EXHIBIT 99.2
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(FELCOR LOGO)
FELCOR LODGING TRUST INCORPORATED
SUPPLEMENTAL INFORMATION
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2004
Date of Issuance October 27, 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 only by means of a
prospectus.
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
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TABLE OF CONTENTS
PAGE
----
CORPORATE DATA
About the Company 3
Board of Directors and Executive Officers 4
Equity Research Coverage 5
FINANCIAL HIGHLIGHTS
Supplemental Financial Data 6
Consolidated Statements of Operations 7
Discontinued Operations 8
Non-GAAP Financial Measures 9
Reconciliation of Net Loss to EBITDA 10
Reconciliation of Net Loss to FFO 11
Hotel Operating Profit 12
Hotel Operating Expense Composition 12
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
This supplement contains registered trademarks owned or licensed by companies
other than us, which may include, but are not limited to, Candlewood Suites(R),
Courtyard by Marriott(R), Crowne Plaza(R), Disneyland(R), Doubletree(R),
Doubletree Guest Suites(R), Embassy Suites Hotels(R), Fairfield Inn(R), Four
Points(R) by Sheraton, Hampton Inn(R), Harvey Hotel(R), Harvey Suites(R),
Hilton(R), Hilton Grand Vacations Company(R), Hilton Suites(R), Holiday Inn(R),
Holiday Inn & Suites(R), Holiday Inn Express(R), Holiday Inn Express &
Suites(R), Holiday Inn Select(R), Homewood Suites(R) by Hilton,
InterContinental(R), Priority Club(R), Sheraton(R), Sheraton Suites(R), St.
Regis(R), Staybridge Suites(R), The Luxury Collection(R), W(R), Walt Disney
World(R), Worlds of Fun(R), Westin(R), and Wyndham(R).
With the exception of historical information, the matters discussed in this
supplement include "forward looking statements" within the meaning of the
federal securities laws. Forward looking statements are not guarantees of future
performance. Numerous risks and uncertainties, and the occurrence of future
events, may cause actual results to differ materially from those currently
anticipated. General economic conditions, including the anticipated continuation
of the current economic recovery, the impact of U.S. military involvement in the
Middle East and elsewhere, future acts of terrorism, the impact on the travel
industry of increased security precautions, the availability of capital, the
ability to effect sales of non-strategic hotels at anticipated prices, and
numerous other factors may affect future results, performance and achievements.
Certain of these risks and uncertainties are described in greater detail in our
filings with the Securities and Exchange Commission. Although we believe our
current expectations to be based upon reasonable assumptions, we can give no
assurance that our expectations will be attained or that actual results will not
differ materially.
2
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
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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 September 30, 2004, FelCor was the nation's second largest lodging
REIT and the owner of the largest number of full service, all-suite hotels in
the U.S. FelCor's portfolio was comprised of 149 consolidated hotels, including
143 hotels in continuing operations and six hotels that were "held for sale" and
included in discontinued operations. For the 143 hotels included in continuing
operations, the operating revenues and expenses are reflected in FelCor's
consolidated statements of operations because of our ownership of the operating
lessees of these hotels. FelCor also owned 50 percent joint venture interests in
the operating lessees of four hotels whose operations are accounted for using
the equity method. FelCor owned 70 full service, all-suite hotels, and was the
largest owner of Embassy Suites Hotels and independently owned Doubletree Guest
Suites hotels. FelCor's portfolio also included 70 hotels in the upscale and
full service segments. The Company's hotels were located in 32 states and
Canada. FelCor had a market capitalization of approximately $3.0 billion at
September 30, 2004.
STRATEGY
FelCor's hotels are generally managed by the brand owners such as Hilton Hotels
Corporation, InterContinental Hotels Group, and Starwood Hotels & Resorts.
FelCor is competitively positioned to deliver superior long-term stockholder
returns through its strong management team, diversified upscale and full-service
hotels, and strategic brand manager alliances.
STOCK AND DEBT RATINGS
SENIOR UNSECURED DEBT PREFERRED STOCK
--------------------- ---------------
Moody's B1 B3
Standard & Poors B- CCC
STOCK EXCHANGE LISTING
Common Stock (NYSE: FCH)
$1.95 Series A Cumulative Convertible Preferred Stock (NYSE: FCHPRA)
9% Series B Cumulative Redeemable Preferred Stock (NYSE: FCHPRB)
FISCAL YEAR END
December 31
NUMBER OF EMPLOYEES
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
Vice President of Investor Relations Vice President of Communications
(972) 444-4912 (972) 444-4917
sschafer@felcor.com mhildebrand@felcor.com
INFORMATION REQUEST
information@felcor.com
3
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
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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.
Michael D. Rose
Chairman, Gaylord Entertainment Company
EXECUTIVE OFFICERS
Thomas J. Corcoran, Jr., President and Chief Executive Officer
Richard A. Smith, Executive Vice President and Chief Financial Officer *
Michael A. DeNicola, Executive Vice President and Chief Investment Officer
Lawrence D. Robinson, Executive Vice President, General Counsel and Secretary
Jack Eslick, Senior Vice President, Director of Asset Management
Lester C. Johnson, Senior Vice President, Controller and Principal Accounting
Officer
June C. McCutchen, Senior Vice President, Director of Design and Construction
Larry J. Mundy, Senior Vice President, Director of Business Initiatives and
Assistant General Counsel
Andrew J. Welch, Senior Vice President and Treasurer
* Employment begins November 15, 2004
4
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
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EQUITY RESEARCH COVERAGE
FIRM ANALYST TELEPHONE
- ---- ------- ---------
A.G. Edwards & Sons Arthur L. Havener (314) 955-3588
Bear Stearns Mark Abramson (212) 272-4305
Calyon Securities Bryan A. Maher (212) 408-5649
Deutsche Bank Marc J. Falcone (212) 469-7417
Friedman, Billings, Ramsey, & Co. David Loeb (703) 469-1289
Green Street Advisors John Arabia (949) 640-8780
JPMorgan Harry C. Curtis (212) 622-6610
Legg Mason Rod F. Petrik (410) 454-4131
Merrill Lynch David W. Anders (212) 449-2739
Prudential James W. Sullivan (212) 778-2515
Smith Barney Citigroup Michael J. Rietbrock (212) 816-7777
UBS William B. Truelove (212) 713-3098
Wachovia Securities Jeffrey J. Donnelly (617) 603-4262
5
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
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FINANCIAL HIGHLIGHTS
SUPPLEMENTAL FINANCIAL DATA
(IN THOUSANDS, EXCEPT PER SHARE INFORMATION, RATIOS AND PERCENTAGES)
SEPTEMBER 30, DECEMBER 31,
TOTAL ENTERPRISE VALUE 2004 2003
- ---------------------- ---- ----
Common shares outstanding 59,666 59,120
Units outstanding 2,789 3,034
----------- -----------
Combined shares and units outstanding 62,455 62,154
Common stock price at end of period $ 11.31 $ 11.08
----------- -----------
Common equity capitalization $ 706,366 $ 688,666
Series A preferred stock 309,362 149,512
Series B preferred stock 169,395 169,395
Consolidated debt 1,828,261 2,037,355
Minority interest share of consolidated debt (30,600) (25,153)
Pro rata share of unconsolidated debt(c) 104,324 106,899
Cash and cash equivalents (154,109) (231,885)
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Total enterprise value(TEV) $ 2,932,999 $ 2,894,789
=========== ===========
TEV per room(a) $ 75 $ 69
Pro rata rooms owned 39,034 42,107
DIVIDENDS PER SHARE
Dividends declared (quarter ended):
Common $ -- $ --
Series A preferred stock 0.4875 0.4875
Series B preferred stock (depository shares) 0.5625 0.5625
SELECTED BALANCE SHEET DATA
Investment in hotels, at cost(b) $ 4,126,641 $ 4,234,732
Total cash and cash equivalents 154,109 231,885
Total assets 3,431,191 3,590,893
Total debt 1,828,261 2,037,355
Total stockholders' equity 1,347,167 1,296,272
Total stockholders equity less preferred equity 868,410 977,365
Book value per common share outstanding 14.55 16.53
(a) Based on pro rata ownership.
(b) Investment in hotels, at cost, is defined as consolidated hotel book
value (after impairment charges but before accumulated depreciation)
plus our pro rata share of unconsolidated investment in hotels before
accumulated depreciation.
(c) Excludes our pro rata share of debt related to the construction of a
residential condominium project in Myrtle Beach, South Carolina, at
December 31, 2003. This debt was retired in September 2004.
6
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
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CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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2004 2003 2004 2003
---- ---- ---- ----
Revenues:
Hotel operating revenue:
Room .......................................... $ 244,281 $ 231,579 $ 724,974 $ 674,542
Food and beverage ............................. 42,418 38,843 131,510 121,348
Other operating departments ................... 16,110 14,974 47,889 45,063
Retail space rental and other revenue ........... 2,166 221 2,590 838
--------- --------- --------- ---------
Total revenues .......................... 304,975 285,617 906,963 841,791
--------- --------- --------- ---------
Expenses:
Hotel departmental expenses:
Room .......................................... 66,787 62,142 194,478 174,788
Food and beverage ............................. 34,551 32,258 105,455 96,737
Other operating departments ................... 7,993 6,893 24,045 20,415
Other property related costs .................... 88,247 83,245 261,636 241,738
Management and franchise fees ................... 16,270 15,375 47,490 44,488
Taxes, insurance and lease expense .............. 29,216 30,905 89,750 90,792
Corporate expenses .............................. 3,791 3,299 11,569 10,459
Depreciation .................................... 30,074 31,476 88,445 95,009
--------- --------- --------- ---------
Total operating expenses ................ 276,929 265,593 822,868 774,426
--------- --------- --------- ---------
Operating income ................................... 28,046 20,024 84,095 67,365
Interest expense, net ........................... (35,348) (42,303) (116,210) (123,150)
Impairment loss ................................. (28,498) (53,204) (28,498) (53,204)
Hurricane loss .................................. (2,125) -- (2,125) --
Charge-off of deferred financing costs .......... (1,920) -- (6,094) (2,834)
Loss on early extinguishment of debt ............ (10,987) -- (39,233) --
Gain on swap termination ........................ -- -- 1,005 --
--------- --------- --------- ---------
Loss before equity in income from
unconsolidated entities, minority interests and
gain on sale of assets ........................ (50,832) (75,483) (107,060) (111,823)
Equity in income from unconsolidated entities ... 12,019 1,674 15,692 2,252
Gain (loss) on sale of assets ................... 1,094 (47) 1,094 106
Minority interests .............................. 2,230 4,587 5,800 7,068
--------- --------- --------- ---------
Loss from continuing operations .................... (35,489) (69,269) (84,474) (102,397)
Discontinued operations ......................... (1,496) (56,648) (4,883) (64,814)
--------- --------- --------- ---------
Net loss ........................................... (36,985) (125,917) (89,357) (167,211)
Preferred dividends ............................. (9,343) (6,727) (25,039) (20,181)
--------- --------- --------- ---------
Net loss applicable to common stockholders ......... $ (46,328) $(132,644) $(114,396) $(187,392)
========= ========= ========= =========
Basic and diluted per common share data:
Net loss from continuing operations ............. $ (0.76) $ (1.29) $ (1.86) $ (2.09)
========= ========= ========= =========
Net loss ........................................ $ (0.78) $ (2.26) $ (1.94) $ (3.20)
========= ========= ========= =========
Weighted average common shares
outstanding .............................. 59,075 58,690 58,993 58,609
========= ========= ========= =========
7
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
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DISCONTINUED OPERATIONS
(IN THOUSANDS)
Included in discontinued operations are the results of operations of
the 13 hotels disposed of in the first three quarters of 2004, six hotels
designated as held for sale at September 30, 2004, and 16 hotels sold in 2003.
Condensed financial information for the hotels included in discontinued
operations is as follows:
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
2004 2003 2004 2003
---- ---- ---- ----
Hotel operating revenue ........................ $ 14,558 $ 39,972 $ 63,621 $ 119,700
Hotel operating expenses ....................... 14,660 40,082 61,431 120,703
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Operating income ............................ (102) (110) 2,190 (1,003)
Direct interest costs, net ..................... 7 20 12 (637)
Gain on the early extinguishment of debt ....... -- 351 -- 1,611
Impairment ..................................... (4,529) (59,498) (4,529) (67,322)
Lease termination expense from asset disposition -- -- (4,900) --
Gain (loss) on sale of assets .................. 3,058 (399) 2,116 (882)
Minority interest .............................. 70 2,988 228 3,419
--------- --------- --------- ---------
Loss from discontinued operations ........... $ (1,496) $ (56,648) $ (4,883) $ (64,814)
========= ========= ========= =========
8
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
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NON-GAAP FINANCIAL MEASURES
Historical cost accounting for real estate assets implicitly assumes
that the value of real estate assets diminish predictably over time. Since real
estate values instead have historically risen or fallen with market conditions,
most industry investors consider supplemental measures of performance to be
helpful in evaluating a real estate company's operations. Funds From Operations
("FFO"), Earnings Before Interest, Taxes, Depreciation, and Amortization
("EBITDA") are not measures and Adjusted EBITDA are not measures of operating
performance under generally accepted accounting principles ("GAAP"). However,
FelCor considers FFO, EBITDA and Adjusted 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 FelCor's operating performance. FFO
and EBITDA and Adjusted EBITDA reflect additional ways of viewing FelCor's
operations that the Company believes when viewed with its GAAP results and the
reconciliations to the corresponding GAAP financial measures, provide a more
complete understanding of factors and trends affecting its business than could
be obtained absent this disclosure. Management strongly encourages investors to
review the Company's financial information in its entirety and not to rely on a
single financial measure.
The White Paper on Funds From Operations approved by the Board of
Governors of the National Association of Real Estate Investment Trusts, or
NAREIT, defines FFO as net income or loss (computed in accordance with GAAP),
excluding gains or losses from sales of property, plus depreciation and
amortization, and after adjustments for unconsolidated partnerships and joint
ventures. Adjustments for unconsolidated partnerships and joint ventures are
calculated to reflect FFO on the same basis. FelCor computes 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
FelCor does.
EBITDA is a commonly used measure of performance in many industries.
FelCor defines EBITDA as net income or loss (computed in accordance with GAAP)
plus interest, income taxes, depreciation and amortization, and after
adjustments for unconsolidated partnerships and joint ventures. Adjustments for
unconsolidated partnership and joint ventures are calculated to reflect EBITDA
on the same basis.
FelCor's management and Board of Directors use Adjusted EBITDA to
evaluate the performance of its hotels and to facilitate comparisons between the
Company and other lodging REITs, hotel owners who are not REITs and other
capital intensive companies. FelCor adjusts EBITDA when evaluating its
performance because management believes that the exclusion of certain additional
recurring and non-recurring items described below provides useful supplemental
information to investors regarding its ongoing operating performance and that
the presentation of Adjusted EBITDA when combined with GAAP net income, EBITDA
and FFO is beneficial to an investor's better understanding of its operating
performance. FelCor adjusts EBITDA for the following items to derive Adjusted
EBITDA:
- Gains and losses related to early extinguishment of debt and
interest rate swaps - FelCor excludes gains and losses related
to early extinguishment of debt and interest rate swaps
because the Company believes that it represents an
acceleration of interest expense or a reduction of interest
expense and interest expense is excluded from EBITDA.
- Gains or losses on disposition of assets - FelCor excludes the
gains or losses on disposition of assets because the Company
believes that including them in EBIDTA is not consistent with
reflecting ongoing performance of its remaining assets.
Additionally, the gain or loss on sale of depreciable assets
represents either accelerated depreciation or too much
depreciation in previous periods and depreciation is excluded
from EBITDA.
- Impairment losses - FelCor excludes the effect of impairment
losses because the Company believes that including these in
EBITDA is not consistent with reflecting the ongoing
performance of its remaining assets. Additionally, the Company
believes that impairment charges are similar to gains and
losses on disposition.
- Cumulative effect of a change in accounting principle -
Infrequently, the Financial Accounting Standards Board
promulgates new accounting standards that requires the
consolidated statements of operations to reflect the
cumulative effect of a change in accounting principle. FelCor
excludes these one-time adjustments because they do not
reflect actual performance of the Company for that period.
FFO, EBITDA and Adjusted EBITDA should not be considered as
alternatives to operating profit, cash flow from operations, or any other
operating performance measure prescribed by GAAP. Neither should FFO, FFO per
share, EBITDA or Adjusted EBITDA be considered as measures of FelCor's liquidity
or indicative of funds available for our cash needs, including the Company's
ability to make cash distributions. FFO per share does not measure, and should
not be used as a measure of, amounts that accrue directly to the benefit of
stockholders.
9
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
- --------------------------------------------------------------------------------
RECONCILIATION OF NET LOSS TO EBITDA
(IN THOUSANDS)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
2004 2003 2004 2003
---- ---- ---- ----
NET LOSS....................................................... $(36,985) $(125,917) $ (89,357) $(167,211)
Depreciation from continuing operations..................... 30,074 31,476 88,445 95,009
Depreciation from unconsolidated entities and
discontinued operations................................ 2,924 6,477 9,238 21,836
Minority interest in FelCor Lodging LP...................... (2,222) (7,015) (5,707) (10,065)
Interest expense............................................ 35,893 42,793 118,073 124,560
Interest expense from unconsolidated entities and
discontinued operations................................ 1,170 1,362 3,895 6,419
Amortization expense........................................ 593 565 1,615 1,645
-------- ---------- --------- ---------
EBITDA......................................................... 31,447 (50,259) 126,202 72,193
Charge off of deferred debt costs........................... 1,920 - 6,094 2,834
Loss (gain) on early extinguishment of debt................. 10,987 (351) 39,233 (1,611)
Gain on swap termination.................................... - - (1,005) -
Lease termination expense from asset disposition............ - - 4,900 -
Loss (gain) on sale of assets............................... (3,058) 446 (2,116) 776
Impairment.................................................. 33,027 112,702 33,027 120,526
-------- ---------- --------- ---------
ADJUSTED EBITDA................................................ $74,323 $ 62,538 $206,335 $194,718
======== ========== ========= =========
10
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
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RECONCILIATION OF NET LOSS TO FFO
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SEPTEMBER 30,
--------------------------------
2004 2003
---- ----
PER SHARE PER SHARE
DOLLARS SHARES AMOUNT DOLLARS SHARES AMOUNT
------- ------ ------ ------- ------ ------
NET LOSS........................................ $ (36,985) $(125,917)
Preferred dividends.......................... (9,343) (6,727)
--------- ---------
NET LOSS APPLICABLE TO COMMON
STOCKHOLDERS............................... $ (46,328) 59,075 $(0.78) $(132,644) 58,690 $(2.26)
Depreciation from continuing operations...... 30,074 - 0.51 31,476 - 0.54
Depreciation from unconsolidated
entities and discontinued operations...... 2,924 - 0.05 6,477 - 0.11
Loss (gain) on sale of assets................ (3,058) - (0.05) 446 - 0.01
Minority interest in FelCor LP............... (2,222) 2,903 (0.03) (7,015) 3,161 (0.04)
--------- ------ ------ --------- ------ ------
FFO............................................. $ (18,610) 61,978 $(0.30) $(101,260) 61,851 $(1.64)
========= ====== ====== ========= ====== ======
NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------
2004 2003
---- ----
PER SHARE PER SHARE
DOLLARS SHARES AMOUNT DOLLARS SHARES AMOUNT
------- ------ ------ ------- ------ ------
NET LOSS....................................... $ (89,357) $(167,211)
Preferred dividends......................... (25,039) (20,181)
--------- ----------
NET LOSS APPLICABLE TO COMMON
STOCKHOLDERS.............................. $(114,396) 58,993 $(1.94) $(187,392) 58,609 $(3.20)
Depreciation from continuing operations..... 88,445 - 1.50 95,009 - 1.62
Depreciation from unconsolidated
entities and discontinued operations..... 9,238 - 0.16 21,836 - 0.37
Loss (gain) on sale of assets............... (2,116) - (0.04) 776 - 0.01
Minority interest in FelCor LP.............. (5,707) 2,989 (0.08) (10,065) 3,234 (0.09)
--------- ------ ------ ---------- ------ ------
FFO............................................ $ (24,536) 61,982 $(0.40) $ (79,836) 61,843 $(1.29)
========= ====== ====== ========== ====== ======
Consistent with SEC guidance, FFO has not been adjusted for the following
amounts included in net loss (in thousands, except per share amounts):
THREE MONTHS ENDED NINE MONTHS ENDED
------------------ -----------------
SEPTEMBER 30, SEPTEMBER 30
------------- ------------
2004 2003 2004 2003
---- ---- ---- ----
Charge off of deferred debt costs.................................. $ 1,920 $ - $ 6,094 $ 2,834
Loss (gain) on early extinguishment of debt........................ 10,987 (351) 39,233 (1,611)
Gain on swap termination........................................... - - (1,005) -
Lease termination expense from asset disposition................... - - 4,900 -
Impairment......................................................... 33,027 112,702 33,027 120,526
--------- ---------- -------- ----------
$45,934 $112,351 $82,249 $121,749
========= ========== ======== ==========
Per share amounts.................................................. $ 0.74 $ 1.82 $ 1.33 $ 1.97
========= ========== ======== ==========
11
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
- --------------------------------------------------------------------------------
HOTEL OPERATING PROFIT AND OPERATING MARGIN
(DOLLARS IN THOUSANDS)
Hotel operating profit and operating margin are commonly used non-GAAP
measures of performance that we utilize to measure the relative performance of
our individual hotels and groups of hotels and give investors a more complete
understanding of the operating results directly related to our hotels. We
believe that hotel operating profit and operating margin are useful to investors
by providing greater transparency with respect to significant measures used by
management in its financial and operational decision-making. Hotel operating
profit and operating margin are calculated as follows:
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
2004 2003 2004 2003
---- ---- ---- ----
Total revenue...................................................... $304,975 $285,617 $906,963 $841,791
Retail space rental and other revenue.............................. (2,166) (221) (2,590) (838)
--------- -------- -------- --------
Hotel revenue...................................................... 302,809 285,396 904,373 840,953
Hotel operating expenses........................................... 243,064 230,818 722,854 668,958
--------- -------- -------- --------
Hotel operating profit............................................. $ 59,745 $ 54,578 $181,519 $171,995
========= ======== ======== ========
Operating margin................................................... 19.7% 19.1% 20.1% 20.5%
Corporate expenses................................................. 3,791 3,299 11,569 10,459
Corporate expenses as a percentage of total revenues............... 1.2% 1.2% 1.3% 1.2%
HOTEL OPERATING EXPENSE COMPOSITION
(DOLLARS IN THOUSANDS)
THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------- -------------------------------
2004 2003 2004 2003
---- ---- ---- ----
% OF % OF % OF % OF
HOTEL HOTEL HOTEL HOTEL
REVENUE REVENUE REVENUE REVENUE
Hotel departmental expenses: ------- ------- ------- -------
Room................................. $ 66,787 22.1% $ 62,142 21.8% $194,478 21.5% $174,788 20.8%
Food and beverage.................... 34,551 11.4 32,258 11.3 105,455 11.7 96,737 11.5
Other operating departments.......... 7,993 2.6 6,893 2.4 24,045 2.6 20,415 2.4
-------- ------ -------- ------ -------- ------ -------- ----
Hotel departmental expense......... 109,331 36.1 101,293 35.5 323,978 35.8 291,940 34.7
-------- ------ -------- ------ -------- ------ -------- ----
Other property related costs:
Administrative and general........... 28,534 9.4 26,325 9.2 85,562 9.4 79,517 9.5
Marketing and advertising............ 25,452 8.4 24,616 8.6 77,854 8.6 71,894 8.5
Repairs and maintenance.............. 16,739 5.5 16,106 5.6 50,716 5.6 46,743 5.6
Energy............................... 17,522 5.8 16,198 5.7 47,504 5.3 43,584 5.2
Taxes, insurance and lease
expense......................... 29,216 9.7 30,905 10.9 89,750 9.9 90,792 10.7
--------- ------- --------- ------ --------- ------- --------- ----
Total other property related costs.. 117,463 38.8 114,150 40.0 351,386 38.8 332,530 39.5
Management and franchise fees........... 16,270 5.4 15,375 5.4 47,490 5.3 44,488 5.3
--------- ------- --------- ------- --------- ------- -------- -----
Hotel operating expenses................ $243,064 80.3% $230,818 80.9% $722,854 79.9% $668,958 79.5%
======== ===== ======== ===== ======== ===== ======== =====
THREE MONTHS NINE MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
------------------- -------------------
2004 2003 2004 2003
---- ---- ---- ----
Supplemental information:
Compensation and benefits expense (included in hotel
operating expenses)............................................ $ 99,515 $ 93,415 $296,629 $271,695
========= ========= ======== ========
Reconciliation of total operating expenses to hotel operating expenses:
Total operating expenses.......................................... $276,929 $265,593 $822,868 $774,426
Corporate expenses............................................. (3,791) (3,299) (11,569) (10,459)
Depreciation................................................... (30,074) (31,476) (88,445) (95,009)
--------- --------- --------- ---------
Hotel operating expenses.......................................... $243,064 $230,818 $722,854 $668,958
======== ======== ======== ========
12
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
- --------------------------------------------------------------------------------
DEBT SUMMARY
(DOLLARS IN THOUSANDS)
DEBT OUTSTANDING
- ----------------
ENCUMBERED INTEREST RATE AT MATURITY CONSOLIDATED
HOTELS SEPTEMBER 30, 2004 DATE DEBT
------ ------------------ ---- ----
Promissory note none 3.67% June 2016 $ 650
Senior unsecured term notes none 7.63 Oct. 2007 122,193
Senior unsecured term notes none 10.00 Sept. 2008 95,533
Senior unsecured term notes none 9.00 June 2011 298,346
Senior unsecured term notes none 5.84 June 2011 290,000
------ -----------
Total unsecured debt 7.77 806,722
------ -----------
Mortgage debt 15 hotels 5.27(b) July 2009-2014 193,378
Mortgage debt 1 hotel 7.23 Sept. 2005 10,753
Mortgage debt (a) 10 hotels 4.13 May 2006 145,536
Mortgage debt 15 hotels 7.24 Nov. 2007 128,055
Mortgage debt 1 hotel 4.84 August 2008 15,500
Mortgage debt 7 hotels 7.54 April 2009 90,969
Mortgage debt 6 hotels 7.55 June 2009 68,468
Mortgage debt 8 hotels 8.70 May 2010 176,200
Mortgage debt 7 hotels 8.73 May 2010 136,488
Mortgage debt 8 hotels 7.48 April 2011 49,898
Other 1 hotel 9.17 August 2011 6,294
--------- ------ -----------
Total secured debt 79 hotels 6.91 1,021,539
========= ------ -----------
Total 7.29% $1,828,261
===== ==========
(a) This debt has two, one-year extension options.
(b) Represents the weighted average of fixed-to-floating interest rate
swaps at six month LIBOR plus 211 basis points for $87 million and a
fixed rate of 6.52% for $107 million.
Fixed interest rate debt to total debt 70.7%
Weighted average maturity of debt 5.4 years
Secured debt to total assets 29.8%
At September 30, 2004, future scheduled debt principal payments are as follows
(in thousands):
SECURED UNSECURED
YEAR DEBT DEBT TOTAL
---- ---- ---- -----
2004 $ 5,782 $ - $ 5,782
2005 31,718 - 31,718
2006 160,173(a) - 160,173
2007 137,867 125,000 262,867
2008 33,598 95,971 129,569
2009 and thereafter 652,766 590,650 1,243,416
Premium/(discount) (365) (4,899) (5,264)
---------- -------- ----------
Total debt $1,021,539 $806,722 $1,828,261
========== ======== ==========
(a) Included is a $146 million non-recourse mortgage loan maturing in 2006,
that has two, one-year extension options.
13
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
- --------------------------------------------------------------------------------
DEBT SUMMARY (CONTINUED)
At September 30, 2004, we had unconsolidated 50 percent investments in
ventures that owned an aggregate of 20 hotels. These ventures had approximately
$209 million of non-recourse mortgage debt, all of which is secured by hotel
assets. Our pro rata share of this non-recourse debt is $104 million.
FINANCING TRANSACTIONS IN 2004:
In March 2004, we elected to terminate our unsecured line of credit
arrangement, which is expected to result in a 2004 cost savings of $0.4 million.
In April 2004, we completed the sale of 4,600,000 shares of our $1.95
Series A Cumulative Convertible Preferred Stock. The shares were sold at a price
of $23.79 per share, which included dividends of $0.51 per share accrued through
April 5, 2004, resulting in net proceeds of approximately $105 million.
In June 2004, we redeemed the full $175 million of our senior notes
maturing in October 2004, and through September 30, 2004, we retired $504
million of our 9-1/2% senior notes maturing in 2008.
In May 2004, we issued $175 million of Senior Floating Rate Debt
maturing in 2011, at an interest rate of LIBOR plus 4.25% and in July we issued
an additional $115 million of Senior Floating Debt under the same terms.
In May 2004, we borrowed $169 million of our secured facility at an
average interest rate of 5.01%. In July 2004, we received additional funding of
$25 million on this facility.
In August 2004, we completed the sale of 2,300,000 shares of our $1.95
Series A Cumulative Convertible Preferred Stock. The shares were sold at a price
of $23.22 per share, which included accrued dividends of $0.28 per share through
August 22, 2004, resulting in net proceeds of approximately $52 million.
14
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
- --------------------------------------------------------------------------------
PORTFOLIO DATA
PORTFOLIO DISTRIBUTION AT SEPTEMBER 30, 2004
(143 CONSOLIDATED HOTELS INCLUDED IN CONTINUING OPERATIONS, SAME STORE BASIS)
% OF % OF 2003 HOTEL
BRAND HOTELS ROOMS TOTAL ROOMS OPERATING PROFIT(b)
- ----- ------ ----- ----------- ----------------
Embassy Suites 56 14,279 36% 50%
Holiday Inn-branded 39 12,769 32 24
Sheraton-branded 10 3,269 8 9
Crowne Plaza 12 4,025 10 6
Doubletree-branded 10 2,206 6 6
Other 16 3,432 8 5
% OF % OF 2003 HOTEL
TOP MARKETS HOTELS ROOMS TOTAL ROOMS OPERATING PROFIT
- ----------- ------ ----- ----------- ----------------
Atlanta 12 3,514 9% 8%
Dallas 13 3,789 9 5
Los Angeles Area 6 1,492 4 5
Boca Raton/Ft. Lauderdale 4 1,118 3 4
New Orleans 2 746 2 4
San Francisco Bay Area 8 2,690 7 4
Orlando 6 2,219 6 4
Minneapolis 4 955 2 3
San Diego 1 600 2 3
Phoenix 4 1,016 3 3
Houston 8 1,969 5 3
Chicago 4 1,239 3 3
Philadelphia 3 1,174 3 3
% OF % OF 2003 HOTEL
TOP FOUR STATES HOTELS ROOMS TOTAL ROOMS OPERATING PROFIT
- --------------- ------ ----- ----------- ----------------
California 19 5,593 14% 16%
Texas 35 8,284 21 14
Florida 16 5,343 13 11
Georgia 14 3,868 10 9
% OF % OF 2003 HOTEL
LOCATION HOTELS ROOMS TOTAL ROOMS OPERATING PROFIT
- -------- ------ ----- ----------- ----------------
Suburban 66 16,818 42% 40%
Urban 31 9,628 24 27
Airport 28 8,509 21 21
Resort 11 3,605 9 10
Highway 7 1,420 4 2
% OF % OF 2003 HOTEL
SEGMENT HOTELS ROOMS TOTAL ROOMS OPERATING PROFIT
- ------- ------ ----- ----------- ----------------
Upscale all-suite 69 17,145 43% 58%
Full service 40 13,004 33 24
Upscale 25 8,263 21 17
Limited service 9 1,568 3 1
% OF % OF 2003 HOTEL
HOTELS ROOMS TOTAL ROOMS OPERATING PROFIT
------ ----- ----------- ----------------
Core Hotels 127 35,734 89% 96%
Non-Strategic Hotels(a) 16 4,246 11 4
(a) Excludes six hotels that met the "held for sale" accounting
requirements, and were included in discontinued operations at September
30, 2004.
(b) Hotel operating profit is more fully described on page 12 of this
supplement.
15
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
- --------------------------------------------------------------------------------
DETAILED OPERATING STATISTICS BY BRAND
(143 CONSOLIDATED HOTELS INCLUDED IN CONTINUING OPERATIONS, SAME STORE BASIS)
OCCUPANCY (%)
-------------
THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------- -------------------------------
2004 2003 % VARIANCE 2004 2003 % VARIANCE
---- ---- ---------- ---- ---- ----------
Embassy Suites Hotels 71.1 69.6 2.2 70.9 68.5 3.4
Holiday Inn-branded hotels 68.1 66.5 2.3 66.1 64.2 3.0
Sheraton-branded hotels 64.2 61.5 4.3 64.8 60.3 7.5
Crowne Plaza hotels 66.6 63.5 4.9 64.5 61.2 5.3
Doubletree-branded hotels 66.3 68.2 (2.8) 68.3 67.0 1.9
Other hotels 57.3 59.4 (3.5) 58.6 57.7 1.6
Total hotels 67.7 66.4 1.9 67.0 64.7 3.5
ADR ($)
-------
THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------- -------------------------------
2004 2003 % VARIANCE 2004 2003 % VARIANCE
---- ---- ---------- ---- ---- ----------
Embassy Suites Hotels 115.84 113.65 1.9 117.56 116.27 1.1
Holiday Inn-branded hotels 80.54 79.39 1.5 81.11 80.09 1.3
Sheraton-branded hotels 97.70 91.91 6.3 97.36 94.79 2.7
Crowne Plaza hotels 94.02 91.52 2.7 93.22 93.23 0.0
Doubletree-branded hotels 102.75 96.92 6.0 103.90 101.17 2.7
Other hotels 85.20 81.06 5.1 84.04 81.16 3.5
Total hotels 98.00 95.45 2.7 98.83 97.42 1.4
REVPAR ($)
----------
THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------- -------------------------------
2004 2003 % VARIANCE 2004 2003 % VARIANCE
---- ---- ---------- ---- ---- ----------
Embassy Suites Hotels 82.35 79.07 4.1 83.30 79.66 4.6
Holiday Inn-branded hotels 54.82 52.81 3.8 53.64 51.45 4.3
Sheraton-branded hotels 62.70 56.56 10.9 63.05 57.12 10.4
Crowne Plaza hotels 62.58 58.08 7.7 60.10 57.06 5.3
Doubletree-branded hotels 68.11 66.12 3.0 70.98 67.82 4.7
Other hotels 48.81 48.15 1.4 49.29 46.83 5.3
Total hotels 66.30 63.36 4.6 66.24 63.06 5.0
16
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
- --------------------------------------------------------------------------------
DETAILED OPERATING STATISTICS FOR FELCOR'S TOP MARKETS
(143 CONSOLIDATED HOTELS INCLUDED IN CONTINUING OPERATIONS, SAME STORE BASIS)
OCCUPANCY (%)
-------------
THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------- -------------------------------
2004 2003 % VARIANCE 2004 2003 % VARIANCE
---- ---- ---------- ---- ---- ----------
Atlanta 73.1 69.9 4.5 68.9 66.7 3.4
Dallas 48.0 47.2 1.8 50.6 47.9 5.7
Los Angeles Area 71.2 72.7 (2.1) 70.2 71.5 (1.9)
Boca Raton/Ft. Lauderdale 75.9 65.5 15.8 79.9 73.4 8.9
New Orleans 55.7 60.0 (7.2) 65.7 65.0 1.1
San Francisco Bay Area 73.1 71.7 1.9 67.5 65.7 2.7
Orlando 78.5 69.3 13.3 77.9 69.8 11.6
Minneapolis 77.8 75.1 3.6 70.0 66.3 5.5
San Diego 83.8 88.2 (5.0) 84.5 81.1 4.2
Phoenix 56.4 55.0 2.5 67.6 67.3 0.5
Houston 61.5 66.1 (6.9) 67.6 65.6 3.0
Chicago 73.2 75.3 (2.7) 70.6 68.7 2.7
Philadelphia 71.5 65.7 8.8 66.9 61.8 8.1
ADR ($)
-------
THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------- -------------------------------
2004 2003 % VARIANCE 2004 2003 % VARIANCE
---- ---- ---------- ---- ---- ----------
Atlanta 85.76 83.31 2.9 86.80 85.52 1.5
Dallas 89.90 85.50 5.1 89.63 88.08 1.8
Los Angeles Area 115.59 105.86 9.2 111.43 103.10 8.1
Boca Raton/Ft. Lauderdale 93.98 89.34 5.2 114.48 114.87 (0.3)
New Orleans 101.44 106.25 (4.5) 133.29 131.24 1.6
San Francisco Bay Area 115.70 113.90 1.6 112.89 113.11 (0.2)
Orlando 70.50 65.98 6.8 76.39 74.25 2.9
Minneapolis 129.79 125.02 3.8 124.89 123.01 1.5
San Diego 119.73 114.55 4.5 119.72 117.36 2.0
Phoenix 84.84 80.18 5.8 104.53 98.33 6.3
Houston 66.99 67.72 (1.1) 70.30 70.52 (0.3)
Chicago 109.05 108.78 0.2 104.51 108.52 (3.7)
Philadelphia 108.22 105.55 2.5 105.27 105.27 0.3
REVPAR ($)
----------
THREE MONTHS ENDED SEPTEMBER30, NINE MONTHS ENDED SEPTEMBER 30,
------------------------------- -------------------------------
2004 2003 % VARIANCE 2004 2003 % VARIANCE
---- ---- ---------- ---- ---- ----------
Atlanta 62.67 58.26 7.6 59.85 57.03 5.0
Dallas 43.19 40.33 7.1 45.34 42.18 7.5
Los Angeles Area 82.28 76.99 6.9 78.17 73.71 6.1
Boca Raton/Ft. Lauderdale 71.33 58.54 21.9 91.52 84.35 8.5
New Orleans 56.47 63.74 (11.4) 87.64 85.37 2.7
San Francisco Bay Area 84.54 81.68 3.5 76.15 74.33 2.4
Orlando 55.33 45.71 21.0 59.52 51.83 14.8
Minneapolis 100.93 93.86 7.5 87.38 81.58 7.1
San Diego 100.38 101.07 (0.7) 101.18 95.18 6.3
Phoenix 47.85 44.12 8.4 70.70 66.20 6.8
Houston 41.22 44.76 (7.9) 47.53 46.29 2.7
Chicago 79.84 81.90 (2.5) 73.82 74.60 (1.1)
Philadelphia 77.40 69.35 11.6 70.57 65.08 8.4
17
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
- --------------------------------------------------------------------------------
OTHER PERFORMANCE STATISTICS
(CONSOLIDATED HOTELS INCLUDED IN CONTINUING OPERATIONS, FOR PERIOD PRESENTED)
VARIANCE TO PRIOR YEAR
- ----------------------
OCCUPANCY ADR REVPAR
% VARIANCE % VARIANCE % VARIANCE
---------- ---------- ----------
2002:
First Quarter (11.2) (7.8) (18.2)
Second Quarter (5.1) (6.3) (11.1)
Third Quarter 2.4 (4.8) (2.4)
Fourth Quarter 4.4 (1.3) 3.1
Year 2002 (2.8) (5.5) (8.1)
2003:
First Quarter (1.2) (4.1) (5.3)
Second Quarter (3.0) (4.8) (7.6)
Third Quarter 0.3 (2.7) (2.4)
Fourth Quarter 0.6 (2.3) (1.7)
Year 2003 (0.6) (3.8) (4.4)
2004:
January 3.4 (1.2) 2.2
February 2.3 (1.3) 0.9
March 8.7 0.2 9.0
First Quarter 2004 5.2 (0.7) 4.4
April 8.0 (0.1) 7.9
May 5.0 1.5 6.6
June 3.8 3.5 7.4
Second Quarter 2004 5.5 1.7 7.3
July 2.3 2.1 4.4
August (1.3) 3.1 1.8
September 5.1 2.7 8.0
Third Quarter 2004 1.9 2.7 4.6
October (through October 21, 2004) 4.2 3.2 7.6
18
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO INFORMATION
PRO RATA SHARE OF ROOMS OWNED
ROOM COUNT AT
HOTELS SEPTEMBER 30, 2004
-------- ------------------
Consolidated hotels in continuing operations 143 39,980
Hotels held for sale 6 1,887
Unconsolidated hotel operations 5 761
---- --------
Total hotels owned 154 42,628
50% and 51% joint ventures 28 (3,046)
60% joint ventures 2 (390)
90% joint ventures 6 (148)
97% joint venture 1 (10)
--------
Total joint venture owned rooms (3,594)
--------
Pro rata share of rooms owned 39,034
========
CAPITAL EXPENDITURES (DOLLARS IN THOUSANDS)
THREE MONTHS ENDED NINE MONTHS ENDED YEAR ENDED
SEPTEMBER 30, 2004 SEPTEMBER 30, 2004 DECEMBER 31, 2003
------------------ ------------------ -----------------
Consolidated hotels:
Improvements and additions to hotels $ 26,872 $ 63,776 $ 64,045
% of total revenue 8.8% 7.0% 5.3%
Unconsolidated hotels (pro rata share):
Improvements and additions to hotels $ 1,885 $ 4,033 $ 4,291
% of total revenue 5.1% 3.6% 3.0%
19
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO INFORMATION
NON-STRATEGIC HOTELS
At September 30, 2004, we included in continuing operations 16 hotels
identified as non-strategic. The composition, by brand, of the 16 non-strategic
hotels is as follows: Holiday Inn-branded (12), Doubletree branded (2) and
Embassy Suites (2). These hotels are expected to be sold within the next 15
months depending on the individual hotel, market conditions, and other factors.
Operating statistics for our consolidated portfolio of 143 hotels included in
continuing operations:
THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
----------------------------------- --------------------------------------
2004 2003 % VARIANCE 2004 2003 % VARIANCE
---- ---- ---------- ---- ---- ----------
CONSOLIDATED IN CONTINUING OPERATIONS (143 HOTELS)
Occupancy (%) 67.7 66.4 1.9 67.0 64.7 3.5
ADR ($) 98.00 95.45 2.7 98.83 97.42 1.4
RevPAR ($) 66.30 63.36 4.6 66.24 63.06 5.0
NON-STRATEGIC HOTELS (16 HOTELS)
Occupancy (%) 62.8 61.3 2.5 59.7 57.5 4.0
ADR ($) 71.18 71.12 0.1 70.46 71.11 (0.9)
RevPAR ($) 44.73 43.59 2.6 42.09 40.87 3.0
CORE HOTELS (127 HOTELS)
Occupancy (%) 68.2 67.0 1.8 67.9 65.6 3.5
ADR ($) 100.93 98.09 2.9 101.80 100.16 1.6
RevPAR ($) 68.86 65.71 4.8 69.10 65.69 5.2
For the nine months ended September 30, 2004, the operating margins for the Core
Hotels were 31.7%, while the operating margins for the Non-Strategic Hotels were
21.3%.
PORTFOLIO CHANGES IN 2004
ACQUISITIONS:
- - In March 2004, we purchased the 132-room Santa Monica Holiday Inn for $27
million. This hotel has a premier location across from the Santa Monica
Pier and the Santa Monica beaches and will continue to be operated as a
full service upscale hotel. This hotel is classified as an upscale hotel
by STR because of the high room rates charged in this market.
HOTEL SALES:
Total Gross Sales
Date Price Per Quarter
Property Sold Rooms (in millions)
-------- ---- ----- -------------
Hotels sold during three months ended March 31, 2004:
Plano Holiday Inn................................................ Feb 2004 160
Jackson (Downtown) Crowne Plaza.................................. Feb 2004 354
Omaha (Southwest) Hampton Inn.................................... Mar 2004 131
Houston (Medical Center) Crowne Plaza............................ Mar 2004 297
---
Total Sales in First Quarter 2004 942 $ 30
Hotels sold during three months ended June 30, 2004:
St. Louis - Westport - Holiday Inn............................... Apr 2004 316
Odessa Holiday Inn Express & Suites.............................. Apr 2004 186
Odessa - Centre Holiday Inn & Suites............................. Apr 2004 245
---
Total Sales in Second Quarter 2004 747 $ 12
20
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO INFORMATION
Total Gross Sales
Date Price Per Quarter
Property Sold Rooms (in millions)
-------- ---- ----- -------------
Hotels sold during three months ended September 30, 2004:
Beaumont - I-10 (Midtown) Holiday Inn............................ Jul 2004 190
Midland - Country Villa Holiday Inn.............................. Aug 2004 250
Avon - Beaver Creek Lodge (Independent).......................... Aug 2004 72
Omaha - Southwest Holiday Inn Express & Suites................... Aug 2004 78
Albuquerque - Mountain View (at I-40 & I-25) Holiday Inn......... Sep 2004 360
-----
Total Sales in Third Quarter 2004 950 $ 28
Hotels sold to date during the three months ended December 31, 2004:
Dallas - DFW International Airport - North Harvey Hotel.......... Oct 2004 506
Omaha Homewood Suites............................................ Oct 2004 107
Dallas - North Dallas Addison (Near the Galleria)
Crowne Plaza................................................... Oct 2004 429
-----
Total Sales in Fourth Quarter-to-Date in 2004 1,042 $ 57
----- -----
TOTAL SALES YEAR-TO-DATE IN 2004 3,681 $ 127
===== =====
OTHER DISPOSITION:
- - On June 30, 2004, we transferred our leasehold interest in the San
Francisco Holiday Inn Select Downtown & Spa to the lessor as part of the
settlement of a dispute with the lessor.
PORTFOLIO CHANGES IN 2003
DISPOSITIONS:
- - Through December 31, 2003, we sold or otherwise disposed of 16
non-strategic hotels. Disposition proceeds from the 16 non-strategic
hotels and two parking garages sold during 2003 totaled approximately $125
million.
CONVERSIONS:
- - In March, we converted an independent, all-suite hotel in Dallas to a
Staybridge Suites hotel.
- - In April, we completed the conversion of the 385-room Hilton Myrtle Beach
Resort, following a $15 million renovation of the former
Wyndham-affiliated property.
OTHER:
- - In June 2003, we began consolidating the operations of eight hotels that
had previously been accounted for by the equity method.
21
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO LISTING
(AS OF SEPTEMBER 30, 2004)
STATE ROOMS % OWNED(A) BRAND
----- ----- ---------- -----
CONSOLIDATED CONTINUING OPERATIONS
- ----------------------------------
Birmingham(b) AL 242 Embassy Suites
Montgomery - East I-85(b) AL 210 Holiday Inn
Phoenix - Biltmore(b) AZ 232 Embassy Suites
Phoenix Crescent Hotel(b) AZ 342 Sheraton
Phoenix Scottsdale/Downtown(b) AZ 218 51% Fairfield Inn
Phoenix Tempe(b) AZ 224 Embassy Suites
Dana Point - Doheny Beach CA 195 Doubletree Guest Suites
Irvine - Orange County Airport (Newport Beach) CA 335 Crowne Plaza
Los Angeles - Anaheim (Located near
Disneyland Park)(b) CA 222 Embassy Suites
Los Angeles - Covina/I-10(b) CA 259 50% Embassy Suites
Los Angeles - El Segundo - International Airport -
South CA 349 97% Embassy Suites
Milpitas - Silicon Valley(b) CA 266 Embassy Suites
Milpitas - San Jose-North (Milpitas - Silicon Valley) CA 305 Crowne Plaza
Napa Valley(b) CA 205 Embassy Suites
Oxnard - Mandalay Beach Resort & Conference
Center(b) CA 248 Embassy Suites
Palm Desert - Palm Desert Resort(b) CA 198 Embassy Suites
Pleasanton (San Ramon Area) CA 244 Crowne Plaza
San Diego - On the Bay CA 600 Holiday Inn
San Francisco - Burlingame Airport CA 340 Embassy Suites
San Francisco - South San Francisco Airport(b) CA 312 Embassy Suites
San Francisco - Fisherman's Wharf CA 585 Holiday Inn
San Francisco - Union Square CA 403 Crowne Plaza
San Rafael - Marin County/Conference Center(b) CA 235 50% Embassy Suites
Santa Barbara - Goleta(b) CA 160 Holiday Inn
Santa Monica - Beach at the Pier CA 132 Holiday Inn
Denver - Aurora(b) CO 248 90% Doubletree
Stamford CT 380 Holiday Inn Select
Wilmington(b) DE 244 90% Doubletree
Boca Raton(b) FL 263 Embassy Suites
Cocoa Beach - Oceanfront FL 500 Holiday Inn
Deerfield Beach - Boca Raton/Deerfield Beach
Resort(b) FL 244 Embassy Suites
Ft. Lauderdale - 17th Street(b) FL 358 Embassy Suites
Ft. Lauderdale - Cypress Creek(b) FL 253 Sheraton Suites
Jacksonville - Baymeadows(b) FL 277 Embassy Suites
Miami - International Airport(b) FL 316 Embassy Suites
Miami - International Airport (LeJeune Center) FL 304 Crowne Plaza
Orlando - International Airport(b) FL 288 Holiday Inn Select
Orlando - International Drive - Resort(b) FL 651 Holiday Inn
Orlando - International Drive South/Convention
Center(b) FL 244 Embassy Suites
Orlando - Nikki Bird (Maingate - Walt Disney
World Area) FL 530 Holiday Inn
- --------------------------------------------------------------------------------
22
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO LISTING
(AS OF SEPTEMBER 30, 2004)
STATE ROOMS % OWNED(A) BRAND
----- ----- ---------- -----
Orlando - (North) FL 277 Embassy Suites
Orlando - Walt Disney World Resort(b) FL 229 Doubletree Guest Suites
Tampa - Busch Gardens FL 406 Holiday Inn
Tampa - On Tampa Bay(b) FL 203 Doubletree Guest Suites
Atlanta - Airport(b) GA 378 Crowne Plaza
Atlanta - Airport(b) GA 233 Embassy Suites
Atlanta - Airport-North(b) GA 493 Holiday Inn
Atlanta - Buckhead(b) GA 317 Embassy Suites
Atlanta - Downtown(b) GA 211 51% Courtyard by Marriott
Atlanta - Downtown(b) GA 242 51% Fairfield Inn
Atlanta - Galleria(b) GA 278 Sheraton Suites
Atlanta - Gateway - Atlanta Airport GA 395 Sheraton
Atlanta - Perimeter - Dunwoody(b) GA 250 Holiday Inn Select
Atlanta - Perimeter Center(b) GA 241 50% Embassy Suites
Atlanta - Powers Ferry(b) GA 296 Crowne Plaza
Atlanta - South (I-75 & US 41) (b) GA 180 Holiday Inn
Brunswick(b) GA 130 Embassy Suites
Columbus - North (I-185 at Peachtree Mall) GA 224 Holiday Inn
Davenport IA 288 Holiday Inn
Chicago - The Allerton IL 443 Crowne Plaza
Chicago - Lombard/Oak Brook(b) IL 262 50% Embassy Suites
Chicago - Northshore/Deerfield (Northbrook) (b) IL 237 Embassy Suites
Chicago O'Hare Airport(b) IL 297 Sheraton Suites
Moline - Airport IL 216 Holiday Inn
Moline - Airport Area IL 110 Holiday Inn Express
Indianapolis - North(b) IN 221 50% Embassy Suites
Kansas City - Overland Park(b) KS 199 50% Embassy Suites
Lexington(b) KY 155 Sheraton Suites
Lexington - Lexington Green(b) KY 174 Hilton Suites
Baton Rouge(b) LA 223 Embassy Suites
New Orleans(b) LA 372 Embassy Suites
New Orleans - French Quarter(b) LA 374 Holiday Inn
Boston - Government Center MA 303 Holiday Inn Select
Boston - Marlborough(b) MA 229 Embassy Suites
Baltimore - BWI Airport(b) MD 251 90% Embassy Suites
Troy - North (Auburn Hills) (b) MI 251 90% Embassy Suites
Bloomington(b) MN 219 Embassy Suites
Minneapolis - Airport(b) MN 310 Embassy Suites
Minneapolis - Downtown MN 216 Embassy Suites
St. Paul - Downtown(b) MN 210 Embassy Suites
Kansas City - NE I-435 North (At Worlds of Fun)(b) MO 165 Holiday Inn
Kansas City - Plaza(b) MO 266 50% Embassy Suites
St. Louis - Downtown(b) MO 297 Embassy Suites
Jackson - North MS 222 Holiday Inn & Suites
Olive Branch Whispering Woods Hotel and
Conference Center MS 181 Independent
Charlotte(b) NC 274 50% Embassy Suites
Charlotte SouthPark NC 208 Doubletree Guest Suites
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FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
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HOTEL PORTFOLIO LISTING
(AS OF SEPTEMBER 30, 2004)
STATE ROOMS % OWNED(A) BRAND
----- ----- ---------- -----
Raleigh(b) NC 203 Doubletree Guest Suites
Raleigh - Crabtree(b) NC 225 50% Embassy Suites
Omaha - Central NE 187 Doubletree Guest Suites
Omaha - Central NE 129 Hampton Inn
Omaha - Central (I-80) NE 383 Holiday Inn
Omaha - Old Mill(b) NE 223 Crowne Plaza
Parsippany(b) NJ 274 50% Embassy Suites
Piscataway - Somerset(b) NJ 224 Embassy Suites
Secaucus - Meadowlands(b) NJ 261 50% Embassy Suites
Cleveland - Downtown OH 268 Embassy Suites
Tulsa - I-44(b) OK 244 Embassy Suites
Philadelphia - Center City PA 445 Crowne Plaza
Philadelphia - Historic District(b) PA 364 Holiday Inn
Philadelphia - Society Hill(b) PA 365 Sheraton
Pittsburgh - At University Center (Oakland)(b) PA 251 Holiday Inn Select
Charleston - Mills House (Historic Downtown)(b) SC 214 Holiday Inn
Myrtle Beach - At Kingston Plantation SC 255 Embassy Suites
Myrtle Beach Resort SC 385 Hilton
Knoxville - Central At Papermill Road(b) TN 240 Holiday Inn
Nashville - Airport/Opryland Area TN 296 Embassy Suites
Nashville - Opryland/Airport (Briley Parkway) TN 382 Holiday Inn Select
Amarillo - I-40 TX 248 Holiday Inn
Austin(b) TX 189 90% Doubletree Guest Suites
Austin - North(b) TX 260 50% Embassy Suites
Austin - Town Lake (Downtown Area)(b) TX 320 Holiday Inn
Corpus Christi(b) TX 150 Embassy Suites
Dallas TX 295 Crowne Plaza Suites
Dallas - At Campbell Centre TX 300 90% Doubletree
Dallas - Dallas Park Central TX 114 Staybridge Suites
Dallas - DFW International Airport-North(b) TX 164 Harvey Suites
Dallas - DFW International Airport-South(b) TX 305 Embassy Suites
Dallas - Love Field(b) TX 248 Embassy Suites
Dallas - Market Center(b) TX 354 Crowne Plaza
Dallas - Market Center(b) TX 244 Embassy Suites
Dallas - Park Central TX 438 60% Sheraton
Dallas - Park Central TX 536 60% Westin
Dallas - Park Central Area(b) TX 279 Embassy Suites
Dallas - Regal Row(b) TX 203 51% Fairfield Inn
Dallas - West End/Convention Center TX 309 Hampton Inn
Houston - Greenway Plaza Area(b) TX 355 Holiday Inn Select
Houston - I-10 East(b) TX 160 51% Fairfield Inn
Houston - I-10 East(b) TX 90 51% Hampton Inn
Houston - I-10 West & Hwy. 6 (Park 10 Area) TX 349 Holiday Inn Select
Houston - Intercontinental Airport(b) TX 415 Holiday Inn
Houston - Medical Center(b) TX 284 Holiday Inn & Suites
Houston - Near the Galleria(b) TX 209 51% Courtyard by Marriott
Houston - Near the Galleria(b) TX 107 51% Fairfield Inn
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24
FelCor Lodging Trust Incorporated
Supplemental Information
Three and Nine Months Ended September 30, 2004
- --------------------------------------------------------------------------------
HOTEL PORTFOLIO LISTING
(AS OF SEPTEMBER 30, 2004)
STATE ROOMS % OWNED(A) BRAND
----- ----- ---------- -----
San Antonio - Downtown (Market Square) TX 315 Holiday Inn
San Antonio - International Airport(b) TX 261 50% Embassy Suites
San Antonio - International Airport(b) TX 397 Holiday Inn Select
San Antonio - N.W. I-10(b) TX 216 50% Embassy Suites
Waco - I-35 TX 170 Holiday Inn
Burlington Hotel & Conference Center(b) VT 309 Sheraton
Vienna - At Tysons Corner(b) VA 437 50% Sheraton
Canada
Toronto - Airport Ontario 445 Holiday Inn Select
Toronto - Yorkdale Ontario 370 Holiday Inn
HOTELS INCLUDED IN DISCONTINUED OPERATIONS
Hartford - Downtown CT 350 Crowne Plaza
Omaha(c) NE 107 Homewood Suites
Secaucus - Meadowlands NJ 304 Crowne Plaza
Dallas - DFW International Airport-North(c) TX 506 Harvey Hotel
Dallas - North Dallas Addison (Near the Galleria)(c) TX 429 Crowne Plaza
Salt Lake City - Airport UT 191 Holiday Inn
UNCONSOLIDATED OPERATIONS
Hays(b) KS 114 50% Hampton Inn
Hays(b) KS 191 50% Holiday Inn
Salina(b) KS 192 50% Holiday Inn
Salina - I-70(b) KS 93 50% Holiday Inn Express & Suites
New Orleans - Chateau LeMoyne (In French
Quarter/Historic Area)(b) LA 171 50% Holiday Inn
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(a) We own 100% of the real estate interests unless otherwise noted.
(b) This hotel is encumbered by mortgage debt or capital lease obligation.
(c) This hotel was sold subsequent to September 30, 2004.
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