Exhibit 99.2
- --------------------------------------------------------------------------------
[FELCOR LODGING TRUST LOGO]
FELCOR LODGING TRUST INCORPORATED
SUPPLEMENTAL INFORMATION
THREE MONTHS AND YEAR ENDED DECEMBER 31, 2003
Date of Issuance February 4, 2004
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 Months and Year Ended December 31, 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 13
PORTFOLIO DATA
Portfolio Distribution 15
Detailed Operating Statistics by Brand 16
Detailed Operating Statistics for FelCor's Top Markets 17
Other Performance Statistics 18
Hotel Portfolio Information 19
Hotel Portfolio Listing 22
</Table>
With the exception of historical information, the matters discussed in this
supplement include "forward looking statements" within the meaning of the
federal securities laws. Forward looking statements are not guarantees of future
performance. Numerous risks and uncertainties, and the occurrence of future
events, may cause actual results to differ materially from those currently
anticipated. General economic conditions, including the timing and magnitude of
the currently expected recovery in the economy, the realization of anticipated
job growth, 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 Months and Year Ended December 31, 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 February 4, 2004, FelCor was the nation's second largest lodging
REIT and the owner of the largest number of full service, all-suite hotels in
the U.S. FelCor's portfolio is comprised of 161 consolidated hotels, including
159 hotels in continuing operations and two hotels that are "held for sale" are
included in discontinued operations. For the 159 hotels included in continuing
operations, the operating revenues and expenses 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 four 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 independently owned Doubletree
Guest Suites(R) hotels. FelCor's portfolio also includes 75 hotels in the
upscale and full service segments. The Company's hotels are located in 33 states
and Canada. FelCor had a market capitalization of approximately $3.0 billion at
December 31, 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 long-term stockholder
returns through its strong management team, diversified upscale and full-service
hotels, and strategic brand manager alliances.
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
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
INFORMATION REQUEST
information@felcor.com
3
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 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 Months and Year Ended December 31, 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 Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
SUPPLEMENTAL FINANCIAL DATA
(IN THOUSANDS, EXCEPT PER SHARE INFORMATION, RATIOS AND PERCENTAGES)
<Table>
<Caption>
ENTERPRISE VALUE 12/31/03 12/31/02
------------ ------------
Common shares outstanding 59,121 58,767
Units not held by FelCor 3,033 3,290
------------ ------------
Combined shares and units 62,154 62,057
Common stock price at end of period $ 11.08 $ 11.44
------------ ------------
Common equity capitalization $ 688,666 $ 709,932
------------ ------------
Series A preferred stock outstanding 5,980 5,980
Series A preferred stock price at end of period $ 24.18 $ 20.85
------------ ------------
$ 144,596 $ 124,683
------------ ------------
Series B preferred stock outstanding 6,776 6,776
Series B preferred stock price at end of period $ 25.06 $ 24.60
------------ ------------
$ 169,807 $ 166,689
Consolidated debt 2,037,355 1,877,134
------------ ------------
Total enterprise value $ 3,040,424 $ 2,878,438
============ ============
DIVIDENDS PER SHARE
Dividends declared (year ended):
Common $ - $ 0.60
Series A preferred stock 1.95 1.95
Series B preferred stock 2.25 2.25
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(a) $ 4,234,732 $ 4,554,306
Total cash and cash equivalents 246,036 66,542
Total assets 3,590,893 3,780,363
Total debt 2,037,355 1,877,134
Total stockholders' equity 1,296,272 1,616,817
Total stockholders equity less preferred equity 977,365 1,297,910
Book value per common share outstanding 16.53 22.08
</Table>
(a) Investment in hotels, at cost, is defined as consolidated hotel book value
(after impairment charges) before accumulated depreciation, plus our pro
rata share of unconsolidated investment in hotels before accumulated
depreciation.
6
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<Table>
<Caption>
THREE MONTHS YEAR ENDED
ENDED DECEMBER 31, DECEMBER 31,
------------------------ ------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Revenues:
Hotel operating revenue:
Room ........................................... $ 224,646 $ 223,382 $ 947,254 $ 979,830
Food and beverage .............................. 52,162 53,007 188,582 195,991
Other operating departments .................... 14,927 15,402 63,003 64,718
Retail space rental and other revenue ............ 148 195 1,022 1,646
---------- ---------- ---------- ----------
Total revenues ............................. $ 291,883 $ 291,986 $1,199,861 $1,242,185
---------- ---------- ---------- ----------
Expenses:
Hotel departmental expenses:
Room ........................................... 64,700 60,156 255,102 249,120
Food and beverage .............................. 41,390 40,868 150,975 153,123
Other operating departments .................... 7,355 7,492 30,011 29,913
Other property related costs ..................... 89,677 85,651 353,293 339,811
Management and franchise fees .................... 15,322 15,215 63,113 63,350
Taxes, insurance and lease expense ............... 28,564 29,605 125,328 127,279
Abandoned projects ............................... -- -- -- 1,663
Corporate expenses ............................... 3,808 3,463 14,266 13,756
Depreciation ..................................... 31,037 35,902 134,883 143,978
---------- ---------- ---------- ----------
Total operating expenses ................... 281,853 278,352 1,126,971 1,121,993
---------- ---------- ---------- ----------
Operating income .................................... 10,030 13,634 72,890 120,192
Interest expense, net ............................ (42,026) (40,385) (165,314) (162,786)
Charge-off of debt related costs ................. -- (3,222) (2,834) (3,222)
Gain on early extinguishment of debt ............. -- -- 331 --
Impairment loss .................................. (124,686) (70,168) (224,583) (70,168)
---------- ---------- ---------- ----------
Loss before equity in income from
unconsolidated entities, minority interests and
gain on sale of assets ........................ (156,682) (100,141) (319,510) (115,984)
Equity in income from unconsolidated entities .... 118 (13,943) 2,370 (10,127)
Gain on sale of assets ........................... 178 -- 284 5,861
Minority interests ............................... 10,266 6,086 19,908 8,861
---------- ---------- ---------- ----------
Loss from continuing operations ..................... (146,120) (107,998) (296,948) (111,389)
Discontinued operations .......................... 3,187 (70,358) (13,196) (67,192)
---------- ---------- ---------- ----------
Net loss ............................................ (142,933) (178,356) (310,144) (178,581)
Preferred dividends .............................. (6,727) (6,727) (26,908) (26,292)
---------- ---------- ---------- ----------
Net loss applicable to common stockholders .......... $ (149,660) $ (185,083) $ (337,052) $ (204,873)
========== ========== ========== ==========
Basic and diluted per common share data:
Net loss from continuing operations .............. $ (2.60) $ (1.96) $ (5.52) $ (2.54)
========== ========== ========== ==========
Net loss ......................................... $ (2.55) $ (3.17) $ (5.75) $ (3.78)
========== ========== ========== ==========
Weighted average common shares outstanding ....... 58,801 58,450 58,657 54,173
========== ========== ========== ==========
</Table>
7
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
DISCONTINUED OPERATIONS
(IN THOUSANDS)
Condensed financial information for the 18 hotels included in discontinued
operations is as follows:
<Table>
<Caption>
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------------------ ------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Hotel operating revenue ..................... $ 4,693 $ 17,855 $ 58,206 $ 75,774
Hotel operating expenses .................... 4,303 17,870 54,314 71,502
---------- ---------- ---------- ----------
Operating income ......................... 390 (15) 3,892 4,272
Direct interest costs, net .................. -- (364) (498) (1,508)
Impairment loss ............................. (297) (73,917) (20,926) (73,917)
Gain on the early extinguishment of debt .... -- -- 1,280 --
Gain on disposition ......................... 3,258 -- 2,376 200
Minority interest ........................... (164) 3,938 680 3,761
---------- ---------- ---------- ----------
Income (loss) from discontinued operations $ 3,187 $ (70,358) $ (13,196) $ (67,192)
========== ========== ========== ==========
</Table>
8
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
RECONCILIATION OF NET LOSS TO FFO
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<Table>
<Caption>
THREE MONTHS ENDED DECEMBER 31,
--------------------------------------------------------------------------
2003 2002
----------------------------------- -----------------------------------
PER SHARE PER SHARE
DOLLARS SHARES AMOUNT DOLLARS SHARES AMOUNT
--------- --------- --------- --------- --------- ---------
NET LOSS ......................................... $(142,933) 58,801 $ (2.43) $(178,356) 58,450 $ (3.05)
Depreciation from continuing operations ....... 31,037 0.58 35,902 0.61
Depreciation from unconsolidated
entities and discontinued operations ....... 2,153 0.04 5,699 0.10
Gain on sale of assets ........................ (3,444) (0.06) -- --
Preferred dividends ........................... (6,727) (0.12) (6,727) (0.12)
Minority interest in FelCor LP. ............... (7,712) 3,050 (0.07) (10,358) 3,290 (0.03)
--------- --------- --------- --------- --------- ---------
FFO .............................................. $(127,626) 61,851 $ (2.06) $(153,840) 61,740 $ (2.49)
========= ========= ========= ========= ========= =========
</Table>
<Table>
<Caption>
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------------
2003 2002
----------------------------------- ----------------------------------
PER SHARE PER SHARE
DOLLARS SHARES AMOUNT DOLLARS SHARES AMOUNT
--------- --------- --------- --------- --------- ---------
NET LOSS ......................................... $(310,144) 58,657 $ (5.29) $(178,581) 54,173 $ (3.29)
Depreciation from continuing operations ....... 134,883 2.30 143,978 2.66
Depreciation from unconsolidated
entities and discontinued operations ....... 15,152 0.26 20,455 0.38
Gain on sale of assets ........................ (2,668) (0.05) (5,861) (0.11)
Preferred dividends ........................... (26,908) (0.46) (26,292) (0.49)
Minority interest in FelCor LP. ............... (17,777) 3,188 (0.11) (13,717) 7,564 (0.12)
--------- --------- --------- --------- --------- ---------
FFO .............................................. $(207,462) 61,845 $ (3.35) $ (60,018) 61,737 $ (0.97)
========= ========= ========= ========= ========= =========
</Table>
Consistent with SEC guidance, FFO has not been adjusted for the following
amounts included in net loss (in thousands):
<Table>
<Caption>
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
---------------------- ----------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Impairment loss .................................. $(124,983) $(157,505) $(245,509) $(157,505)
Minority interest share of impairment loss ....... 1,770 -- 1,770 --
Charge off of deferred debt costs ................ -- (3,222) (2,834) (3,222)
Gain on early extinguishment of debt ............. -- -- 1,611 --
Abandoned projects ............................... -- -- -- (1,663)
--------- --------- --------- ---------
$(123,213) $(160,727) $(244,962) $(162,390)
========= ========= ========= =========
Per share amounts ................................ $ (1.99) $ (2.60) $ (3.95) $ (2.63)
========= ========= ========= =========
</Table>
9
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
RECONCILIATION OF NET LOSS TO EBITDA
(IN THOUSANDS)
<Table>
<Caption>
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
---------------------- ----------------------
2003 2002 2003 2002
--------- --------- --------- ---------
NET LOSS ................................................... $(142,933) $(178,356) $(310,144) $(178,581)
Depreciation from continuing operations ................. 31,037 35,902 134,883 143,978
Depreciation from unconsolidated entities and
discontinued operations .............................. 2,153 5,699 15,152 20,455
Gain on sale of assets .................................. (3,444) -- (2,668) (5,861)
Minority interest in FelCor Lodging LP. ................. (7,712) (10,358) (17,777) (13,717)
Interest expense ........................................ 42,871 40,766 167,581 164,917
Interest expense from unconsolidated entities and
discontinued operations ............................... 1,294 2,743 7,563 10,884
Amortization expense .................................... 565 527 2,210 2,088
--------- --------- --------- ---------
EBITDA ..................................................... $ (76,169) $(103,077) $ (3,200) $ 144,163
========= ========= ========= =========
</Table>
Consistent with SEC guidance, EBITDA has not been adjusted for the following
amounts included in net loss (in thousands):
<Table>
<Caption>
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
-------------------------- --------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Impairment loss ............................... $ (124,983) $ (157,505) $ (245,509) $ (157,505)
Minority interest share of impairment loss .... 1,770 -- 1,770 --
Charge off of deferred debt costs ............. -- (3,222) (2,834) (3,222)
Gain on early extinguishment of debt .......... -- -- 1,611 --
Abandoned projects ............................ -- -- -- (1,663)
----------- ----------- ----------- -----------
$ (123,213) $ (160,727) $ (244,962) $ (162,390)
=========== =========== =========== ===========
</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 Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
SELECTED OPERATING DATA
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
THREE MONTHS YEAR ENDED
ENDED DECEMBER 31, DECEMBER 31,
----------------------------- ----------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
Total revenue ............................................ $ 291,883 $ 291,986 $ 1,199,861 $ 1,242,185
Retail space rental and other revenue .................... (148) (195) (1,022) (1,646)
------------ ------------ ------------ ------------
Hotel revenue ............................................ 291,735 291,791 1,198,839 1,240,539
Hotel operating expenses ................................. (218,444) (209,382) (852,494) (835,317)
------------ ------------ ------------ ------------
Hotel operating profit ................................... $ 73,291 $ 82,409 $ 346,345 $ 405,222
============ ============ ============ ============
Operating margin ......................................... 25.1% 28.2% 28.9% 32.7%
Corporate expenses ....................................... 3,808 3,463 14,266 13,756
Corporate expenses as a percentage of total revenues ..... 1.3% 1.2% 1.2% 1.1%
</Table>
HOTEL OPERATING EXPENSE COMPOSITION
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
THREE MONTHS ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
------------------------------------------- -------------------------------------------
2003 2002 2003 2002
-------------------- -------------------- -------------------- --------------------
Hotel departmental expenses:
Room ......................... $ 64,700 29.6% $ 60,156 28.7% $ 255,102 29.9% $ 249,120 29.8%
Food and beverage ............ 41,390 18.9 40,868 19.5 150,975 17.7 153,123 18.3
Other operating departments .. 7,355 3.4 7,492 3.6 30,011 3.5 29,913 3.6
Other property related costs:
Administrative and general ... 29,477 13.5 29,321 14.0 116,641 13.7 116,073 13.9
Marketing and advertising .... 26,612 12.2 24,747 11.9 104,507 12.3 100,215 12.0
Repairs and maintenance ...... 18,381 8.4 16,841 8.0 69,171 8.1 65,274 7.8
Energy ....................... 15,207 7.0 14,742 7.0 62,974 7.4 58,249 7.0
--------- --------- --------- --------- --------- --------- --------- ---------
Total other property related
costs ..................... 89,677 41.1 85,651 40.9 353,293 41.5 339,811 40.7
Management and franchise fees ... 15,322 7.0 15,215 7.3 63,113 7.4 63,350 7.6
--------- --------- --------- --------- --------- --------- --------- ---------
Hotel operating expenses ........ $ 218,444 100.0% $ 209,382 100.0% $ 852,494 100.0% $ 835,317 100.0%
========= ========= ========= ========= ========= ========= ========= =========
</Table>
11
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
THREE MONTHS YEAR ENDED
ENDED DECEMBER 31, DECEMBER 31,
---------------------------- ----------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
Supplemental information:
Compensation and benefits expense (included in hotel
operating expenses) ................................ $ 102,444 $ 97,265 $ 397,401 $ 387,052
============ ============ ============ ============
Reconciliation of total operating expenses to
hotel operating expenses:
Total operating expenses .............................. $ 281,853 $ 278,352 $ 1,126,971 $ 1,121,993
Taxes, insurance and lease expense ................. (28,564) (29,605) (125,328) (127,279)
Abandoned projects ................................. -- -- -- (1,663)
Corporate expenses ................................. (3,808) (3,463) (14,266) (13,756)
Depreciation ....................................... (31,037) (35,902) (134,883) (143,978)
------------ ------------ ------------ ------------
Hotel operating expenses .............................. $ 218,444 $ 209,382 $ 852,494 $ 835,317
============ ============ ============ ============
</Table>
Hotel operating profit and operating margin are commonly used measures
of performance in our industry and give investors a more complete understanding
of the operating results over which our individual hotels and operating managers
have direct control. We believe that hotel operating profit and operating margin
are useful to investors, providing greater transparency related to a significant
measure used by management in its financial and operational decision-making.
12
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
DEBT SUMMARY
(DOLLARS IN THOUSANDS)
<Table>
<Caption>
DEBT OUTSTANDING
ENCUMBERED INTEREST RATE AT MATURITY CONSOLIDATED
HOTELS DECEMBER 31, 2003 DATE DEBT
---------- ----------------- -------------- ------------
Unsecured line of credit none 4.99% October 2004 $ --
Promissory note none 3.12 June 2016 650
Senior unsecured term notes none 4.36(a) Oct. 2004 174,888
Senior unsecured term notes none 5.19(b) Oct. 2007 124,617
Senior unsecured term notes none 10.00 Sept. 2008 596,865
Senior unsecured term notes none 9.00 June 2011 298,158
----------------- ------------
Total unsecured debt 8.42 1,195,178
----------------- ------------
Secured debt facility 14 hotels -- December 2004(d) --
Mortgage debt 1 hotel 7.23 September 2005 11,286
Mortgage debt 10 hotels 3.62 May 2006 148,080
Mortgage debt 15 hotels 5.92(c) Nov. 2007 131,722
Mortgage debt 1 hotel 4.00 August 2008 15,500
Mortgage debt 7 hotels 7.54 April 2009 92,445
Mortgage debt 6 hotels 7.55 June 2009 69,566
Mortgage debt 8 hotels 8.70 May 2010 178,118
Mortgage debt 7 hotels 8.73 May 2010 138,200
Mortgage debt 8 hotels 7.48 April 2011 50,305
Other 1 hotel 9.17 August 2011 6,955
---------- ----------------- ------------
Total secured debt 78 hotels 6.98 842,177
========== ----------------- ------------
Total 7.82% $ 2,037,355
================= ============
</Table>
(a) Represents fixed to floating interest rate swaps at six month LIBOR plus
340 basis points.
(b) Represents fixed to floating interest rate swaps at six month LIBOR plus
420 basis points.
(c) Represents weighted average fixed to floating interest rate swaps at six
month LIBOR plus 440 basis points for $100 million and a fixed rate of
7.46% for $32 million.
(d) This facility may be extended by borrower until June 2005.
Our fixed to floating interest rate swaps reduced interest expense for the
quarter by $1.9 million and reduced interest expense for the 12 months ended
December 31, 2003, by $7.1 million.
<Table>
Fixed interest rate debt to total debt 73%
Weighted average maturity of debt 4.9 years
Secured debt to total assets 23.4%
</Table>
At December 31, 2003, future scheduled debt principal payments are as follows
(in thousands):
<Table>
<Caption>
SECURED UNSECURED
YEAR DEBT DEBT TOTAL
- ------------------------ ----------- ----------- -----------
2004 $ 17,333 $ 175,000 $ 192,333
2005 28,089 -- 28,089
2006 156,328(a) -- 156,328
2007 133,793 125,000 258,793
2008 29,300 600,000 629,300
2009 and thereafter 476,115 300,650 776,765
Premium/(discount) 1,219 (5,472) (4,253)
----------- ----------- -----------
Total debt $ 842,177 $ 1,195,178 $ 2,037,355
=========== =========== ===========
</Table>
(a) Included is a $150 million non-recourse mortgage loan maturing in 2006,
that has two, one-year extension options.
13
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
DEBT SUMMARY (CONTINUED)
At December 31, 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 $30.7
million at December 31, 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. Through the date of this
release, there have been no borrowings under this facility and we have an
estimated $174 million of borrowing capacity based on the underwritten cash
flows of the 14 hotels currently securing this facility. This 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 may be
converted by lender into fixed rate or floating rate commercial mortgage backed
security loans, and FelCor has a one-time option to convert $75 million to a
floating rate loan. Upon conversion, fixed rate loans will have a term of 10
years and floating rate loans will have a maximum term of five years.
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.
14
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
PORTFOLIO DATA
PORTFOLIO DISTRIBUTION AT DECEMBER 31, 2003
(159 CONSOLIDATED HOTELS INCLUDED IN CONTINUING OPERATIONS, SAME STORE BASIS)
<Table>
<Caption>
% OF % OF 2003 HOTEL
BRAND HOTELS ROOMS TOTAL ROOMS OPERATING PROFIT
- ------------------------- ---------------- ---------------- ---------------- ----------------
Embassy Suites 56 14,279 32% 46%
Holiday Inn(R)-branded 48 15,178 34 25
Crowne Plaza(R) 15 5,108 12 7
Sheraton(R)-branded 10 3,269 7 9
Doubletree(R)-branded 10 2,206 5 6
Other 20 4,252 10 7
</Table>
<Table>
<Caption>
% OF % OF 2003 HOTEL
TOP MARKETS HOTELS ROOMS TOTAL ROOMS OPERATING PROFIT
- ------------------------- ---------------- ---------------- ---------------- ----------------
Dallas 16 4,885 11% 7%
Atlanta 12 3,514 8 8
San Francisco Bay Area 9 3,255 7 6
Houston 8 1,969 4 3
Orlando 6 2,220 5 4
Los Angeles Area 5 1,363 3 4
Boca Raton/Ft. Lauderdale 4 1,118 3 4
Chicago 4 1,239 3 4
Minneapolis 4 955 2 3
Phoenix 4 1,016 2 3
Philadelphia 3 1,174 3 3
New Orleans 2 746 2 4
San Diego 1 600 1 3
</Table>
<Table>
<Caption>
% OF % OF 2003 HOTEL
TOP FOUR STATES HOTELS ROOMS TOTAL ROOMS OPERATING PROFIT
- ------------------------- ---------------- ---------------- ---------------- ----------------
Texas 38 10,251 23% 16%
California 19 6,026 14 17
Florida 16 5,346 12 11
Georgia 14 3,868 9 8
</Table>
<Table>
<Caption>
% OF % OF 2003 HOTEL
LOCATION HOTELS ROOMS TOTAL ROOMS OPERATING PROFIT
- ------------------------- ---------------- ---------------- ---------------- ----------------
Suburban 71 18,135 41% 39%
Urban 32 10,411 24 27
Airport 30 9,206 21 22
Highway 14 2,862 6 3
Resort 12 3,678 8 9
</Table>
<Table>
<Caption>
% OF % OF 2003 HOTEL
SEGMENT HOTELS ROOMS TOTAL ROOMS OPERATING PROFIT
- ------------------------- ---------------- ---------------- ---------------- ----------------
Upscale all-suite 71 17,325 39% 55%
Full service 48 15,655 35 26
Upscale 27 9,232 21 17
Limited service 13 2,080 5 2
</Table>
<Table>
<Caption>
% OF % OF 2003 HOTEL
HOTELS ROOMS TOTAL ROOMS OPERATING PROFIT
---------------- ---------------- ---------------- ----------------
Non-Strategic Hotels(a) 33 8,682 20% 9%
</Table>
(a) Excludes two hotels, that met held for sale accounting requirements, and
were included in discontinued operations.
15
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
DETAILED OPERATING STATISTICS BY BRAND
(159 CONSOLIDATED HOTELS INCLUDED IN CONTINUING OPERATIONS, SAME STORE BASIS)
<Table>
<Caption>
OCCUPANCY (%)
--------------------------------------------------------------------------------------
THREE MONTHS ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
---------------------------------------- ----------------------------------------
2003 2002 % VARIANCE 2003 2002 % VARIANCE
---------- ---------- ---------- ---------- ---------- ----------
Embassy Suites Hotels 63.9 63.8 0.2 67.3 67.5 (0.2)
Holiday Inn-branded hotels 55.3 55.8 (0.9) 60.7 61.6 (1.5)
Crowne Plaza hotels 57.0 55.9 2.0 57.8 59.6 (3.0)
Doubletree-branded hotels 62.7 63.1 (0.8) 65.9 65.2 1.1
Sheraton-branded hotels 58.6 54.8 6.9 59.8 58.0 3.2
Other hotels 52.7 51.5 2.4 57.1 57.1 0.1
Total hotels 58.6 58.3 0.6 62.4 62.7 (0.6)
</Table>
<Table>
<Caption>
ADR ($)
--------------------------------------------------------------------------------------
THREE MONTHS ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
---------------------------------------- ----------------------------------------
2003 2002 % VARIANCE 2003 2002 % VARIANCE
---------- ---------- ---------- ---------- ---------- ----------
Embassy Suites Hotels 114.52 114.99 (0.4) 115.85 119.27 (2.9)
Holiday Inn-branded hotels 77.38 78.94 (2.0) 77.46 81.02 (4.4)
Crowne Plaza hotels 92.12 98.34 (6.3) 92.06 97.53 (5.6)
Doubletree-branded hotels 96.58 98.22 (1.7) 100.07 101.93 (1.8)
Sheraton-branded hotels 93.74 98.70 (5.0) 94.53 100.84 (6.3)
Other hotels 74.09 79.18 (6.4) 79.01 83.08 (4.9)
Total hotels 94.02 96.24 (2.3) 94.92 98.70 (3.8)
</Table>
<Table>
<Caption>
REVPAR ($)
--------------------------------------------------------------------------------------
THREE MONTHS ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
---------------------------------------- ----------------------------------------
2003 2002 % VARIANCE 2003 2002 % VARIANCE
---------- ---------- ---------- ---------- ---------- ----------
Embassy Suites Hotels 73.15 73.32 (0.2) 78.02 80.48 (3.1)
Holiday Inn-branded hotels 42.81 44.07 (2.9) 47.03 49.91 (5.8)
Crowne Plaza hotels 52.54 54.97 (4.4) 53.17 58.11 (8.5)
Doubletree-branded hotels 60.51 62.00 (2.4) 65.98 66.44 (0.7)
Sheraton-branded hotels 54.95 54.10 1.6 56.57 58.48 (3.3)
Other hotels 39.05 40.75 (4.2) 45.14 47.40 (4.8)
Total hotels 55.13 56.07 (1.7) 59.19 61.93 (4.4)
</Table>
16
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
DETAILED OPERATING STATISTICS FOR FELCOR'S TOP MARKETS
(159 CONSOLIDATED HOTELS INCLUDED IN CONTINUING OPERATIONS, SAME STORE BASIS)
<Table>
<Caption>
OCCUPANCY (%)
--------------------------------------------------------------------------------------
THREE MONTHS ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
---------------------------------------- ----------------------------------------
2003 2002 % VARIANCE 2003 2002 % VARIANCE
---------- ---------- ---------- ---------- ---------- ----------
Dallas 47.2 46.3 2.1 48.6 49.9 (2.6)
Atlanta 58.4 61.2 (4.5) 64.6 66.7 (3.1)
San Francisco Bay Area 60.5 61.9 (2.2) 64.5 65.7 (1.8)
Houston 64.2 60.2 6.6 65.3 64.1 1.9
Orlando 65.7 60.6 8.4 68.8 66.4 3.5
Los Angeles Area 63.9 65.0 (1.6) 68.9 67.0 2.8
Boca Raton/Ft. Lauderdale 73.9 64.1 15.3 73.5 69.2 6.3
Chicago 64.0 61.9 3.4 67.6 63.1 7.0
Minneapolis 62.1 63.3 (1.9) 65.2 67.2 (2.9)
Phoenix 61.8 61.0 1.4 65.9 60.9 8.3
Philadelphia 61.5 60.2 2.1 61.8 62.3 (0.9)
New Orleans 68.1 56.4 20.9 65.8 65.7 0.2
San Diego 76.2 71.6 6.5 79.9 74.8 6.8
</Table>
<Table>
<Caption>
ADR ($)
--------------------------------------------------------------------------------------
THREE MONTHS ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
---------------------------------------- ----------------------------------------
2003 2002 % VARIANCE 2003 2002 % VARIANCE
---------- ---------- ---------- ---------- ---------- ----------
Dallas 80.65 86.59 (6.9) 82.72 89.20 (7.3)
Atlanta 84.40 86.86 (2.8) 85.26 89.32 (4.5)
San Francisco Bay Area 107.02 111.31 (3.8) 108.63 116.91 (7.1)
Houston 68.09 73.20 (7.0) 69.92 74.06 (5.6)
Orlando 76.04 78.63 (3.3) 74.68 79.26 (5.8)
Los Angeles Area 96.93 95.86 1.1 98.64 99.63 (1.0)
Boca Raton/Ft. Lauderdale 110.07 113.01 (2.6) 113.65 116.25 (2.2)
Chicago 112.03 123.91 (9.6) 109.36 120.95 (9.6)
Minneapolis 122.22 120.37 1.5 122.82 124.54 (1.4)
Phoenix 101.10 104.58 (3.3) 98.98 106.89 (7.4)
Philadelphia 108.01 120.20 (10.1) 105.96 117.54 (9.9)
New Orleans 138.62 133.60 3.8 133.17 136.26 (2.3)
San Diego 115.67 114.56 1.0 116.95 118.10 (1.0)
</Table>
<Table>
<Caption>
REVPAR ($)
--------------------------------------------------------------------------------------
THREE MONTHS ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
---------------------------------------- ----------------------------------------
2003 2002 % VARIANCE 2003 2002 % VARIANCE
---------- ---------- ---------- ---------- ---------- ----------
Dallas 38.10 40.06 (4.9) 40.17 44.47 (9.7)
Atlanta 49.31 53.14 (7.2) 55.08 59.57 (7.5)
San Francisco Bay Area 64.76 68.90 (6.0) 70.11 76.87 (8.8)
Houston 43.69 44.05 (0.8) 45.64 47.44 (3.8)
Orlando 49.94 47.65 4.8 51.35 52.66 (2.5)
Los Angeles Area 61.96 62.27 (0.5) 67.97 66.80 1.8
Boca Raton/Ft. Lauderdale 81.29 72.39 12.3 83.58 80.45 3.9
Chicago 71.73 76.75 (6.5) 73.88 76.37 (3.3)
Minneapolis 75.86 76.18 (0.4) 80.14 83.68 (4.2)
Phoenix 62.53 63.81 (2.0) 65.28 65.07 0.3
Philadelphia 66.47 72.42 (8.2) 65.43 73.23 (10.7)
New Orleans 94.45 75.29 25.5 87.66 89.50 (2.1)
San Diego 88.16 82.02 7.5 93.41 88.29 5.8
</Table>
17
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
OTHER PERFORMANCE STATISTICS
(CONSOLIDATED HOTELS, FOR PERIOD PRESENTED)
<Table>
<Caption>
VARIANCE TO PRIOR YEAR
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)
October 0.7 (3.3) (2.6)
November (0.1) (1.9) (2.1)
December 1.5 (1.2) 0.2
Fourth Quarter 2003 0.6 (2.3) (1.7)
Year 2003 (0.6) (3.8) (4.4)
January 2004 3.8 (2.0) 1.8
</Table>
18
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO INFORMATION
PRO RATA SHARE OF ROOMS OWNED
<Table>
<Caption>
ROOM COUNT AT
HOTELS DECEMBER 31, 2003
------------------ ------------------
Consolidated hotel in continuing operations 159 44,292
Unconsolidated hotel operations 5 764
------------------ ------------------
Total hotels 164 45,056
------------------
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 41,460
==================
</Table>
CAPITAL EXPENDITURES (DOLLARS IN THOUSANDS)
<Table>
<Caption>
THREE MONTHS ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, 2003 DECEMBER 31, 2003 DECEMBER 31, 2002
------------------ ------------------ ------------------
Consolidated hotels:
Improvements and additions to hotels $ 10,530 $ 62,219 $ 62,518
% of total revenue 3.6% 4.9% 4.7%
Unconsolidated hotels (pro rata share):
Improvements and additions to hotels(a) $ 775 $ 4,291 $ 8,580
% of total revenue 4.4% 6.1% 12.3%
</Table>
Capital Expenditures for the full year, including our pro rata share of
unconsolidated joint venture capital expenditures, were $67 million.
Our pro rata share of capital expenditures at December 31, 2003, incurred
by our joint venture for construction of a residential condominium project, were
$31 million. The funds for this project are funded by recourse secured debt.
19
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO INFORMATION
NON-STRATEGIC HOTELS
At December 31, 2003, FelCor included in continuing operations 33 hotels
identified as non-strategic. The composition, by brand, of the 33 non-strategic
hotels is as follows: Holiday Inn-branded (21), Crowne Plaza (3), other brands
(8) and one independent hotel. These hotels are expected to be sold within the
next 12 to 36 months depending on the individual hotel, market conditions, and
other factors.
Operating statistics for FelCor's consolidated portfolio of continuing
operations:
<Table>
<Caption>
THREE MONTHS ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
---------------------------------------- ----------------------------------------
2003 2002 % VARIANCE 2003 2002 % VARIANCE
---------- ---------- ---------- ---------- ---------- ----------
CONSOLIDATED IN CONTINUING
OPERATIONS (159 HOTELS)
Occupancy (%) 58.6 58.3 0.6 62.4 62.7 (0.6)
ADR ($) 94.02 96.24 (2.3) 94.92 98.70 (3.8)
RevPAR ($) 55.13 56.07 (1.7) 59.19 61.93 (4.4)
NON-STRATEGIC HOTELS
(33 HOTELS)
Occupancy (%) 50.3 49.5 1.7 54.4 54.8 (0.8)
ADR ($) 71.26 73.76 (3.4) 71.95 76.15 (5.5)
RevPAR ($) 35.85 36.48 (1.7) 39.13 41.77 (6.3)
CORE HOTELS (126 HOTELS)
Occupancy (%) 60.7 60.4 0.4 64.3 64.7 (0.6)
ADR ($) 98.62 100.72 (2.1) 99.66 103.37 (3.6)
RevPAR ($) 59.83 60.85 (1.7) 64.09 66.84 (4.1)
</Table>
For the year ended December 31, 2003, the operating margins for the Core Hotels
were 30.6%, while the operating margins for the Non-Strategic Hotels were 17.9%.
PORTFOLIO CHANGES IN 2003
o Dispositions - Through December 31, 2003, the Company has sold or otherwise
disposed of 16 non-strategic hotels and has designated two as held for sale
(the operating results of these 18 hotels are included in discontinued
operations for 2003 and 2002). Disposition proceeds from the 16
non-strategic hotels and two parking garages sold during 2003 totaled
approximately $125 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; a Crowne Plaza
hotel in Greenville, SC for gross proceeds of $5 million, a Holiday
Inn in Texarkana, AR for gross proceeds of $4 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.
20
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 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 action in satisfaction of $10
million in non-recourse debt.
o In the third quarter of 2003, one of FelCor's unconsolidated joint
ventures sold a Holiday Inn in Great Bend, KS for gross proceeds of
$1 million.
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.
21
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO LISTING
<Table>
<Caption>
STATE ROOMS % OWNED (a) BRAND
----- ----- ------------ ------------------------
CONSOLIDATED CONTINUING OPERATIONS
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
Avon (Beaver Creek Resort) CO 72 Independent
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.
22
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 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
Davenport (b) IA 279 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
Moline (Airport) (b) IL 216 Holiday Inn
Moline (Airport) (b) IL 110 Holiday Inn Express
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
Jackson (North) (b) MS 222 Holiday Inn & Suites(R)
</Table>
(a) 100% of real estate interests are owned by FelCor unless otherwise
noted.
(b) FelCor is actively marketing this hotel for sale.
23
FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO LISTING
<Table>
<Caption>
STATE ROOMS % OWNED (a) BRAND
----- ----- ------------ ------------------------
Olive Branch (Whispering Woods MS 181 Independent
Hotel and 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 (b) NE 187 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) (b) NE 131 Hampton Inn
Omaha (Southwest) (b) NE 78 Holiday Inn Express & Suites(R)
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
Addison (North Dallas) TX 429 Crowne Plaza
Amarillo (I-40) (b) TX 248 Holiday Inn
Austin (Airport-North) TX 260 50% Embassy Suites
Austin (Downtown) TX 189 90% Doubletree Guest Suites
Austin (Town Lake) TX 320 Holiday Inn
Beaumont (Midtown I-10) (b) TX 190 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)
</Table>
(a) 100% of real estate interests are owned by FelCor unless otherwise
noted.
(b) FelCor is actively marketing this hotel for sale.
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FelCor Lodging Trust Incorporated
Supplemental Information
Three Months and Year Ended December 31, 2003
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO LISTING
<Table>
<Caption>
STATE ROOMS % OWNED (a) BRAND
------- ----- ------------ ------------------------
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 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
Midland (Country Villa) (b) TX 250 Holiday Inn
Odessa (Centre) (b) TX 186 Holiday Inn Express & Suites
Odessa (Parkway Blvd) (b) TX 245 Holiday Inn
Plano (b) TX 160 Holiday 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
Waco (I-35) (b) TX 170 Holiday Inn
Salt Lake City (Airport) UT 191 Holiday Inn
Vienna (Tysons Corner) VA 437 50% Sheraton
Burlington VT 309 Sheraton
Canada
Toronto (Airport) Ontario 445 Holiday Inn Select
Toronto (Yorkdale) Ontario 370 Holiday Inn
HOTELS INCLUDED IN
DISCONTINUED OPERATIONS
Jackson (Downtown) (c) MS 354 Crowne Plaza
Houston (Medical Center) (c) TX 293 Crowne Plaza
</Table>
(a) 100% of real estate interests are owned by FelCor unless otherwise
noted.
(b) FelCor is actively marketing this hotel for sale.
(c) This hotel met held for sale accounting requirements at December 31,
2003, and was included in discontinued operations for financial
statement presentation.
UNCONSOLIDATED OPERATIONS
<Table>
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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