress Creek(b)

FL

253

  

Sheraton Suites

Jacksonville – Baymeadows(b)

FL

277

  

Embassy Suites Hotel

Miami – International Airport(b)

FL

318

  

Embassy Suites Hotel

Orlando – International Airport(b)

FL

288

  

Holiday Inn

Orlando – International Drive – Resort

FL

652

  

Holiday Inn

Orlando – International Drive South/Convention Center(b)

FL

244

  

Embassy Suites Hotel

Orlando– (North)

FL

277

  

Embassy Suites Hotel

Orlando – Walt Disney World Resort

FL

229

  

Doubletree Guest Suites

St. Petersburg – Vinoy Resort & Golf Club(b)

FL

361

  

Renaissance Resort

Tampa– On Tampa Bay(b)

FL

203

  

Doubletree Guest Suites

Atlanta – Airport(b)

GA

232

  

Embassy Suites Hotel

Atlanta – Buckhead(b)

GA

316

  

Embassy Suites Hotel

Atlanta – Galleria(b)

GA

278

  

Sheraton Suites

Atlanta – Gateway – Atlanta Airport

GA

395

  

Sheraton

Atlanta – Perimeter Center(b)

GA

241

50%

Embassy Suites Hotel

Chicago – Lombard/Oak Brook(b)

IL

262

50%

Embassy Suites Hotel

Chicago – Northshore/Deerfield (Northbrook) (b)

IL

237

  

Embassy Suites Hotel

Chicago – O’Hare Airport(b)

IL

296

  

Sheraton Suites

Indianapolis – North(b)

IN

221

75%

Embassy Suites Hotel

Kansas City – Overland Park(b)

KS

199

50%

Embassy Suites Hotel

Lexington – Lexington Green(b)

KY

174

  

Hilton Suites

Baton Rouge(b)

LA

223

  

Embassy Suites Hotel

23

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

Hotel Portfolio Listing

   

State

    

Rooms

    

% Owned(a)

    

Brand

  

New Orleans(b)

LA

370

  

Embassy Suites Hotel

New Orleans – French Quarter

LA

374

  

Holiday Inn

Boston – Beacon Hill

MA

303

  

Holiday Inn

Boston – Marlborough(b)

MA

229

  

Embassy Suites Hotel

Baltimore – BWI Airport(b)

MD

251

90%

Embassy Suites Hotel

Bloomington(b)

MN

218

  

Embassy Suites Hotel

Minneapolis – Airport(b)

MN

310

  

Embassy Suites Hotel

St. Paul – Downtown(b)

MN

208

  

Embassy Suites Hotel

Kansas City – Plaza

MO

266

50%

Embassy Suites Hotel

Charlotte(b)

NC

274

50%

Embassy Suites Hotel

Charlotte SouthPark

NC

208

  

Doubletree Guest Suites

Raleigh(b)

NC

203

  

Doubletree Guest Suites

Raleigh – Crabtree(b)

NC

225

50%

Embassy Suites Hotel

Parsippany(b)

NJ

274

50%

Embassy Suites Hotel

Piscataway – Somerset(b)

NJ

221

  

Embassy Suites Hotel

Secaucus – Meadowlands(b)

NJ

261

50%

Embassy Suites Hotel

Philadelphia – Historic District

PA

364

  

Holiday Inn

Philadelphia – Society Hill(b)

PA

365

  

Sheraton

Pittsburgh – At University Center (Oakland)(b)

PA

251

  

Holiday Inn

Charleston – Mills House (Historic Downtown)(b)

SC

214

  

Holiday Inn

Myrtle Beach – At Kingston Plantation

SC

255

  

Embassy Suites Hotel

Myrtle Beach Resort

SC

385

  

Hilton

Nashville – Airport/Opryland Area

TN

296

  

Embassy Suites Hotel

Nashville – Opryland/Airport (Briley Parkway)

TN

383

  

Holiday Inn

Austin(b)

TX

189

90%

Doubletree Guest Suites

Austin – Central(b)

TX

260

50%

Embassy Suites Hotel

Corpus Christi(b)

TX

150

  

Embassy Suites Hotel

Dallas – DFW International Airport-South(b)

TX

305

  

Embassy Suites Hotel

Dallas – Love Field(b)

TX

248

  

Embassy Suites Hotel

Dallas – Market Center

TX

244

  

Embassy Suites Hotel

Dallas – Park Central

TX

536

60%

Westin

Houston – Medical Center

TX

287

  

Holiday Inn & Suites

San Antonio – International Airport(b)

TX

261

50%

Embassy Suites Hotel

San Antonio – International Airport(b)

TX

397

  

Holiday Inn

San Antonio – N.W. I-10(b)

TX

216

50%

Embassy Suites Hotel

Burlington Hotel & Conference Center(b)

VT

309

  

Sheraton

Vienna – At Tysons Corner(b)

VA

443

50%

Sheraton
         

Canada

        

Toronto – Airport

Ontario

445

  

Holiday Inn

Toronto – Yorkdale

Ontario

370

  

Holiday Inn
         

24

FelCor Lodging Trust Incorporated
Supplemental Information
Three Months Ended March 31, 2008

Hotel Portfolio Listing

 

State

Rooms

% Owned(a)

  

Brand

  

Unconsolidated Operations

          

Hays(b)

KS

191

50%

Holiday Inn

Salina(b)

KS

192

50%

Holiday Inn

Salina – I-70(b)

KS

93

50%

Holiday Inn Express & Suites

New Orleans – Chateau LeMoyne (In French

Quarter/Historic Area)(b)

LA

171

50%

Holiday Inn

(a)     

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

(b)     

This hotel was encumbered by mortgage debt or capital lease obligation at March 31, 2008.

(c)     

Upon the completion of its renovation, by early 2009, this hotel will be rebranded as a Marriott.

25