EXHIBIT 99.2
(FELCOR LODGING TRUST LOGO)
FELCOR LODGING TRUST INCORPORATED
SUPPLEMENTAL INFORMATION
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2003
Date of Issuance October 29, 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 Nine Months Ended September 30, 2003
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
Discontinued Operations 8
Reconciliation of Net Loss to FFO 9
Reconciliation of Net Loss to EBITDA 10
Selected Operating Data 11
Hotel Operating Expense Composition 11
Debt Summary 12
PORTFOLIO DATA
Portfolio Distribution 14
Detailed Operating Statistics by Brand 15
Detailed Operating Statistics for FelCor's Top Markets 16
Other Performance Statistics 17
Hotel Portfolio Information 18
Hotel Portfolio Listing 21
</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 Nine Months Ended September 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 October 29, 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 163 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 of these hotels. FelCor also owns 50 percent
joint venture interests in the operating lessees of five hotels whose operations
are accounted for using the equity method. FelCor owns 71 full service,
all-suite hotels, and is the largest owner of Embassy Suites Hotels(R) and
Doubletree Guest Suites(R) hotels. FelCor's portfolio also includes 79 hotels in
the upscale and full service segments. The Company's hotels are located in 34
states and Canada. FelCor had a market capitalization of approximately $3.0
billion at September 30, 2003.
STRATEGY
FelCor's hotels are managed by strategic brand managers such as Hilton Hotels
Corporation, 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
<Table>
<Caption>
Senior Unsecured Debt Preferred Stock
--------------------- ---------------
Moody's B1 B3
Standard & Poors B CCC+
</Table>
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
66
CORPORATE HEADQUARTERS
545 E. John Carpenter Frwy., Suite 1300
Irving, TX 75062
(972) 444-4900
<Table>
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
sschafer@felcor.com mhildebrand@felcor.com
</Table>
INFORMATION REQUEST
information@felcor.com
3
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 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 Nine Months Ended September 30, 2003
EQUITY RESEARCH COVERAGE
<Table>
<Caption>
Firm Analyst Telephone
- ---- ------- ---------
A.G. Edwards & Sons Art Havener (314) 955-3588
Bear Stearns Mark Abramson (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 Nine Months Ended September 30, 2003
FINANCIAL HIGHLIGHTS
SUPPLEMENTAL FINANCIAL DATA
(IN THOUSANDS, EXCEPT PER SHARE INFORMATION, RATIOS AND PERCENTAGES)
<Table>
<Caption>
September 30, December 31,
ENTERPRISE VALUE 2003 2002
- ---------------- ------------ ------------
Common shares outstanding 59,084 58,767
Units not held by FelCor 3,054 3,290
------------ ------------
Combined shares and units 62,138 62,057
Common stock price at end of period $ 10.36 $ 11.44
------------ ------------
Common equity capitalization $ 643,750 $ 709,932
------------ ------------
Series A preferred stock outstanding 5,980 5,980
Series A preferred stock price at end of period $ 22.84 $ 20.85
------------ ------------
$ 136,583 $ 124,683
------------ ------------
Series B preferred stock outstanding 6,776 6,776
Series B preferred stock price at end of period $ 24.61 $ 24.60
------------ ------------
$ 166,757 $ 166,689
Consolidated debt 2,041,284 1,877,134
------------ ------------
Total enterprise value $ 2,988,374 $ 2,878,438
============ ============
DIVIDENDS PER SHARE
Common dividends declared, trailing 12 months $ 0.15 $ 0.60
Dividends declared (quarter ended):
Common $ -- $ 0.15
Series A preferred stock 0.4875 0.4875
Series B preferred stock 0.5625 0.5625
SELECTED BALANCE SHEET DATA
Investment in hotels at cost(b) $ 4,598,500 $ 4,661,520
Total cash and cash equivalents 175,983 66,542
Total assets 3,760,625 3,780,363
Total debt 2,041,284 1,877,134
Total stockholders' equity 1,446,192 1,616,817
Total stockholders equity less preferred equity 1,127,285 1,297,910
Book value per common share outstanding 19.07 22.08
SELECTED RATIOS(a)
Consolidated debt (net of cash) to trailing 12 month adjusted EBITDA 7.4x 5.9x
Total debt (net of cash) to trailing 12 month adjusted EBITDA
adjusted 7.9x 6.4x
Total debt (net of cash) to investment in hotels, at cost(b) 43.4% 41.8%
Adjusted EBITDA to consolidated interest paid(c) 1.6x 1.9x
Adjusted EBITDA to total interest expense(d) 1.4x 1.7x
Fixed charge coverage ratio(e) 1.3x 1.5x
</Table>
(a) The foregoing ratios are computed utilizing adjusted EBITDA for the
trailing 12-month period. Solely for the purpose of computing these
ratios, EBITDA has been adjusted to remove the effects of non-cash
items deducted from net income (loss) in computing cash flow from
operations in accordance with GAAP, such as impairment charges,
write-offs of capitalized loan costs and costs related to abandoned
projects, and gains or losses from the early extinguishment of debt.
Management, analysts and investors have traditionally utilized EBITDA,
as so adjusted, in computing these ratios. The ratios are used only as
indicators of a company's ability to pay debt and should not be
considered as a substitute for cash flow, computed in accordance with
GAAP, as a measure of liquidity. Since there is no financial
information otherwise presented for the 12-month period, there is no
published GAAP measure to which adjusted EBITDA can be reconciled.
(b) Investment in hotels at cost is defined as consolidated investment in
hotels before accumulated depreciation, plus our pro rata share of
unconsolidated investment in hotels before accumulated depreciation.
(c) Adjusted EBITDA to consolidated interest paid represents trailing 12
month consolidated adjusted EBITDA divided by trailing 12 month
interest expense before capitalized interest and amortization of debt
costs.
(d) Adjusted EBITDA to total interest expense represents trailing 12 month
consolidated adjusted EBITDA divided by trailing 12 month interest
expense including the Company's pro rata share of unconsolidated
interest expense.
(e) Fixed charges include preferred dividends, consolidated interest
expense and interest expense from unconsolidated entities.
6
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2003
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<Table>
<Caption>
THREE MONTHS NINE MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
-------------------------- ---------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
REVENUES:
Hotel operating revenue:
Room $ 251,243 $ 253,717 $ 731,205 $ 765,538
Food and beverage 44,570 45,030 140,042 146,792
Other operating departments 16,517 17,291 48,673 49,865
Retail space rental and other revenue 256 353 875 1,451
---------- ---------- ---------- ----------
Total revenues 312,586 316,391 920,795 963,646
---------- ---------- ---------- ----------
EXPENSES:
Hotel departmental expenses:
Room 68,462 66,106 192,776 191,368
Food and beverage 37,265 37,523 112,384 115,167
Other operating departments 8,149 8,161 23,039 22,731
Other property related costs 92,106 87,877 267,998 258,220
Management and franchise fees 16,752 16,421 48,476 48,860
Taxes, insurance and lease expense 33,231 32,044 97,369 98,325
Abandoned projects -- 1,663 -- 1,663
Corporate expenses 3,299 2,577 10,459 10,293
Depreciation 34,725 36,044 104,898 109,491
---------- ---------- ---------- ----------
Total operating expenses 293,989 288,416 857,399 856,118
---------- ---------- ---------- ----------
OPERATING INCOME 18,597 27,975 63,396 107,528
Interest expense, net (42,285) (40,528) (123,359) (122,736)
Charge-off of debt related costs -- -- (2,834) --
Gain on early extinguishment of debt -- -- 1,260 --
Impairment loss (107,720) -- (107,720) --
---------- ---------- ---------- ----------
LOSS BEFORE EQUITY IN INCOME FROM
UNCONSOLIDATED ENTITIES, MINORITY INTERESTS AND
GAIN (LOSS) ON SALE OF ASSETS (131,408) (12,553) (169,257) (15,208)
Equity in income from unconsolidated entities 1,674 1,230 2,252 3,816
Gain (loss) on sale of assets (47) -- 106 5,861
Minority interests 7,388 3,285 9,945 2,991
---------- ---------- ---------- ----------
LOSS FROM CONTINUING OPERATIONS (122,393) (8,038) (156,954) (2,540)
Discontinued operations (3,524) 957 (10,257) 2,315
---------- ---------- ---------- ----------
NET LOSS (125,917) (7,081) (167,211) (225)
Preferred dividends (6,727) (6,727) (20,181) (19,565)
---------- ---------- ---------- ----------
NET LOSS APPLICABLE TO COMMON STOCKHOLDERS $ (132,644) $ (13,808) $ (187,392) $ (19,790)
========== ========== ========== ==========
Basic per common share data:
Net loss from continuing operations $ (2.20) $ (0.28) $ (3.02) $ (0.42)
========== ========== ========== ==========
Net loss $ (2.26) $ (0.26) $ (3.20) $ (0.38)
========== ========== ========== ==========
Weighted average common shares outstanding 58,690 52,729 58,609 52,724
Diluted per common share data:
Net loss from continuing operations $ (2.20) $ (0.28) $ (3.02) $ (0.42)
========== ========== ========== ==========
Net loss $ (2.26) $ (0.26) $ (3.20) $ (0.38)
========== ========== ========== ==========
Weighted average common shares outstanding 58,690 52,729 58,609 52,724
</Table>
7
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2003
DISCONTINUED OPERATIONS
(IN THOUSANDS)
Condensed financial information for the 15 hotels classified in discontinued
operations is as follows:
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- --------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Hotel operating revenue $ 13,002 $ 15,192 $ 40,677 $ 44,472
Hotel operating expenses 11,683 13,807 37,693 40,955
---------- ---------- ---------- ----------
Operating income 1,319 1,385 2,984 3,517
Direct interest costs -- (266) (445) (809)
Impairment loss (4,982) -- (12,806) --
Gain on the early extinguishment of debt 351 -- 351 --
Loss on disposition (399) -- (882) --
Minority interest 187 (162) 541 (393)
---------- ---------- ---------- ----------
Income (loss) from discontinued operations $ (3,524) $ 957 $ (10,257) $ 2,315
========== ========== ========== ==========
</Table>
8
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2003
RECONCILIATION OF NET LOSS TO FFO
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<Table>
<Caption>
THREE MONTHS ENDED SEPTEMBER 30,
-----------------------------------------------------------------------------------
2003 2002
--------------------------------------- ---------------------------------------
PER SHARE PER SHARE
DOLLARS SHARES AMOUNT DOLLARS SHARES AMOUNT
---------- ---------- ---------- ---------- ---------- ----------
NET LOSS $ (125,917) 58,690 $ (2.15) $ (7,081) 52,729 $ (0.13)
Depreciation from continuing operations 34,725 -- 0.59 36,044 -- 0.68
Depreciation from unconsolidated
entities and discontinued operations 3,228 -- 0.06 4,709 -- 0.09
(Gain) loss on sale of assets 446 -- 0.01 -- -- --
Preferred dividends (6,727) -- (0.11) (6,727) -- (0.13)
Minority interest in FelCor LP. (7,015) 3,161 (0.03) (2,344) 9,003 (0.11)
Conversion of options and unvested
restricted stock -- 303 -- -- 324 --
---------- ---------- ---------- ---------- ---------- ----------
FFO $ (101,260) 62,154 $ (1.63) $ 24,601 62,056 $ 0.40
========== ========== ========== ========== ========== ==========
</Table>
<Table>
<Caption>
NINE MONTHS ENDED SEPTEMBER 30,
----------------------------------------------------------------------------------
2003 2002
--------------------------------------- ---------------------------------------
PER SHARE PER SHARE
DOLLARS SHARES AMOUNT DOLLARS SHARES AMOUNT
---------- ---------- ---------- ---------- ---------- ----------
NET LOSS $ (167,211) 58,609 $ (2.85) $ (225) 52,724 $ --
Depreciation from continuing operations 104,898 -- 1.79 109,491 -- 2.08
Depreciation from unconsolidated
entities and discontinued operations 11,947 -- 0.20 13,341 -- 0.25
(Gain) loss on sale of assets 776 -- 0.01 (5,861) -- (0.11)
Preferred dividends (20,181) -- (0.34) (19,565) -- (0.37)
Minority interest in FelCor LP. (10,065) 3,234 (0.09) (3,359) 9,004 (0.34)
Conversion of options and unvested
restricted stock -- 303 -- -- 349 --
---------- ---------- ---------- ---------- ---------- ----------
FFO $ (79,836) 62,146 $ (1.28) $ 93,822 62,077 $ 1.51
========== ========== ========== ========== ========== ==========
</Table>
Consistent with recently clarified SEC guidance, FFO has not been adjusted for
the following amounts included in net loss (in thousands):
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- --------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Impairment loss $ (112,702) $ -- $ (120,526) $ --
Charge off of deferred debt costs -- -- (2,834) --
Gain on early extinguishment of debt 351 -- 1,611 --
Abandoned projects -- (1,663) -- (1,663)
---------- ---------- ---------- ----------
$ (112,351) $ (1,663) $ (121,749) $ (1,663)
========== ========== ========== ==========
Per share amounts $ (1.81) $ (0.03) $ (1.96) $ (0.03)
========== ========== ========== ==========
</Table>
9
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2003
RECONCILIATION OF NET LOSS TO EBITDA
(in thousands)
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- --------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
NET LOSS $ (125,917) $ (7,081) $ (167,211) $ (225)
Depreciation from continuing operations 34,725 36,044 104,898 109,491
Depreciation from unconsolidated entities and
discontinued operations 3,228 4,709 11,947 13,341
Loss (gain) on sale of assets 446 -- 776 (5,861)
Minority interest in FelCor Lodging LP. (7,015) (2,344) (10,065) (3,359)
Interest expense 42,777 41,073 124,780 124,488
Interest expense from unconsolidated entities and
discontinued operations 1,378 2,529 6,199 7,804
Amortization expense 565 526 1,645 1,561
---------- ---------- ---------- ----------
EBITDA $ (49,813) $ 75,456 $ 72,969 $ 247,240
========== ========== ========== ==========
</Table>
Consistent with recently clarified SEC guidance, EBITDA has not been adjusted
for the following amounts included in net loss (in thousands):
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- --------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Impairment loss $ (112,702) $ -- $ (120,526) $ --
Charge-off of deferred debt costs -- -- (2,834) --
Gain on early extinguishment of debt 351 -- 1,611 --
Abandoned projects -- (1,663) -- (1,663)
---------- ---------- ---------- ----------
$ (112,351) $ (1,663) $ (121,749) $ (1,663)
========== ========== ========== ==========
</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 Funds From
Operations, or FFO, and Earnings Before Interest, Taxes, Depreciation, and
Amortization, or EBITDA, 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.
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
supplemental 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.
FFO and EBITDA should not be considered as an alternative to net
income, operating profit, cash flow from operations, or any other operating
performance measure prescribed by GAAP. Neither should FFO, FFO per share and
EBITDA be considered as a measure 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 stockholders' benefit.
10
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2003
SELECTED OPERATING DATA
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
THREE MONTHS NINE MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
--------------------------- ---------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Total revenue $ 312,586 $ 316,391 $ 920,795 $ 963,646
Retail space rental and other revenue (256) (353) (875) (1,451)
---------- ---------- ---------- ----------
Hotel revenue 312,330 316,038 919,920 962,195
Hotel operating expenses (222,734) (216,088) (644,673) (636,346)
---------- ---------- ---------- ----------
Hotel operating margin $ 89,596 $ 99,950 $ 275,247 $ 325,849
========== ========== ========== ==========
Operating margin 28.7% 31.6% 29.9% 33.9%
Corporate expenses 3,299 2,577 10,459 10,293
Corporate expenses as a percentage of total revenues 1.1% 0.8% 1.1% 1.1%
</Table>
HOTEL OPERATING EXPENSE COMPOSITION
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
THREE MONTHS ENDED SEPTEMBER 30,
-------------------------------------------------------
2003 2002
------------------------- -------------------------
Hotel departmental expenses:
Room $ 68,462 30.7% $ 66,106 30.6%
Food and beverage 37,265 16.7 37,523 17.4
Other operating departments 8,149 3.7 8,161 3.8
Other property related costs:
Administrative and general 29,131 13.1 28,643 13.2
Marketing and advertising 27,008 12.1 25,681 11.9
Repairs and maintenance 17,725 8.0 16,851 7.8
Energy 18,242 8.2 16,702 7.7
---------- ---------- ---------- ----------
Total other property related costs 92,106 41.4 87,877 40.6
Management and franchise fees 16,752 7.5 16,421 7.6
---------- ---------- ---------- ----------
Hotel operating expenses $ 222,734 100.0% $ 216,088 100.0%
========== ========== ========== ==========
Supplemental information:
Compensation and benefits expense
(included in hotel operating expenses) $ 102,515 $ 98,439
========== ==========
Reconciliation of hotel operating expense to total operating expense:
Total operating expenses $ 293,989 $ 288,416
Taxes, insurance and lease expense (33,231) (32,044)
Abandoned projects -- (1,663)
Corporate expenses (3,299) (2,577)
Depreciation (34,725) (36,044)
---------- ----------
Hotel operating expenses $ 223,734 $ 216,088
========== ==========
<Caption>
NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------------------------------
2003 2002
------------------------- -------------------------
Hotel departmental expenses:
Room $ 192,776 29.9% $ 191,368 30.1%
Food and beverage 112,384 17.4 115,167 18.1
Other operating departments 23,039 3.6 22,731 3.6
Other property related costs:
Administrative and general 88,612 13.7 88,171 13.9
Marketing and advertising 79,026 12.3 76,597 12.0
Repairs and maintenance 51,574 8.0 49,141 7.7
Energy 48,786 7.6 44,311 7.0
---------- ---------- ---------- ----------
Total other property related costs 267,998 41.6 258,220 40.6
Management and franchise fees 48,476 7.5 48,860 7.6
---------- ---------- ---------- ----------
Hotel operating expenses $ 644,673 100.0% $ 636,346 100.0%
========== ========== ========== ==========
Supplemental information:
Compensation and benefits expense
(included in hotel operating expenses) $ 299,991 $ 294,664
========== ==========
Reconciliation of hotel operating expense to total operating expense:
Total operating expenses $ 857,399 $ 856,118
Taxes, insurance and lease expense (97,369) (98,325)
Abandoned projects -- (1,663)
Corporate expenses (10,459) (10,293)
Depreciation (104,898) (109,491)
---------- ----------
Hotel operating expenses $ 644,673 $ 636,346
</Table>
11
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2003
DEBT SUMMARY
(DOLLARS IN THOUSANDS)
Debt Outstanding
<Table>
<Caption>
Encumbered Interest Rate At Maturity
Hotels September 30, 2003 Date Balance
----------- ------------------ ------------- ----------
Unsecured line of credit none 4.37% October 2004 $ --
Promissory note none 3.12 June 2016 650
Senior unsecured term notes none 4.33(a) Oct. 2004 174,856
Senior unsecured term notes none 5.16(b) Oct. 2007 124,592
Senior unsecured term notes none 10.00 Sept. 2008 596,697
Senior unsecured term notes none 9.00 June 2011 298,095
---------- ----------
Total unsecured debt 8.41 1,194,890
---------- ----------
Secured debt facility 14 hotels -- December 2004 --
Mortgage debt 10 hotels 3.62 May 2006 148,914
Mortgage debt 15 hotels 7.24 Nov. 2007 132,503
Mortgage debt 7 hotels 7.54 April 2009 92,917
Mortgage debt 6 hotels 7.55 June 2009 69,919
Mortgage debt 8 hotels 8.70 May 2010 178,758
Mortgage debt 7 hotels 8.73 May 2010 138,746
Mortgage debt 2 hotels 7.16 2005-2008 27,474
Mortgage debt 8 hotels 7.48 April 2011 50,507
Other 1 hotel 9.17 August 2011 6,656
----------- ---------- ----------
Total secured debt 78 hotels 7.24 846,394
=========== ---------- ----------
Total 7.93% $2,041,284
==========
</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 403 basis points.
Our fixed to floating interest rate swaps reduced interest expense for the
quarter by $1.9 million and reduced interest expense for the nine months ended
September 30, 2003 by $5.2 million.
<Table>
Fixed interest rate debt to total debt 77.2%
Weighted average maturity of debt 5.1 years
Secured debt to total assets 22.5%
</Table>
At September 30, 2003, future scheduled debt principal payments are as follows
(in thousands):
<Table>
<Caption>
Secured Unsecured
Year Debt Debt Total
------------ ------------ ------------
2003 $ 5,003 $ -- $ 5,003
2004 17,253 175,000 192,253
2005 27,322 -- 27,322
2006 156,094(a) -- 156,094
2007 134,123 125,000 259,123
2008 and thereafter 505,282 900,650 1,405,932
Premium/(discount) 1,316 (5,759) (4,443)
------------ ------------ ------------
Total debt $ 846,393 $ 1,194,891 $ 2,041,284
============ ============ ============
</Table>
(a) Included is a $150 million non-recourse mortgage loan maturing in
2006, with two, one-year extension options.
12
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2003
DEBT SUMMARY (CONTINUED)
At September 30, 2003, we had unconsolidated 50 percent investments in
ventures that owned an aggregate of 20 hotels. These ventures had approximately
$214 million of non-recourse mortgage debt, all of which is secured by hotel
assets. Our pro rata share of this non-recourse debt is $107 million.
Additionally, one joint venture had a full recourse loan for a residential
condominium development. Our pro rata share of this recourse loan was $22.5
million at September 30, 2003.
FINANCING TRANSACTIONS IN 2003:
In June 2003, we entered into a new secured debt delayed draw facility
with JPMorgan Chase Bank for up to $200 million. As of the date of this release,
there have been no borrowings under this facility and we have $176 million of
borrowing capacity based on the underwritten cash flows of the 14 hotels
currently securing this facility. 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 reduced our unsecured line of credit commitments to
$50 million, and amended covenant levels. As a result of the reduction in
commitments, we recorded a $2.8 million charge-off of debt related costs in the
second quarter of 2003.
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 then 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.
13
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2003
PORTFOLIO DATA
PORTFOLIO DISTRIBUTION
(172 CONSOLIDATED HOTELS, SAME STORE BASIS)
<Table>
<Caption>
Brand Hotels Rooms % of Total Rooms % of 2002 EBITDA
- ----- ------ ----- ---------------- ----------------
Embassy Suites 59 14,842 32% 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 12 2,537 5 6
Other 20 4,252 9 7
</Table>
<Table>
<Caption>
Top Markets Hotels Rooms % of Total Rooms % of 2002 EBITDA
- ----------- ------ ----- ---------------- ----------------
Atlanta 12 3,514 8% 8%
Dallas 16 4,885 10 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 39 10,544 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 19,443 42% 40%
Urban 35 11,252 24 26
Airport 32 9,435 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 85 21,815 47% 53%
Full service 53 16,494 35 26
Upscale 21 6,491 14 19
Limited service 13 2,080 4 2
</Table>
<Table>
<Caption>
Hotels Rooms % of Total Rooms % of 2002 EBITDA
------ ----- ---------------- ----------------
Non-Strategic Hotels 39 8,918 19% 8%
</Table>
14
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2003
DETAILED OPERATING STATISTICS BY BRAND
(172 CONSOLIDATED HOTELS, SAME STORE BASIS)
<Table>
<Caption>
Occupancy (%)
----------------------------------------------------------------------
Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------- ---------------------------------
2003 2002 % Variance 2003 2002 % Variance
-------- -------- ---------- -------- -------- ----------
Embassy Suites Hotels 69.7 69.7 0.0 68.6 68.8 (0.2)
Holiday Inn-branded hotels 65.4 65.5 (0.1) 62.5 63.6 (1.7)
Crowne Plaza hotels 57.9 60.0 (3.6) 57.2 60.0 (4.6)
Doubletree-branded hotels 68.8 68.5 0.4 67.6 66.3 1.9
Sheraton-branded hotels 61.5 59.2 4.0 60.3 59.1 2.0
Other hotels 61.3 57.9 5.8 58.6 58.9 (0.5)
Total hotels 65.3 65.2 0.3 63.5 64.2 (1.0)
</Table>
<Table>
<Caption>
ADR ($)
----------------------------------------------------------------------
Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------- ---------------------------------
2003 2002 % Variance 2003 2002 % Variance
-------- -------- ---------- -------- -------- ----------
Embassy Suites Hotels 112.98 115.59 (2.3) 115.61 119.89 (3.6)
Holiday Inn-branded hotels 77.05 79.98 (3.7) 77.33 80.94 (4.5)
Crowne Plaza hotels 87.97 89.64 (1.9) 89.37 93.92 (4.8)
Doubletree-branded hotels 96.96 96.26 0.7 100.40 102.08 (1.7)
Sheraton-branded hotels 91.91 96.20 (4.5) 94.79 101.51 (6.6)
Other hotels 78.56 80.84 (2.8) 80.50 84.23 (4.4)
Total hotels 92.64 95.19 (2.7) 94.54 98.47 (4.0)
</Table>
<Table>
<Caption>
RevPAR ($)
----------------------------------------------------------------------
Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------- ---------------------------------
2003 2002 % Variance 2003 2002 % Variance
-------- -------- ---------- -------- -------- ----------
Embassy Suites Hotels 78.70 80.55 (2.3) 79.32 82.44 (3.8)
Holiday Inn-branded hotels 50.41 52.37 (3.7) 48.36 51.48 (6.1)
Crowne Plaza hotels 50.93 53.82 (5.4) 51.15 56.36 (9.3)
Doubletree-branded hotels 66.69 65.95 1.1 67.83 67.71 0.2
Sheraton-branded hotels 56.56 56.94 (0.7) 57.12 59.95 (4.7)
Other hotels 48.13 46.82 2.8 47.19 49.64 (4.9)
Total hotels 60.54 62.02 (2.4) 60.08 63.20 (4.9)
</Table>
15
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2003
DETAILED OPERATING STATISTICS FOR FELCOR'S TOP MARKETS
(172 CONSOLIDATED HOTELS, SAME STORE BASIS)
<Table>
<Caption>
Occupancy (%)
----------------------------------------------------------------------
Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------- ---------------------------------
2003 2002 % Variance 2003 2002 % Variance
-------- -------- ---------- -------- -------- ----------
Atlanta 69.9 69.3 0.9 66.7 68.5 (2.7)
Dallas 48.4 47.6 1.7 49.0 51.1 (4.0)
San Francisco Bay Area 72.9 74.6 (2.3) 65.9 67.0 (1.7)
Orlando 69.3 64.6 7.3 69.8 68.4 2.1
Houston 63.9 61.3 4.3 64.0 65.5 (2.3)
New Orleans 60.0 59.5 0.9 65.0 68.8 (5.5)
Philadelphia 65.7 63.3 3.8 61.8 63.0 (1.9)
Phoenix 55.0 53.3 3.2 67.3 60.8 10.7
Minneapolis 75.1 78.6 (4.5) 66.3 68.5 (3.2)
Chicago 75.3 67.6 11.4 68.7 63.5 8.2
</Table>
<Table>
<Caption>
ADR ($)
----------------------------------------------------------------------
Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------- ---------------------------------
2003 2002 % Variance 2003 2002 % Variance
-------- -------- ---------- -------- -------- ----------
Atlanta 83.31 85.49 (2.6) 85.52 90.06 (5.0)
Dallas 80.77 85.47 (5.5) 83.40 90.00 (7.3)
San Francisco Bay Area 110.46 114.94 (3.9) 109.13 118.65 (8.0)
Orlando 65.98 69.17 (4.6) 74.25 79.45 (6.6)
Houston 68.47 72.12 (5.1) 71.45 74.33 (3.9)
New Orleans 106.25 108.55 (2.1) 131.24 137.00 (4.2)
Philadelphia 105.55 109.29 (3.4) 105.27 116.68 (9.8)
Phoenix 80.18 82.89 (3.3) 98.33 107.67 (8.7)
Minneapolis 125.02 128.98 (3.1) 123.01 125.84 (2.2)
Chicago 108.78 119.83 (9.2) 108.52 119.98 (9.6)
</Table>
<Table>
<Caption>
RevPAR ($)
----------------------------------------------------------------------
Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------- ---------------------------------
2003 2002 % Variance 2003 2002 % Variance
-------- -------- ---------- -------- -------- ----------
Atlanta 58.26 59.25 (1.7) 57.03 61.74 (7.6)
Dallas 39.07 40.65 (3.9) 40.87 45.96 (11.1)
San Francisco Bay Area 80.53 85.79 (6.1) 71.91 79.55 (9.6)
Orlando 45.71 44.67 2.3 51.83 54.34 (4.6)
Houston 43.77 44.21 (1.0) 45.77 48.71 (6.0)
New Orleans 63.74 64.55 (1.3) 85.37 94.28 (9.5)
Philadelphia 69.35 69.17 0.3 65.08 73.51 (11.5)
Phoenix 44.12 44.20 (0.2) 66.20 65.49 1.1
Minneapolis 93.86 101.38 (7.4) 81.58 86.21 (5.4)
Chicago 81.90 80.98 1.1 74.60 76.24 (2.2)
</Table>
16
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2003
OTHER PERFORMANCE STATISTICS
(CONSOLIDATED HOTELS, SAME STORE BASIS)
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 (2.2) (4.0) (6.1)
First Quarter 2003 (1.2) (4.1) (5.3)
April (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)
July 2.3 (3.0) (0.8)
August (0.8) (3.3) (4.0)
September (0.2) (2.5) (2.7)
Third Quarter 2003 0.3 (2.7) (2.4)
First 28 days of October 2003 1.1 (3.7) (2.7)
</Table>
17
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2003
HOTEL PORTFOLIO INFORMATION
PRO RATA SHARE OF ROOMS OWNED
<Table>
<Caption>
Room Count at
Hotels September 30, 2003
---------- ----------------------
Consolidated hotel operations 172 46,880
Unconsolidated hotel operations 5 764
---------- ----------------------
Total hotels 177 47,644
----------------------
50% joint ventures 28 (3,048)
60% joint ventures 2 (390)
90% joint ventures 6 (148)
97% joint venture 1 (10)
----------------------
Total joint venture owned rooms (3,596)
----------------------
Pro rata share of rooms owned 44,048
======================
</Table>
CAPITAL EXPENDITURES (DOLLARS IN THOUSANDS)
<Table>
<Caption>
Three Months Ended Nine Months Ended Year Ended
September 30, 2003 September 30, 2003 December 31, 2002
-------------------- -------------------- --------------------
Consolidated hotels:
Improvements and additions to hotels $ 9,763 $ 51,769 $ 62,518
% of total revenue 3.1% 5.6% 4.7%
Unconsolidated hotels (pro rata share):
Improvements and additions to hotels(a) $ 185 $ 3,517 $ 8,580
% of total revenue 2.1% 11.6% 10.5%
</Table>
(a) Excludes $7.1 and $16.5 million of our pro rata capital
expenditures during the three and nine months ended September 30, 2003,
respectively, incurred by our joint venture for construction of a residential
condominium project. The funds for this project are funded by secured debt.
18
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2003
HOTEL PORTFOLIO INFORMATION
NON-STRATEGIC HOTELS
In December 2002, FelCor identified 33 non-strategic hotels for potential sale
over the next 36 months. These hotels were, generally smaller hotels in
secondary and tertiary markets, and certain hotels in Texas and, specifically,
Dallas. Through September 30, 2003, FelCor had disposed of five of these hotels,
and nine hotels were subsequently sold in October 2003.
During the third quarter, the Company executed an amendment to its
management agreement with IHG that provides FelCor with greater flexibility to
sell additional hotels and paydown debt. During the third quarter of 2003, the
Company identified 11 additional hotels as non-strategic and currently intends
to sell these hotels within the next 36 months. These hotels are
under-performing and generally in markets that no longer meet our long-term
investment strategy.
At October 29, 2003, the composition by brand of the 30 hotels that
have been identified as non-strategic, is as follows: Holiday Inn-branded (21),
Crowne Plaza (4), other brands (4) and one independent hotel.
Operating statistics for FelCor's Consolidated Portfolio:
<Table>
<Caption>
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------------- --------------------------------------
2003 2002 % Variance 2003 2002 % Variance
---------- ---------- ---------- ---------- ---------- ----------
Consolidated (172 hotels)
Occupancy (%) 65.3 65.2 0.3 63.5 64.2 (1.0)
ADR ($) 92.64 95.19 (2.7) 94.54 98.47 (4.0)
RevPAR ($) 60.54 62.02 (2.4) 60.08 63.20 (4.9)
Non-Strategic Hotels (39 hotels, includes 9 hotels sold in October 2003)
Occupancy (%) 60.7 61.7 (1.5) 57.4 57.8 (0.8)
ADR ($) 71.44 72.61 (1.6) 72.32 75.04 (3.6)
RevPAR ($) 43.39 44.78 (3.1) 41.49 43.39 (4.4)
Core Hotels (133 hotels)
Occupancy (%) 66.4 66.0 0.7 65.0 65.7 (1.0)
ADR ($) 97.20 100.15 (2.9) 99.15 103.31 (4.0)
RevPAR ($) 64.56 66.07 (2.3) 64.44 67.86 (5.0)
</Table>
For the nine months ended September 30, 2003, the operating margins for the Core
Hotels were 30.5%, while the operating margins for the Non-Strategic Hotels were
20.4%.
PORTFOLIO CHANGES IN 2003
o Dispositions -Through the date of this release, FelCor has sold 12 hotels
and two parking garages in 2003, for gross sales proceeds of $105 million.
o In October 2003, FelCor sold four Holiday Inn-branded hotels in
Ontario, Canada for gross proceeds of $32 million; five hotels
(including Embassy Suites Hotels in Syracuse, NY, Phoenix, AZ, and
Flagstaff, AZ, and Doubletree Guest Suites(R) hotels in Columbus, OH
and Dayton, OH) for gross proceeds of $50 million; and a parking
garage in Philadelphia for gross proceeds of $7 million.
o In the third quarter of 2003, FelCor sold the Doubletree Guest Suites
in Nashville, TN, for gross proceeds of $3 million.
19
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2003
HOTEL PORTFOLIO INFORMATION
o In the third quarter of 2003, FelCor disposed of the two low rise
Harvey(R) hotels in Dallas, TX and Plano, TX by relinquishing title to
these hotels through a foreclosure auction.
o In the second quarter of 2003, FelCor sold two Hampton Inn(R) hotels
(one in Davenport, IA and one in Moline, IL) for gross proceeds of $7
million.
o In the second quarter of 2003, FelCor sold a parking garage in San
Francisco, CA for gross proceeds of $6 million.
o Conversions:
o In March, FelCor converted an independent, all-suite hotel in Dallas
to a Staybridge Suites(R) 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.
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 hotel in Boca Raton, Florida, for net proceeds of $6.5
million.
o Hotel Acquisitions:
o Purchased the 208-room SouthPark Suites(R) hotel 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 acquired a
leasehold interest in the Acadian Shores Golf Club in Myrtle Beach,
South Carolina, in July 2002. This hotel was converted to a Hilton(R)
hotel in April 2003.
20
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 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
Orlando (International Drive Resort) FL 652 Holiday Inn
Orlando (North) FL 277 Embassy Suites
Orlando (South) FL 244 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 Nine Months Ended September 30, 2003
HOTEL PORTFOLIO LISTING
<Table>
<Caption>
State Rooms % Owned (a) Brand
----- ----- ----------- -----
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
Raleigh NC 203 Doubletree Guest Suites
Omaha (Central) NE 131 Hampton Inn
Omaha (I-80) NE 383 Holiday Inn
</Table>
(a) 100% of real estate interests are owned by FelCor unless otherwise
noted.
22
HOTEL PORTFOLIO LISTING
<Table>
<Caption>
State Rooms % Owned (a) Brand
----- ----- ----------- -----
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
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 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
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
</Table>
(a) 100% of real estate interests are owned by FelCor unless otherwise
noted.
23
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2003
HOTEL PORTFOLIO LISTING
<Table>
<Caption>
State Rooms % Owned (a) Brand
----- ----- ----------- -----
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 IDENTIFIED IN DECEMBER 2002
Texarkana (I-30) AR 210 Holiday Inn
Flagstaff(b) AZ 119 Embassy Suites
Phoenix (Airport - 44th St) (b) 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(b) NY 215 Embassy Suites
Columbus(b) OH 194 Doubletree Guest Suites
Dayton(b) OH 137 Doubletree Guest Suites
Greenville (Roper)(c) SC 208 Crowne Plaza
Addison (North Dallas) TX 429 Crowne Plaza
Amarillo (I-40) TX 248 Holiday Inn
Beaumont (Midtown I-10) TX 190 Holiday Inn
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 160 Holiday Inn
Waco (I-35) TX 170 Holiday Inn
Canada
Cambridge(b) Ontario 143 Holiday Inn
Kitchener (Waterloo)(b) Ontario 182 Holiday Inn
Peterborough (Waterfront) (b) Ontario 153 Holiday Inn
Sarnia(b) Ontario 151 Holiday Inn
</Table>
(a) 100% of real estate interests are owned by FelCor unless otherwise
noted.
(b) This hotel was sold in October 2003, and is treated as discontinued
operations for financial statement presentation.
(c) This hotel is expected to be sold in October 2003 and is treated as
discontinued operations for financial statement presentation.
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FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2003
HOTEL PORTFOLIO LISTING
<Table>
<Caption>
State Rooms % Owned (a) Brand
----- ----- ----------- -----
UNCONSOLIDATED OPERATIONS
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>
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