EXHIBIT 99.2
- --------------------------------------------------------------------------------
(FELCOR LODGING TRUST LOGO)
FELCOR LODGING TRUST INCORPORATED
SUPPLEMENTAL INFORMATION
THREE AND SIX MONTHS ENDED JUNE 30, 2003
Date of Issuance July 30, 2003
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 by means of a prospectus.
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
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TABLE OF CONTENTS
<Table>
<Caption>
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
Reconciliation of Net Income (Loss) to FFO 8
Reconciliation of FFO to EBITDA 9
Selected Operating Data 10
Hotel Operating Expense Composition 10
Debt Summary 11
PORTFOLIO DATA
Portfolio Distribution 13
Detailed Operating Statistics by Brand 14
Detailed Operating Statistics for FelCor's Top Markets 15
Other Performance Statistics 16
Hotel Portfolio Information 17
Hotel Portfolio Listing 20
</Table>
With the exception of historical information, the matters discussed in this news
release include "forward looking statements" within the meaning of the federal
securities laws. Forward looking statements are not guarantees of future
performance. Numerous risks and uncertainties, and the occurrence of future
events, may cause actual results to differ materially from those currently
anticipated. General economic conditions, including the timing and magnitude of
any recovery from the current soft economy, 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.
2
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
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 July 30, 2003, FelCor was the nation's second largest lodging REIT
and the largest owner of full service, all-suite hotels. FelCor's portfolio is
comprised of 174 hotels, the operating revenues and expenses of which are
reflected in FelCor's consolidated statements of operations because of our
ownership of the operating lessees on these hotels. FelCor also owns 50 percent
joint venture interests in the operating lessees of six hotels whose operations
are accounted for using the equity method. FelCor owns 76 upscale, all-suite
hotels, 83 hotels in the upscale or full service segments, and is the largest
owner of Embassy Suites Hotels(R) and Doubletree Guest Suites(R) hotels. The
Company's hotels are located in 35 states and Canada. FelCor had a market
capitalization of approximately $2.9 billion at June 30, 2003.
STRATEGY
FelCor's hotels are managed by strategic brand managers such as Hilton Hotels,
InterContinental Hotels Group, and Starwood Hotels & Resorts. FelCor is
competitively positioned to deliver superior stockholder returns through its
strong management team, diversified upscale and full-service hotels, strategic
brand manager alliances and value creation expertise.
STOCK AND DEBT RATINGS
Senior Unsecured Debt Preferred Stock
Moody's B1 B3
Standard & Poors B 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
65
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
Director of Investor Relations Vice President of Communications
(972) 444-4912 (972) 444-4917
INFORMATION REQUEST
information@felcor.com
3
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
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.
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.
Richard C. North
Chief Executive Officer, InterContinental Hotels Group
Michael D. Rose
Chairman, Gaylord Entertainment Company
EXECUTIVE OFFICERS
Thomas J. Corcoran, Jr., President and Chief Executive Officer
Michael A. DeNicola, Executive Vice President and Chief Investment Officer
Richard J. O'Brien, Executive Vice President and Chief Financial 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
4
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
EQUITY RESEARCH COVERAGE
<Table>
<Caption>
Firm Analyst Telephone
- ---- ------- ---------
A.G. Edwards & Sons Art Havener (314) 955-3588
Bear Stearns John D. Mattesich (212) 272-4305
Credit Lyonnais Bryan A. Maher (212) 408-5649
Deutsche Bank Marc Falcone (212) 469-7417
Friedman, Billings, Ramsey David Loeb (703) 469-1289
Green Street Advisors John Arabia (949) 640-8780
JPMorgan Chase Harry C. Curtis (212) 622-6610
Legg Mason Rod F. Petrik (410) 454-4131
Lehman Brothers Joyce R. Minor (212) 526-5132
Merrill Lynch David W. Anders (212) 449-2739
Morgan Stanley Todd Scott (212) 761-8033
Prudential James W. Sullivan (212) 778-2515
Smith Barney Citigroup Michael J. Rietbrock (212) 816-0215
UBS Keith A. Mills (212) 713-3098
Wachovia Securities Jeffrey J. Donnelly (617) 603-4262
</Table>
5
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
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FINANCIAL HIGHLIGHTS
SUPPLEMENTAL FINANCIAL DATA
(IN THOUSANDS, EXCEPT PER SHARE INFORMATION, RATIOS AND PERCENTAGES)
<Table>
<Caption>
June 30, 2003 December 31, 2002
---------------- -----------------
ENTERPRISE VALUE
Common shares outstanding 58,900 58,767
Units not held by FelCor 3,238 3,290
---------------- ----------------
Combined shares and units 62,138 62,057
Common stock price at end of period $ 7.85 $ 11.44
---------------- ----------------
Common equity capitalization $ 487,783 $ 709,932
---------------- ----------------
Series A convertible preferred stock outstanding 5,980 5,980
Series A stock price at end of period $ 19.65 $ 20.85
---------------- ----------------
$ 117,507 $ 124,683
---------------- ----------------
Series B non-convertible preferred stock outstanding 6,776 6,776
Series B stock price at end of period $ 22.08 $ 24.60
---------------- ----------------
$ 149,614 $ 166,689
Consolidated debt 2,058,467 1,877,134
---------------- ----------------
Total enterprise value $ 2,813,371 $ 2,878,438
---------------- ================
DIVIDENDS PER SHARE
Common dividends declared, trailing 12 months $ 0.30 $ 0.60
Dividends declared (quarter ended):
Common $ -- $ 0.15
Series A convertible preferred stock 0.4875 0.4875
Series B non-convertible preferred stock 0.5625 0.5625
SELECTED BALANCE SHEET DATA
Investment in hotels at cost(a) $ 4,719,100 $ 4,661,520
Total cash and cash equivalents 182,669 66,542
Total assets 3,919,423 3,780,363
Total debt 2,058,467 1,877,134
Total stockholders' equity 1,574,749 1,616,817
Total stockholders equity less preferred equity 1,255,842 1,297,910
Book value per common share outstanding 21.32 22.08
SELECTED RATIOS
Consolidated debt (net of cash) to trailing 12 month EBITDA 7.1x 5.9x
Total debt (net of cash) to trailing 12 month EBITDA 7.5x 6.4x
Total debt (net of cash) to investment in hotels, at cost 42.1% 41.8%
EBITDA to consolidated interest paid(b) 1.6x 1.9x
EBITDA to total interest expense(c) 1.5x 1.7x
Fixed charge coverage ratio(d) 1.3x 1.5x
</Table>
(a) Investment in hotels at cost is defined as our pro rata share of
consolidated investment in hotels before accumulated depreciation, plus
our pro rata share of unconsolidated investment in hotels before
accumulated depreciation.
(b) EBITDA to consolidated interest paid represents trailing 12 month
consolidated EBITDA divided by trailing 12 month interest expense
before capitalized interest and amortization of debt costs.
(c) EBITDA to total interest expense represents trailing 12 month
consolidated EBITDA divided by trailing 12 month interest expense
including the Company's pro rata share of unconsolidated interest
expense.
(d) Fixed charges include preferred dividends, consolidated interest
expense and interest expense from unconsolidated entities.
6
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
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CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<Table>
<Caption>
THREE MONTHS SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
---------------------------- ----------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
REVENUES:
Hotel operating revenue:
Room ................................................ $ 257,397 $ 275,768 $ 499,124 $ 531,707
Food and beverage ................................... 52,758 56,278 100,561 106,844
Other operating departments ......................... 17,096 17,517 33,126 33,705
Retail space rental and other revenue ................. 236 428 637 1,098
------------ ------------ ------------ ------------
Total revenues .................................. 327,487 349,991 633,448 673,354
------------ ------------ ------------ ------------
EXPENSES:
Hotel departmental expenses:
Room ................................................ 66,554 67,658 129,596 130,468
Food and beverage ................................... 41,041 42,018 79,847 81,875
Other operating departments ......................... 7,949 7,881 15,428 15,165
Other property related costs .......................... 91,801 89,960 182,979 178,501
Management and franchise fees ......................... 16,646 18,017 32,893 33,605
Taxes, insurance and lease expense .................... 33,554 33,697 65,979 68,172
Corporate expenses .................................... 3,737 3,970 7,160 7,716
Depreciation .......................................... 36,658 38,204 72,656 76,822
------------ ------------ ------------ ------------
Total operating expenses ........................ 297,940 301,405 586,538 592,324
------------ ------------ ------------ ------------
OPERATING INCOME ......................................... 29,547 48,586 46,910 81,030
Interest expense, net ................................. (41,251) (41,555) (81,504) (82,751)
Charge-off of debt related costs ...................... (2,527) -- (1,574) --
Impairment loss ....................................... (7,824) -- (7,824) --
------------ ------------ ------------ ------------
INCOME (LOSS) BEFORE EQUITY IN INCOME FROM
UNCONSOLIDATED ENTITIES, MINORITY INTERESTS AND
GAIN ON SALE OF ASSETS ............................. (22,055) 7,031 (43,992) (1,721)
Equity in income from unconsolidated entities ......... 726 1,365 578 2,586
Gain on sale of assets ................................ 153 6,061 153 6,061
Minority interests .................................... 1,785 (1,827) 2,912 (526)
------------ ------------ ------------ ------------
INCOME (LOSS) FROM CONTINUING OPERATIONS ................. (19,391) 12,630 (40,349) 6,400
Discontinued operations ............................... (812) 372 (945) 456
------------ ------------ ------------ ------------
NET INCOME (LOSS) ........................................ (20,203) 13,002 (41,294) 6,856
Preferred dividends ................................... (6,728) (6,688) (13,454) (12,838)
------------ ------------ ------------ ------------
NET INCOME (LOSS) APPLICABLE TO COMMON
STOCKHOLDERS .......................................... $ (26,931) $ 6,314 $ (54,748) $ (5,982)
============ ============ ============ ============
Basic per common share data:
Net income (loss) from continuing operations .......... $ (0.45) $ 0.11 $ (0.92) $ (0.12)
============ ============ ============ ============
Net income (loss) ..................................... $ (0.46) $ 0.12 $ (0.93) $ (0.11)
============ ============ ============ ============
Weighted average common shares outstanding ............ 58,591 52,728 58,562 52,721
Diluted per common share data:
Net income (loss) from continuing operations .......... $ (0.45) $ 0.11 $ (0.92) $ (0.12)
============ ============ ============ ============
Net income (loss) ..................................... $ (0.46) $ 0.12 $ (0.93) $ (0.11)
============ ============ ============ ============
Weighted average common shares outstanding ............ 58,591 53,093 58,562 52,721
</Table>
7
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
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RECONCILIATION OF NET INCOME (LOSS) TO FFO
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<Table>
<Caption>
THREE MONTHS ENDED JUNE 30,
----------------------------------------------------------------------------
2003 2002
------------------------------------ ------------------------------------
PER SHARE PER SHARE
DOLLARS SHARES AMOUNT DOLLARS SHARES AMOUNT
---------- ---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) .................................. $ (20,203) 58,591 $ (0.34) $ 13,002 52,728 $ 0.25
Depreciation from continuing operations ......... 36,658 -- 0.63 38,204 -- 0.72
Depreciation from unconsolidated entities and
discontinued operations ...................... 3,268 -- 0.06 3,078 -- 0.06
(Gain) loss on sale of assets ................... 330 -- 0.01 (5,861) -- (0.11)
Impairment loss ................................. 7,824 -- 0.13 -- -- --
Preferred dividends ............................. (6,728) -- (0.11) (6,688) -- (0.13)
Minority interest in FelCor LP. ................. (1,493) 3,254 (0.06) 1,072 9,004 (0.10)
Conversion of options and unvested
restricted stock ............................ -- 309 -- -- 365 --
---------- ---------- ---------- ---------- ---------- ----------
FFO(a) ............................................. $ 19,656 62,154 $ 0.32 $ 42,807 62,097 $ 0.69
========== ========== ========== ========== ========== ==========
</Table>
<Table>
<Caption>
SIX MONTHS ENDED JUNE 30,
-------------------------------------------------------------------------
2003 2002
----------------------------------- -----------------------------------
PER SHARE PER SHARE
DOLLARS SHARES AMOUNT DOLLARS SHARES AMOUNT
---------- ---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) .................................. $ (41,294) 58,562 $ (0.71) $ 6,856 52,721 $ 0.13
Depreciation from continuing operations ......... 72,656 -- 1.24 76,822 -- 1.46
Depreciation from unconsolidated entities and
discontinued operations ...................... 6,236 -- 0.11 5,256 -- 0.10
(Gain) loss on sale of assets ................... 330 -- 0.01 (5,861) -- (0.11)
Impairment loss ................................. 7,824 -- 0.13 -- -- --
Preferred dividends ............................. (13,454) -- (0.23) (12,838) -- (0.24)
Minority interest in FelCor LP. ................. (3,050) 3,271 (0.08) (1,015) 9,005 (0.23)
Conversion of options and unvested
restricted stock ............................. -- 309 -- -- 362 --
---------- ---------- ---------- ---------- ---------- ----------
FFO(a) ............................................. $ 29,248 62,142 $ 0.47 $ 69,220 62,088 $ 1.11
========== ========== ========== ========== ========== ==========
</Table>
(a) Included in FFO are charge-offs of debt related costs of $2.5 million
for the quarter and $1.6 million for the six months, net of gains on
the extinguishment of debt.
8
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
RECONCILIATION OF FFO TO EBITDA
(in thousands)
<Table>
<Caption>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- ----------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
FFO ................................................ $ 19,656 $ 42,807 $ 29,248 $ 69,220
Interest expense ................................ 41,821 42,184 82,449 83,959
Interest expense from unconsolidated entities ... 2,036 2,373 4,375 4,732
Charge-off of line of credit costs .............. 2,834 -- 2,834 --
Gain on early extinguishment of debt ............ (307) -- (1,260) --
Amortization expense ............................ 564 526 1,080 1,035
Preferred dividends ............................. 6,728 6,688 13,454 12,838
------------ ------------ ------------ ------------
EBITDA ............................................. $ 73,332 $ 94,578 $ 132,180 $ 171,784
============ ============ ============ ============
</Table>
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 measurements of performance to be
helpful in evaluating a real estate company's operations. We consider FFO and
EBITDA to be key measures of a REIT's performance and should be considered along
with, but not as an alternative to, net income and cash flow as a measure of our
operating performance.
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
generally accepted accounting principles), 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 funds from operations
on the same basis. We believe that FFO and EBITDA are helpful to investors as a
measure of the performance of an equity REIT. 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.
9
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
SELECTED OPERATING DATA
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
THREE MONTHS SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
------------------------- -------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Total revenue .......................................... $ 327,487 $ 349,991 $ 633,448 $ 673,354
Retail space and other revenue ......................... (236) (428) (637) (1,098)
---------- ---------- ---------- ----------
Hotel revenue .......................................... 327,251 349,563 632,811 672,256
Hotel operating expenses ............................... (223,991) (225,534) (440,743) (439,614)
---------- ---------- ---------- ----------
Hotel operating margin ................................. $ 103,260 $ 124,029 $ 192,068 $ 232,642
========== ========== ========== ==========
Operating margin ....................................... 31.6% 35.5% 30.4% 34.6%
Corporate expenses ..................................... $ 3,737 $ 3,970 $ 7,160 $ 7,716
Corporate expenses as a percentage of total revenues ... 1.1% 1.1% 1.1% 1.1%
</Table>
HOTEL OPERATING EXPENSE COMPOSITION
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
THREE MONTHS ENDED JUNE 30,
-----------------------------------------------------
2003 2002
------------------------ ------------------------
Hotel departmental expenses:
Room ....................................... $ 66,554 29.7% $ 67,658 30.0%
Food and beverage .......................... 41,041 18.3 42,018 18.6
Other operating departments ................ 7,949 3.5 7,881 3.5
Other property related costs:
Administrative and general ................. 29,959 13.4 31,508 14.0
Marketing and advertising .................. 27,918 12.5 26,865 11.9
Repairs and maintenance .................... 17,696 7.9 17,111 7.6
Energy ..................................... 16,228 7.3 14,476 6.4
---------- ---------- ---------- ----------
Total other property related costs ....... 91,801 41.1 89,960 39.9
Management and franchise fees ................. 16,646 7.4 18,017 8.0
---------- ---------- ---------- ----------
Hotel operating expenses ...................... $ 223,991 100.0% $ 225,534 100.0%
========== ========== ========== ==========
Supplemental information:
Compensation and benefits expense
(included in hotel operating expenses) ... $ 104,317 $ 105,276
========== ==========
Reconciliation of hotel operating expense:
Total operating expenses ...................... $ 297,940 $ 301,405
Taxes, insurance and lease expense ......... (33,554) (33,697)
Corporate expenses ......................... (3,737) (3,970)
Depreciation ............................... (36,658) (38,204)
---------- ----------
Hotel operating expenses ...................... $ 223,991 $ 225,534
========== ==========
<Caption>
SIX MONTHS ENDED JUNE 30,
---------------------------------------------------
2003 2002
----------------------- ------------------------
Hotel departmental expenses:
Room ....................................... $ 129,596 29.4% $ 130,468 29.7%
Food and beverage .......................... 79,847 18.1 81,875 18.6
Other operating departments ................ 15,428 3.5 15,165 3.5
Other property related costs:
Administrative and general ................. 60,185 13.6 62,465 14.2
Marketing and advertising .................. 55,474 12.6 53,231 12.1
Repairs and maintenance .................... 35,265 8.0 33,807 7.7
Energy ..................................... 32,055 7.3 28,998 6.6
---------- ---------- ---------- ----------
Total other property related costs ....... 182,979 41.5 178,501 40.6
Management and franchise fees ................. 32,893 7.5 33,605 7.6
---------- ---------- ---------- ----------
Hotel operating expenses ...................... $ 440,743 100.0% $ 439,614 100.0%
========== ========== ========== ==========
Supplemental information:
Compensation and benefits expense
(included in hotel operating expenses) ... $ 207,104 $ 205,629
========== ==========
Reconciliation of hotel operating expense:
Total operating expenses ...................... $ 586,538 $ 592,324
Taxes, insurance and lease expense ......... (65,979) (68,172)
Corporate expenses ......................... (7,160) (7,716)
Depreciation ............................... (72,656) (76,822)
---------- ----------
Hotel operating expenses ...................... $ 440,743 $ 439,614
========== ==========
</Table>
10
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
DEBT SUMMARY
(DOLLARS IN THOUSANDS)
Debt Outstanding
<Table>
<Caption>
Encumbered Interest Rate At Maturity
Hotels June 30, 2003 Date Balance
---------- ---------------- ----------- ----------
Unsecured line of credit none 4.55% Oct. 2004 $ --
Promissory note none 3.34 June 2016 650
Senior unsecured term notes none 4.50(a) Oct. 2004 174,824
Senior unsecured term notes none 5.37(b) Oct. 2007 75,000
Senior unsecured term notes none 7.63 Oct. 2007 49,567
Senior unsecured term notes none 10.00 Sept. 2008 596,530
Senior unsecured term notes none 9.00 June 2011 298,032
---- ----------
Total unsecured debt 8.52 1,194,603
---- ----------
Mortgage debt 15 hotels 7.24 Nov. 2007 133,243
Mortgage debt 7 hotels 7.54 April 2009 93,382
Mortgage debt 6 hotels 7.55 June 2009 70,265
Mortgage debt 8 hotels 8.70 May 2010 179,321
Mortgage debt 7 hotels 8.73 May 2010 139,280
Mortgage debt 4 hotels 7.20 2005-2008 41,147
Mortgage debt 10 hotels 3.93 April 2006 149,729
Mortgage debt 8 hotels 7.48 April 2011 50,696
Other 1 hotel 9.08 August 2011 6,801
--------- ---- ----------
Total secured debt 66 hotels 7.24 863,864
========= ---- ----------
Total 7.98% $2,058,467
==========
</Table>
(a) Represents fixed to floating interest rate swaps at six month LIBOR
plus 320 basis points.
(b) Represents fixed to floating interest rate swaps at six month LIBOR
plus 407 basis points.
Our fixed to floating interest rate swaps reduced interest expense for the
quarter by $1.7 million.
Fixed interest rate debt to total debt 80.6%
Weighted average maturity of debt 5.8 years
Secured debt to total assets 22.0%
At June 30, 2003, future scheduled debt principal payments are as follows (in
thousands):
<Table>
<Caption>
Secured Unsecured
Year Debt Debt Total
- ---- ------------ ------------ ------------
2003 $ 9,204 $ -- $ 9,204
2004 17,876 175,000 192,876
2005 39,521 -- 39,521
2006 156,095(a) -- 156,095
2007 134,123 125,000 259,123
2008 and thereafter 505,282 900,650 1,405,932
Premium/(discount) 1,763 (6,047) (4,284)
------------ ------------ ------------
Total debt $ 863,864 $ 1,194,603 $ 2,058,467
============ ============ ============
</Table>
(a) Included is a $150 million non-recourse mortgage loan maturing in 2006,
with two, one-year extension options.
11
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
DEBT SUMMARY (CONTINUED)
At June 30, 2003, we had unconsolidated 50 percent investments in
ventures that owned an aggregate of 21 hotels. These ventures had approximately
$215 million of non-recourse mortgage debt, all of which is secured by hotel
assets. Additionally, one joint venture had a full recourse loan for a
residential condominium development. Our pro rata share of this recourse loan
was $15.3 million at June 30, 2003.
Financing transactions in 2003:
In June 2003, we entered into a new secured debt facility with JPMorgan
Chase Bank for up to $200 million. The non-recourse facility has an initial term
of 18 months that can be extended for an additional six months at FelCor's
option, and carries a floating interest rate of LIBOR plus 2.25 to 2.75 percent.
The outstanding balances on the loan facility are expected to be converted into
10-year fixed rate commercial mortgage backed securities loans through JPMorgan
Chase Bank.
In June 2003, we also reduced our unsecured line of credit commitments
to $50 million, and amended covenant levels.
In May 2003, we prepaid a $7 million non-recourse mortgage loan
maturing in 2005. We recognized a gain of $0.3 million associated with the
charge-off of unamortized premium on this loan.
In April 2003, we closed on a $150 million non-recourse loan at a
floating interest rate of LIBOR plus 250 basis points, secured by 10 of our
hotels and maturing in May 2006, with two, one-year extension options. The
proceeds of the debt were used to pay off the outstanding balance on our line of
credit.
In the first quarter of 2003, we refinanced $16 million of secured debt
that was to mature in the fourth quarter of 2003. The loan was refinanced by the
existing lender, effective August 2003, for a five-year period at a floating
interest rate of LIBOR plus 285 basis points with no required amortization.
Another secured loan, maturing in 2003, in the amount of $6 million, was prepaid
in the first quarter of 2003. In conjunction with this $6 million early
retirement of debt, we recognized a $1 million gain related to the unamortized
premium on this debt.
12
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
PORTFOLIO DATA
(175 CONSOLIDATED HOTELS, SAME STORE BASIS)
PORTFOLIO DISTRIBUTION
<Table>
<Caption>
Brand Hotels Rooms % of Total Rooms % of 2002 EBITDA
- ----- ------ ----- ---------------- ----------------
Embassy Suites 59 14,842 31% 46%
Holiday Inn(R)-branded 53 16,017 34 24
Crowne Plaza(R) 18 5,963 13 9
Sheraton(R)-branded 10 3,269 7 7
Doubletree(R)-branded 13 2,675 6 6
Other 22 4,844 9 7
</Table>
<Table>
<Caption>
Top Markets Hotels Rooms % of Total Rooms % of 2002 EBITDA
- ----------- ------ ----- ---------------- ----------------
Atlanta 12 3,514 7% 8%
Dallas 18 5,477 12 8
San Francisco Bay Area 9 3,255 7 5
Orlando 6 2,220 5 4
Houston 9 2,262 5 4
New Orleans 2 746 2 3
Philadelphia 3 1,174 2 3
Phoenix 5 1,245 3 3
Minneapolis 4 955 2 3
Chicago 4 1,239 3 3
</Table>
<Table>
<Caption>
Top Four States Hotels Rooms % of Total Rooms % of 2002 EBITDA
- --------------- ------ ----- ---------------- ----------------
California 19 6,023 13% 14%
Texas 41 11,136 23 17
Florida 16 5,346 11 10
Georgia 14 3,868 8 9
</Table>
<Table>
<Caption>
Location Hotels Rooms % of Total Rooms % of 2002 EBITDA
- -------- ------ ----- ---------------- ----------------
Suburban 81 20,035 42% 40%
Urban 35 11,252 24 26
Airport 32 9,573 20 22
Highway 15 3,072 6 3
Resort 12 3,678 8 9
</Table>
<Table>
<Caption>
Segment Hotels Rooms % of Total Rooms % of 2002 EBITDA
- ------- ------ ----- ---------------- ----------------
Upscale all-suite 77 18,357 39% 53%
Full service 55 17,086 36 26
Upscale 30 10,087 21 19
Limited service 13 2,080 4 2
</Table>
<Table>
<Caption>
Hotels Rooms % of Total Rooms % of 2002 EBITDA
------ ----- ---------------- ----------------
Potential Sale Candidates 31 6,198 13% 6%
</Table>
13
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
DETAILED OPERATING STATISTICS BY BRAND
<Table>
<Caption>
Occupancy (%)
--------------------------------------------------------------------------------------
Three Months Ended June 30, Six Months Ended June 30,
---------------------------------------- ----------------------------------------
2003 2002 % Variance 2003 2002 % Variance
---------- ---------- ---------- ---------- ---------- ----------
Embassy Suites hotels 69.4 70.1 (0.9) 68.1 68.3 (0.3)
Holiday Inn-branded hotels 63.9 66.0 (3.2) 61.1 62.6 (2.5)
Crowne Plaza hotels 58.4 63.2 (7.6) 56.9 60.0 (5.2)
Doubletree-branded hotels 69.5 70.2 (0.9) 67.2 65.3 2.9
Sheraton-branded hotels 60.3 61.5 (2.0) 59.6 59.0 1.0
Other hotels 53.5 57.0 (6.3) 52.4 56.8 (7.8)
Total hotels 64.0 65.9 (3.0) 62.1 63.4 (2.0)
</Table>
<Table>
<Caption>
ADR ($)
------------------------------------------------------------------------------------------------
Three Months Ended June 30, Six Months Ended June 30,
-------------------------------------------- --------------------------------------------
2003 2002 % Variance 2003 2002 % Variance
---------- ---------- ---------- ---------- ---------- ----------
Embassy Suites hotels 114.89 119.52 (3.9) 116.98 122.12 (4.2)
Holiday Inn-branded hotels 77.68 82.41 (5.7) 77.48 81.45 (4.9)
Crowne Plaza hotels 90.79 97.92 (7.3) 90.09 96.09 (6.2)
Doubletree-branded hotels 100.11 102.00 (1.9) 100.40 103.49 (3.0)
Sheraton-branded hotels 94.26 103.61 (9.0) 96.30 104.22 (7.6)
Other hotels 79.08 82.30 (3.9) 80.68 83.62 (3.5)
Total hotels 94.34 99.08 (4.8) 95.33 99.77 (4.4)
</Table>
<Table>
<Caption>
RevPAR ($)
------------------------------------------------------------------------------------------------
Three Months Ended June 30, Six Months Ended June 30,
-------------------------------------------- --------------------------------------------
2003 2002 % Variance 2003 2002 % Variance
---------- ---------- ---------- ---------- ---------- ----------
Embassy Suites hotels 79.78 83.73 (4.7) 79.64 83.40 (4.5)
Holiday Inn-branded hotels 49.66 54.40 (8.7) 47.32 51.03 (7.3)
Crowne Plaza hotels 52.98 61.87 (14.4) 51.26 57.66 (11.1)
Doubletree-branded hotels 69.61 71.58 (2.8) 67.45 67.58 (0.2)
Sheraton-branded hotels 56.82 63.75 (10.9) 57.40 61.49 (6.7)
Other hotels 42.28 46.94 (9.9) 42.24 47.51 (11.1)
Total hotels 60.33 65.33 (7.6) 59.19 63.24 (6.4)
</Table>
14
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
DETAILED OPERATING STATISTICS FOR FELCOR'S TOP MARKETS
<Table>
<Caption>
Occupancy (%)
------------------------------------------------------------------------------------------------
Three Months Ended June 30, Six Months Ended June 30,
-------------------------------------------- --------------------------------------------
2003 2002 % Variance 2003 2002 % Variance
---------- ---------- ---------- ---------- ---------- ----------
Atlanta 63.7 67.4 (5.5) 65.0 68.2 (4.6)
Dallas 46.1 50.9 (9.3) 45.8 51.2 (10.5)
San Francisco Bay Area 64.8 68.1 (4.8) 62.3 63.2 (1.4)
Orlando 74.4 71.1 4.6 70.1 70.3 (0.4)
Houston 64.2 66.1 (2.9) 64.1 67.7 (5.3)
New Orleans 73.0 73.7 (0.9) 67.6 73.6 (8.1)
Philadelphia 67.0 71.8 (6.6) 59.8 62.8 (4.8)
Phoenix 67.6 62.5 8.2 74.1 66.0 12.2
Minneapolis 64.1 67.6 (5.1) 61.9 63.4 (2.4)
Chicago 72.4 69.7 3.9 65.4 61.5 6.4
</Table>
<Table>
<Caption>
ADR ($)
------------------------------------------------------------------------------------------------
Three Months Ended June 30, Six Months Ended June 30,
-------------------------------------------- --------------------------------------------
2003 2002 % Variance 2003 2002 % Variance
---------- ---------- ---------- ---------- ---------- ----------
Atlanta 84.00 90.02 (6.7) 86.73 92.42 (6.2)
Dallas 81.65 86.93 (6.1) 83.69 89.33 (6.3)
San Francisco Bay Area 108.26 122.28 (11.5) 108.33 120.88 (10.4)
Orlando 73.96 79.08 (6.5) 78.40 84.25 (6.9)
Houston 72.40 75.43 (4.0) 72.97 75.35 (3.2)
New Orleans 130.99 132.51 (1.1) 142.51 148.68 (4.2)
Philadelphia 109.51 127.84 (14.3) 105.12 120.47 (12.7)
Phoenix 88.47 99.22 (10.8) 104.78 115.09 (9.0)
Minneapolis 123.53 125.70 (1.7) 121.77 123.86 (1.7)
Chicago 113.98 125.85 (9.4) 108.36 120.06 (9.7)
</Table>
<Table>
<Caption>
RevPAR ($)
------------------------------------------------------------------------------------------------
Three Months Ended June 30, Six Months Ended June 30,
-------------------------------------------- --------------------------------------------
2003 2002 % Variance 2003 2002 % Variance
---------- ---------- ---------- ---------- ---------- ----------
Atlanta 53.52 60.67 (11.8) 56.40 63.00 (10.5)
Dallas 37.68 44.20 (14.8) 38.37 45.76 (16.2)
San Francisco Bay Area 70.17 83.25 (15.7) 67.53 76.38 (11.6)
Orlando 55.01 56.25 (2.2) 54.94 59.26 (7.3)
Houston 46.49 49.86 (6.8) 46.78 51.00 (8.3)
New Orleans 95.61 97.61 (2.1) 96.36 109.39 (11.9)
Philadelphia 73.36 91.73 (20.0) 62.91 75.71 (16.9)
Phoenix 59.82 61.98 (3.5) 77.61 75.98 2.2
Minneapolis 79.21 84.92 (6.7) 75.34 78.50 (4.0)
Chicago 82.57 87.76 (5.9) 70.89 73.83 (4.0)
</Table>
15
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
OTHER PERFORMANCE STATISTICS
VARIANCE TO PRIOR YEAR
<Table>
<Caption>
Occupancy ADR RevPAR
% Variance % Variance % Variance
---------- ---------- ----------
First Quarter 2001 (1.7) 3.6 1.8
Second Quarter 2001 (7.2) (0.2) (7.4)
Third Quarter 2001 (13.4) (4.8) (17.5)
Fourth Quarter 2001 (15.2) (9.5) (23.3)
Year 2001 (9.3) (2.4) (11.5)
First Quarter 2002 (11.2) (7.8) (18.2)
Second Quarter 2002 (5.1) (6.3) (11.1)
Third Quarter 2002 2.4 (4.8) (2.4)
Fourth Quarter 2002 4.4 (1.3) 3.1
Year 2002 (2.8) (5.5) (8.1)
January 0.3 (3.8) (3.6)
February (1.4) (4.4) (5.8)
March(a) (2.2) (4.0) (6.1)
First Quarter 2003 (1.2) (4.1) (5.3)
April(a) (6.9) (4.3) (10.9)
May (2.2) (5.0) (7.1)
June (0.3) (4.8) (5.2)
Second Quarter 2003 (3.0) (4.8) (7.6)
First 29 days of July 2003 2.3 (3.0) (0.8)
</Table>
(a) Includes the lack of comparability due to the occurrence of Easter in April
2003, as compared to March in 2002.
16
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO INFORMATION
PRO RATA SHARE OF ROOMS OWNED
<Table>
<Caption>
Room Count
Hotels at June 30, 2003
------ ----------------
Total hotels 181 48,546
------------
50% joint ventures 29 (3,134)
60% joint ventures 2 (390)
90% joint ventures 6 (148)
97% joint venture 1 (10)
------------
Total joint venture owned rooms (3,682)
------------
Pro rata share of rooms owned 44,864
============
</Table>
CAPITAL EXPENDITURES (DOLLARS IN THOUSANDS)
<Table>
<Caption>
Three Months Six Months
Ended Ended Year Ended
June 30, 2003 June 30, 2003 December 31, 2002
---------------- ---------------- -----------------
Consolidated hotels:
Improvements and additions to hotels $ 17,240 $ 42,006 $ 62,518
% of total revenue 5.3% 6.6% 4.7%
Unconsolidated hotels (pro rata share):
Improvements and additions to hotels(a) $ 4,283 $ 6,662 $ 8,580
% of total revenue 19.7% 15.4% 10.5%
</Table>
(a) Excludes $12.1 and $19.0 million of capital expenditures during the
three and six months ended June 30, 2003, respectively, incurred by our joint
venture for construction of a residential condominium project. The funds for
this project are funded by secured debt.
17
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO INFORMATION
POTENTIAL SALE CANDIDATES
In February 2003, FelCor announced its intention to sell 33 non-strategic hotels
over the next 36 months. These hotels are generally smaller hotels in secondary
and tertiary markets, and certain hotels in Texas and, specifically, Dallas.
Through June 30, 2003, FelCor has sold two of these hotels. Of the remaining 31
non-strategic hotels, InterContinental Hotels Group (IHG) manages 24
(principally Holiday Inn hotels), Hilton manages six, and one is managed by an
independent company.
FelCor has announced the selected brokers to market certain of these hotels. A
detailed description of these hotels and listing of brokers can be found on
FelCor's Web site at www.felcor.com on the "Hotels" page.
For the hotels managed by IHG, FelCor is required to reinvest the proceeds from
such sales in IHG-branded hotels (i.e., InterContinental(R), Holiday
Inn-branded, Crowne Plaza, or Staybridge Suites(R) hotels) under its pooled
management agreement.
Operating statistics for FelCor's Consolidated Portfolio:
<Table>
<Caption>
Three Months Ended June 30, Six Months Ended June 30,
---------------------------------------- ----------------------------------------
2003 2002 % Variance 2003 2002 % Variance
---------- ---------- ---------- ---------- ---------- ----------
Consolidated (175 hotels)
Occupancy (%) 64.0 65.9 (3.0) 62.1 63.4 (2.0)
ADR ($) 94.34 99.08 (4.8) 95.33 99.77 (4.4)
RevPAR ($) 60.33 65.33 (7.6) 59.19 63.24 (6.4)
Potential Sale Candidates (31 hotels)
Occupancy (%) 54.5 56.0 (2.8) 52.6 54.0 (2.6)
ADR ($) 72.63 73.36 (1.0) 74.43 74.99 (0.7)
RevPAR ($) 39.55 41.10 (3.8) 39.14 40.47 (3.3)
Core Hotels (144 hotels)
Occupancy (%) 65.4 67.4 (3.0) 63.5 64.8 (2.0)
ADR ($) 97.04 102.28 (5.1) 97.92 102.86 (4.8)
RevPAR ($) 63.44 68.95 (8.0) 62.20 66.64 (6.7)
</Table>
PORTFOLIO CHANGES IN 2003
o Dispositions - FelCor has sold three hotels and a parking garage in 2003, at
a blended cap rate of 5.9% using the 12 months trailing income.
o In the second quarter of 2003, FelCor sold two Hampton Inn(R) hotels
(one in Davenport, IA and one in Moline, IL) for net proceeds of $6.4
million. This resulted in a realized loss of $0.5 million, which is
included in discontinued operations on the Statement of Operations.
o In the second quarter of 2003, FelCor sold a parking garage in San
Francisco for net proceeds of $5.7 million. This resulted in a realized
gain of $0.2 million.
o In the third quarter of 2003, FelCor sold the Doubletree Guest Suites in
Nashville, TN, for net proceeds of $3.0 million.
o In March, FelCor converted an independent, all-suite hotel in Dallas to a
Staybridge Suites hotel.
o In April, FelCor completed the conversion of the 385-room Hilton Myrtle
Beach Resort(R), following a $15 million renovation of the former
Wyndham(R)-affiliated property.
18
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO INFORMATION
PORTFOLIO CHANGES IN 2002
o Hotel Dispositions:
o In the third quarter of 2002, FelCor sold its 71-room Holiday Inn in
Colby, Kansas, for net cash proceeds of $1.7 million.
o In the third quarter of 2002, FelCor sold four Holiday Inn-branded
hotels and one Hampton Inn hotel in Kansas to a new joint venture, and
received as consideration $4.4 million in cash, a preferred right to
receive $6 million, and a 50 percent common equity interest in the
venture.
o In the second quarter of 2002, FelCor sold the 183-room Doubletree Guest
Suites in Boca Raton, Florida, for net proceeds of $6.5 million.
o Hotel Acquisitions:
o Purchased the 208-room SouthPark Suites(R) in Charlotte, North Carolina,
in July 2002. This hotel was converted to a Doubletree Guest Suites
hotel in October 2002.
o Purchased the 385-room Wyndham Myrtle Beach Resort and the Acadian
Shores Golf Club in Myrtle Beach, South Carolina, in July 2002.
19
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO LISTING
<Table>
<Caption>
State Rooms % Owned (a) Brand
----- ----- ----------- -----------------------
CONSOLIDATED CONTINUING OPERATIONS
CORE HOTELS
Birmingham AL 242 Embassy Suites
Montgomery (East I-85) AL 213 Holiday Inn
Phoenix (Camelback) AZ 232 Embassy Suites
Phoenix (Crescent) AZ 342 Sheraton
Scottsdale (Downtown) AZ 218 50% Fairfield Inn(R)
Tempe (ASU) AZ 224 Embassy Suites
Anaheim (Disney Area) CA 222 Embassy Suites
Burlingame (SF-Airport South) CA 340 Embassy Suites
Covina (I-10) CA 259 50% Embassy Suites
Dana Point - Doheny Beach CA 195 Doubletree Guest Suites
El Segundo (LAX-Airport South) CA 349 97% Embassy Suites
Irvine (Orange County Airport) CA 335 Crowne Plaza
Milpitas CA 266 Embassy Suites
Milpitas (San Jose-North) CA 305 Crowne Plaza
Napa CA 205 Embassy Suites
Oxnard (Mandalay Beach Resort) CA 248 Embassy Suites
Palm Desert CA 198 Embassy Suites
Pleasanton CA 244 Crowne Plaza
Santa Barbara CA 160 Holiday Inn
San Diego (On the Bay) CA 600 Holiday Inn
San Francisco (Financial District) CA 565 Holiday Inn
San Francisco (Fisherman's Wharf) CA 585 Holiday Inn
San Francisco (SF-Airport North) CA 312 Embassy Suites
San Francisco (Union Square) CA 403 Crowne Plaza
San Rafael (Marin County) CA 235 50% Embassy Suites
Aurora (Denver-Southeast) CO 248 90% Doubletree
Hartford (Downtown) CT 350 Crowne Plaza
Stamford CT 383 Holiday Inn Select(R)
Wilmington DE 244 90% Doubletree
Boca Raton FL 263 Embassy Suites
Cocoa Beach (Oceanfront Resort) FL 500 Holiday Inn
Deerfield Beach FL 244 Embassy Suites
Ft. Lauderdale FL 358 Embassy Suites
Ft. Lauderdale (Cypress Creek) FL 253 Sheraton Suites
Jacksonville FL 277 Embassy Suites
Kissimmee (Nikki Bird Resort) FL 530 Holiday Inn
Miami (Airport) FL 304 Crowne Plaza
Miami (Airport) FL 316 Embassy Suites
Lake Buena Vista (Walt Disney World) FL 229 Doubletree Guest Suites
Orlando (Airport) FL 288 Holiday Inn Select
</Table>
(a) 100% of real estate interests are owned by FelCor unless otherwise noted.
20
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO LISTING
<Table>
<Caption>
State Rooms % Owned (a) Brand
----- ----- ----------- -----------------------
Orlando (International Drive Resort) FL 652 Holiday Inn
Orlando (North) FL 277 Embassy Suites
Orlando (South) FL 244 Embassy Suites
Tampa (Near Busch Gardens) FL 408 Holiday Inn
Tampa (Rocky Point) FL 203 Doubletree Guest Suites
Atlanta (Airport) GA 378 Crowne Plaza
Atlanta (Airport) GA 233 Embassy Suites
Atlanta (Airport-Gateway) GA 395 Sheraton
Atlanta (Airport-North) GA 493 Holiday Inn
Atlanta (Buckhead) GA 317 Embassy Suites
Atlanta (Downtown) GA 211 50% Courtyard by Marriott(R)
Atlanta (Downtown) GA 242 50% Fairfield Inn
Atlanta (Galleria) GA 278 Sheraton Suites
Atlanta (Jonesboro South) GA 180 Holiday Inn
Atlanta (Perimeter Center) GA 241 50% Embassy Suites
Atlanta (Perimeter-Dunwoody) GA 250 Holiday Inn Select
Atlanta (Powers Ferry) GA 296 Crowne Plaza
Brunswick GA 130 Embassy Suites
Columbus (Airport-North) GA 224 Holiday Inn
Chicago (Allerton) IL 443 Crowne Plaza
Chicago (Lombard) IL 262 50% Embassy Suites
Chicago (O'Hare) IL 297 Sheraton Suites
Deerfield IL 237 Embassy Suites
Indianapolis (North) IN 221 50% Embassy Suites
Overland Park KS 199 50% Embassy Suites
Lexington KY 174 Hilton Suites(R)
Lexington KY 155 Sheraton Suites
Baton Rouge LA 223 Embassy Suites
New Orleans LA 372 Embassy Suites
New Orleans (French Quarter) LA 374 Holiday Inn
Boston (Government Center) MA 303 Holiday Inn Select
Boston (Marlborough) MA 229 Embassy Suites
Baltimore (BWI Airport) MD 251 90% Embassy Suites
Troy MI 251 90% Embassy Suites
Bloomington MN 219 Embassy Suites
Minneapolis (Airport) MN 310 Embassy Suites
Minneapolis (Downtown) MN 216 Embassy Suites
St. Paul MN 210 Embassy Suites
Kansas City (Country Club Plaza) MO 266 50% Embassy Suites
Kansas City (Northeast) MO 165 Holiday Inn
St. Louis (Downtown) MO 297 Embassy Suites
St. Louis (Westport) MO 316 Holiday Inn
Olive Branch (Whispering Woods Hotel and MS 181 Independent
Conference Center)
Charlotte NC 274 50% Embassy Suites
Charlotte (SouthPark) NC 208 Doubletree Guest Suites
Raleigh NC 225 50% Embassy Suites
</Table>
(a) 100% of real estate interests are owned by FelCor unless otherwise noted.
21
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO LISTING
<Table>
<Caption>
State Rooms % Owned (a) Brand
----- ----- ----------- -----------------------
Raleigh NC 203 Doubletree Guest Suites
Omaha (Central) NE 131 Hampton Inn
Omaha (I-80) NE 383 Holiday Inn
Omaha (Old Mill Northwest) NE 223 Crowne Plaza
Omaha (Southwest) NE 108 Homewood Suites
Parsippany NJ 274 50% Embassy Suites
Piscataway NJ 224 Embassy Suites
Secaucus (Meadowlands) NJ 304 Crowne Plaza
Secaucus (Meadowlands) NJ 261 50% Embassy Suites
Albuquerque (Mountain View) NM 360 Holiday Inn
Cleveland OH 268 Embassy Suites
Tulsa OK 244 Embassy Suites
Philadelphia (Center City) PA 445 Crowne Plaza
Philadelphia (Historic District) PA 364 Holiday Inn
Philadelphia (Society Hill) PA 365 Sheraton
Pittsburgh PA 251 Holiday Inn Select
Charleston (Mills House) SC 214 Holiday Inn
Myrtle Beach (Kingston Plantation) SC 255 Embassy Suites
Myrtle Beach SC 385 Hilton(R)
Knoxville (Central) TN 240 Holiday Inn
Nashville TN 296 Embassy Suites
Nashville (Opryland/Airport) TN 382 Holiday Inn Select
Austin (Airport-North) TX 260 50% Embassy Suites
Austin (Downtown) TX 189 90% Doubletree Guest Suites
Austin (Town Lake) TX 320 Holiday Inn
Corpus Christi TX 150 Embassy Suites
Dallas (Alpha Road) TX 114 Staybridge Suites
Dallas (Campbell Centre) TX 300 90% Doubletree
Dallas (DFW Airport-North - Irving) TX 506 Harvey(R) Hotel
Dallas (DFW Airport-North - Irving) TX 164 Harvey Suites(R)
Dallas (DFW Airport-South - Irving) TX 305 Embassy Suites
Dallas (Downtown-West End) TX 309 Hampton Inn
Dallas (Love Field) TX 248 Embassy Suites
Dallas (Market Center) TX 354 Crowne Plaza
Dallas (Market Center) TX 244 Embassy Suites
Dallas (Park Central) TX 295 Crowne Plaza Suites(R)
Dallas (Park Central) TX 279 Embassy Suites
Dallas (Park Central) TX 438 60% Sheraton
Dallas (Park Central) TX 536 60% Westin
Dallas (Regal Row) TX 204 50% Fairfield Inn
Houston (I-10 East) TX 160 50% Fairfield Inn
Houston (I-10 East) TX 90 50% Hampton Inn
Houston (I-10 West) TX 349 Holiday Inn Select
Houston (International Airport) TX 415 Holiday Inn
Houston (Medical Center) TX 293 Crowne Plaza
Houston (Medical Center) TX 284 Holiday Inn & Suites
Houston (Near Gateway Plaza) TX 355 Holiday Inn Select
</Table>
(a) 100% of real estate interests are owned by FelCor unless otherwise noted.
22
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO LISTING
<Table>
<Caption>
State Rooms % Owned (a) Brand
----- ----- ----------- -------------------------------
Houston (Near the Galleria) TX 209 50% Courtyard by Marriott
Houston (Near the Galleria) TX 107 50% Fairfield Inn
San Antonio (Airport) TX 261 50% Embassy Suites
San Antonio (Downtown) TX 315 Holiday Inn
San Antonio (International Airport) TX 397 Holiday Inn Select
San Antonio (Northwest) TX 216 50% Embassy Suites
Salt Lake City (Airport) UT 191 Holiday Inn
Vienna (Tysons Corner) VA 437 50% Sheraton Premiere
Burlington VT 309 Sheraton
Canada
Toronto (Airport) Ontario 445 Holiday Inn Select
Toronto (Yorkdale) Ontario 370 Holiday Inn
NON-STRATEGIC HOTELS
Texarkana (I-30) AR 210 Holiday Inn
Flagstaff AZ 119 Embassy Suites
Phoenix (Airport - 44th St) AZ 229 Embassy Suites
Avon (Beaver Creek Resort) CO 72 Independent
Moline (Airport) IL 216 Holiday Inn
Moline (Airport) IL 110 Holiday Inn Express
Davenport IA 279 Holiday Inn
Jackson (Downtown) MS 354 Crowne Plaza
Jackson (North) MS 222 Holiday Inn & Suites(R)
Omaha NE 187 Doubletree Guest Suites
Omaha (Southwest) NE 131 Hampton Inn
Omaha (Southwest) NE 78 Holiday Inn Express & Suites(R)
Syracuse NY 215 Embassy Suites
Columbus OH 194 Doubletree Guest Suites
Dayton OH 137 Doubletree Guest Suites
Greenville (Roper) SC 208 Crowne Plaza
Nashville (Airport)(b) TN 138 Doubletree Guest Suites
Addison (North Dallas) TX 429 Crowne Plaza
Amarillo (I-40) TX 248 Holiday Inn
Beaumont (Midtown I-10) TX 190 Holiday Inn
Dallas (Park Central) TX 313 Harvey Hotel
Midland (Country Villa) TX 250 Holiday Inn
Odessa (Centre) TX 186 Holiday Inn Express & Suites
Odessa (Parkway Blvd) TX 245 Holiday Inn & Suites
Plano TX 279 Harvey Hotel
Plano TX 160 Holiday Inn
Waco (I-35) TX 170 Holiday Inn
Canada
Cambridge Ontario 143 Holiday Inn
Kitchener (Waterloo) Ontario 182 Holiday Inn
Peterborough (Waterfront) Ontario 153 Holiday Inn
Sarnia Ontario 151 Holiday Inn
</Table>
(a) 100% of real estate interests are owned by FelCor unless otherwise noted.
(b) This hotel was sold in July 2003, and is treated as discontinued
operations for financial statement presentation.
23
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Six Months Ended June 30, 2003
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO LISTING
<Table>
<Caption>
State Rooms % Owned Brand
---------- ---------- ---------- ----------
UNCONSOLIDATED OPERATIONS
Great Bend KS 172 50% Holiday Inn
Hays KS 117 50% Hampton Inn
Hays KS 191 50% Holiday Inn
Salina KS 192 50% Holiday Inn
Salina (I-70) KS 93 50% Holiday Inn Express & Suites
New Orleans (Chateau LeMoyne) LA 171 50% Holiday Inn
</Table>
24