Exhibit 99.2
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Date of Issuance February 9, 2005
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, 2004
TABLE OF CONTENTS
| | | | | |
| | | PAGE | |
CORPORATE DATA | | | | |
| About the Company | | | 3 | |
| Board of Directors and Executive Officers | | | 4 | |
| Equity Research Coverage | | | 5 | |
FINANCIAL HIGHLIGHTS | | | | |
| Supplemental Financial Data | | | 6 | |
| Consolidated Statements of Operations | | | 7 | |
| Discontinued Operations | | | 8 | |
| Non-GAAP Financial Measures | | | 8 | |
| Reconciliation of Net Loss to FFO and Adjusted FFO | | | 9 | |
| Reconciliation of Net Loss to EBITDA, Adjusted EBITDA and Same-Store EBITDA | | | 10 | |
| Hotel Operating Profit and Hotel Operating Margin | | | 11 | |
| Hotel Operating Expense Composition | | | 11 | |
| Debt Summary | | | 15 | |
PORTFOLIO DATA | | | | |
| Portfolio Distribution | | | 17 | |
| Detailed Operating Statistics by Brand | | | 18 | |
| Detailed Operating Statistics for FelCor’s Top Markets | | | 19 | |
| Other Performance Statistics | | | 20 | |
| Hotel Portfolio Information | | | 21 | |
| Hotel Portfolio Listing | | | 24 | |
This supplement contains registered trademarks owned or licensed by companies other than us, which may include, but are not limited to, Candlewood Suites®, Courtyard by Marriott®, Crowne Plaza®, Disneyland®, Doubletree®, Doubletree Guest Suites®, Embassy Suites Hotels®, Fairfield Inn®, Four Points® by Sheraton, Hampton Inn®, Harvey Hotel®, Harvey Suites®, Hilton®, Hilton Grand Vacations Company®, Hilton Suites®, Holiday Inn®, Holiday Inn & Suites®, Holiday Inn Express®, Holiday Inn Express & Suites®, Holiday Inn Select®, Homewood Suites® by Hilton, InterContinental®, Priority Club®, Sheraton®, Sheraton Suites®, St. Regis®, Staybridge Suites®, The Luxury Collection®, W®, Walt Disney World®, Worlds of Fun®, Westin®, and Wyndham®.
With the exception of historical information, the matters discussed in this supplement include “forward looking statements” within the meaning of the federal securities laws. Forward looking statements are not guarantees of future performance. Numerous risks and uncertainties, and the occurrence of future events, may cause actual results to differ materially from those currently anticipated. General economic conditions, including the anticipated continuation of the current economic recovery, the impact of U.S. military involvement in the Middle East and elsewhere, future acts of terrorism, the impact on the travel industry of increased security precautions, the availability of capital, the ability to effect sales of non-strategic hotels at anticipated prices, and numerous other factors may affect future results, performance and achievements. Certain of these risks and uncertainties are described in greater detail in our filings with the Securities and Exchange Commission. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that actual results will not differ materially.
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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
CORPORATE DATA
About the Company
In 1994, FelCor Lodging Trust Incorporated went public as a real estate investment trust (REIT) with six hotels and a market capitalization of $120 million. At December 31, 2004, FelCor was the nation’s second largest lodging REIT and the owner of the largest number of full service, all-suite hotels in the U.S. FelCor’s portfolio was comprised of 144 consolidated hotels, including 143 hotels in continuing operations and one hotel that was “held for sale” and included in discontinued operations. For the 143 hotels included in continuing operations, the operating revenues and expenses are reflected in FelCor’s consolidated statements of operations because of our ownership interests of the operating lessees of these hotels. FelCor also owned 50% joint venture interests in five hotels whose operations were accounted for using the equity method. FelCor owned 69 full service, all-suite hotels, and was the largest owner of Embassy SuitesHotels and independently owned Doubletree Guest Suiteshotels. FelCor’s portfolio also included 65 hotels in the upscale and full service segments. The Company’s hotels were located in 31 states and Canada. FelCor had a market capitalization of approximately $3.2 billion at December 31, 2004.
Strategy
FelCor’s hotels are generally managed by the brand owners such as Hilton Hotels Corporation, InterContinental Hotels Group, and Starwood Hotels & Resorts. FelCor is competitively positioned to deliver superior long-term stockholder returns through its strong management team, diversified upscale and full-service hotels, and strategic brand manager alliances.
Stock and Debt Ratings
| | | | | |
| | | Senior Unsecured Debt | | Preferred Stock |
Moody’s
Standard & Poors | | B1
B- | | B3
CCC |
Stock Exchange Listing
Common Stock (NYSE: FCH)
$1.95 Series A Cumulative Convertible Preferred Stock (NYSE: FCHPRA)
9% Series B Cumulative Redeemable Preferred Stock (NYSE: FCHPRB)
Fiscal Year End
December 31
Number of employees
70
Corporate Headquarters
545 E. John Carpenter Frwy., Suite 1300
Irving, TX 75062
(972) 444-4900
| | | |
| Investor Relations Contact | | Media Contact |
| Stephen A. Schafer | | Monica L. Hildebrand |
| Vice President of Investor Relations | | Vice President of Communications |
| (972) 444-4912 | | (972) 444-4917 |
| sschafer@felcor.com | | mhildebrand@felcor.com |
Information Request
information@felcor.com
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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Board of Directors
Donald J. McNamara,Chairman of the Board
Principal, The Hampstead Group
Thomas J. Corcoran, Jr.
President and Chief Executive Officer, FelCor Lodging Trust Incorporated
Melinda J. Bush, C.H.A.
Chairman and Chief Executive Officer, HRW Holdings, LLC
Richard S. Ellwood
President, R.S. Ellwood and Co., Inc.
Richard O. Jacobson
Chairman of the Board, Jacobson Warehouse Company, Inc.
David C. Kloeppel
Executive Vice President and Chief Financial Officer, Gaylord Entertainment Company
Charles A. Ledsinger, Jr.
President and Chief Executive Officer, Choice Hotels International
Robert H. Lutz, Jr.
President, RL Investments, Inc.
Robert A. Mathewson
President, RGC, Inc.
Michael D. Rose
Chairman, Gaylord Entertainment Company
Executive Officers
Thomas J. Corcoran, Jr.,President and Chief Executive Officer
Richard A. Smith,Executive Vice President and Chief Financial Officer
Michael A. DeNicola,Executive Vice President and Chief Investment Officer
Lawrence D. Robinson,Executive Vice President, General Counsel and Secretary
Jack Eslick,Senior Vice President, Director of Asset Management
Lester C. Johnson,Senior Vice President, Controller and Principal Accounting Officer
June C. McCutchen,Senior Vice President, Director of Design and Construction
Larry J. Mundy,Senior Vice President,Director of Business Initiatives and Assistant General Counsel
Andrew J. Welch,Senior Vice President and Treasurer
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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Equity Research Coverage
| | | | | |
| Firm | | Analyst | | Telephone |
| Calyon Securities (USA) | | Bryan A. Maher | | (212) 408-5649 |
| | | | | |
| Deutsche Bank Securities | | Marc J. Falcone | | (212) 469-7417 |
| | | | | |
| Friedman, Billings, Ramsey, & Co. | | David Loeb | | (703) 469-1289 |
| | | | | |
| Green Street Advisors | | John V. Arabia | | (949) 640-8780 |
| | | | | |
| JPMorgan Securities | | Harry C. Curtis | | (212) 622-6610 |
| | | | | |
| Legg Mason | | Rod F. Petrik | | (410) 454-4131 |
| | | | | |
| Lehman Brothers | | Felicia Kantor Hendrix | | (212) 526-5562 |
| | | | | |
| Merrill Lynch | | David W. Anders | | (212) 449-2739 |
| | | | | |
| Prudential Equity Group | | James W. Sullivan | | (212) 778-2515 |
| | | | | |
| Smith Barney Citigroup | | Michael J. Rietbrock | | (212) 816-7777 |
| | | | | |
| UBS | | William B. Truelove | | (212) 713-3098 |
| | | | | |
| Wachovia Securities | | Jeffrey J. Donnelly | | (617) 603-4262 |
5
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
FINANCIAL HIGHLIGHTS
Supplemental Financial Data
(in thousands, except per share information, ratios and percentages)
| | | | | | | | | |
| | | December 31, | | December 31, |
| | | 2004 | | 2003 |
Total Enterprise Value | | | | | | | | |
| Common shares outstanding | | | 59,817 | | | | 59,120 | |
| Units outstanding | | | 2,788 | | | | 3,034 | |
| | | | | | | | | |
| Combined shares and units outstanding | | | 62,605 | | | | 62,154 | |
| Common stock price at end of period | | $ | 14.65 | | | $ | 11.08 | |
| | | | | | | | | |
| Common equity capitalization | | $ | 917,163 | | | $ | 688,666 | |
| Series A preferred stock | | | 309,362 | | | | 149,512 | |
| Series B preferred stock | | | 169,395 | | | | 169,395 | |
| Consolidated debt | | | 1,767,122 | | | | 2,037,355 | |
| Minority interest of consolidated debt | | | (5,618 | ) | | | (25,153 | ) |
Pro rata share of unconsolidated debt(a) | | | 109,146 | | | | 106,899 | |
| Cash and cash equivalents | | | (119,310 | ) | | | (231,885 | ) |
| | | | | | | | | |
| Total enterprise value (TEV) | | $ | 3,147,260 | | | $ | 2,894,789 | |
| | | | | | | | | |
TEV per room(b) | | $ | 84 | | | $ | 69 | |
| Pro rata rooms owned | | | 37,338 | | | | 42,107 | |
Dividends Per Share | | | | | | | | |
| Dividends declared (year ended): | | | | | | | | |
| Common | | $ | — | | | $ | — | |
| Series A preferred stock | | | 1.95 | | | | 1.95 | |
| Series B preferred stock (depository shares) | | | 2.25 | | | | 2.25 | |
Selected Balance Sheet Data | | | | | | | | |
Investment in hotels, at cost(c) | | $ | 4,167,933 | | | $ | 4,234,732 | |
| Total cash and cash equivalents | | | 119,310 | | | | 231,885 | |
| Total assets | | | 3,317,658 | | | | 3,590,893 | |
| Total debt | | | 1,767,122 | | | | 2,037,355 | |
| Total stockholders’ equity | | | 1,330,323 | | | | 1,296,272 | |
| Total stockholders equity less preferred equity | | | 851,566 | | | | 977,365 | |
| Book value per common share outstanding | | | 14.24 | | | | 16.53 | |
| (a) | Excludes our pro rata share of debt related to the construction of a residential condominium project in Myrtle Beach, South Carolina, at December 31, 2003. This debt was retired in September 2004. |
| |
| (b) | Based on pro rata ownership. |
| (c) | Investment in hotels, at cost, is defined as consolidated hotel book value (after impairment charges but before accumulated depreciation) plus our pro rata share of unconsolidated investment in hotels before accumulated depreciation. |
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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Consolidated Statements of Operations
(in thousands, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | December 31, | | | December 31, | |
| | | 2004 | | | 2003 | | | 2004 | | | 2003 | |
| Revenues: | | | | | | | | | | | | | | | | |
| Hotel operating revenue: | | | | | | | | | | | | | | | | |
| Room | | $ | 220,964 | | | $ | 209,291 | | | $ | 945,938 | | | $ | 883,834 | |
| Food and beverage | | | 48,888 | | | | 46,535 | | | | 180,398 | | | | 167,883 | |
| Other operating departments | | | 14,638 | | | | 13,949 | | | | 62,527 | | | | 59,011 | |
| Retail space rental and other revenue | | | 131 | | | | 184 | | | | 2,721 | | | | 1,022 | |
| | | | | | | | | | | | | |
| Total revenues | | | 284,621 | | | | 269,959 | | | | 1,191,584 | | | | 1,111,750 | |
| | | | | | | | | | | | | |
| Expenses: | | | | | | | | | | | | | | | | |
| Hotel departmental expenses: | | | | | | | | | | | | | | | | |
| Room | | | 62,537 | | | | 59,454 | | | | 257,016 | | | | 234,242 | |
| Food and beverage | | | 37,624 | | | | 36,675 | | | | 143,079 | | | | 133,412 | |
| Other operating departments | | | 7,842 | | | | 6,608 | | | | 31,887 | | | | 27,024 | |
| Other property related costs | | | 87,638 | | | | 82,463 | | | | 349,274 | | | | 324,202 | |
| Management and franchise fees | | | 14,090 | | | | 14,224 | | | | 61,579 | | | | 58,711 | |
| Taxes, insurance and lease expense | | | 24,898 | | | | 26,870 | | | | 114,648 | | | | 117,662 | |
| Corporate expenses | | | 5,525 | | | | 3,807 | | | | 17,094 | | | | 14,266 | |
| Depreciation | | | 30,410 | | | | 28,959 | | | | 118,855 | | | | 123,968 | |
| | | | | | | | | | | | | |
| Total operating expenses | | | 270,564 | | | | 259,060 | | | | 1,093,432 | | | | 1,033,487 | |
| | | | | | | | | | | | | |
| Operating income | | | 14,057 | | | | 10,899 | | | | 98,152 | | | | 78,263 | |
| Interest expense, net | | | (33,413 | ) | | | (42,025 | ) | | | (149,623 | ) | | | (165,175 | ) |
| Impairment loss | | | (5,262 | ) | | | (54,205 | ) | | | (33,760 | ) | | | (107,409 | ) |
| Hurricane loss | | | — | | | | — | | | | (2,125 | ) | | | — | |
| Charge-off of deferred financing costs | | | (866 | ) | | | — | | | | (6,960 | ) | | | (2,834 | ) |
| Loss on early extinguishment of debt | | | (4,983 | ) | | | — | | | | (44,216 | ) | | | — | |
| Gain on swap termination | | | — | | | | — | | | | 1,005 | | | | — | |
| | | | | | | | | | | | | | |
| Loss before equity in income from unconsolidated entities, minority interests and gain on sale of assets | | | (30,467 | ) | | | (85,331 | ) | | | (137,527 | ) | | | (197,155 | ) |
| Equity in income from unconsolidated entities | | | 1,429 | | | | 118 | | | | 17,121 | | | | 2,370 | |
| Gain (loss) on sale of assets | | | 73 | | | | 178 | | | | 1,167 | | | | 284 | |
| Minority interests | | | 2,098 | | | | 6,769 | | | | 7,928 | | | | 13,912 | |
| | | | | | | | | | | | | |
| Loss from continuing operations | | | (26,867 | ) | | | (78,266 | ) | | | (111,311 | ) | | | (180,589 | ) |
| Discontinued operations | | | 16,097 | | | | (64,667 | ) | | | 11,184 | | | | (129,555 | ) |
| | | | | | | | | | | | | |
| Net loss | | | (10,770 | ) | | | (142,933 | ) | | | (100,127 | ) | | | (310,144 | ) |
| Preferred dividends | | | (10,091 | ) | | | (6,727 | ) | | | (35,130 | ) | | | (26,908 | ) |
| | | | | | | | | | | | | |
| Net loss applicable to common stockholders | | $ | (20,861 | ) | | $ | (149,660 | ) | | $ | (135,257 | ) | | $ | (337,052 | ) |
| | | | | | | | | | | | | |
| Basic and diluted per common share data: | | | | | | | | | | | | | | | | |
| Net loss from continuing operations | | $ | (0.62 | ) | | $ | (1.45 | ) | | $ | (2.48 | ) | | $ | (3.54 | ) |
| | | | | | | | | | | | | |
| Net loss | | $ | (0.35 | ) | | $ | (2.55 | ) | | $ | (2.29 | ) | | $ | (5.75 | ) |
| | | | | | | | | | | | | |
| Weighted average common shares outstanding | | | 59,192 | | | | 58,801 | | | | 59,045 | | | | 58,657 | |
| | | | | | | | | | | | | |
7
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Discontinued Operations
(in thousands)
Included in discontinued operations are the results of operations of the 18 hotels disposed of in 2004, one hotel designated as held for sale at December 31, 2004, and 16 hotels sold in 2003. Condensed financial information for the hotels included in discontinued operations is as follows:
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | December 31, | | | December 31, | |
| | | 2004 | | | 2003 | | | 2004 | | | 2003 | |
| Hotel operating revenue | | $ | 5,677 | | | $ | 26,617 | | | $ | 69,298 | | | $ | 146,317 | |
| Hotel operating expenses | | | 6,135 | | | | 27,096 | | | | 67,566 | | | | 147,798 | |
| | | | | | | | | | | | | |
| Operating income | | | (458 | ) | | | (479 | ) | | | 1,732 | | | | (1,481 | ) |
| Direct interest costs, net | | | — | | | | — | | | | 12 | | | | (636 | ) |
| Gain on the early extinguishment of debt | | | — | | | | — | | | | — | | | | 1,611 | |
| Impairment loss | | | — | | | | (70,778 | ) | | | (4,529 | ) | | | (138,100 | ) |
| Lease termination expense from asset disposition | | | — | | | | — | | | | (4,900 | ) | | | — | |
| Gain (loss) on sale of assets | | | 17,306 | | | | 3,258 | | | | 19,422 | | | | 2,376 | |
| Minority interest in FelCor LP | | | (751 | ) | | | 3,332 | | | | (553 | ) | | | 6,675 | |
| | | | | | | | | | | | | |
Loss from discontinued operations | | | 16,097 | | | | (64,667 | ) | | | 11,184 | | | | (129,555 | ) |
| Depreciation | | | — | | | | 2,153 | | | | 3,797 | | | | 16,258 | |
| Minority interest | | | 751 | | | | (3,332 | ) | | | 553 | | | | (6,675 | ) |
| Interest expense | | | — | | | | — | | | | — | | | | 665 | |
| | | | | | | | | | | | | |
EBITDA from discontinued operations | | | 16,848 | | | | (65,846 | ) | | | 15,534 | | | | (119,307 | ) |
| Loss (gain) on sale of assets | | | (17,306 | ) | | | (3,258 | ) | | | (19,422 | ) | | | (2,376 | ) |
| Impairment loss | | | — | | | | 70,778 | | | | 4,529 | | | | 138,100 | |
| Loss on early extinguishment of debt | | | — | | | | — | | | | | | | | (1,611 | ) |
| Lease termination expense from asset disposition | | | — | | | | — | | | | 4,900 | | | | — | |
| | | | | | | | | | | | | |
Adjusted EBITDA from discontinued operations | | $ | (458 | ) | | $ | 1,674 | | | $ | 5,541 | | | $ | 14,806 | |
| | | | | | | | | | | | | |
Non-GAAP Financial Measures
We refer in this Supplemental Information to certain “non-GAAP financial measures.” These measures, including FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, hotel operating profit and hotel operating margin are measures of our financial performance that are not calculated and presented in accordance with generally accepted accounting principles (“GAAP”). The following tables set forth the adjustments made and reconcile each of these non-GAAP measures to the most comparable GAAP financial measure. Immediately following the reconciliations, we include a discussion of why we believe these measures are useful supplemental measures of our performance and of the limitations upon such measures.
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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Non-GAAP Financial Measures
Reconciliation of Net Loss to FFO and Adjusted FFO
(in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, | |
| | | 2004 | | | 2003 | |
| | | | | | | | | | | Per Share | | | | | | | | | | | Per Share | |
| | | Dollars | | | Shares | | | Amount | | | Dollars | | | Shares | | | Amount | |
Net loss | | $ | (10,770 | ) | | | | | | | | | | $ | (142,933 | ) | | | | | | | | |
| Preferred dividends | | | (10,091 | ) | | | | | | | | | | | (6,727 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Net loss applicable to common stockholders | | | (20,861 | ) | | | 59,192 | | | $ | (0.35 | ) | | | (149,660 | ) | | | 58,801 | | | $ | (2.55 | ) |
| Depreciation from continuing operations. | | | 30,410 | | | | — | | | | 0.51 | | | | 28,959 | | | | — | | | | 0.49 | |
| Depreciation from unconsolidated entities and discontinued operations. | | | 2,659 | | | | — | | | | 0.04 | | | | 4,231 | | | | — | | | | 0.07 | |
| Loss (gain) on sale of assets | | | (17,306 | ) | | | — | | | | (0.29 | ) | | | (3,444 | ) | | | — | | | | (0.06 | ) |
| Minority interest in FelCor LP | | | (974 | ) | | | 2,789 | | | | (0.01 | ) | | | (7,712 | ) | | | 3,050 | | | | (0.01 | ) |
| | | | | | | | | | | | | | | | | | | |
FFO | | | (6,072 | ) | | | 61,981 | | | | (0.10 | ) | | | (127,626 | ) | | | 61,851 | | | | (2.06 | ) |
| Charge off of deferred debt costs | | | 866 | | | | — | | | | 0.01 | | | | — | | | | — | | | | — | |
| Loss (gain) on early extinguishment of debt | | | 4,983 | | | | — | | | | 0.08 | | | | — | | | | — | | | | — | |
| Impairment | | | 5,262 | | | | — | | | | 0.08 | | | | 124,983 | | | | — | | | | 2.02 | |
| Minority interest share of impairment | | | — | | | | — | | | | — | | | | (1,770 | ) | | | — | | | | (0.03 | ) |
| Dilutive effect of unvested stock grants | | | — | | | | 438 | | | | 0.01 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | |
Adjusted FFO | | $ | 5,039 | | | | 62,419 | | | $ | 0.08 | | | $ | (4,413 | ) | | | 61,851 | | | $ | (0.07 | ) |
| | | | | | | | | | | | | | | | | | | |
| |
| | | Year Ended December 31, | |
| | | 2004 | | | 2003 | |
| | | | | | | | | | | Per Share | | | | | | | | | | | Per Share | |
| | | Dollars | | | Shares | | | Amount | | | Dollars | | | Shares | | | Amount | |
Net loss | | $ | (100,127 | ) | | | | | | | | | | $ | (310,144 | ) | | | | | | | | |
| Preferred dividends | | | (35,130 | ) | | | | | | | | | | | (26,908 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Net loss applicable to common stockholders | | | (135,257 | ) | | | 59,045 | | | $ | (2.29 | ) | | | (337,052 | ) | | | 58,657 | | | $ | (5.75 | ) |
| Depreciation from continuing operations. | | | 118,855 | | | | — | | | | 2.01 | | | | 123,968 | | | | — | | | | 2.11 | |
| Depreciation from unconsolidated entities and discontinued operations. | | | 11,897 | | | | — | | | | 0.20 | | | | 26,067 | | | | — | | | | 0.44 | |
| Loss (gain) on sale of assets | | | (19,422 | ) | | | — | | | | (0.33 | ) | | | (2,668 | ) | | | — | | | | (0.05 | ) |
| Minority interest in FelCor LP | | | (6,681 | ) | | | 2,939 | | | | (0.08 | ) | | | (17,777 | ) | | | 3,188 | | | | (0.10 | ) |
| | | | | | | | | | | | | | | | | | | |
FFO | | | (30,608 | ) | | | 61,984 | | | | (0.49 | ) | | | (207,462 | ) | | | 61,845 | | | | (3.35 | ) |
| Charge off of deferred debt costs | | | 6,960 | | | | — | | | | 0.11 | | | | 2,834 | | | | — | | | | 0.05 | |
| Loss (gain) on early extinguishment of debt | | | 44,216 | | | | — | | | | 0.71 | | | | (1,611 | ) | | | — | | | | (0.03 | ) |
| Gain on swap termination | | | (1,005 | ) | | | — | | | | (0.02 | ) | | | — | | | | — | | | | — | |
| Lease termination expense from asset disposition | | | 4,900 | | | | — | | | | 0.08 | | | | — | | | | — | | | | — | |
| Impairment | | | 38,289 | | | | — | | | | 0.62 | | | | 245,509 | | | | — | | | | 3.97 | |
| Minority interest share of impairment | | | — | | | | — | | | | — | | | | (1,770 | ) | | | — | | | | (0.03 | ) |
| Dilutive effect of unvested stock grants | | | — | | | | 359 | | | | — | | | | — | | | | 303 | | | | — | |
| | | | | | | | | | | | | | | | | | | |
Adjusted FFO | | $ | 62,752 | | | | 62,343 | | | $ | 1.01 | | | $ | 37,500 | | | | 62,148 | | | $ | 0.60 | |
| | | | | | | | | | | | | | | | | | | |
9
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Non-GAAP Financial Measures
Reconciliation of Net Loss to EBITDA, Adjusted EBITDA and Same-Store EBITDA
(in thousands)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Year Ended | |
| | | December 31, | | | December 31, | |
| | | 2004 | | | 2003 | | | 2004 | | | 2003 | |
Net loss | | $ | (10,770 | ) | | $ | (142,933 | ) | | $ | (100,127 | ) | | $ | (310,144 | ) |
| Depreciation from continuing operations | | | 30,410 | | | | 28,959 | | | | 118,855 | | | | 123,968 | |
| Depreciation from unconsolidated entities and discontinued operations | | | 2,659 | | | | 4,231 | | | | 11,897 | | | | 26,067 | |
| Minority interest in FelCor Lodging LP | | | (974 | ) | | | (7,712 | ) | | | (6,681 | ) | | | (17,777 | ) |
| Interest expense | | | 34,322 | | | | 42,871 | | | | 152,394 | | | | 167,431 | |
| Interest expense from unconsolidated entities and discontinued operations | | | 1,773 | | | | 1,294 | | | | 5,667 | | | | 7,713 | |
| Amortization expense | | | 1,330 | | | | 565 | | | | 2,945 | | | | 2,210 | |
| | | | | | | | | | | | | |
EBITDA | | | 58,750 | | | | (72,725 | ) | | | 184,950 | | | | (532 | ) |
| Charge off of deferred debt costs | | | 866 | | | | — | | | | 6,960 | | | | 2,834 | |
| Loss (gain) on early extinguishment of debt | | | 4,983 | | | | — | | | | 44,216 | | | | (1,611 | ) |
| Gain on swap termination | | | — | | | | — | | | | (1,005 | ) | | | — | |
| Lease termination expense from asset disposition | | | — | | | | — | | | | 4,900 | | | | — | |
| Loss (gain) on sale of assets | | | (17,306 | ) | | | (3,444 | ) | | | (19,422 | ) | | | (2,668 | ) |
| Impairment | | | 5,262 | | | | 124,983 | | | | 38,289 | | | | 245,509 | |
| Minority interest share of impairment loss | | | — | | | | (1,770 | ) | | | — | | | | (1,770 | ) |
| | | | | | | | | | | | | |
Adjusted EBITDA | | | 52,555 | | | | 47,044 | | | | 258,888 | | | | 241,762 | |
| Adjusted EBITDA from discontinued operations | | | 458 | | | | (1,674 | ) | | | (5,541 | ) | | | (14,806 | ) |
| Gain on development and sale of Margate Condominiums | | | (808 | ) | | | — | | | | (11,664 | ) | | | — | |
| | | | | | | | | | | | | |
Same-Store EBITDA | | $ | 52,205 | | | $ | 45,370 | | | $ | 241,683 | | | $ | 226,956 | |
| | | | | | | | | | | | | |
10
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Non-GAAP Financial Measures
Hotel Operating Profit and Hotel Operating Margin
(dollars in thousands)
| | | | | | | | | | | | | | | | | |
| | | Three Months | | | Year Ended | |
| | | Ended December 31, | | | December 31, | |
| | | 2004 | | | 2003 | | | 2004 | | | 2003 | |
| Total revenue | | $ | 284,621 | | | $ | 269,959 | | | $ | 1,191,584 | | | $ | 1,111,750 | |
| Retail space rental and other revenue | | | (131 | ) | | | (184 | ) | | | (2,721 | ) | | | (1,022 | ) |
| | | | | | | | | | | | | |
| Hotel revenue | | | 284,490 | | | | 269,775 | | | | 1,188,863 | | | | 1,110,728 | |
| Hotel operating expenses | | | (234,629 | ) | | | (226,294 | ) | | | (957,483 | ) | | | (895,253 | ) |
| | | | | | | | | | | | | |
| Hotel operating profit | | $ | 49,861 | | | $ | 43,481 | | | $ | 231,380 | | | $ | 215,475 | |
| | | | | | | | | | | | | |
| Hotel operating margin | | | 17.5 | % | | | 16.1 | % | | | 19.5 | % | | | 19.4 | % |
| | | | | | | | | | | | | |
| |
Hotel Operating Expense Composition
(dollars in thousands) |
| |
| | | Three Months Ended | | | Year Ended | |
| | | December 31, | | | December 31, | |
| | | 2004 | | | 2003 | | | 2004 | | | 2003 | |
| Hotel departmental expenses: | | | | | | | | | | | | | | | | |
| Room | | $ | 62,537 | | | $ | 59,454 | | | $ | 257,016 | | | $ | 234,242 | |
| Food and beverage | | | 37,624 | | | | 36,675 | | | | 143,079 | | | | 133,412 | |
| Other operating departments | | | 7,842 | | | | 6,608 | | | | 31,887 | | | | 27,024 | |
| Other property related costs: | | | | | | | | | | | | | | | | |
| Administrative and general | | | 29,860 | | | | 26,946 | | | | 115,422 | | | | 106,466 | |
| Marketing and advertising | | | 25,042 | | | | 24,508 | | | | 102,897 | | | | 96,400 | |
| Repairs and maintenance | | | 17,111 | | | | 16,953 | | | | 67,827 | | | | 63,696 | |
| Energy | | | 15,625 | | | | 14,056 | | | | 63,128 | | | | 57,640 | |
| Taxes, insurance and lease expense | | | 24,898 | | | | 26,870 | | | | 114,648 | | | | 117,662 | |
| | | | | | | | | | | | | |
| Total other property related costs | | | 220,539 | | | | 212,070 | | | | 895,904 | | | | 836,542 | |
| Management and franchise fees | | | 14,090 | | | | 14,224 | | | | 61,579 | | | | 58,711 | |
| | | | | | | | | | | | | |
| Hotel operating expenses | | $ | 234,629 | | | $ | 226,294 | | | $ | 957,483 | | | $ | 895,253 | |
| | | | | | | | | | | | | |
| Reconciliation of total operating expense to hotel operating expense: | | | | | | | | | | | | | | | | |
| Total operating expenses | | $ | 270,564 | | | $ | 259,060 | | | $ | 1,093,432 | | | $ | 1,033,487 | |
| Corporate expenses | | | (5,525 | ) | | | (3,807 | ) | | | (17,094 | ) | | | (14,266 | ) |
| Depreciation | | | (30,410 | ) | | | (28,959 | ) | | | (118,855 | ) | | | (123,968 | ) |
| | | | | | | | | | | | | |
| Hotel operating expenses | | $ | 234,629 | | | $ | 226,294 | | | $ | 957,483 | | | $ | 895,253 | |
| | | | | | | | | | | | | |
| |
| | | Three Months | | | Year Ended | |
| | | Ended December 31, | | | December 31, | |
| | | 2004 | | | 2003 | | | 2004 | | | 2003 | |
| Supplemental information: | | | | | | | | | | | | | | | | |
| Compensation and benefits expense (included in hotel operating expenses) | | $ | 95,948 | | | $ | 94,507 | | | $ | 392,577 | | | $ | 366,202 | |
| Reconciliation of total operating expenses to hotel operating expenses: | | | | | | | | | | | | | | | | |
| Total operating expenses | | $ | 270,564 | | | $ | 259,060 | | | $ | 1,093,432 | | | $ | 1,033,487 | |
| Corporate expenses | | | (5,525 | ) | | | (3,807 | ) | | | (17,094 | ) | | | (14,266 | ) |
| Depreciation | | | (30,410 | ) | | | (28,959 | ) | | | (118,855 | ) | | | (123,968 | ) |
| | | | | | | | | | | | | |
| Hotel operating expenses | | $ | 234,629 | | | $ | 226,294 | | | $ | 957,483 | | | $ | 895,253 | |
| | | | | | | | | | | | | |
11
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Non-GAAP Financial Measures
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 operating profit and hotel operating margin are not measures of operating performance under GAAP. However, we consider these non-GAAP measures to be supplemental measures of a 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. |
12
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Non-GAAP Financial Measures
| | • | Impairment losses –We exclude the effect of impairment losses 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 represent accelerated 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 disposition 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 on the disposition of non-hotel related assets.
Hotel Operating Profit and Operating Margin
Hotel operating profit and operating 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 operating profit and operating margin is useful to investors by providing greater transparency with respect to two significant measures used by us in our financial and operational decision-making. Additionally, using these measures facilitate comparisons with other hotel REITs and hotel owners. We present hotel operating profit and hotel operating 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 into the ongoing operation performance of our hotels and the effectiveness of management in running our business on a property-level basis. We eliminate depreciation and amortization because, even though depreciation and amortization are property-level expenses, these non-cash expenses, which are based on historical cost accounting for real estate assets, implicitly assumes that the value of real estate assets diminishes predictably over time.
13
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Non-GAAP Financial Measures
Use and Limitations of Non-GAAP Measures.
Our management and Board of Directors use FFO, Adjusted FFO, EBITDA and Adjusted EBITDA to evaluate the performance of our hotels and to facilitate comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital intensive companies. Same Store EBITDA is used to provide investors with supplemental information as to the ongoing operating performance of our hotels without regard to those hotels sold or held for sale at the date of presentation.
The use of these non-GAAP financial measures have certain limitations. FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, hotel operating profit and hotel operating margin, as presented by us, may not be comparable to FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-Store EBITDA, hotel operating profit and hotel operating margin as calculated by other real estate companies. These measures do not reflect certain expenses that we incurred and will incur, such as depreciation, interest and 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 operating profit and hotel operating 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.
14
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Debt Summary
(dollars in thousands)
Debt Outstanding
| | | | | | | | | | | | | |
| | | Encumbered | | Interest Rate At | | Maturity | | Consolidated |
| | | Hotels | | December 31, 2004 | | Date | | Debt |
| Promissory note | | none | | | 4.31 | % | | June 2016 | | $ | 650 | |
| Senior unsecured term notes | | none | | | 7.63 | | | Oct. 2007 | | | 122,426 | |
| Senior unsecured term notes | | none | | | 9.00 | | | June 2011 | | | 298,409 | |
Senior unsecured term notes(a) | | none | | | 7.19 | | | June 2011 | | | 290,000 | |
| | | | | | | | | | | | | |
| Total unsecured debt | | | �� | | 8.02 | | | | | | 711,485 | |
| | | | | | | | | | | | | |
| Mortgage debt | | 15 hotels | | | 5.50 | | | July 2009-2014 | | | 192,363 | |
| Mortgage debt | | 1 hotel | | | 7.23 | | | Sept. 2005 | | | 10,521 | |
Mortgage debt(b) | | 10 hotels | | | 4.63 | | | May 2006 | | | 144,669 | |
| Mortgage debt | | 15 hotels | | | 7.24 | | | Nov. 2007 | | | 127,316 | |
| Mortgage debt | | 1 hotel | | | 4.06 | | | August 2008 | | | 15,500 | |
| Mortgage debt | | 7 hotels | | | 7.32 | | | April 2009 | | | 130,458 | |
| Mortgage debt | | 6 hotels | | | 7.55 | | | June 2009 | | | 67,959 | |
| Mortgage debt | | 8 hotels | | | 8.70 | | | May 2010 | | | 175,504 | |
| Mortgage debt | | 7 hotels | | | 8.73 | | | May 2010 | | | 135,690 | |
| Mortgage debt | | 8 hotels | | | 7.48 | | | April 2011 | | | 49,476 | |
| Other | | 1 hotel | | | 9.17 | | | August 2011 | | | 6,180 | |
| | | | | | | | | | | | | |
| Total secured debt | | 79 hotels | | | 7.00 | | | | | | 1,055,637 | |
| | | | | | | | | | | | | |
| Total | | | | | 7.41 | % | | | | $ | 1,767,122 | |
| | | | | | | | | | | | | |
| (a) | The stated interest rate on this debt is LIBOR (2.6% at December 31, 2004) plus 4.25%. A $100 million notional amount of this debt has been swapped for a fixed rate of 7.80% resulting in a weighted average rate on these notes at December 31, 2004 of 7.19%. |
| |
| (b) | This debt has two, one-year extension options, subject to certain contingencies. |
| | | | | |
| Fixed interest rate debt to total debt | | | 74.9 | % |
| Weighted average maturity of debt | | 5 years |
| Secured debt to total assets | | | 31.8 | % |
At December 31, 2004, future scheduled debt principal payments are as follows (in thousands):
| | | | | | | | | | | | | |
| | | Secured | | | Unsecured | | | | |
| Year | | Debt | | | Debt | | | Total | |
| 2005 | | $ | 32,319 | | | $ | — | | | $ | 32,319 | |
| 2006 | | | 161,043 | (a) | | | — | | | | 161,043 | |
| 2007 | | | 138,798 | | | | 125,000 | | | | 263,798 | |
| 2008 | | | 34,595 | | | | — | | | | 34,595 | |
| 2009 and thereafter | | | 689,246 | | | | 590,650 | | | | 1,279,896 | |
| Premium/(discount) | | | (364 | ) | | | (4,165 | ) | | | (4,529 | ) |
| | | | | | | | | | |
| Total debt | | $ | 1,055,637 | | | $ | 711,485 | | | $ | 1,767,122 | |
| | | | | | | | | | |
| (a) | Included is a $145 million non-recourse mortgage loan maturing in 2006, that has two, one-year extension options, subject to certain contingencies. |
15
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Debt Summary (continued)
At December 31, 2004, we had unconsolidated 50 percent investments in ventures that owned an aggregate of 20 hotels. These ventures had approximately $218 million of non-recourse mortgage debt, all of which is secured by hotel assets. Our pro rata share of this non-recourse debt is $109 million.
Financing transactions in 2004:
In March 2004, we elected to terminate our unsecured line of credit arrangement, which resulted in a 2004 cost savings of approximately $0.4 million.
In April 2004, we completed the sale of 4,600,000 shares of our $1.95 Series A Cumulative Convertible Preferred Stock. The shares were sold at a price of $23.79 per share, which included dividends of $0.51 per share accrued through April 5, 2004, resulting in net proceeds of approximately $105 million.
In May 2004, we issued $175 million of Senior Floating Rate Debt maturing in 2011, at an interest rate of LIBOR plus 4.25% and in July we issued an additional $115 million of Senior Floating Debt under the same terms.
In May 2004, we borrowed $169 million of our secured facility at an average interest rate of 5.01%. In July 2004, we received additional funding of $25 million on this facility.
In June 2004, we redeemed the full $175 million of our senior notes maturing in October 2004, and during 2004, we retired all $600 million of our 91/2% senior notes maturing in 2008.
In August 2004, we completed the sale of 2,300,000 shares of our $1.95 Series A Cumulative Convertible Preferred Stock. The shares were sold at a price of $23.22 per share, which included accrued dividends of $0.28 per share through August 22, 2004, resulting in net proceeds of approximately $52 million.
16
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
PORTFOLIO DATA
Portfolio Distribution at December 31, 2004
(143 consolidated hotels included in continuing operations, same store basis)
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | % of | | % of 2004 Hotel |
| Brand | | Hotels | | Rooms | | Total Rooms | | Operating Profit(b) |
| Embassy Suites | | | 56 | | | | 14,279 | | | | 36 | % | | | 52 | % |
| Holiday Inn-branded | | | 39 | | | | 12,769 | | | | 32 | | | | 21 | |
| Sheraton-branded | | | 10 | | | | 3,269 | | | | 8 | | | | 10 | |
| Doubletree-branded | | | 10 | | | | 2,206 | | | | 6 | | | | 6 | |
| Crowne Plaza | | | 12 | | | | 4,025 | | | | 10 | | | | 5 | |
| Other | | | 16 | | | | 3,432 | | | | 8 | | | | 6 | |
| |
| | | | | | | | | | | % of | | | % of 2004 Hotel | |
| Top Markets | | Hotels | | | Rooms | | | Total Rooms | | | Operating Profit | |
| Atlanta | | | 12 | | | | 3,514 | | | | 9 | % | | | 9 | % |
| Dallas | | | 13 | | | | 3,789 | | | | 9 | | | | 5 | |
| Los Angeles Area | | | 6 | | | | 1,492 | | | | 4 | | | | 5 | |
| Boca Raton/Ft. Lauderdale | | | 4 | | | | 1,118 | | | | 3 | | | | 4 | |
| New Orleans | | | 2 | | | | 746 | | | | 2 | | | | 4 | |
| Orlando | | | 6 | | | | 2,219 | | | | 6 | | | | 4 | |
| San Francisco Bay Area | | | 8 | | | | 2,690 | | | | 7 | | | | 3 | |
| Minneapolis | | | 4 | | | | 955 | | | | 2 | | | | 3 | |
| San Diego | | | 1 | | | | 600 | | | | 2 | | | | 3 | |
| Phoenix | | | 4 | | | | 1,016 | | | | 3 | | | | 3 | |
| Houston | | | 8 | | | | 1,969 | | | | 5 | | | | 3 | |
| Chicago | | | 4 | | | | 1,239 | | | | 3 | | | | 3 | |
| Philadelphia | | | 3 | | | | 1,174 | | | | 3 | | | | 3 | |
| |
| | | | | | | | | | | % of | | | % of 2004 Hotel | |
| Top Four States | | Hotels | | | Rooms | | | Total Rooms | | | Operating Profit | |
| California | | | 19 | | | | 5,593 | | | | 14 | % | | | 15 | % |
| Texas | | | 31 | | | | 8,284 | | | | 21 | | | | 14 | |
| Florida | | | 16 | | | | 5,343 | | | | 13 | | | | 11 | |
| Georgia | | | 14 | | | | 3,868 | | | | 10 | | | | 10 | |
| |
| | | | | | | | | | | % of | | | % of 2004 Hotel | |
| Location | | Hotels | | | Rooms | | | Total Rooms | | | Operating Profit | |
| Suburban | | | 63 | | | | 15,671 | | | | 39 | % | | | 40 | % |
| Urban | | | 37 | | | | 11,338 | | | | 29 | | | | 28 | |
| Airport | | | 28 | | | | 8,509 | | | | 21 | | | | 21 | |
| Resort | | | 13 | | | | 4,044 | | | | 10 | | | | 11 | |
| Interstate | | | 2 | | | | 418 | | | | 1 | | | | 0 | |
| |
| | | | | | | | | | | % of | | | % of 2004 Hotel | |
| Segment | | Hotels | | | Rooms | | | Total Rooms | | | Operating Profit | |
| Upscale all-suite | | | 69 | | | | 17,145 | | | | 43 | % | | | 59 | % |
| Full service | | | 40 | | | | 13,004 | | | | 32 | | | | 22 | |
| Upscale | | | 25 | | | | 8,263 | | | | 21 | | | | 18 | |
| Limited service | | | 9 | | | | 1,568 | | | | 4 | | | | 1 | |
| |
| | | | | | | | | | | % of | | | % of 2004 Hotel | |
| | | Hotels | | | Rooms | | | Total Rooms | | | Operating Profit | |
| Core Hotels | | | 125 | | | | 35,256 | | | | 88 | % | | | 95 | % |
Sale Hotels(a) | | | 18 | | | | 4,724 | | | | 12 | | | | 5 | |
| | | (a) Excludes one hotel that met the “held for sale” accounting requirements, and was included in discontinued operations at December 31, 2004. |
| |
| | | (b) Hotel operating profit is more fully described on page 11 of this supplement. |
17
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Detailed Operating Statistics by Brand
(142 consolidated hotels included in continuing operations, same store basis)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Occupancy (%) | |
| | | Three Months Ended December 31, | | | Year Ended December 31, | |
| | | 2004 | | | 2003 | | | % Variance | | | 2004 | | | 2003 | | | % Variance | |
| Embassy Suites Hotels | | | 65.3 | | | | 63.9 | | | | 2.2 | | | | 69.5 | | | | 67.3 | | | | 3.1 | |
| Holiday Inn-branded hotels | | | 58.3 | | | | 58.0 | | | | 0.6 | | | | 64.7 | | | | 62.9 | | | | 2.9 | |
| Sheraton-branded hotels | | | 58.3 | | | | 58.6 | | | | (0.6 | ) | | | 63.1 | | | | 59.8 | | | | 5.5 | |
| Crowne Plaza hotels | | | 60.4 | | | | 58.3 | | | | 3.6 | | | | 63.4 | | | | 60.5 | | | | 4.9 | |
| Doubletree-branded hotels | | | 59.1 | | | | 62.7 | | | | (5.7 | ) | | | 66.0 | | | | 65.9 | | | | 0.1 | |
| Other hotels | | | 50.0 | | | | 50.7 | | | | (1.3 | ) | | | 56.5 | | | | 55.9 | | | | 1.0 | |
| Total hotels | | | 60.4 | | | | 59.8 | | | | 0.9 | | | | 65.5 | | | | 63.6 | | | | 3.1 | |
| |
| | | ADR ($) | |
| | | Three Months Ended December 31, | | | Year Ended December 31, | |
| | | 2004 | | | 2003 | | | % Variance | | | 2004 | | | 2003 | | | % Variance | |
| Embassy Suites Hotels | | | 117.26 | | | | 114.52 | | | | 2.4 | | | | 117.49 | | | | 115.85 | | | | 1.4 | |
| Holiday Inn-branded hotels | | | 80.75 | | | | 79.98 | | | | 1.0 | | | | 81.06 | | | | 80.20 | | | | 1.1 | |
| Sheraton-branded hotels | | | 101.56 | | | | 93.74 | | | | 8.3 | | | | 98.33 | | | | 94.53 | | | | 4.0 | |
| Crowne Plaza hotels | | | 95.78 | | | | 94.36 | | | | 1.5 | | | | 93.83 | | | | 93.50 | | | | 0.4 | |
| Doubletree-branded hotels | | | 103.41 | | | | 96.58 | | | | 7.1 | | | | 103.79 | | | | 100.07 | | | | 3.7 | |
| Other hotels | | | 78.06 | | | | 74.81 | | | | 4.4 | | | | 82.68 | | | | 79.71 | | | | 3.7 | |
| Total hotels | | | 99.28 | | | | 96.45 | | | | 2.9 | | | | 99.07 | | | | 97.38 | | | | 1.7 | |
| |
| | | RevPAR ($) | |
| | | Three Months Ended December 31, | | | Year Ended December 31, | |
| | | 2004 | | | 2003 | | | % Variance | | | 2004 | | | 2003 | | | % Variance | |
| Embassy Suites Hotels | | | 76.57 | | | | 73.15 | | | | 4.7 | | | | 81.61 | | | | 78.02 | | | | 4.6 | |
| Holiday Inn-branded hotels | | | 47.11 | | | | 46.38 | | | | 1.6 | | | | 52.45 | | | | 50.42 | | | | 4.0 | |
| Sheraton-branded hotels | | | 59.20 | | | | 54.95 | | | | 7.7 | | | | 62.08 | | | | 56.57 | | | | 9.7 | |
| Crowne Plaza hotels | | | 57.85 | | | | 55.01 | | | | 5.2 | | | | 59.53 | | | | 56.55 | | | | 5.3 | |
| Doubletree-branded hotels | | | 61.09 | | | | 60.51 | | | | 1.0 | | | | 68.50 | | | | 65.98 | | | | 3.8 | |
| Other hotels | | | 39.04 | | | | 37.89 | | | | 3.0 | | | | 46.70 | | | | 44.58 | | | | 4.8 | |
| Total hotels | | | 59.94 | | | | 57.70 | | | | 3.9 | | | | 64.91 | | | | 61.89 | | | | 4.9 | |
The Holiday Inn Cocoa Beach, which was closed during the fourth quarter of 2004 because of hurricane damage, has been excluded from these Operating Statistics.
18
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Detailed Operating Statistics for FelCor’s Top Markets
(142 consolidated hotels included in continuing operations, same store basis)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Occupancy (%) | |
| | | Three Months Ended December 31, | | | Year Ended December 31, | |
| | | 2004 | | | 2003 | | | % Variance | | | 2004 | | | 2003 | | | % Variance | |
| Atlanta | | | 62.2 | | | | 58.4 | | | | 6.4 | | | | 67.2 | | | | 64.6 | | | | 4.1 | |
| Dallas | | | 43.5 | | | | 44.3 | | | | (1.9 | ) | | | 48.8 | | | | 47.0 | | | | 3.9 | |
| Los Angeles Area | | | 64.6 | | | | 64.8 | | | | (0.3 | ) | | | 68.7 | | | | 69.8 | | | | (1.5 | ) |
| Boca Raton/Ft. Lauderdale | | | 76.3 | | | | 73.9 | | | | 3.4 | | | | 79.0 | | | | 73.5 | | | | 7.5 | |
| New Orleans | | | 67.9 | | | | 68.1 | | | | (0.4 | ) | | | 66.3 | | | | 65.8 | | | | 0.7 | |
| San Francisco Bay Area | | | 58.8 | | | | 59.9 | | | | (1.9 | ) | | | 65.3 | | | | 64.2 | | | | 1.6 | |
| Orlando | | | 70.8 | | | | 65.7 | | | | 7.8 | | | | 76.1 | | | | 68.8 | | | | 10.7 | |
| Minneapolis | | | 62.1 | | | | 62.1 | | | | 0.0 | | | | 68.0 | | | | 65.2 | | | | 4.2 | |
| San Diego | | | 70.3 | | | | 76.2 | | | | (7.8 | ) | | | 80.9 | | | | 79.9 | | | | 1.3 | |
| Phoenix | | | 61.8 | | | | 61.8 | | | | (0.1 | ) | | | 66.2 | | | | 65.9 | | | | 0.3 | |
| Houston | | | 59.2 | | | | 64.2 | | | | (7.7 | ) | | | 65.5 | | | | 65.3 | | | | 0.3 | |
| Chicago | | | 67.0 | | | | 64.0 | | | | 4.7 | | | | 69.7 | | | | 67.6 | | | | 3.2 | |
| Philadelphia | | | 71.4 | | | | 61.5 | | | | 16.0 | | | | 68.0 | | | | 61.8 | | | | 10.1 | |
| |
| | | ADR ($) | |
| | | Three Months Ended December 31, | | | Year Ended December 31, | |
| | | 2004 | | | 2003 | | | % Variance | | | 2004 | | | 2003 | | | % Variance | |
| Atlanta | | | 86.25 | | | | 84.40 | | | | 2.2 | | | | 86.68 | | | | 85.26 | | | | 1.7 | |
| Dallas | | | 90.25 | | | | 86.65 | | | | 4.1 | | | | 89.77 | | | | 87.74 | | | | 2.3 | |
| Los Angeles Area | | | 106.64 | | | | 99.78 | | | | 6.9 | | | | 110.30 | | | | 102.32 | | | | 7.8 | |
| Boca Raton/Ft. Lauderdale | | | 116.65 | | | | 110.07 | | | | 6.0 | | | | 115.01 | | | | 113.65 | | | | 1.2 | |
| New Orleans | | | 147.56 | | | | 138.62 | | | | 6.5 | | | | 136.96 | | | | 133.17 | | | | 2.9 | |
| San Francisco Bay Area | | | 110.89 | | | | 109.84 | | | | 1.0 | | | | 112.44 | | | | 112.34 | | | | 0.1 | |
| Orlando | | | 80.33 | | | | 76.04 | | | | 5.7 | | | | 77.32 | | | | 74.68 | | | | 3.5 | |
| Minneapolis | | | 127.47 | | | | 122.22 | | | | 4.3 | | | | 125.48 | | | | 122.82 | | | | 2.2 | |
| San Diego | | | 121.75 | | | | 115.67 | | | | 5.3 | | | | 120.16 | | | | 116.95 | | | | 2.7 | |
| Phoenix | | | 108.37 | | | | 101.10 | | | | 7.2 | | | | 105.43 | | | | 98.98 | | | | 6.5 | |
| Houston | | | 65.97 | | | | 68.09 | | | | (3.1 | ) | | | 69.32 | | | | 69.92 | | | | (0.9 | ) |
| Chicago | | | 112.50 | | | | 112.03 | | | | 0.4 | | | | 106.44 | | | | 109.36 | | | | (2.7 | ) |
| Philadelphia | | | 107.17 | | | | 108.01 | | | | (0.8 | ) | | | 105.99 | | | | 105.96 | | | | 0.0 | |
| |
| | | RevPAR ($) | |
| | | Three Months Ended December 31, | | | Year Ended December 31, | |
| | | 2004 | | | 2003 | | | % Variance | | | 2004 | | | 2003 | | | % Variance | |
| Atlanta | | | 53.61 | | | | 49.31 | | | | 8.7 | | | | 58.28 | | | | 55.08 | | | | 5.8 | |
| Dallas | | | 39.25 | | | | 38.42 | | | | 2.2 | | | | 43.81 | | | | 41.23 | | | | 6.3 | |
| Los Angeles Area | | | 68.85 | | | | 64.63 | | | | 6.5 | | | | 75.83 | | | | 71.42 | | | | 6.2 | |
| Boca Raton/Ft. Lauderdale | | | 89.05 | | | | 81.29 | | | | 9.5 | | | | 90.90 | | | | 83.58 | | | | 8.8 | |
| New Orleans | | | 100.14 | | | | 94.45 | | | | 6.0 | | | | 90.78 | | | | 87.66 | | | | 3.6 | |
| San Francisco Bay Area | | | 65.17 | | | | 65.79 | | | | (0.9 | ) | | | 73.39 | | | | 72.18 | | | | 1.7 | |
| Orlando | | | 56.86 | | | | 49.94 | | | | 13.9 | | | | 58.85 | | | | 51.35 | | | | 14.6 | |
| Minneapolis | | | 79.10 | | | | 75.86 | | | | 4.3 | | | | 85.30 | | | | 80.14 | | | | 6.4 | |
| San Diego | | | 85.59 | | | | 88.16 | | | | (2.9 | ) | | | 97.26 | | | | 93.41 | | | | 4.1 | |
| Phoenix | | | 66.95 | | | | 62.53 | | | | 7.1 | | | | 69.76 | | | | 65.28 | | | | 6.9 | |
| Houston | | | 39.07 | | | | 43.69 | | | | (10.6 | ) | | | 45.40 | | | | 45.64 | | | | (0.5 | ) |
| Chicago | | | 75.42 | | | | 71.73 | | | | 5.1 | | | | 74.22 | | | | 73.88 | | | | 0.5 | |
| Philadelphia | | | 76.51 | | | | 66.47 | | | | 15.1 | | | | 72.07 | | | | 65.43 | | | | 10.1 | |
The Holiday Inn Cocoa Beach, which was closed during the fourth quarter of 2004 because of hurricane damage, has been excluded from these Operating Statistics.
19
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Other Performance Statistics
(Consolidated hotels included in continuing operations, for period presented)
Variance to Prior Year
| | | | | | | | | | | | | |
| | | Occupancy | | | ADR | | | RevPAR | |
| | | % Variance | | | % Variance | | | % Variance | |
2002: | | | | | | | | | | | | |
| First Quarter | | | (11.2 | ) | | | (7.8 | ) | | | (18.2 | ) |
| | | | | | | | | | | | | |
| Second Quarter | | | (5.1 | ) | | | (6.3 | ) | | | (11.1 | ) |
| | | | | | | | | | | | | |
| Third Quarter | | | 2.4 | | | | (4.8 | ) | | | (2.4 | ) |
| | | | | | | | | | | | | |
| Fourth Quarter | | | 4.4 | | | | (1.3 | ) | | | 3.1 | |
| | | | | | | | | | | | | |
| Year 2002 | | | (2.8 | ) | | | (5.5 | ) | | | (8.1 | ) |
| | | | | | | | | | | | | |
2003: | | | | | | | | | | | | |
| First Quarter | | | (1.2 | ) | | | (4.1 | ) | | | (5.3 | ) |
| | | | | | | | | | | | | |
| Second Quarter | | | (3.0 | ) | | | (4.8 | ) | | | (7.6 | ) |
| | | | | | | | | | | | | |
| Third Quarter | | | 0.3 | | | | (2.7 | ) | | | (2.4 | ) |
| | | | | | | | | | | | | |
| Fourth Quarter | | | 0.6 | | | | (2.3 | ) | | | (1.7 | ) |
| | | | | | | | | | | | | |
| Year 2003 | | | (0.6 | ) | | | (3.8 | ) | | | (4.4 | ) |
| | | | | | | | | | | | | |
2004: | | | | | | | | | | | | |
| January | | | 3.4 | | | | (1.2 | ) | | | 2.2 | |
| February | | | 2.3 | | | | (1.3 | ) | | | 0.9 | |
| March | | | 8.7 | | | | 0.2 | | | | 9.0 | |
| | | | | | | | | | | | | |
| First Quarter 2004 | | | 5.2 | | | | (0.7 | ) | | | 4.4 | |
| | | | | | | | | | | | | |
| April | | | 8.0 | | | | (0.1 | ) | | | 7.9 | |
| May | | | 5.0 | | | | 1.5 | | | | 6.6 | |
| June | | | 3.8 | | | | 3.5 | | | | 7.4 | |
| | | | | | | | | | | | | |
| Second Quarter 2004 | | | 5.5 | | | | 1.7 | | | | 7.3 | |
| | | | | | | | | | | | | |
| July | | | 2.3 | | | | 2.1 | | | | 4.4 | |
| August | | | (1.3 | ) | | | 3.1 | | | | 1.8 | |
| September | | | 5.1 | | | | 2.7 | | | | 8.0 | |
| | | | | | | | | | | | | |
| Third Quarter 2004 | | | 1.9 | | | | 2.7 | | | | 4.6 | |
| | | | | | | | | | | | | |
| October | | | 2.4 | | | | 3.0 | | | | 5.4 | |
| November | | | 0.2 | | | | 2.9 | | | | 3.2 | |
| December | | | (0.2 | ) | | | 2.7 | | | | 2.5 | |
| | | | | | | | | | | | | |
| Fourth Quarter 2004 | | | 0.9 | | | | 2.9 | | | | 3.9 | |
| Year 2004 | | | 3.1 | | | | 1.7 | | | | 4.9 | |
| | | | | | | | | | | | | |
| January 2005 | | | 2.2 | | | | 4.9 | | | | 7.2 | |
20
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Hotel Portfolio Information
Pro Rata Share of Rooms Owned
| | | | | | | | | |
| | | | | | | Room Count at | |
| | | Hotels | | | December 31, 2004 | |
| Consolidated hotels in continuing operations | | | 143 | | | | 39,980 | |
| Hotels held for sale | | | 1 | | | | 191 | |
| Unconsolidated hotel operations | | | 5 | | | | 761 | |
| | | | | | | |
| Total hotels owned | | | 149 | | | | 40,932 | |
| 50% and 51% joint ventures | | | 28 | | | | (3,046 | ) |
| 60% joint ventures | | | 2 | | | | (390 | ) |
| 90% joint ventures | | | 6 | | | | (148 | ) |
| 97% joint venture | | | 1 | | | | (10 | ) |
| | | | | | | | |
| Total joint venture owned rooms | | | | | | | (3,594 | ) |
| | | | | | | | |
| Pro rata share of rooms owned | | | | | | | 37,338 | |
| | | | | | | | |
Capital Expenditures (dollars in thousands)
| | | | | | | | | | | | | |
| | | Three Months Ended | | Year Ended | | Year Ended |
| | | December 31, 2004 | | December 31, 2004 | | December 31, 2003 |
| Consolidated hotels: | | | | | | | | | | | | |
| Improvements and additions to hotels | | $ | 36,721 | | | $ | 95,833 | | | $ | 64,045 | |
| % of total revenue | | | 12.9 | % | | | 8.0 | % | | | 5.3 | % |
| | | | | | | | | | | | | |
| Unconsolidated hotels (pro rata share): | | | | | | | | | | | | |
| Improvements and additions to hotels | | $ | 2,326 | | | $ | 6,359 | | | $ | 4,291 | |
| % of total revenue | | | 6.3 | % | | | 4.3 | % | | | 3.0 | % |
21
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Hotel Portfolio Information
Sale Hotels
At December 31, 2004, we included in continuing operations 18 hotels identified as sale hotels. The composition, by brand, of the 18 sale hotels is as follows: Holiday Inn-branded (11), Doubletree branded (2) Embassy Suites (3), Hampton (1) and Independent (1). These hotels are expected to be sold within the next 18 months depending on the individual hotel, market conditions, and other factors.
Operating statistics for our consolidated portfolio of 142 hotels included in continuing operations:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, | | | Year Ended December 31, | |
| | | 2004 | | | 2003 | | | % Variance | | | 2004 | | | 2003 | | | % Variance | |
| Consolidated in Continuing Operations (142 hotels)(a) | | | | | | | | | | | | |
| Occupancy (%) | | | 60.4 | | | | 59.8 | | | | 0.9 | | | | 65.5 | | | | 63.6 | | | | 3.1 | |
| ADR ($) | | | 99.28 | | | | 96.45 | | | | 2.9 | | | | 99.07 | | | | 97.38 | | | | 1.7 | |
| RevPAR ($) | | | 59.94 | | | | 57.70 | | | | 3.9 | | | | 64.91 | | | | 61.89 | | | | 4.9 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Sale Hotels (18 hotels) | | | | | | | | | | | | |
| Occupancy (%) | | | 50.5 | | | | 49.8 | | | | 1.4 | | | | 57.7 | | | | 56.1 | | | | 3.0 | |
| ADR ($) | | | 74.52 | | | | 72.56 | | | | 2.7 | | | | 74.20 | | | | 74.19 | | | | 0.0 | |
| RevPAR ($) | | | 37.63 | | | | 36.14 | | | | 4.1 | | | | 42.83 | | | | 41.59 | | | | 3.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Core Hotels (124 hotels) (a) | | | | | | | | | | | | |
| Occupancy (%) | | | 61.7 | | | | 61.2 | | | | 0.9 | | | | 66.6 | | | | 64.6 | | | | 3.1 | |
| ADR ($) | | | 102.03 | | | | 99.09 | | | | 3.0 | | | | 102.00 | | | | 100.12 | | | | 1.9 | |
| RevPAR ($) | | | 62.97 | | | | 60.63 | | | | 3.9 | | | | 67.91 | | | | 64.65 | | | | 5.0 | |
| | | (a) The Holiday Inn Cocoa Beach, which was closed during the fourth quarter of 2004 because of hurricane damage, has been excluded from these Operating Statistics. |
For the year ended December 31, 2004, the hotel operating margins for the Core Hotels were 30.2%, while the operating margins for the Sale Hotels were 20.0%.
Portfolio Changes in 2004
Acquisitions:
| | • | In March 2004, we purchased the 132-room Santa Monica Holiday Inn for $27 million. This hotel has a premier location across from the Santa Monica Pier and the Santa Monica beaches and will continue to be operated as a full service upscale hotel. This hotel is classified as an upscale hotel by STR because of the high room rates charged in this market. |
Hotel Sales:
| | | | | | | | | | | | | |
| | | | | | | | | | | Total Gross Sales |
| | | Date | | | | | | Price Per Quarter |
| Property | | Sold | | Rooms | | (in millions) |
| Hotels sold during three months ended March 31, 2004: | | | | | | | | | | | | |
| Plano, Holiday Inn | | Feb 2004 | | | 160 | | | | | |
| Jackson (Downtown), Crowne Plaza | | Feb 2004 | | | 354 | | | | | |
| Omaha (Southwest), Hampton Inn | | Mar 2004 | | | 131 | | | | | |
| Houston (Medical Center), Crowne Plaza | | Mar 2004 | | | 297 | | | | | |
| | | | | | | | | | | | | |
| Total Sales in First Quarter 2004 | | | | | | | 942 | | | $ | 30 | |
| | | | | | | | | | | | | |
| |
| Hotels sold during three months ended June 30, 2004: | | | | | | | | | | | | |
| St. Louis – Westport, Holiday Inn | | Apr 2004 | | | 316 | | | | | |
| Odessa, Holiday Inn Express & Suites | | Apr 2004 | | | 186 | | | | | |
| Odessa – Centre, Holiday Inn & Suites | | Apr 2004 | | | 245 | | | | | |
| | | | | | | | | | | | | |
| Total Sales in Second Quarter 2004 | | | | | | | 747 | | | | 12 | |
| | | | | | | | | | | | | |
22
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Hotel Portfolio Information
| | | | | | | | | | | | | |
| | | | | | | | | | | Total Gross Sales |
| | | Date | | | | | | Price Per Quarter |
| Property | | Sold | | Rooms | | (in millions) |
| Hotels sold during three months ended September 30, 2004: | | | | | | | | | | | | |
| Beaumont – I-10 (Midtown) Holiday Inn | | Jul 2004 | | | 190 | | | | | |
| Midland – Country Villa Holiday Inn | | Aug 2004 | | | 250 | | | | | |
| Avon – Beaver Creek Lodge (Independent) | | Aug 2004 | | | 72 | | | | | |
| Omaha – Southwest Holiday Inn Express & Suites | | Aug 2004 | | | 78 | | | | | |
| Albuquerque – Mountain View (at I-40 & I-25) Holiday Inn | | Sep 2004 | | | 360 | | | | | |
| | | | | | | | | | | | | |
| Total Sales in Third Quarter 2004 | | | | | | | 950 | | | | 29 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Hotels sold during the three months ended December 31, 2004: | | | | | | | | | | | | |
| Dallas – DFW International Airport North, Harvey Hotel | | Oct 2004 | | | 506 | | | | | |
| Omaha, Homewood Suites | | Oct 2004 | | | 107 | | | | | |
| Dallas – North Dallas Addison (Near the Galleria), Crowne Plaza | | Oct 2004 | | | 429 | | | | | |
| Harford – Downtown, Crowne Plaza | | Nov 2004 | | | 350 | | | | | |
| Secaucus – Meadowlands, Crowne Plaza | | Dec 2004 | | | 304 | | | | | |
| | | | | | | | | | | | | |
| Total Sales in Fourth Quarter-to-Date in 2004 | | | | | | | 1,696 | | | | 86 | |
| | | | | | | | | | | | | |
Total Sales in 2004 | | | | | | | 4,335 | | | $ | 157 | |
| | | | | | | | | | | | | |
Other Disposition:
| | • | On June 30, 2004, we transferred our leasehold interest in the San Francisco Holiday Inn Select Downtown & Spa to the lessor as part of the settlement of a dispute with the lessor. |
Portfolio Changes in 2003
Dispositions:
| | • | Through December 31, 2003, we sold or otherwise disposed of 16 non-strategic hotels. Disposition proceeds from the 16 non-strategic hotels and two parking garages sold during 2003 totaled approximately $125 million. |
Conversions:
| | • | In March, we converted an independent, all-suite hotel in Dallas to a Staybridge Suites hotel. |
| | • | In April, we completed the conversion of the 385-room Hilton Myrtle Beach Resort, following a $15 million renovation of the former Wyndham-affiliated property. |
Other:
| | • | In June 2003, we began consolidating the operations of eight hotels that had previously been accounted for by the equity method. |
23
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Hotel Portfolio Listing
(as of December 31, 2004)
| | | | | | | | | | | | | | | |
| | | State | | | Rooms | | | % Owned(a) | | | Brand |
Consolidated Continuing Operations | | | | | | | | | | | | | | |
Birmingham(b) | | AL | | | 242 | | | | | | | Embassy Suites |
Montgomery – East I-85(b) | | AL | | | 210 | | | | | | | Holiday Inn |
Phoenix – Biltmore(b) | | AZ | | | 232 | | | | | | | Embassy Suites |
Phoenix Crescent Hotel(b) | | AZ | | | 342 | | | | | | | Sheraton |
Phoenix Scottsdale/Downtown(b) | | AZ | | | 218 | | | | 51 | % | | Fairfield Inn |
Phoenix Tempe(b) | | AZ | | | 224 | | | | | | | Embassy Suites |
| Dana Point – Doheny Beach | | CA | | | 195 | | | | | | | Doubletree Guest Suites |
| Irvine – Orange County Airport (Newport Beach) | | CA | | | 335 | | | | | | | Crowne Plaza |
Los Angeles – Anaheim (Located near Disneyland Park)(b) | | CA | | | 222 | | | | | | | Embassy Suites |
Los Angeles – Covina/I-10(b) | | CA | | | 259 | | | | 50 | % | | Embassy Suites |
| Los Angeles – El Segundo – International Airport – South | | CA | | | 349 | | | | 97 | % | | Embassy Suites |
Milpitas – Silicon Valley(b) | | CA | | | 266 | | | | | | | Embassy Suites |
| Milpitas – San Jose-North (Milpitas – Silicon Valley) | | CA | | | 305 | | | | | | | Crowne Plaza |
Napa Valley(b) | | CA | | | 205 | | | | | | | Embassy Suites |
Oxnard – Mandalay Beach Resort & Conference Center(b) | | CA | | | 248 | | | | | | | Embassy Suites |
Palm Desert – Palm Desert Resort(b) | | CA | | | 198 | | | | | | | Embassy Suites |
| Pleasanton (San Ramon Area) | | CA | | | 244 | | | | | | | Crowne Plaza |
| San Diego – On the Bay | | CA | | | 600 | | | | | | | Holiday Inn |
| San Francisco – Burlingame Airport | | CA | | | 340 | | | | | | | Embassy Suites |
San Francisco – South San Francisco Airport(b) | | CA | | | 312 | | | | | | | Embassy Suites |
| San Francisco – Fisherman’s Wharf | | CA | | | 585 | | | | | | | Holiday Inn |
| San Francisco – Union Square | | CA | | | 403 | | | | | | | Crowne Plaza |
San Rafael – Marin County/Conference Center(b) | | CA | | | 235 | | | | 50 | % | | Embassy Suites |
Santa Barbara – Goleta(b) | | CA | | | 160 | | | | | | | Holiday Inn |
| Santa Monica – Beach at the Pier | | CA | | | 132 | | | | | | | Holiday Inn |
Denver – Aurora(b) | | CO | | | 248 | | | | 90 | % | | Doubletree |
| Stamford | | CT | | | 380 | | | | | | | Holiday Inn Select |
Wilmington(b) | | DE | | | 244 | | | | 90 | % | | Doubletree |
Boca Raton(b) | | FL | | | 263 | | | | | | | Embassy Suites |
| Cocoa Beach – Oceanfront | | FL | | | 500 | | | | | | | Holiday Inn |
Deerfield Beach – Boca Raton/Deerfield Beach Resort(b) | | FL | | | 244 | | | | | | | Embassy Suites |
Ft. Lauderdale – 17th Street(b) | | FL | | | 358 | | | | | | | Embassy Suites |
Ft. Lauderdale – Cypress Creek(b) | | FL | | | 253 | | | | | | | Sheraton Suites |
Jacksonville – Baymeadows(b) | | FL | | | 277 | | | | | | | Embassy Suites |
Miami – International Airport(b) | | FL | | | 316 | | | | | | | Embassy Suites |
| Miami – International Airport (LeJeune Center) | | FL | | | 304 | | | | | | | Crowne Plaza |
Orlando – International Airport(b) | | FL | | | 288 | | | | | | | Holiday Inn Select |
Orlando – International Drive – Resort(b) | | FL | | | 651 | | | | | | | Holiday Inn |
Orlando – International Drive South/Convention Center(b) | | FL | | | 244 | | | | | | | Embassy Suites |
| Orlando– Nikki Bird (Maingate – Walt Disney World Area) | | FL | | | 530 | | | | | | | Holiday Inn |
| |
24
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Hotel Portfolio Listing
(as of December 31, 2004)
| | | | | | | | | | | | | | | |
| | | State | | | Rooms | | | % Owned(a) | | | Brand |
| Orlando– (North) | | FL | | | 277 | | | | | | | Embassy Suites |
Orlando – Walt Disney World Resort(b) | | FL | | | 229 | | | | | | | Doubletree Guest Suites |
Tampa – Busch Gardens | | FL | | | 406 | | | | | | | Holiday Inn |
Tampa– On Tampa Bay(b) | | FL | | | 203 | | | | | | | Doubletree Guest Suites |
Atlanta – Airport(b) | | GA | | | 378 | | | | | | | Crowne Plaza |
Atlanta – Airport(b) | | GA | | | 233 | | | | | | | Embassy Suites |
Atlanta – Airport-North(b) | | GA | | | 493 | | | | | | | Holiday Inn |
Atlanta – Buckhead(b) | | GA | | | 317 | | | | | | | Embassy Suites |
Atlanta – Downtown(b) | | GA | | | 211 | | | | 51 | % | | Courtyard by Marriott |
Atlanta – Downtown(b) | | GA | | | 242 | | | | 51 | % | | Fairfield Inn |
Atlanta – Galleria(b) | | GA | | | 278 | | | | | | | Sheraton Suites |
| Atlanta – Gateway – Atlanta Airport | | GA | | | 395 | | | | | | | Sheraton |
Atlanta – Perimeter – Dunwoody(b) | | GA | | | 250 | | | | | | | Holiday Inn Select |
Atlanta – Perimeter Center(b) | | GA | | | 241 | | | | 50 | % | | Embassy Suites |
Atlanta – Powers Ferry(b) | | GA | | | 296 | | | | | | | Crowne Plaza |
Atlanta – South (I-75 & US 41) (b) | | GA | | | 180 | | | | | | | Holiday Inn |
Brunswick(b) | | GA | | | 130 | | | | | | | Embassy Suites |
Columbus – North (I-185 at Peachtree Mall) | | GA | | | 224 | | | | | | | Holiday Inn |
Davenport | | IA | | | 288 | | | | | | | Holiday Inn |
| Chicago – The Allerton | | IL | | | 443 | | | | | | | Crowne Plaza |
Chicago – Lombard/Oak Brook(b) | | IL | | | 262 | | | | 50 | % | | Embassy Suites |
Chicago – Northshore/Deerfield (Northbrook) (b) | | IL | | | 237 | | | | | | | Embassy Suites |
Chicago O’Hare Airport(b) | | IL | | | 297 | | | | | | | Sheraton Suites |
Moline – Airport | | IL | | | 216 | | | | | | | Holiday Inn |
| Moline – Airport Area | | IL | | | 110 | | | | | | | Holiday Inn Express |
Indianapolis – North(b) | | IN | | | 221 | | | | 50 | % | | Embassy Suites |
Kansas City – Overland Park(b) | | KS | | | 199 | | | | 50 | % | | Embassy Suites |
Lexington(b) | | KY | | | 155 | | | | | | | Sheraton Suites |
Lexington – Lexington Green(b) | | KY | | | 174 | | | | | | | Hilton Suites |
Baton Rouge(b) | | LA | | | 223 | | | | | | | Embassy Suites |
New Orleans(b) | | LA | | | 372 | | | | | | | Embassy Suites |
New Orleans – French Quarter(b) | | LA | | | 374 | | | | | | | Holiday Inn |
| Boston – Government Center | | MA | | | 303 | | | | | | | Holiday Inn Select |
Boston – Marlborough(b) | | MA | | | 229 | | | | | | | Embassy Suites |
Baltimore – BWI Airport(b) | | MD | | | 251 | | | | 90 | % | | Embassy Suites |
Troy – North (Auburn Hills) (b) | | MI | | | 251 | | | | 90 | % | | Embassy Suites |
Bloomington(b) | | MN | | | 219 | | | | | | | Embassy Suites |
Minneapolis – Airport(b) | | MN | | | 310 | | | | | | | Embassy Suites |
Minneapolis – Downtown | | MN | | | 216 | | | | | | | Embassy Suites |
St. Paul – Downtown(b) | | MN | | | 210 | | | | | | | Embassy Suites |
Kansas City – NE I-435 North (At Worlds of Fun)(b) | | MO | | | 165 | | | | | | | Holiday Inn |
Kansas City – Plaza(b) | | MO | | | 266 | | | | 50 | % | | Embassy Suites |
St. Louis – Downtown(b) | | MO | | | 297 | | | | | | | Embassy Suites |
| Jackson – North | | MS | | | 222 | | | | | | | Holiday Inn & Suites |
| Olive Branch Whispering Woods Hotel and Conference Center | | MS | | | 181 | | | | | | | Independent |
Charlotte(b) | | NC | | | 274 | | | | 50 | % | | Embassy Suites |
| Charlotte SouthPark | | NC | | | 208 | | | | | | | Doubletree Guest Suites |
| |
25
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Hotel Portfolio Listing
(as of December 31, 2004)
| | | | | | | | | | | | | | | |
| | | State | | | Rooms | | | % Owned(a) | | | Brand |
Raleigh(b) | | NC | | | 203 | | | | | | | Doubletree Guest Suites |
Raleigh – Crabtree(b) | | NC | | | 225 | | | | 50 | % | | Embassy Suites |
| Omaha – Central | | NE | | | 187 | | | | | | | Doubletree Guest Suites |
| Omaha – Central | | NE | | | 129 | | | | | | | Hampton Inn |
Omaha – Central (I-80) | | NE | | | 383 | | | | | | | Holiday Inn |
Omaha – Old Mill(b) | | NE | | | 223 | | | | | | | Crowne Plaza |
Parsippany(b) | | NJ | | | 274 | | | | 50 | % | | Embassy Suites |
Piscataway – Somerset(b) | | NJ | | | 224 | | | | | | | Embassy Suites |
Secaucus – Meadowlands(b) | | NJ | | | 261 | | | | 50 | % | | Embassy Suites |
| Cleveland – Downtown | | OH | | | 268 | | | | | | | Embassy Suites |
Tulsa – I-44(b) | | OK | | | 244 | | | | | | | Embassy Suites |
| Philadelphia – Center City | | PA | | | 445 | | | | | | | Crowne Plaza |
Philadelphia – Historic District(b) | | PA | | | 364 | | | | | | | Holiday Inn |
Philadelphia – Society Hill(b) | | PA | | | 365 | | | | | | | Sheraton |
Pittsburgh – At University Center (Oakland)(b) | | PA | | | 251 | | | | | | | Holiday Inn Select |
Charleston – Mills House (Historic Downtown)(b) | | SC | | | 214 | | | | | | | Holiday Inn |
| Myrtle Beach – At Kingston Plantation | | SC | | | 255 | | | | | | | Embassy Suites |
| Myrtle Beach Resort | | SC | | | 385 | | | | | | | Hilton |
Knoxville – Central At Papermill Road(b) | | TN | | | 240 | | | | | | | Holiday Inn |
| Nashville – Airport/Opryland Area | | TN | | | 296 | | | | | | | Embassy Suites |
| Nashville – Opryland/Airport (Briley Parkway) | | TN | | | 382 | | | | | | | Holiday Inn Select |
| Amarillo – I-40 | | TX | | | 248 | | | | | | | Holiday Inn |
Austin(b) | | TX | | | 189 | | | | 90 | % | | Doubletree Guest Suites |
Austin – North(b) | | TX | | | 260 | | | | 50 | % | | Embassy Suites |
Austin – Town Lake (Downtown Area)(b) | | TX | | | 320 | | | | | | | Holiday Inn |
Corpus Christi(b) | | TX | | | 150 | | | | | | | Embassy Suites |
| Dallas | | TX | | | 295 | | | | | | | Crowne Plaza Suites |
| Dallas – At Campbell Centre | | TX | | | 300 | | | | 90 | % | | Doubletree |
| Dallas – Dallas Park Central | | TX | | | 114 | | | | | | | Staybridge Suites |
Dallas – DFW International Airport-North(b) | | TX | | | 164 | | | | | | | Harvey Suites |
Dallas – DFW International Airport-South(b) | | TX | | | 305 | | | | | | | Embassy Suites |
Dallas – Love Field(b) | | TX | | | 248 | | | | | | | Embassy Suites |
Dallas – Market Center(b) | | TX | | | 354 | | | | | | | Crowne Plaza |
Dallas – Market Center(b) | | TX | | | 244 | | | | | | | Embassy Suites |
| Dallas – Park Central | | TX | | | 438 | | | | 60 | % | | Sheraton |
| Dallas – Park Central | | TX | | | 536 | | | | 60 | % | | Westin |
Dallas – Park Central Area(b) | | TX | | | 279 | | | | | | | Embassy Suites |
Dallas – Regal Row(b) | | TX | | | 203 | | | | 51 | % | | Fairfield Inn |
| Dallas – West End/Convention Center | | TX | | | 309 | | | | | | | Hampton Inn |
Houston – Greenway Plaza Area(b) | | TX | | | 355 | | | | | | | Holiday Inn Select |
Houston – I-10 East(b) | | TX | | | 160 | | | | 51 | % | | Fairfield Inn |
Houston – I-10 East(b) | | TX | | | 90 | | | | 51 | % | | Hampton Inn |
| Houston – I-10 West & Hwy. 6 (Park 10 Area) | | TX | | | 349 | | | | | | | Holiday Inn Select |
Houston – Intercontinental Airport(b) | | TX | | | 415 | | | | | | | Holiday Inn |
Houston – Medical Center(b) | | TX | | | 284 | | | | | | | Holiday Inn & Suites |
Houston – Near the Galleria(b) | | TX | | | 209 | | | | 51 | % | | Courtyard by Marriott |
Houston – Near the Galleria(b) | | TX | | | 107 | | | | 51 | % | | Fairfield Inn |
| |
26
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2004
Hotel Portfolio Listing
(as of December 31, 2004)
| | | | | | | | | | | | | | | |
| | | State | | | Rooms | | | % Owned(a) | | | Brand |
| San Antonio – Downtown (Market Square) | | TX | | | 315 | | | | | | | Holiday Inn |
San Antonio – International Airport(b) | | TX | | | 261 | | | | 50 | % | | Embassy Suites |
San Antonio – International Airport(b) | | TX | | | 397 | | | | | | | Holiday Inn Select |
San Antonio – N.W. I-10(b) | | TX | | | 216 | | | | 50 | % | | Embassy Suites |
| Waco – I-35 | | TX | | | 170 | | | | | | | Holiday Inn |
Burlington Hotel & Conference Center(b) | | VT | | | 309 | | | | | | | Sheraton |
Vienna – At Tysons Corner(b) | | VA | | | 437 | | | | 50 | % | | Sheraton |
Canada |
| Toronto – Airport | | Ontario | | | 445 | | | | | | | Holiday Inn Select |
| Toronto – Yorkdale | | Ontario | | | 370 | | | | | | | Holiday Inn |
| | | | | | | | | | | | | | | |
Hotel Included in Discontinued Operations | | | | | | | | | | | | | | |
Salt Lake City – Airport(c) | | UT | | | 191 | | | | | | | Holiday Inn |
| | | | | | | | | | | | | | | |
Unconsolidated Operations | | | | | | | | | | | | | | |
Hays(b) | | KS | | | 114 | | | | 50 | % | | Hampton Inn |
Hays(b) | | KS | | | 191 | | | | 50 | % | | Holiday Inn |
Salina(b) | | KS | | | 192 | | | | 50 | % | | Holiday Inn |
Salina – I-70(b) | | KS | | | 93 | | | | 50 | % | | Holiday Inn Express & Suites |
New Orleans – Chateau LeMoyne (In French Quarter/Historic Area)(b) | | LA | | | 171 | | | | 50 | % | | Holiday Inn |
| |
(a) We own 100% of the real estate interests unless otherwise noted.
(b) This hotel is encumbered by mortgage debt or capital lease obligation.
(c) This hotel was sold subsequent to December 31, 2004.
27
