UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 4, 2001
FELCOR LODGING LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Delaware 333-39595 72-2564994
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
545 E. John Carpenter Freeway
Suite 1300
Irving, Texas 75062
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (972) 444-4900
(Former name or former address, if changed since last report)
Item 5. Other Events and Regulation FD Disclosure
FelCor Lodging Trust Incorporated ("FelCor"), a Maryland corporation
and the sole general partner of FelCor Lodging Limited Partnership (FelCor LP"),
a Delaware limited partnership, issued a press release dated as of October 4,
2001, relating to certain additional information regarding FelCor and FelCor LP.
This press release is filed with this report as Exhibit 99.1.
Item 7. Financial Statement and Exhibits
(a) Financial statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits.
The following exhibits are furnished in accordance with Item 601 of
Regulation S-K:
Exhibit
Number Description of Exhibit
99.1 Press Release dated as of October 4, 2001
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FELCOR LODGING LIMITED PARTNERSHIP
By: FelCor Lodging Trust Incorporated,
Its General Partner
Date: October 5, 2001 By: /s/ Lawrence D. Robinson
--------------------------------
Name: Lawrence D. Robinson
Title: Executive Vice President
and General Counsel
INDEX TO EXHIBITS
Exhibit
Number Description of Exhibit
99.1 Press Release dated as of October 4, 2001
EXHIBIT 99.1
[GRAPHIC OMITTED][GRAPHIC OMITTED]
For Immediate Release:
---------------------
FELCOR REPORTS IMPROVING OCCUPANCY TRENDS
IRVING, Texas...October 4, 2001 -- FelCor Lodging Trust Incorporated
(NYSE: FCH), the nation's second largest hotel real estate investment trust
(REIT), announced today that Thomas J. Corcoran, Jr., FelCor's President and
CEO, participated in this week's Deutsche Banc Alex. Brown Annual Global High
Yield "virtual" Conference. During his presentation via audio webcast, Mr.
Corcoran cited steadily improving hotel occupancy levels since the lows
experienced following the September 11, 2001 terrorist attacks, and also
provided key information about the Company's operating performance.
FelCor's preliminary third quarter monthly RevPAR declines, compared to
the same periods in the prior year, were approximately 10.1 percent in July,
11.6 percent in August, and 31 percent in September. The Company expects a third
quarter 2001 RevPAR decline from the prior year of approximately 17 percent.
This decline is primarily due to the sharp occupancy drop as a result of
September's events and the subsequent decline in airline travel and increase in
hotel reservation cancellations.
"After the tragic events on September 11, 2001, we experienced an
occupancy low on September 16, similar to most hotel companies. Since that time,
hotel occupancies have begun to rebound on a daily basis and trends continue to
be encouraging. Occupancy improved by six percentage points from 48 percent in
the third week in September to 54 percent in the last week in September with the
occupancy high of 62 percent on Saturday, September 29," said Corcoran. "America
is getting back to business. During one of the worst months in the history of
the hotel industry, FelCor's portfolio occupancy was 54 percent. This occupancy
level, at September rates and margins, approximates FelCor's breakeven cash flow
after interest costs," Corcoran added.
FelCor rescinded its earnings guidance on September 21, 2001, at the
time it announced the termination of the MeriStar Hospitality merger. During his
presentation, Mr. Corcoran indicated that it is a challenging time for the
industry and that it is difficult to provide meaningful earnings guidance. He
also indicated that the uncertain economic environment could lead to a
re-evaluation of the Company's dividend policy, but stated that any decision
would be made later in the year and only after the accumulation of more
information than is currently available.
"FelCor's stock price currently indicates an asset value of about
$65,000 per key, as compared to its cost per key of approximately $100,000. We
believe there has been an over- reaction in the equity markets to September's
softening in lodging demand and that there will be substantial opportunities for
FelCor by late 2002," stated Corcoran.
-more-
FelCor Reports Improving Occupancy Trends
October 4, 2001
Page 2
Interested investors and other parties can access the audio replay of
Mr. Corcoran's presentation from the Company's website at www.felcor.com by
clicking on the microphone icon on either the "Investor Relations" or "FelCor
News" pages. Investors also can participate by dialing Deutsche Banc's
conference call dial in number at 1-877-567-6728, reference "FelCor." In
addition to the audio replay, FelCor's slide materials associated with the audio
webcast will be available in the Investor Relations section of the website on
the "Presentations" page.
FelCor's hotel portfolio consists of 185 hotels with approximately
50,000 rooms and suites and is concentrated primarily in the upscale and
full-service segments. FelCor is the owner of the largest number of Embassy
Suites(R), Crowne Plaza(R), Holiday Inn(R) and independently owned
Doubletree(R)-branded hotels. Other leading hotel brands under which FelCor's
hotels are operated include Sheraton Suites(R), Sheraton(R) and Westin(R).
FelCor has a current market capitalization of approximately $2.9 billion.
Additional information can be found on the Company's website at www.felcor.com.
Except for historical information, the matters discussed in this press
release are forward-looking statements that are subject to certain risks and
uncertainties that could cause the actual results to differ materially,
including the following: the ability of the company to cope with the economic
disruption resulting from the terrorist attacks that occurred on September 11,
2001; the ability of the company to successfully implement its operating
strategy; changes in economic cycles; competition from other hospitality
companies; and changes in the laws and government regulations applicable to the
company. For a more detailed description of some of those risks and
uncertainties, please read the sections titled "Cautionary Factors That May
Affect Future Results" in the Annual Report on Form 10-K of FelCor Lodging Trust
Incorporated for the year ended December 31, 2000, and in FelCor's subsequent
filings with the Securities and Exchange Commission.
###
Contact:
Thomas J. Corcoran, Jr.,
President and CEO (972) 444-4901 tcorcoran@felcor.com
--------------------
Richard J. O'Brien,
Executive Vice President and CFO (972) 444-4932 robrien@felcor.com
------------------
Monica L. Hildebrand,
Vice President of Communications (972) 444-4917 mhildebrand@felcor.com
----------------------
Stephen A. Schafer,
Director of Investor Relations (972) 444-4912 sschafer@felcor.com
-------------------