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| SECURITIES      AND EXCHANGE COMMISSION |
|-----------------------------------------|

| Form      10-K |
|----------------|

|   | Maryland                             |   | 75-2541756               |
|--------|--------------------------------------|--------|--------------------------|
|   | (State      or other jurisdiction of |   | (I.R.S.      Employer    |
|   | incorporation      or organization)  |   | Identification      No.) |

| 545      E. John Carpenter Frwy., Suite 1300, Irving, Texas |   | 75062           |
|-------------------------------------------------------------|--------|-----------------|
| (Address      of principal executive offices)               |   | (Zip      Code) |

|                                                                                       |   | Name      of each exchange   |
|--------------------------------------------------------------------------------------------|--------|------------------------------|
| Title      of each class                                                                   |   | on      which registered     |
| Common      Stock                                                                          |   | New      York Stock Exchange |
| $1.95      Series A Cumulative Convertible Preferred Stock                                 |   | New      York Stock Exchange |
| Depositary      Shares representing 8% Series C Cumulative Redeemable Preferred      Stock |   | New      York Stock Exchange |

| Large      accelerated filer  | £                                                     |   | Accelerated      filer    | x      |
|------------------------------------|------------------------------------------------------------|--------|--------------------------------|--------|
| Non-accelerated      filer    | £ (Do not      check if a smaller reporting company). |   | Smaller      reporting company | £ |

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|          |                                                                                                                         | Form      10-K |
|---------------|------------------------------------------------------------------------------------------------------------------------------|----------------|
|          |                                                                                                                         | Report         |
| Item      No. |                                                                                                                         | Page           |
|          |                                                                                                                         |           |
|          | PART      I                                                                                                                  |           |
| Item      1.  | Business                                                                                                                     | 3              |
| Item      1A. | Risk      Factors                                                                                                            | 11             |
| Item      1B. | Unresolved      Staff Comments                                                                                               | 21             |
| Item      2.  | Properties                                                                                                                   | 22             |
| Item      3.  | Legal      Proceedings                                                                                                       | 29             |
| Item      4.  | Submission      of Matters to a Vote of Security Holders                                                                     | 29             |
|          |                                                                                                                         |           |
|          | PART      II                                                                                                                 |           |
| Item      5.  | Market      for Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities |  30       |
| Item      6.  | Selected      Financial Data                                                                                                 | 32             |
| Item      7.  | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                        | 33             |
| Item      7A. | Quantitative      and Qualitative Disclosures About Market Risk                                                              | 50             |
| Item      8.  | Financial      Statements and Supplementary Data                                                                             | 51             |
| Item      9.  | Changes      in and Disagreements With Accounts on Accounting and Financial      Disclosure                                  | 88             |
| Item      9A. | Controls      and Procedures                                                                                                 | 88             |
| Item      9B. | Other      Information                                                                                                       | 88             |
|          |                                                                                                                         |           |
|          | PART      III                                                                                                                |           |
| Item      10. | Directors,      Executive Officers of the Registrant and Corporate    Governance                                             | 89             |
| Item      11. | Executive      Compensation                                                                                                  | 89             |
| Item      12. | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters                     | 89             |
| Item      13. | Certain      Relationships, Related Transactions and Director    Independence                                                | 89             |
| Item      14. | Principal      Accountant Fees and Services                                                                                  | 89             |
|          |                                                                                                                         |           |
|          | PART      IV                                                                                                                 |           |
| Item      15. | Exhibits      and Financial Statement Schedules                                                                              | 90             |

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| • | general      economic conditions, including, among others, the pronounced recession,      rising unemployment, major bank failures and unsettled capital markets,      the impact of the United States’ military involvement in the Middle East      and elsewhere, future acts of terrorism, the threat or outbreak of a      pandemic disease affecting the travel industry, reduction in domestic      airline capacity, rising fuel costs and increased transportation security      precautions; |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| • | our      overall debt levels and our ability to refinance or obtain new financing      and service debt, especially in light of currently constrained capital      markets;                                                                                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| • | our      inability to retain earnings;                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| • | our      liquidity and capital expenditures;                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| • | our      ability to complete hotel dispositions at acceptable prices, growth      strategy and acquisition activities; and                                                                                                                                                                                                                                                                                                                                                                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| • | competitive      conditions in the lodging industry.                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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|   | · | In      October 2009, we issued $636 million (aggregate principal amount) of      10% senior secured notes due 2014.  We received approximately      $558 million in net proceeds after original issue discount, fees and      expenses related to the offering.  These proceeds were used to      repurchase approximately $428 million (in aggregate principal amount)      of our senior notes due in 2011 and for general corporate      purposes. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In      June 2009, we obtained a $201 million non-recourse term loan secured      by nine hotels that matures in 2011.  This loan can be extended      for up to two years, subject to satisfying certain conditions that we      expect to satisfy. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In      June 2009, we repaid and terminated our line of credit.  By      terminating our line of credit, we eliminated certain restrictive      corporate covenants. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In      March 2009, we refinanced a $116 million secured loan maturing in      2009 with a $120 million non-recourse term loan that matures in 2014,      secured by the same sevenhotels.  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We      held discussions with current and potential lenders to modify and/or      refinance all of our 2010 debt maturities (many of these discussions are      ongoing). |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We      increased cash held on our balance sheet by more than      $200 million. |
|--------|--------|---------------------------------------------------------------------------------------|

| • |   | Owners—own      hotels and typically enter into an agreement for an independent third      party to manage the hotel. The property may be branded and operated under      the manager’s brand or branded under a franchise agreement and operated by      the franchisee or by an independent hotel manager. The property may also      be operated as an independent hotel (unaffiliated with any brand) by an      independent hotel manager.  |
|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • |   | Owner/Managers—own      hotels and operate the property with their own management team. They may      brand their hotels under a franchise agreement, operate as an independent      hotel (unaffiliated with any brand) or operate under the owner’s brand.      REITs are restricted from operating and managing hotels under applicable      laws and regulations governingREITs.                                                                  |

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| •       |   | Franchisors—own      a brand or brands and strive to grow their revenues by expanding the      number of hotels and brands in their franchise system. Franchisors provide      hotels with brand recognition, marketing support and centralized      reservation systems.  |
|---------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  • |   | Brand/Managers—own      a brand or brands and also operate hotels or hotels on behalf of hotel      owners or franchisees.                                                                                                                                                      |

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|                                         | Year      Ended December 31, |
|----------------------------------------------|-----------------------------------|
|                                         | 2009                              |   | 2008 |   | 2007 |   | 2006 |   | 2005 |
| Number      of FelCor Hotels                 |                              | 83 |   |   |   | 85 |   |   |   | 83 |   |   |   | 83 |   |   |   | 125 |   |
| Occupancy:                                   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   FelCor      hotels(a)       |                              | 66.2 | % |   |   | 70.9 | % |   |   | 70.4 | % |   |   | 72.6 | % |   |   | 69.3 | % |
|   All      Upscale U.S. hotels(b)  |                              | 56.4 |   |   |   | 62.0 |   |   |   | 64.8 |   |   |   | 65.5 |   |   |   | 65.2 |   |
|   All      Midprice U.S. hotels(c) |                              | 51.9 |   |   |   | 57.6 |   |   |   | 60.4 |   |   |   | 61.0 |   |   |   | 61.0 |   |
|   All      U.S. hotels             |                              | 55.1 |   |   |   | 60.4 |   |   |   | 63.2 |   |   |   | 63.4 |   |   |   | 63.1 |   |
| ADR:                                         |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   FelCor      hotels(a)       | $                                 | 123.23 |   |   | $ | 136.32 |   |   | $ | 134.21 |   |   | $ | 125.98 |   |   | $ | 107.18 |   |
|   All      Upscale U.S. hotels(b)  |                              | 106.66 |   |   |   | 115.96 |   |   |   | 113.56 |   |   |   | 107.37 |   |   |   | 101.60 |   |
|   All      Midprice U.S. hotels(c) |                              | 78.12 |   |   |   | 84.21 |   |   |   | 82.18 |   |   |   | 78.12 |   |   |   | 73.96 |   |
|   All      U.S. hotels             |                              | 97.51 |   |   |   | 106.55 |   |   |   | 103.64 |   |   |   | 97.31 |   |   |   | 90.95 |   |
| RevPAR:                                      |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   FelCor      hotels(a)       | $                                 | 81.62 |   |   | $ | 96.67 |   |   | $ | 94.48 |   |   | $ | 91.45 |   |   | $ | 74.29 |   |
|   All      Upscale U.S. hotels(b)  |                              | 60.12 |   |   |   | 71.83 |   |   |   | 73.61 |   |   |   | 70.31 |   |   |   | 66.21 |   |
|   All      Midprice U.S. hotels(c) |                              | 40.58 |   |   |   | 48.48 |   |   |   | 49.68 |   |   |   | 47.66 |   |   |   | 45.12 |   |
|   All      U.S. hotels             |                              | 53.71 |   |   |   | 64.37 |   |   |   | 65.50 |   |   |   | 61.69 |   |   |   | 57.39 |   |

| (a) | Information      is based on historicalpresentations. |
|-----|-------------------------------------------------------|

| (b) | This      category includes hotels in the “upscale price level,” defined as hotels      with ADRs in the 70th to 85th percentiles in their respective      markets. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | This      category includes hotels in the “midprice level,” defined as hotels with      ADRs in the 40th to 70th percentiles in their respective      markets. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | Hilton      Hotels Corporation (www.hiltonworldwide.com)      is recognized internationally as a preeminent hospitality company.       Hilton owns, manages or franchises more than 3,500 hotels in 81      countries.  Its portfolio includes many of the world’s best-known and      most highly regarded hotel brands, including Waldorf Astoria, Conrad,      Hilton, Doubletree, Embassy Suites Hotels, Hilton Garden Inn, Hampton Inn,      Homewood Suites by Hilton, Home2 Suites by Hilton, and Hilton Grand      Vacations.  Subsidiaries of Hilton managed 54 of our      Consolidated Hotels at December 31, 2009.  Hilton is a 50%      partner in joint ventures with us that own 11 hotels and manage      residential condominiums.  Hilton also holds 10% equity      interests in certain of our consolidated subsidiaries that own three      hotels. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Starwood      Hotels & Resorts Worldwide, Inc. (www.starwoodhotels.com)      is one of the leading hotel and leisure companies in the world with 960      properties in 100 countries. With internationally renowned brands,      Starwood is a fully integrated owner, operator and franchisor of hotels      and resorts including: St. Regis, The Luxury Collection, W, Westin, Le      Méridien, Sheraton, Four Points by Sheraton, Element and      aloft.  Subsidiaries of Starwood managed nine of our      Consolidated Hotels at December 31, 2009.  Starwood is a      40% joint venture partner with us in the ownership of one hotel and a 50%      joint venture partner with us in the ownership of one    hotel. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | Marriott      International, Inc. (www.marriott.com)      is a leading lodging company with more than 3,000 lodging properties      located in the United States and 67 other countries and      territories.  Its portfolio includes 17 lodging and vacation      resort ownership brands including Ritz Carlton, Marriott Hotels &      Resorts, Renaissance Hotels & Resorts, JW Marriott Hotels &      Resorts, Courtyard by Marriott, Fairfield Inn by Marriott and Residence      Inn by Marriott.  Subsidiaries of Marriott managed three of our      Consolidated Hotels at December 31,2009. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | InterContinental      Hotels Group PLC (www.ichotelsgroup.com)      of the United Kingdom is one of the world’s largest hotel companies by      number of rooms.  IHG owns, manages, leases or franchises,      through various subsidiaries, more than 4,400 hotels and over 640,000      guest rooms in nearly 100 countries. IHG owns a portfolio of well      recognized and respected hotel brands including InterContinental Hotels      & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn, Holiday Inn      Express, Hotel Indigo, Staybridge Suites and Candlewood Suites, and also      manages the world’s largest hotel loyalty program, Priority Club      Rewards.  At December 31, 2009, subsidiaries of IHG managed      15 of our Consolidated Hotels. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| • | limit      our ability to obtain additional financing for working capital,      renovation, redevelopment and rebranding plans, acquisitions, debt service      requirements and other purposes;                                                         |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | limit      our ability to refinance existing debt;                                                                                                                                                                                                       |
| • | require      us to agree to additional restrictions and limitations on our business      operations and capital structure to obtain financing;                                                                                                           |
| • | increase      our vulnerability to adverse economic and industry conditions, and to      interest rate fluctuations;                                                                                                                                     |
| • | require      us to dedicate a substantial portion of our cash flow from operations to      payments on our debt, thereby reducing funds available for capital      expenditures, future business opportunities, paying dividends or other      purposes; |
| • | limit      our flexibility to make, or react to, changes in our business and our      industry; and                                                                                                                                                      |
| • | place      us at a competitive disadvantage, compared to our competitors that have      less debt.                                                                                                                                                       |

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| • | adverse      changes in general or local economic or real estate market      conditions;                                |
|---------|-------------------------------------------------------------------------------------------------------------------------|
| • | the      ability to refinance debt on favorable terms at  maturity;                                                     |
| • | changes      in zoning laws;                                                                                            |
| • | increases      in lodging supply or competition;                                                                        |
| • | decreases      in demand;                                                                                               |
| • | changes      in traffic patterns and neighborhood characteristics;                                                      |
| • | increases      in assessed property taxes from changes in valuation or real estate tax      rates;                      |
| • | increases      in the cost of our property insurance;                                                                   |
| • | the      potential for uninsured or underinsured propertylosses;                                                        |
| • | costly      governmental regulations and fiscal policies;                                                               |
| • | changes      in tax laws;                                                                                               |
| • | our      ability to acquire hotel properties at prices consistent with our      investment criteria;                    |
| • | our      ability to fund capital expenditures at our hotels to maintain or enhance      their competitive position; and |
| • | other      circumstances beyond our control.                                                                            |

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| • | wage      and benefit costs, including hotels that employ unionized      labor;              |
|---------|----------------------------------------------------------------------------------------------|
| • | repair      and maintenance expenses;                                                        |
| • | gas      and electricity costs;                                                              |
| • | insurance      costs, including health, general liability and workers compensation;      and |
| • | other      operating expenses.                                                               |

| • | adverse      effects of declines in general and local economic  activity;                               |
|---------|---------------------------------------------------------------------------------------------------------|
| • | competition      from other hotels;                                                                     |
| • | construction      of more hotel rooms in a particular area than needed to meet      demand;             |
| • | any      further increases in energy costs and other travel    expenses;                                |
| • | other      events, such as terrorist acts or war that reduce business and leisure      travel;          |
| • | fluctuations      in our revenue caused by the seasonal nature of the hotel      industry;              |
| • | an      outbreak of a pandemic disease affecting the travel    industry;                                |
| • | a      downturn in the hotel industry; and                                                              |
| • | risks      generally associated with the ownership of hotels and real estate, as      discussed herein. |

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|                          |   Hotels |   | %      of 2009HotelEBITDA(a) |   |
|-------------------------------|--------------------|--------|------------------------------|--------|
| Embassy      Suites Hotels    | 47                 |   |                         | 60     | % |   |
| Holiday      Inn              | 15                 |   |                         | 18     |   |   |
| Sheraton      and Westin      | 9                  |   |                         | 9      |   |   |
| Doubletree                    | 7                  |   |                         | 7      |   |   |
| Renaissance      and Marriott | 3                  |   |                         | 3      |   |   |
| Hilton                        | 2                  |   |                         | 3      |   |   |

|   | (a) | Hotel      EBITDA is a non-GAAP financial measure.  A detailed      reconciliation and further discussion of Hotel EBITDA is contained in the      “Non-GAAP Financial Measures” section of Management’s Discussion and      Analysis of Financial Condition and Results of Operations in Item 7      of this Annual Report. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Top      Markets              |   |   |  Hotels |   |  Rooms |   | %      ofTotal      Rooms |   | %      of 2009Hotel EBITDA(a) |   |
|-------------------------------|--------|--------|--------------|--------|-------------|--------|---------------------------|--------|------------------------------------|--------|
| South      Florida            |   | 5      |         |   | 1,439       |   |                      | 6      |                               |   | 8 |   |   |
| Los      Angeles area         |   | 4      |         |   | 899         |   |                      | 4      |                               |   | 6 |   |   |
| Atlanta                       |   | 5      |         |   | 1,462       |   |                      | 6      |                               |   | 6 |   |   |
| Orlando                       |   | 4      |         |   | 1,038       |   |                      | 4      |                               |   | 5 |   |   |
| Philadelphia                  |   | 2      |         |   | 729         |   |                      | 3      |                               |   | 4 |   |   |
| Minneapolis                   |   | 3      |         |   | 736         |   |                      | 3      |                               |   | 4 |   |   |
| San      Francisco area       |   | 6      |         |   | 2,138       |   |                      | 9      |                               |   | 4 |   |   |
| Dallas                        |   | 4      |         |   | 1,333       |   |                      | 6      |                               |   | 4 |   |   |
| Central      California Coast |   | 2      |         |   | 408         |   |                      | 2      |                               |   | 4 |   |   |
| San      Antonio              |   | 3      |         |   | 874         |   |                      | 4      |                               |   | 3 |   |   |
| Myrtle      Beach             |   | 2      |         |   | 640         |   |                      | 3      |                               |   | 3 |   |   |
| Boston                        |   | 2      |         |   | 532         |   |                      | 2      |                               |   | 3 |   |   |
| San      Diego                |   | 1      |         |   | 600         |   |                      | 2      |                               |   | 3 |   |   |
| Northern      New Jersey      |   | 3      |         |   | 756         |   |                      | 3      |                               |   | 3 |   |   |
|                          |   |   |         |   |        |   |                      |   |                               |   |   |   |   |
| Location                      |   |   |         |   |        |   |                      |   |                               |   |   |   |   |   |
| Suburban                      |   | 35     |         |   | 8,781       |   |                      | 37     |                               |   | 32 |   |   |
| Urban                         |   | 20     |         |   | 6,358       |   |                      | 27     |                               |   | 27 |   |   |
| Airport                       |   | 18     |         |   | 5,788       |   |                      | 24     |                               |   | 24 |   |   |
| Resort                        |   | 10     |         |   | 2,927       |   |                      | 12     |                               |   | 17 |   |   |

|   | (a) | Hotel      EBITDA is a non-GAAP financial measure.  A detailed      reconciliation and further discussion of Hotel EBITDA is contained in the      “Non-GAAP Financial Measures” section of Management’s Discussion and      Analysis of Financial Condition and Results of Operations in Item 7 of      this Annual Report. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Brand                         |   |  Hotels |   |  Rooms |   | %      ofTotal      Rooms |   | %      of 2009Hotel EBITDA(a) |   |
|-------------------------------|--------|--------------|--------|-------------|--------|---------------------------|--------|------------------------------------|--------|
| Embassy      Suites Hotels    | 47     |         |   | 12,132      |   | 51                        |   |                               | 60     |   |   |
| Holiday      Inn              | 15     |         |   | 5,154       |   | 22                        |   |                               | 18     |   |   |
| Sheraton      and Westin      | 9      |         |   | 3,217       |   | 13                        |   |                               | 9      |   |   |
| Doubletree                    | 7      |         |   | 1,471       |   | 6                         |   |                               | 7      |   |   |
| Renaissance      and Marriott | 3      |         |   | 1,321       |   | 6                         |   |                               | 3      |   |   |
| Hilton                        | 2      |         |   | 559         |   | 2                         |   |                               | 3      |   |   |

|   | (a) | Hotel      EBITDA is a non-GAAP financial measure.  A detailed      reconciliation and further discussion of Hotel EBITDA is contained in the      “Non-GAAP Financial Measures” section of Management’s Discussion and      Analysis of Financial Condition and Results of Operations in Item 7 of      this Annual Report. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Holiday      Inn |
|--------|------------------|

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|   |                          | Occupancy      (%)                |   |
|--------|-------------------------------|-----------------------------------|--------|
|   |                          | Year      Ended December 31, |   |   |   |   |
|   |                          | 2009                              |   | 2008 |   | %Variance |   |
|   | Embassy      Suites Hotels    | 67.7                              |   |   | 72.9 |   |   | (7.1 | ) |   |
|   | Holiday      Inn              | 68.7                              |   |   | 74.0 |   |   | (7.2 | ) |   |
|   | Sheraton      and Westin      | 60.2                              |   |   | 65.8 |   |   | (8.5 | ) |   |
|   | Doubletree                    | 65.5                              |   |   | 73.5 |   |   | (10.8 | ) |   |
|   | Renaissance      and Marriott | 61.4                              |   |   | 62.8 |   |   | (2.1 | ) |   |
|   | Hilton                        | 60.0                              |   |   | 60.6 |   |   | (0.9 | ) |   |
|   |                          |                              |   |   |   |   |   |   |   |   |
|   | Total      hotels             | 66.2                              |   |   | 71.3 |   |   | (7.2 | ) |   |
|   |                          |                              |   |   |   |   |   |   |   |   |
|   |                          |                              |   |   |   |   |   |   |   |   |
|   |                          |                              |   |   |   |   |   |   |   |   |
|   |                          | ADR      ($)                      |   |
|   |                          | Year      Ended December 31, |   |   |   |   |
|   |                          | 2009                              |   | 2008 |   | %Variance |   |
|   | Embassy      Suites Hotels    | 127.92                            |   |   | 143.54 |   |   | (10.9 | ) |   |
|   | Holiday      Inn              | 112.22                            |   |   | 128.04 |   |   | (12.4 | ) |   |
|   | Sheraton      and Westin      | 108.47                            |   |   | 124.61 |   |   | (13.0 | ) |   |
|   | Doubletree                    | 122.59                            |   |   | 141.62 |   |   | (13.4 | ) |   |
|   | Renaissance      and Marriott | 163.16                            |   |   | 173.97 |   |   | (6.2 | ) |   |
|   | Hilton                        | 115.46                            |   |   | 126.12 |   |   | (8.5 | ) |   |
|   |                          |                              |   |   |   |   |   |   |   |   |
|   | Total      hotels             | 123.23                            |   |   | 138.75 |   |   | (11.2 | ) |   |
|   |                          |                              |   |   |   |   |   |   |   |   |
|   |                          |                              |   |   |   |   |   |   |   |   |
|   |                          |                              |   |   |   |   |   |   |   |   |
|   |                          | RevPAR      ($)                   |   |
|   |                          | Year      Ended December 31, |   |   |   |   |
|   |                          | 2009                              |   | 2008 |   | %Variance |   |
|   | Embassy      Suites Hotels    | 86.55                             |   |   | 104.57 |   |   | (17.2 | ) |   |
|   | Holiday      Inn              | 77.11                             |   |   | 94.81 |   |   | (18.7 | ) |   |
|   | Sheraton      and Westin      | 65.34                             |   |   | 82.05 |   |   | (20.4 | ) |   |
|   | Doubletree                    | 80.35                             |   |   | 104.03 |   |   | (22.8 | ) |   |
|   | Renaissance      and Marriott | 100.21                            |   |   | 109.17 |   |   | (8.2 | ) |   |
|   | Hilton                        | 69.32                             |   |   | 76.38 |   |   | (9.2 | ) |   |
|   |                          |                              |   |   |   |   |   |   |   |   |
|   | Total      hotels             | 81.62                             |   |   | 99.00 |   |   | (17.6 | ) |   |

----

|   |                          | Occupancy      (%)           |   |
|--------|-------------------------------|------------------------------|--------|
|   |                          | Year      Ended December 31, |   |   |   |
|   |                          | 2009                         |   | 2008 |   | %Variance |   |
|   | South      Florida            | 73.0                         |   |   | 76.9 |   |   | (5.1 | ) |   |
|   | Los      Angeles area         | 71.6                         |   |   | 74.5 |   |   | (3.9 | ) |   |
|   | Atlanta                       | 69.7                         |   |   | 72.4 |   |   | (3.7 | ) |   |
|   | Orlando                       | 74.0                         |   |   | 79.8 |   |   | (7.3 | ) |   |
|   | Philadelphia                  | 66.4                         |   |   | 72.9 |   |   | (8.9 | ) |   |
|   | Minneapolis                   | 66.6                         |   |   | 70.6 |   |   | (5.7 | ) |   |
|   | San      Francisco area       | 69.1                         |   |   | 74.6 |   |   | (7.4 | ) |   |
|   | Dallas                        | 58.6                         |   |   | 65.9 |   |   | (11.0 | ) |   |
|   | Central      California Coast | 72.8                         |   |   | 73.1 |   |   | (0.4 | ) |   |
|   | San      Antonio              | 70.0                         |   |   | 78.1 |   |   | (10.4 | ) |   |
|   | Myrtle      Beach             | 59.6                         |   |   | 58.5 |   |   | 1.8 |   |   |
|   | Boston                        | 77.8                         |   |   | 79.2 |   |   | (1.7 | ) |   |
|   | San      Diego                | 72.6                         |   |   | 78.5 |   |   | (7.5 | ) |   |
|   | Northern      New Jersey      | 62.2                         |   |   | 71.1 |   |   | (12.5 | ) |   |
|   |                          | ADR      ($)                 |   |
|   |                          | Year      Ended December 31, |   |   |   |
|   |                          | 2009                         |   | 2008 |   | %Variance |   |
|   | South      Florida            | 129.18                       |   |   | 148.82 |   |   | (13.2 | ) |   |
|   | Los      Angeles area         | 135.63                       |   |   | 157.20 |   |   | (13.7 | ) |   |
|   | Atlanta                       | 104.71                       |   |   | 120.93 |   |   | (13.4 | ) |   |
|   | Orlando                       | 110.75                       |   |   | 125.68 |   |   | (11.9 | ) |   |
|   | Philadelphia                  | 135.22                       |   |   | 151.60 |   |   | (10.8 | ) |   |
|   | Minneapolis                   | 127.53                       |   |   | 144.82 |   |   | (11.9 | ) |   |
|   | San      Francisco area       | 129.66                       |   |   | 143.35 |   |   | (9.5 | ) |   |
|   | Dallas                        | 114.92                       |   |   | 124.48 |   |   | (7.7 | ) |   |
|   | Central      California Coast | 156.45                       |   |   | 172.03 |   |   | (9.1 | ) |   |
|   | San      Antonio              | 102.74                       |   |   | 112.90 |   |   | (9.0 | ) |   |
|   | Myrtle      Beach             | 133.48                       |   |   | 141.71 |   |   | (5.8 | ) |   |
|   | Boston                        | 133.97                       |   |   | 154.30 |   |   | (13.2 | ) |   |
|   | San      Diego                | 124.75                       |   |   | 157.47 |   |   | (20.8 | ) |   |
|   | Northern      New Jersey      | 140.38                       |   |   | 162.37 |   |   | (13.5 | ) |   |
|   |                          | RevPAR      ($)              |   |
|   |                          | Year      Ended December 31, |   |   |   |
|   |                          | 2009                         |   | 2008 |   | %Variance |   |
|   | South      Florida            | 94.28                        |   |   | 114.42 |   |   | (17.6 | ) |   |
|   | Los      Angeles area         | 97.07                        |   |   | 117.10 |   |   | (17.1 | ) |   |
|   | Atlanta                       | 73.01                        |   |   | 87.60 |   |   | (16.7 | ) |   |
|   | Orlando                       | 81.93                        |   |   | 100.34 |   |   | (18.3 | ) |   |
|   | Philadelphia                  | 89.81                        |   |   | 110.55 |   |   | (18.8 | ) |   |
|   | Minneapolis                   | 84.88                        |   |   | 102.21 |   |   | (17.0 | ) |   |
|   | San      Francisco area       | 89.54                        |   |   | 106.87 |   |   | (16.2 | ) |   |
|   | Dallas                        | 67.34                        |   |   | 81.99 |   |   | (17.9 | ) |   |
|   | Central      California Coast | 113.95                       |   |   | 125.80 |   |   | (9.4 | ) |   |
|   | San      Antonio              | 71.89                        |   |   | 88.21 |   |   | (18.5 | ) |   |
|   | Myrtle      Beach             | 79.49                        |   |   | 82.89 |   |   | (4.1 | ) |   |
|   | Boston                        | 104.22                       |   |   | 122.15 |   |   | (14.7 | ) |   |
|   | San      Diego                | 90.58                        |   |   | 123.64 |   |   | (26.7 | ) |   |
|   | Northern      New Jersey      | 87.35                        |   |   | 115.49 |   |   | (24.4 | ) |   |

----

|   | Hotel      Portfolio |
|--------|----------------------|

|                                                             |                         | Brand  |            |   | State  |   |   | Rooms |   | %      Owned(a) |   |
|------------------------------------------------------------------|------------------------------|--------|-----------------|--------|--------|--------|--------|-------|--------|-----------------|--------|
| Consolidated      Hotels                                         |                         |   |            |   |   |
| Birmingham(b)                                                    | Embassy      Suites Hotel    | AL     |   242 |   |
| Phoenix      – Biltmore(b)                                 | Embassy      Suites Hotel    | AZ     |   232 |   |
| Phoenix      – Crescent(b)                                 | Sheraton                     | AZ     |   342 |   |
| Phoenix      – Tempe(b)                                    | Embassy      Suites Hotel    | AZ     |   224 |   |
| Anaheim      – North(b)                                    | Embassy      Suites Hotel    | CA     |   222 |   |
| Dana      Point – Doheny Beach                             | Doubletree      Guest Suites | CA     |   196 |   |
| Indian      Wells – Esmeralda Resort & Spa(b)          | Renaissance      Resort      | CA     | 560             |   |
| Los      Angeles – International Airport/South             | Embassy      Suites Hotel    | CA     |   349 | 97%    |
| Milpitas      – Silicon Valley(b)                          | Embassy      Suites Hotel    | CA     |   266 |   |
| Napa      Valley(b)                                              | Embassy      Suites Hotel    | CA     |   205 |   |
| Oxnard      – Mandalay Beach – Hotel & Resort(b) | Embassy      Suites Hotel    | CA     |   248 |   |
| San      Diego – On the Bay(b)                             | Holiday      Inn             | CA     |   600 |   |
| San      Francisco – Airport/Burlingame(b)                 | Embassy      Suites Hotel    | CA     |   340 |   |
| San      Francisco – Airport/South San Francisco(b)        | Embassy      Suites Hotel    | CA     |   312 |   |
| San      Francisco – Fisherman’s Wharf(b)            | Holiday      Inn             | CA     |   585 |   |
| San      Francisco – Union Square(b)                       | Marriott                     | CA     |   400 |   |
| San      Rafael – Marin County(b)                          | Embassy      Suites Hotel    | CA     |   235 | 50%    |
| Santa      Barbara – Goleta(b)                             | Holiday      Inn             | CA     |   160 |   |
| Santa      Monica Beach – at the Pier(b)                   | Holiday      Inn             | CA     | 132             |   |
| Wilmington(b)                                                    | Doubletree                   | DE     |   244 | 90%    |
| Boca      Raton(b)                                               | Embassy      Suites Hotel    | FL     |   263 |   |
| Deerfield      Beach – Resort & Spa(b)                 | Embassy      Suites Hotel    | FL     |   244 |   |
| Ft.      Lauderdale – 17th Street(b)                       | Embassy      Suites Hotel    | FL     |   361 |   |
| Ft.      Lauderdale – Cypress Creek(b)                     | Sheraton      Suites         | FL     |   253 |   |
| Jacksonville      – Baymeadows(b)                          | Embassy      Suites Hotel    | FL     |   277 |   |
| Miami      – International Airport(b)                      | Embassy      Suites Hotel    | FL     |   318 |   |
| Orlando      – International Airport(b)                    | Holiday      Inn             | FL     |   288 |   |
| Orlando      – International Drive South/Convention(b)     | Embassy      Suites Hotel    | FL     |   244 |   |
| Orlando–      North(b)                                     | Embassy      Suites Hotel    | FL     |   277 |   |
| Orlando      – Walt Disney World Resort(b)                 | Doubletree      Guest Suites | FL     |   229 |   |
| St.      Petersburg – Vinoy Resort & Golf Club(b)      | Renaissance      Resort      | FL     | 361             |   |
| Tampa      – Tampa Bay(b)                                  | Doubletree      Guest Suites | FL     |   203 |   |
| Atlanta      – Airport(b)                                  | Embassy      Suites Hotel    | GA     |   232 |   |
| Atlanta      – Buckhead(b)                                 | Embassy      Suites Hotel    | GA     |   316 |   |
| Atlanta      – Galleria(b)                                 | Sheraton      Suites         | GA     |   278 |   |
| Atlanta      – Gateway – Atlanta Airport(b)          | Sheraton                     | GA     |   395 |   |
| Atlanta      – Perimeter Center(b)                         | Embassy      Suites Hotel    | GA     |   241 | 50%    |
| Chicago      – Lombard/Oak Brook(b)                        | Embassy      Suites Hotel    | IL     | 262             | 50%    |
| Chicago      – North Shore/Deerfield(b)                    | Embassy      Suites Hotel    | IL     | 237             |   |
| Chicago      – Gateway – O’Hare(b)             | Sheraton      Suites         | IL     | 296             |   |
| Indianapolis      – North(b)                               | Embassy      Suites Hotel    | IN     | 221             | 81%    |
| Kansas      City – Overland Park(b)                        | Embassy      Suites Hotel    | KS     | 199             | 50%    |
| Lexington      – Lexington Green(b)                        | Hilton      Suites           | KY     | 174             |   |
| Baton      Rouge(b)                                              | Embassy      Suites Hotel    | LA     | 223             |   |

----

|                                                                |                         | Brand   |   |   | State |   | Rooms |   | %      Owned(a) |
|---------------------------------------------------------------------|------------------------------|---------|--------|--------|-------|--------|-------|--------|-----------------|
| New      Orleans – Convention Center(b)                       | Embassy      Suites Hotel    | LA      | 370    |   |
| New      Orleans – French Quarter(b)                          | Holiday      Inn             | LA      | 374    |   |
| Boston      – at Beacon Hill(b)                               | Holiday      Inn             | MA      | 303    |   |
| Boston      – Marlborough(b)                                  | Embassy      Suites Hotel    | MA      | 229    |   |
| Baltimore      – at BWI Airport(b)                            | Embassy      Suites Hotel    | MD      | 251    | 90%    |
| Bloomington(b)                                                      | Embassy      Suites Hotel    | MN      | 218    |   |
| Minneapolis      – Airport(b)                                 | Embassy      Suites Hotel    | MN      | 310    |   |
| St.      Paul – Downtown(b)                                   | Embassy      Suites Hotel    | MN      | 208    |   |
| Kansas      City – Plaza                                      | Embassy      Suites Hotel    | MO      | 266    | 50%    |
| Charlotte(b)                                                        | Embassy      Suites Hotel    | NC      | 274    | 50%    |
| Charlotte      – SouthPark(b)                                 | Doubletree      Guest Suites | NC      | 208    |   |
| Raleigh/Durham(b)                                                   | Doubletree      Guest Suites | NC      | 203    |   |
| Raleigh      – Crabtree(b)                                    | Embassy      Suites Hotel    | NC      | 225    | 50%    |
| Parsippany(b)                                                       | Embassy      Suites Hotel    | NJ      | 274    | 50%    |
| Piscataway      – Somerset(b)                                 | Embassy      Suites Hotel    | NJ      | 221    |   |
| Secaucus      – Meadowlands(b)                                | Embassy      Suites Hotel    | NJ      | 261    | 50%    |
| Philadelphia      – Historic District(b)                      | Holiday      Inn             | PA      | 364    |   |
| Philadelphia      – Society Hill(b)                           | Sheraton                     | PA      | 365    |   |
| Pittsburgh      – at University Center (Oakland)(b)           | Holiday      Inn             | PA      | 251    |   |
| Charleston      – Mills House(b)                              | Holiday      Inn             | SC      | 214    |   |
| Myrtle      Beach – Oceanfront Resort(b)                      | Embassy      Suites Hotel    | SC      | 255    |   |
| Myrtle      Beach Resort(b)                                         | Hilton                       | SC      | 385    |   |
| Nashville      – Airport – Opryland Area(b)             | Embassy      Suites Hotel    | TN      | 296    |   |
| Nashville      – Opryland – Airport (Briley Parkway)(b) | Holiday      Inn             | TN      | 383    |   |
| Austin(b)                                                           | Doubletree      Guest Suites | TX      | 188    | 90%    |
| Austin      – Central(b)                                      | Embassy      Suites Hotel    | TX      | 260    | 50%    |
| Corpus      Christi(b)                                              | Embassy      Suites Hotel    | TX      | 150    |   |
| Dallas      – DFW International Airport South(b)              | Embassy      Suites Hotel    | TX      | 305    |   |
| Dallas      – Love Field(b)                                   | Embassy      Suites Hotel    | TX      | 248    |   |
| Dallas      – Market Center(b)                                | Embassy      Suites Hotel    | TX      | 244    |   |
| Dallas      – Park Central                                    | Westin                       | TX      | 536    | 60%    |
| Houston      – Medical Center(b)                              | Holiday      Inn             | TX      | 287    |   |
| San      Antonio – International Airport(b)                   | Embassy      Suites Hotel    | TX      | 261    | 50%    |
| San      Antonio – International Airport(b)                   | Holiday      Inn             | TX      | 397    |   |
| San      Antonio – NW I-10(b)                                 | Embassy      Suites Hotel    | TX      | 216    | 50%    |
| Burlington      Hotel & Conference Center(b)                    | Sheraton                     | VT      | 309    |   |
| Vienna      – Premiere at Tysons Corner(b)                    | Sheraton                     | VA      | 443    | 50%    |
|                                                                |                         |    |   |   |
| Canada                                                              |                         |    |   |   |
| Toronto      – Airport(b)                                     | Holiday      Inn             | Ontario | 446    |   |
| Toronto      – Yorkdale(b)                                    | Holiday      Inn             | Ontario | 370    |   |
|                                                                |                         |    |   |   |
| Unconsolidated      Hotels                                          |                         |    |
| Salina      – I-70(b)                                         | Holiday      Inn Express     | KS      | 93     | 50%    |
| New      Orleans – French Quarter – Chateau LeMoyne(b)  | Holiday      Inn             | LA      | 171    | 50%    |

|   | (a) | We      own 100% of the real estate interests unless otherwise    noted. |
|--------|-----|--------------------------------------------------------------------------|

|   | (b) | This      hotel was encumbered by secured debt or a capital lease obligation at      December 31, 2009. |
|--------|-----|---------------------------------------------------------------------------------------------------------|

----

|   |                       | Year      Ended December 31, |
|--------|----------------------------|------------------------------|
|   |                       | 2009                         |   | 2008 |   | 2007 |
|   | Base      fees             | $                            | 26,748 |   |   | $ | 32,132 |   |   | $ | 28,021 |   |
|   | Incentive      fees        |                         | 769 |   |   |   | 4,720 |   |   |   | 5,532 |   |
|   | Total      management fees | $                            | 27,517 |   |   | $ | 36,852 |   |   | $ | 33,553 |   |

|   |                              | Number      of Management Agreements Expiring in |
|--------|-----------------------------------|--------------------------------------------------|
|   | Brand                             |                                             | 2010 |   | 2011 |   | 2012 |   | 2013 |   | 2014 |   | Thereafter |
|   | Embassy      Suites               |                                             | 1 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 6 |   |   |   | 39 |   |
|   | Sheraton      – Westin      |                                             | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9 |   |
|   | Doubletree                        |                                             | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7 |   |
|   | Holiday      Inn                  |                                             | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 15 |   |
|   | Renaissance      – Marriott |                                             | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3 |   |
|   | Hilton                            |                                             | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2 |   |
|   | Total                             |                                             | 1 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 6 |   |   |   | 75 |   |

----

|   |                       | Year      Ended December 31, |   |
|--------|----------------------------|------------------------------|--------|
|   | Brand                      |                         | 2009   |   | 2008 |   | 2007 |   |
|   | Embassy      Suites Hotels | $                            | 15,452 |   | $ | 18,569 |   | $ | 18,047 |   |
|   | Hilton      Suites         |                         | 252    |   |   | 299 |   |   | 263 |   |
|   | Total                      | $                            | 15,704 |   | $ | 18,868 |   | $ | 18,310 |   |

----

| Item      5. | Market      for Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities |
|--------------|------------------------------------------------------------------------------------------------------------------------------|

|   |                | High   |   | Low    |   | Dividends      Declared Per Share |   |
|--------|---------------------|--------|--------|--------|--------|-----------------------------------|--------|
|   |                | 2009   |   |   |   |                              |   |   |   |   |   |   |
|   | First      quarter  | $      | 2.19   |   | $      | 0.72                              |   | $ | -    |   |   |
|   | Second      quarter |   | 3.60   |   |   | 1.22                              |   |   | -    |   |   |
|   | Third      quarter  |   | 5.31   |   |   | 1.86                              |   |   | -    |   |   |
|   | Fourth      quarter |   | 4.90   |   |   | 2.85                              |   |   | -    |   |   |
|   |                |   |   |   |   |                              |   |   |   |   |   |
|   |                | 2008   |   |   |   |                              |   |   |   |   |   |   |   |
|   | First      quarter  | $      | 15.69  |   | $      | 11.90                             |   | $ | 0.35 |   |   |
|   | Second      quarter |   | 15.87  |   |   | 10.39                             |   |   | 0.35 |   |   |
|   | Third      quarter  |   | 10.67  |   |   | 6.27                              |   |   | 0.15 |   |   |
|   | Fourth      quarter |   | 7.12   |   |   | 0.66                              |   |   | -    |   |   |

----

|                                                         | Plan      category |   |      | Number      of shares to be issued upon exercise of outstanding options, warrants and      rights |   | Weighted      average exercise price of outstanding options, warrants and      rights |   | Number      of shares remaining available for future issuance |
|--------------------------------------------------------------|--------------------|--------|-----------|---------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|
| Equity      compensation plans approved by security holders: |               |   |      |                                                                                              |   |                                                                                  |   |                                                          |   |   |   |
|      Stock      Options             |               |   | 40,000    |                                                                                              |   | $                                                                                     | 18.05  |                                                          |   |   |   |
|      Unvested      Restricted Stock |               |   | 2,480,348 |                                                                                              |   |                                                                                  |   |                                                          |   |   |   |
| Total                                                        |               |   | 2,520,348 |                                                                                              |   |                                                                                  |   |                                                          |   | 284,572 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                              | Year      Ended December 31, |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                              | 2009                         |   | 2008 |   | 2007 |   | 2006 |   | 2005 |
| Statement      of Operations Data:(a)                                                                                                                                                                                                                                                                                                                                                             |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total      revenues                                                                           | $                            | 908,701 |   |   | $ | 1,102,912 |   |   | $ | 993,834 |   |   | $ | 963,264 |   |   | $ | 885,668 |   |
|   Income      (loss) from continuing operations(b)                                                                                                                                                                                                                                                                                                                                      |                         | (105,720 | ) |   |   | (63,007 | ) |   |   | 54,004 |   |   |   | 5,405 |   |   |   | (22,446 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                              |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      earnings per share:                                                                                                                                                                                                                                                                                                                                                                  |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Income      (loss) from continuing operations                                                                                                                                                                                                                                                                                                                                         | $                            | (2.27 | ) |   | $ | (1.65 | ) |   | $ | 0.25 |   |   | $ | (0.52 | ) |   | $ | (1.08 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                              |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Data:                                                                                                                                                                                                                                                                                                                                                                                  |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Cash      distributions declared per common share(c)                                                                                                                                                                                                                                                                                                                                  | $                            | -    |   |   | $ | 0.85 |   |   | $ | 1.20 |   |   | $ | 0.80 |   |   | $ | 0.15 |   |
|   Hotel      EBITDA(d)                                                                          |                         | 211,678 |   |   |   | 311,601 |   |   |   | 303,388 |   |   |   | 300,757 |   |   |   | 260,072 |   |
|   Cash      flows provided by operating activities                                                                                                                                                                                                                                                                                                                                      |                         | 72,907 |   |   |   | 153,163 |   |   |   | 137,337 |   |   |   | 147,700 |   |   |   | 111,482 |   |
|                                                                                                                                                                                                                                                                                                                                                                                              |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      Sheet Data (at end of period):                                                                                                                                                                                                                                                                                                                                                       |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Total      assets                                                                             | $                            | 2,625,994 |   |   | $ | 2,512,269 |   |   | $ | 2,683,835 |   |   | $ | 2,583,249 |   |   | $ | 2,920,263 |   |
|   Total      debt, net of      discount                                                         |                         | 1,773,314 |   |   |   | 1,551,686 |   |   |   | 1,475,607 |   |   |   | 1,369,153 |   |   |   | 1,675,280 |   |

| (a) | All      years presented have been adjusted to reflect sold hotels as discontinued      operations. |
|-----|-----------------------------------------------------------------------------------------------------|

|                                          | Year      Ended December 31, |
|-----------------------------------------------|------------------------------|
|                                          | 2009                         |   | 2008 |   | 2007 |   | 2006 |   | 2005 |
| Impairment      loss                          | $                            | -    |   |   | $ | (60,822 | ) |   | $ | -    |   |   | $ | -    |   |   | $ | -    |   |
| Impairment      loss on unconsolidated hotels |                         | (2,068 | ) |   |   | (12,696 | ) |   |   | -    |   |   |   | -    |   |   |   | -    |   |
| Hurricane      loss                           |                         | -    |   |   |   | (952 | ) |   |   | -    |   |   |   | -    |   |   |   | (6,481 | ) |
| Hurricane      loss on unconsolidated hotels  |                         | -    |   |   |   | (50 | ) |   |   | -    |   |   |   | -    |   |   |   | -    |   |
| Conversion      costs                         |                         | (447 | ) |   |   | (507 | ) |   |   | (491 | ) |   |   | -    |   |   |   | -    |   |
| Severance      costs                          |                         | (607 | ) |   |   | (944 | ) |   |   | -    |   |   |   | -    |   |   |   | -    |   |
| Lease      termination costs                  |                         | (469 | ) |   |   | -    |   |   |   | -    |   |   |   | -    |   |   |   | -    |   |
| Charges      related to debt extinguishment   |                         | (1,721 | ) |   |   | -    |   |   |   | -    |   |   |   | (14,318 | ) |   |   | (5,200 | ) |
| Abandoned      projects                       |                         | -    |   |   |   | -    |   |   |   | (22 | ) |   |   | (33 | ) |   |   | (265 | ) |
| Gain      (loss) on sale of assets            |                         | 723 |   |   |   | -    |   |   |   | -    |   |   |   | (92 | ) |   |   | 469 |   |
| Gain      on sale of condominiums             |                         | -    |   |   |   | -    |   |   |   | 18,622 |   |   |   | -    |   |   |   | -    |   |
| Gain      on involuntary conversion           |                         | -    |   |   |   | 3,095 |   |   |   | -    |   |   |   | -    |   |   |   | -    |   |

| (c) | We      suspended payment of our common dividend in December 2008 and our      preferred dividend in March 2009 in light of the deepening recession and      dysfunctional capital markets, and the attendant impact on our industry      and us.  Our Board of Directors will determine the amount of      future common and preferred dividends for each quarter, if any, based upon      various factors including operating results, economic conditions, other      operating trends, our financial condition and capital requirements, as      well as the minimum REIT distribution requirements.  Unpaid      preferred dividends continue to accrue, and accrued and current preferred      dividends must be paid in full prior to payment of any common      dividends. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | A      more detailed description and computation of Hotel EBITDA is contained in      the “Non-GAAP Financial Measures” section of Management’s Discussion and      Analysis of Financial Condition and Results of Operations in      Item 7. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | In      October 2009, we issued $636 million (aggregate principal amount) of      our 10% senior secured notes due 2014.  We received      approximately $558 million in net proceeds after original issue      discount, fees and expenses related to the offering.  These      proceeds were used to repurchase approximately $428 million (in      aggregate principal amount) of our senior notes due in 2011 and for      general corporate purposes. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | In      June 2009, we obtained a $201 million non-recourse term loan secured      by nine hotels that matures in 2011.  This loan can be extended      for up to two years, subject to satisfying certain conditions that we      expect to satisfy.                                                                                                                                                                                                                           |
| · | In      June 2009, we repaid and terminated our line of credit.  By      terminating our line of credit, we eliminated certain restrictive      corporate debt covenants.                                                                                                                                                                                                                                                                                                           |
| · | In      March 2009, we refinanced a $116 million secured loan maturing in      2009 with a $120 million non-recourse term loan that matures in 2014,      secured by the same seven hotels.                                                                                                                                                                                                                                                                                    |
| · | We      held discussions with current and potential lenders to modify and/or      refinance all of our 2010 debt maturities (many of these discussions are      ongoing).                                                                                                                                                                                                                                                                                                                     |
| · | We      increased cash held on our balance sheet by more than      $200 million.                                                                                                                                                                                                                                                                                                                                                                                                         |

----

|                                                                                                                                                                                                                                                                                                                                                            | Year      Ended December 31, |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|
|                                                                                                                                                                                                                                                                                                                                                            |  2009                   |   |  2008 |   | %      Change2009-2008 |   |  2007 |   | %      Change 2008-2007 |
| RevPAR                                                                            | $                            | 81.62 |   |   | $ | 99.00 |   |   |   | (17.6 | )% |   | $ | 97.85 |   |   |   | 1.2 |  % |
| Hotel      EBITDA(a)                                                              |                         | 211,678 |   |   |   | 311,601 |   |   |   | (32.1 | )% |   |   | 303,388 |   |   |   | 2.7 |  % |
| Hotel      EBITDA margin(a)                                                       |                         | 23.4 | % |   |   | 28.3 | % |   |   | (17.3 | )% |   |   | 28.0 | % |   |   | 1.1 |  % |
| Income      (loss) from continuing operations(b)                                                                                                                                                                                                                                                                                                                |                         | (105,720 | ) |   |   | (63,007 | ) |   |   | (67.8 | )% |   |   | 54,004 |   |   |   | (216.7 | )% |

|   | (a) | Hotel      EBITDA and Hotel EBITDA margin are non-GAAP financial      measures.  A discussion of the use, limitations and importance      of these non-GAAP financial measures and detailed reconciliations to the      most comparable GAAP measure are found elsewhere in Management’s      Discussion and Analysis of Financial Condition and Results of Operations      under the section “Non-GAAP FinancialMeasures.” |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      following amounts are included in income (loss) from continuing operations      (in thousands): |
|--------|-----|----------------------------------------------------------------------------------------------------------|

|   |                                          | Year      Ended December 31, |
|--------|-----------------------------------------------|------------------------------|
|   |                                          | 2009                         |   | 2008 |   | 2007 |
|   | Impairment      loss                          | $                            | -    |   |   | $ | (60,822 | ) |   | $ | -    |   |
|   | Impairment      loss on unconsolidated hotels |                         | (2,068 | ) |   |   | (12,696 | ) |   |   | -    |   |
|   | Hurricane      loss                           |                         | -    |   |   |   | (952 | ) |   |   | -    |   |
|   | Hurricane      loss on unconsolidated hotels  |                         | -    |   |   |   | (50 | ) |   |   | -    |   |
|   | Conversion      costs                         |                         | (447 | ) |   |   | (507 | ) |   |   | (491 | ) |
|   | Severance      costs                          |                         | (607 | ) |   |   | (944 | ) |   |   | -    |   |
|   | Lease      termination costs                  |                         | (469 | ) |   |   | -    |   |   |   | -    |   |
|   | Charges      related to debt extinguishment   |                         | (1,721 | ) |   |   | -    |   |   |   | -    |   |
|   | Abandoned      projects                       |                         | -    |   |   |   | -    |   |   |   | (22 | ) |
|   | Gain      on sale of assets                   |                         | 723 |   |   |   | -    |   |   |   | -    |   |
|   | Gain      on sale of condominiums             |                         | -    |   |   |   | -    |   |   |   | 18,622 |   |
|   | Gain      on involuntary conversion           |                         | -    |   |   |   | 3,095 |   |   |   | -    |   |

----

|   | · | Total revenue was      $908.7 million, a 17.6% decrease compared to 2008.  The      decrease in revenue is attributed principally to a 17.6% decrease in      RevPAR, which was driven by a 7.2% decrease in occupancy and an 11.2%      decrease in ADR. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Hotel departmental      expenses decreased $45.6 million (12.3%) compared to      2008.  This expense reduction reflects: (i) the 7.2% decrease in      occupancy; (ii) a $24.6 million decrease in labor costs, which      included permanent reductions related to a decrease in hotel employees;      (iii) reduced non-critical room expenses, such as guest transportation,      in-room amenities, bath linen quantities, and newspaper service; and (iv)      menu modifications and reduced food costs in banquet and restaurant      outlets.  As a percentage of total revenue, hotel departmental      expenses increased from 33.8% to 36.0% compared to 2008.  While      we made significant reductions in our departmental expenses, they were not      sufficient enough to completely offset the decrease in      revenue. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other property related      costs decreased $35.4 million (12.0%) compared to      2008.  The expense reduction consisted of: (i) a      $12.1 million decrease in labor costs; (ii) a $10.1 million      decrease in marketing assessments, credit card commissions and frequent      guest expense (all of which reflect the decrease in revenue); (iii) a      $3.3 million decrease in repairs and maintenance, partially      attributed to our recently completed renovation program; (iv) reductions      in other non-critical expenses; and (v) improved energy      efficiency.  As a percentage of total revenue, other property      related costs increased from 26.7% to 28.5% compared to      2008.  While we made significant reductions in our other      property related costs, they were not sufficient enough to completely      offset the decrease in revenue. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Management and franchise fees      decreased $12.5 million compared to 2008 reflecting the      decrease in revenue.  As a percent of total revenue, franchise      fees and base management fees remained essentially unchanged from 2008 to      2009 (these fees are based on a percentage of      revenue).  Incentive management fees, which are based on the      profitability of the hotels, decreased  $4.0 million. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Taxes, insurance and lease      expenses decreased $13.6 million compared to      2008  This decrease relates primarily to: (i) a      $13.2 million decrease in hotel percentage lease expense, attributed      to decreased revenue at our consolidated hotel lessees; (ii) a      $1.2 million decrease in property and general liability insurance,      attributed to improved insurance rates and liability claims experience;      and (iii) a $2.0 million decrease in land leases, attributed to      decreases in percentage rent based on revenue.  This was      partially offset by a $2.7 million increase in real estate and other      taxes, largely attributed to successful resolution of property tax appeals      in 2008.  As a percentage of total revenue, taxes, insurance and      lease expense increased from 10.2% in 2008 to  10.9%. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Corporate expenses      increased $3.5 million compared to 2008.  The increase in      corporate expenses is attributed to bonuses awarded in recognition of the      accomplishment of corporate goals including: successful restructuring of      our debt in the face of the dysfunctional debt market and ongoing      recession in 2009 and our portfolio’s relative performance, compared to      our peers, from our efforts to improve market share and limit the effect      of reduced revenue on Hotel EBITDA. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Depreciation and amortization      expense increased $9.9 million, compared to 2008, primarily      attributable to increased depreciation due from the $75.9 million and      $142.9 million of consolidated hotel capital expenditures completed      in 2009 and 2008, respectively. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Impairment      charge.  In 2008, we identified six hotels as candidates      to be sold (these hotels continue to be held for investment at December      31, 2009), and tested these hotels for impairment using undiscounted      estimated cash flows over a shortened estimated remaining hold      period.  Of the hotels tested, four hotels failed the test, and      as a result, we recorded impairment charges of      $22.3 million.  In addition, because of triggering events      in 2008 related to changes in the capital markets, dropping travel demand      and the combined effect on our stock price, we tested all of our hotels to      determine if further assessment for potential impairment was      required.  We had one hotel with a short-term ground lease fail      this test.  We determined that the book value of this hotel was      not fully recoverable, and as such, recorded a $38.5 million      impairment charge. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other Expense decreased      $1.7 million compared to 2008.  This decrease was primarily      attributable to (i) hurricane related expenses of $1.0 million      at 12 of our hotels affected by hurricanes in 2008; (ii) a decrease      in condominium management fee expenses due to a decrease in condominium      revenue; and (iii) a decrease in severance  costs. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Net interest expense      increased $6.8 million compared to 2008.  This increase is      primarily attributable to the issuance of our $636 million senior      secured notes in October 2009. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Charges related to debt      extinguishment.  In 2009, we retired $428 million of senior      notes maturing in 2011 and terminated our line of credit.  We      incurred a $1.7 million charge associated with these      transactions. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Equity in loss of      unconsolidated entities was $4.8 million compared to a      $10.9 million loss in 2008.  We recorded $2.1 million      and $12.7 million of impairment charges on our equity method      investments in 2009 and 2008, respectively.  The remainder of      the change is attributed to current year operating losses from decreased      revenue at our unconsolidatedhotels. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Discontinued operations      primarily consisted of: (i) a $1.8 million adjustment to gains      on sale (resulting from a change in the federal tax law that allowed      recovery of previously paid alternative minimum taxes on gains from hotel      sales in 2006 and 2007) and (ii) the following items related to two hotels      sold in December 2009: a $3.4 million impairment loss, a $911,000      loss on sale (primarily related to selling costs), and $833,000 2009      operating losses.  Discontinued operations in 2008 primarily      consisted of: (i) a $1.2 million adjustment to gain on sales      from revision of the tax liability associated with gains from hotel sales      in 2006 and 2007 and (ii) the following items related to two hotels sold      in December 2009: a $47.1 million impairment loss, an      $11.1 million liquidated damage charge and $717,000 of hurricane      losses. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Total revenues      increased $109.1 million compared to 2007, of which      $93.8 million related to the two hotels acquired in December      2007.  The remainder of the increase is principally attributable      to the 1% increase in RevPAR at our Consolidated Hotels from 2007 to      2008. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Hotel departmental      expenses increased $53.9 million compared to 2007, of which      $47.7 million is attributable to the two hotels acquired in December      2007 and the remainder primarily reflects expenses associated with      increased occupancy compared to 2007. As a percentage of total revenue,      hotel departmental expenses increased from 32.0% to 33.8% compared to      2007. Rooms expense decreased as a percentage of total revenue from 20.0%      to 19.2%, but food and beverage expense increased as a percent of total      revenue from 10.0% to 12.0%, and other operating department expenses      increased as a percent of total revenue from 2.1% to 2.5% compared to      2007. The increases in food and beverage expense and other department      expenses as a percent of total revenue are primarily due to the mix and      nature of the business of the two hotels acquired in December 2007, which      are both resort properties. ADR at these hotels was nearly 40% higher than      the remainder of the portfolio in 2008, which was the principal reason for      the improvement in rooms expense as a percentage of total revenue. Food      and beverage generally has significantly higher expenses as a percent of      revenue than rooms, and those hotels contributed 25% of our food and      beverage revenue during 2008. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other property-related      costs increased $27.9 million, compared to 2007, of which      $24.0 million related to the two hotels acquired in December      2007.  As a percentage of total revenue, other property      operating costs remained essentially unchanged at 26.7% in 2008 compared      to 26.8% in 2007. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Management and franchise      fees increased $3.9 million, compared to 2007, of which      $1.1 million resulted primarily from increases in revenue and      $2.8 million related to the two hotels acquired in December      2007.  There was essentially no change in management and      franchise fees as a percentage of revenue in 2008 compared to      2007. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Taxes, insurance and lease      expense decreased $7.3 million compared to 2007, despite a      $4.7 million increase related to the two hotels acquired in December      2007.  The decrease from 2007 is primarily related to a decrease      in percentage rent expense of $7.4 million, related to percentage      leases reset in late 2007, a decrease in real estate and other taxes of      $1.1 million, largely from reduced assessed values and successful      resolution of prior year property taxes disputed, and a decrease in      property insurance of$1.3 million. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Depreciation and amortization      expense increased $30.9 million compared to 2007, of which      increase $8.2 million related to the two hotels acquired in December      2007.  The remainder of the increase reflects increased      depreciation associated with hotel capital expenditures      ($142.9 million in 2008 and $227.5 million in    2007). |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Impairment      charge.  In 2008, we identified six hotels as candidates      to be sold (these hotels continue to be held for investment as of December      31, 2009), and we tested these hotels for impairment using undiscounted      estimated cash flows over a shortened estimated remaining hold      period.  Of the hotels tested, four hotels failed the test, as a      result of which we recorded impairment charges of      $22.3 million.  Because of triggering events in 2008      related to changes in the capital markets, dropping travel demand and the      combined effect on our stock price, we tested all of our hotel assets to      determine if further |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other expenses      increased $3.0 million compared to 2007.  This increase was      primarily attributable to: (i) hurricane-related expenses of      $1.0 million at 12 of our hotels affected by hurricanes in 2008,      (ii) severance costs of $944,000 related to the staffing reductions      at our hotels and (iii) amortization of intangible assets of $839,000      related to the hotels acquired in December2007. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Net interest expense      increased $6.3 million compared to 2007.  This change is      primarily attributable to: (i) a decrease in interest income of      $4.8 million due to lower cash balances and interest rates earned on      those balances; (ii) an increase in interest expense of      $7.7 million related to the mortgage debt on the two hotels acquired      in December 2007; and (iii) a reduction in capitalized interest of      $3.5 million related to lower renovation-related construction in      progress, all of which was partially offset by lower interest expense of      $9.7 million due to lower interest rates applicable to our      floating-rate debt. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Equity in income (loss) from      unconsolidated entities decreased by $31.3 million compared to      2007, which decrease primarily reflects income received from the gain of      $11.0 million, on the sale of an unconsolidated hotel during the      first quarter of 2007, impairment charges of $12.7 million recorded      in 2008, and resetting several percentage leases in late      2007.  The impairment charges were comprised of      $3.3 million (of which our share was $1.7 million) taken under      ASC 360-10-35 and $11.0 million taken under ASC 323-10-35, related to      other-than-temporary declines in value of certain equity method      investments.  The impairment under ASC 323-10-35 includes a      charge of $6.6 million for one investment related to a hotel that we      do not intend to sell. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Gain on involuntary      conversion.  In 2008, we settled insurance claims      relating to 2005 hurricane losses and realized a related $3.1 million      gain from involuntary conversion. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Gain on sale of      condominiums.  In 2007, we finalized the sale of 179 of      the 184 units at our Royale Palms condominium project and recognized a      related $18.6 million gain on sale under the completed contract      method. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Discontinued operations      primarily consisted of: (i) a $1.2 million adjustment to gain      on sales resulting from a revision in the tax liability associated with      gains of $71.2 million from hotel sales in 2006 and 2007 and (ii) the      following items related to two hotels sold in December 2009: impairment      losses of $47.1 million, liquidated damages of $11.1 million, and      hurricane losses of $717,000.  Discontinued operations for 2007      primarily consisted of: (i) operating income of $8.7 million related      to the hotels we sold in 2009 and 2007, (ii) charges related to early debt      repayment of $902,000 related to the hotels we sold in 2007, and (iii)      gains of $28.0 million related to the sale of 10 hotels during      2007. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                       | Year      Ended December 31, |
|--------------------------------------------|------------------------------|
|                                       | 2009                         |   | 2008 |   | 2007 |
| Total      revenue                         | $                            | 908,701 |   |   | $ | 1,102,912 |   |   | $ | 993,834 |   |
| Other      revenue                         |                         | (2,843 | ) |   |   | (2,983 | ) |   |   | (3,089 | ) |
| Revenue      from acquired hotels(a)  |                         | -    |   |   |   | -    |   |   |   | 94,164 |   |
| Hotel      revenue                         |                         | 905,858 |   |   |   | 1,099,929 |   |   |   | 1,084,909 |   |
| Hotel      operating expenses(a)      |                         | (694,180 | ) |   |   | (788,328 | ) |   |   | (781,521 | ) |
| Hotel      EBITDA                          | $                            | 211,678 |   |   | $ | 311,601 |   |   | $ | 303,388 |   |
| Hotel      EBITDA margin(b)           |                         | 23.4 | % |   |   | 28.3 | % |   |   | 28.0 | % |

|   | (a) | We      have included amounts for two hotels acquired in December 2007, prior to      our ownership of these hotels, for comparison  purposes. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Hotel      EBITDA as a percentage of hotelrevenue. |
|--------|-----|----------------------------------------------------|

|                                                                     | Year      Ended December 31, |
|--------------------------------------------------------------------------|------------------------------|
|                                                                     | 2009                         |   | 2008 |   | 2007 |
| Total      operating expenses                                            | $                            | 902,972 |   |   | $ | 1,059,293 |   |   | $ | 886,320 |   |
|    Unconsolidated      taxes, insurance and lease expense |                         | 8,079 |   |   |   | 8,212 |   |   |   | 7,314 |   |
|    Consolidated      hotel lease expense                  |                         | (41,121 | ) |   |   | (54,266 | ) |   |   | (61,652 | ) |
|    Corporate      expenses                                |                         | (24,216 | ) |   |   | (20,698 | ) |   |   | (20,718 | ) |
|    Depreciation      and amortization                     |                         | (147,445 | ) |   |   | (137,570 | ) |   |   | (106,682 | ) |
|    Impairment      loss                                   |                         | -    |   |   |   | (60,822 | ) |   |   | -    |   |
|    Other      expenses                                    |                         | (4,089 | ) |   |   | (5,821 | ) |   |   | (2,825 | ) |
|    Expenses      from acquired hotels(a)             |                         | -    |   |   |   | -    |   |   |   | 79,764 |   |
| Hotel      operating expenses                                            | $                            | 694,180 |   |   | $ | 788,328 |   |   | $ | 781,521 |   |

|   | (a) | We      have included amounts for two hotels acquired in December 2007, prior to      our ownership of these hotels, for comparison  purposes. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                        | Year      Ended December 31, |
|-----------------------------------------------------------------------------|------------------------------|
|                                                                        | 2009                         |   | 2008 |   | 2007 |
| Net      income (loss)                                                      | $                            | (109,091 | ) |   | $ | (120,487 | ) |   | $ | 89,824 |   |
|    Discontinued      operations                              |                         | 3,371 |   |   |   | 57,480 |   |   |   | (35,820 | ) |
|    EBITDA      from acquired hotels(a)                  |                         | -    |   |   |   | -    |   |   |   | 14,400 |   |
|    Equity      in loss (income) from unconsolidated entities |                         | 4,814 |   |   |   | 10,932 |   |   |   | (20,357 | ) |
|    Consolidated      hotel lease expense                     |                         | 41,121 |   |   |   | 54,266 |   |   |   | 61,652 |   |
|    Unconsolidated      taxes, insurance and lease expense    |                         | (8,079 | ) |   |   | (8,212 | ) |   |   | (7,314 | ) |
|    Interest      expense, net                                |                         | 105,637 |   |   |   | 98,789 |   |   |   | 92,489 |   |
|    Impairment      loss                                      |                         | -    |   |   |   | 60,822 |   |   |   | -    |   |
|    Charges      related to debt extinguishment               |                         | 1,721 |   |   |   | -    |   |   |   | -    |   |
|    Corporate      expenses                                   |                         | 24,216 |   |   |   | 20,698 |   |   |   | 20,718 |   |
|    Depreciation      and amortization                        |                         | 147,445 |   |   |   | 137,570 |   |   |   | 106,682 |   |
|    Retail      space rental and other revenue                |                         | (2,843 | ) |   |   | (2,983 | ) |   |   | (3,089 | ) |
|    Other      expenses                                       |                         | 4,089 |   |   |   | 5,821 |   |   |   | 2,825 |   |
|    Gain      on involuntary conversion                       |                         | -    |   |   |   | (3,095 | ) |   |   | -    |   |
|    Gain      on sale of condominiums                         |                         | -    |   |   |   | -    |   |   |   | (18,622 | ) |
|    Gain      on sale of assets                               |                         | (723 | ) |   |   | -    |   |   |   | -    |   |
| Hotel      EBITDA                                                           | $                            | 211,678 |   |   | $ | 311,601 |   |   | $ | 303,388 |   |

|   | (a) | We      have included amounts for two hotels acquired in December 2007, prior to      our ownership of these hotels, for comparison  purposes. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                     | Year      Ended December 31, |
|--------------------------------------------------------------------------|------------------------------|
|                                                                     | 2009                         |   | 2008 |   | 2007 |
| Ratio      of operating income (loss) to total revenues                  |                         | 0.6 | % |   |   | 4.0 | % |   |   | 10.8 | % |
|    Other      revenue                                     |                         | (0.3 | ) |   |   | (0.3 | ) |   |   | (0.3 | ) |
|    Revenue      from acquired hotels(a)              |                         | -    |   |   |   | -    |   |   |   | 7.8 |   |
|    Unconsolidated      taxes, insurance and lease expense |                         | (0.9 | ) |   |   | (0.7 | ) |   |   | (0.7 | ) |
|    Consolidated      lease expense                        |                         | 4.5 |   |   |   | 4.9 |   |   |   | 5.7 |   |
|    Other      expenses                                    |                         | 0.5 |   |   |   | 0.5 |   |   |   | 0.3 |   |
|    Corporate      expenses                                |                         | 2.7 |   |   |   | 1.9 |   |   |   | 1.9 |   |
|    Depreciation      and amortization                     |                         | 16.3 |   |   |   | 12.5 |   |   |   | 9.8 |   |
|    Impairment      loss                                   |                         | -    |   |   |   | 5.5 |   |   |   | -    |   |
|    Expenses      from acquired hotels(a)             |                         | -    |   |   |   | -    |   |   |   | (7.3 | ) |
| Hotel      EBITDA margin                                                 |                         | 23.4 | % |   |   | 28.3 | % |   |   | 28.0 | % |

|   | (a) | We      have included amounts for two hotels acquired in December 2007, prior to      our ownership of these hotels, for comparison  purposes. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   | • | In      October 2009, we issued $636 million of 10% senior secured notes due      2014. The new senior secured notes are secured by a pledge of our limited      partner interests in FelCor LP, first mortgages and related security      interests on up to 14 hotels and pledges of equity interests in certain      wholly-owned subsidiaries. We received approximately $558 million of      net proceeds from sale of these notes after original issue discount, fees      and expenses related to the offering. The proceeds were used to repurchase      approximately $428 million of our senior notes due in 2011 (all of      our floating-rate senior notes and $213 million of our 81⁄2% senior      notes) and for general corporatepurposes. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | In      June 2009, we obtained a $201 million non-recourse term loan secured      by nine hotels. This loan bears interest at LIBOR (subject to a 2% floor)      plus 350 basis points, and initially matures in 2011, but can be extended      for as many as two years, subject to satisfying certain conditions that we      expect to satisfy. The proceeds from this loan were used for general      corporate purposes. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | In      March 2009, we obtained a $120 million loan secured by seven hotels.      The proceeds of the loan were used to repay the balance of an existing      $116 million loan secured by the same properties that would have      matured on April 1, 2009. The new loan matures in 2014 and bears interest      at 9.02%. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                            | Encumbered                     |   |               |   |               |   | December      31,       |
|---------------------------------|--------------------------------|--------|--------------------|--------|--------------------|--------|-------------------------|
|                            | Hotels                         |   | Interest      Rate |   | Maturity      Date |   | 2009                    |   | 2008 |
| Mortgage      debt(a)           | 7      hotels                  |   |               | 8.68   | %                  |   | May      2010           |   | $ | 130,379 |   | $ | 133,704 |
| Mortgage      debt              | 6      hotels                  |   |               | 8.73   |               |   | May      2010           |   |   | 112,703 |   |   | 116,285 |
| Senior      notes               | none                           |   |               | 8.50   | (b)                |   | June      2011          |   |   | 86,604 |   |   | 299,414 |
| Mortgage      debt(a)           | 2      hotels                  |   |               | 6.15   |               |   | June      2011(c)       |   |   | 14,150 |   |   | 14,641 |
| Mortgage      debt              | 9      hotels                  |   | L      +           | 3.50   | (d)                |   | August      2011(e)     |   |   | 200,425 |   |   | -    |
| Line      of credit             | none                           |   | L      +           | 0.80   |               |   | August      2011        |   |   | -    |   |   | 113,000 |
| Mortgage      debt              | 12      hotels                 |   | L      +           | 0.93   | (f)                |   | November      2011(g)   |   |   | 250,000 |   |   | 250,000 |
| Senior      floating rate notes | none                           |   | L      +           | 1.875  |               |   | December      2011      |   |   | -    |   |   | 215,000 |
| Mortgage      debt(a)           | 2      hotels                  |   | L      +           | 1.55   | (h)                |   | May      2012(i)        |   |   | 176,555 |   |   | 176,267 |
| Mortgage      debt              | 1      hotel                   |   |               | 8.77   |               |   | May      2013(j)        |   |   | 27,829 |   |   | 28,546 |
| Mortgage      debt              | 7      hotels                  |   |               | 9.02   |               |   | April      2014         |   |   | 117,422 |   |   | 117,131 |
| Mortgage      debt(a)           | 5      hotels                  |   |               | 6.66   |               |   | June      - August 2014 |   |   | 70,917 |   |   | 72,517 |
| Senior      secured notes(k)    | 14      hotels                 |   |               | 10.00  |               |   | October      2014       |   |   | 572,500 |   |   | -    |
| Mortgage      debt              | 1      hotel                   |   |               | 5.81   |               |   | July      2016          |   |   | 11,741 |   |   | 12,137 |
| Capital      lease and other    | 1      hotel    |   |               | 9.44   |               |   | various                 |   |   | 2,089 |   |   | 3,044 |
|   Total               | 67      hotels                 |   |               |   |               |   |                    |   | $ | 1,773,314 |   | $ | 1,551,686 |

| (a) | The      hotels securing this debt are subject to separate loan agreements and are      not cross-collateralized.                                                                                                |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | As      a result of a rating down-grade in February 2009, the interest rate on our      81⁄2% senior notes increased to 9%.                                                                                   |
| (c) | In      February 2010, the maturity date on these loans was extended from June      2009 to June 2011.                                                                                                           |
| (d) | LIBOR      for this loan is subject to a 2% floor.                                                                                                                                                               |
| (e) | This      loan can be extended for as many as two years, subject to satisfying      certain conditions.                                                                                                          |
| (f) | We      have purchased an interest rate cap that caps LIBOR at 7.8% and expires in      November 2010 for this notional amount.                                                                             |
| (g) | The      maturity date assumes that we will exercise the remaining one-year      extension option that is exercisable, at our sole discretion, and would      extend the current November 2010 maturity to 2011. |
| (h) | We      have purchased interest rate caps that cap LIBOR at 6.5% and expire in May      2010 for aggregate notional amounts of  $177 million.                                                               |
| (i) | We      have exercised the first of three successive one-year extension options      that extend, at our sole discretion, maturity to 2012.                                                                      |
| (j) | In      February 2010, the maturity date on this loan was extended from May 2010      to May 2013.                                                                                                               |
| (k) | These      senior notes have $636 million in aggregate principal outstanding and      were sold at a discount that provides an effective yield of 12.875% before      transaction costs.                    |

----

|                                                             | Total  |      | Less      Than1      Year |   | 1      – 3Years |   |   | 4      – 5Years |   | After5      Years |
|------------------------------------------------------------------|--------|-----------|---------------------------|--------|-----------------------|--------|--------|-----------------------|--------|-------------------|
| Debt(a)                                                          | $      | 1,968,145 |                      | $      | 305,938               |   | $      | 793,555               | (b)    |              | $ | 857,914 |   | $ | 10,738 |
| Operating      leases                                            |   | 404,625   |                      |   | 34,349                |   |   | 63,027                |   |              |   | 25,893 |   |   | 281,356 |
| Purchase      obligations                                        |   | 10,025    |                      |   | 10,025                |   |   | -      |   |              |   | -    |   |   | -    |
| IHG      liquidated damages                                      |   | 10,054    |                      |   | 10,054                |   |   | -      |   |              |   | -    |   |   | -    |
|      Total      contractual obligations | $      | 2,392,849 |                      | $      | 360,366               |   | $      | 856,582               |   |              | $ | 883,807 |   | $ | 292,094 |

| (a) | Our      long-term debt consists of both secured and unsecured debt and includes      both principal and interest.  Interest expense for variable rate      debt was calculated using the interest rate at December 31,      2009. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Assumes      the extension through November 2011, at our option, of $250 million      of debt with a current maturity of November 2010 and the extension through      May 2012, at our option, of $176 million of debt with a current      maturity of May 2010. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Off-Balance      Sheet Arrangements |
|--------|-------------------------------------|

----

| • | We      are required by GAAP to record an impairment charge when we believe that      an investment in one or more of our hotels held for investment has been      impaired, such that future undiscounted cash flows would not recover the      book basis, or net book value, of the investment.  We test for      impairment when certain events occur, including one or more of the      following:  projected cash flows are significantly less than      recent historical cash flows; significant changes in legal factors or      actions by a regulator that could affect the value of our hotels; events      that could cause changes or uncertainty in travel patterns; and a current      expectation that, more likely than not, a hotel will be sold or otherwise      disposed of significantly before the end of its previously estimated      useful life.  In the evaluation of impairment of our hotels, and      in establishing impairment charges, we made many assumptions and estimates      on a hotel by hotel basis, which included thefollowing: |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    | •                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Annual      cash flow growth rates for revenues and expenses; |
|    | •                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Holding      periods; |
|    | •                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Expected      remaining useful lives of assets; |
|    | •                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Estimates      in fair values taking into consideration future cash flows, capitalization      rates, discount rates and comparable selling prices;and |
|    | •                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Future      capital expenditures. |

----

|    | We      are also required under GAAP to record an impairment charge when one or      more of our investments in unconsolidated subsidiaries experiences an      other-than-temporary decline in fair value.  Any decline in fair      value that is not expected to be recovered in the next 12 months is      considered other-than-temporary.  We record an impairment in our      equity based investments as a reduction in the carrying value of the      investment.  Our estimates of fair values are based on future      cash flow estimates, capitalization rates, discount rates and comparable      selling prices.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    | Changes      in these estimates, future adverse changes in market conditions or poor      operating results of underlying hotels could result in an inability to      recover the carrying value of our hotels or investments in unconsolidated      entities, thereby requiring future impairment charges.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| • | We      capitalize interest and certain other costs, such as property taxes, land      leases, property insurance and employee costs related to hotels undergoing      major renovations and redevelopments.  Such costs capitalized in      2009, 2008 and 2007 were $5.9 million, $6.8 million and      $12.5 million, respectively.  We make estimates with regard      to when components of the renovated asset or redevelopment project are      taken out of service or placed in service when determining the appropriate      amount and time to capitalize these costs.  If these estimates      are inaccurate, we could capitalize too much or too little with regard to      a particular project.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| • | Depreciation      expense is based on the estimated useful life of our assets, and      amortization expense for leasehold improvements is the shorter of the      lease term or the estimated useful life of the related      assets.  The lives of the assets are based on a number of      assumptions including cost and timing of capital expenditures to maintain      and refurbish the assets, as well as specific market and economic      conditions.  While we believe our estimates are reasonable, a      change in the estimated lives could affect depreciation and amortization      expense and net income (loss) or the gain or loss on the sale of any of      our hotels.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| • | Investments      in hotel properties are stated at acquisition cost and allocated to land,      property and equipment, identifiable intangible assets and assumed debt      and other liabilities at fair value.  Any remaining unallocated      acquisition costs are treated as goodwill.  Property and      equipment are recorded at fair value based on current replacement cost for      similar capacity and allocated to buildings, improvements, furniture,      fixtures and equipment using appraisals and valuations prepared by      management and/or independent third parties.  Identifiable      intangible assets (typically contracts including ground and retail leases      and management and franchise agreements) are recorded at fair value,      although no value is generally allocated to contracts which are at market      terms.  Above-market and below-market contract values are based      on the present value of the difference between contractual amounts to be      paid pursuant to the contracts acquired and our estimate of the fair value      of contract rates for corresponding contracts measured over the period      equal to the remaining non-cancelable term of the      contract.  Intangible assets are amortized using the      straight-line method over the remaining non-cancelable term of the related      agreements.  In making estimates of fair values for purposes of      allocating purchase price, we may utilize a number of sources such as      those obtained in connection with the acquisition or financing of a      property and other market data, including third-party appraisals and      valuations. |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

----

| • | We      make estimates with respect to contingent liabilities for losses covered      by insurance.  We record liabilities for self-insured losses      under our insurance programs when it becomes probable that an asset has      been impaired or a liability has been incurred at the date of our      financial statements and the amount of the loss can be reasonably      estimated.  We are self-insured for the first $250,000, per      occurrence, of our general liability claims with regard to 57 of our      hotels.  We review the adequacy of our reserves for our      self-insured claims on a regular basis.  Our reserves are      intended to cover the estimated ultimate uninsured liability for losses      with respect to reported and unreported claims incurred at the end of each      accounting period.  These reserves represent estimates at a      given date, generally utilizing projections based on claims, historical      settlement of claims and estimates of future costs to settle      claims.  Estimates are also required since there may be delays      in reporting.  Because establishment of insurance reserves is an      inherently uncertain process involving estimates, currently established      reserves may not be sufficient.  If our insurance reserves of      $3.2 million, at December 31, 2009, for general liability losses      are insufficient, we will record an additional expense in future      periods.  Property and catastrophic losses are event-driven      losses and, as such, until a loss occurs and the amount of loss can be      reasonably estimated, no liability is recorded.  We had recorded      no contingent liabilities with regard to property or catastrophic losses      at December 31, 2009. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| • | Our      Taxable REIT Subsidiaries, or TRSs, have cumulative potential future tax      deductions totaling $348.5 million.  The net deferred      income tax asset associated with these potential future tax deductions was      $132.4 million.  We have recorded a valuation allowance of      $132.3 million related to our TRSs deferred tax asset, because of the      uncertainty of realizing the asset’s benefit.  The objectives of      accounting for income taxes are to recognize the amount of taxes payable      or refundable for the current year and deferred tax liabilities and assets      for the future tax consequences of events that have been recognized in an      entity’s financial statements or tax returns.  We have      considered future taxable income and ongoing prudent and feasible tax      planning strategies in assessing the need for a valuation      allowance.  In the event we were to determine that we would be      able to realize all or a portion of our deferred tax assets in the future,      an adjustment to the deferred tax asset would increase operating income in      the period such determination wasmade.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

----

| December      31, 2009                          |
|-------------------------------------------------|
|                                            | Expected      Maturity Date |
|                                            | 2010 |   | 2011 |   | 2012 |   | 2013 |   | 2014 |   | Thereafter |   | Total |   | Fair      Value |
| Liabilities                                     | (dollars      in thousands) |
| Fixed      rate:                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Debt                          | $ | 251,840 |   | $ | 105,955 |   | $ | 4,539 |   | $ | 32,742 |   | $ | 805,126 |   | $ | 9,376 |   | $ | 1,209,578 |   | $ | 1,207,728 |
|    Average      interest rate    |   | 8.69% |   |   | 8.62% |   |   | 7.67% |   |   | 8.61% |   |   | 9.61% |   |   | 5.81% |   |   | 9.27% |   |   |   |
| Floating      rate:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Debt                          |   | 1,978 |   |   | 448,800 |   |   | 177,225 |   |   | -    |   |   | -    |   |   | -    |   |   | 628,003 |   |   | 541,773 |
|    Average      interest rate(a) |   | 5.28% |   |   | 4.01% |   |   | 4.91% |   |   | -    |   |   | -    |   |   | -    |   |   | 4.27% |   |   |   |
| Total      debt                                 | $ | 253,818 |   | $ | 554,755 |   | $ | 181,764 |   | $ | 32,742 |   | $ | 805,126 |   | $ | 9,376 |   | $ | 1,837,581 |   |   |   |
|    Average      interest rate    |   | 8.66% |   |   | 4.89% |   |   | 4.98% |   |   | 8.61% |   |   | 9.61% |   |   | 5.81% |   |   | 7.56% |   |   |   |
| Net      discount                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (64,267 | ) |   |   |
|      Total      debt   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 1,773,314 |   |   |   |

|   | (a) | The      average floating interest rate represents the implied forward rates in the      yield curve at December 31,2009. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

| December      31, 2008                          |
|-------------------------------------------------|
|                                            | Expected      Maturity Date |
|                                            | 2009 |   | 2010 |   | 2011 |   | 2012 |   | 2013 |   | Thereafter |   | Total |   | Fair      Value |
| Liabilities                                     | (dollars      in thousands) |
| Fixed      rate:                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Debt                          | $ | 142,427 |   | $ | 274,014 |   | $ | 303,029 |   | $ | 2,415 |   | $ | 2,590 |   | $ | 73,245 |   | $ | 797,720 |   | $ | 685,512 |
|    Average      interest rate    |   | 7.27% |   |   | 8.70% |   |   | 8.49% |   |   | 6.49% |   |   | 6.49% |   |   | 6.54% |   |   | 8.15% |   |   |   |
| Floating      rate:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Debt                          |   | 285 |   |   | -    |   |   | 578,000 |   |   | 177,225 |   |   | -    |   |   | -    |   |   | 755,510 |   |   | 565,555 |
|    Average      interest rate(a) |   | 4.25% |   |   | -    |   |   | 3.91% |   |   | 4.65%  |   |   | -    |   |   | -    |   |   | 4.08% |   |   |   |
| Total      debt                                 | $ | 142,712 |   | $ | 274,014 |   | $ | 881,029 |   | $ | 179,640 |   | $ | 2,590 |   | $ | 73,245 |   | $ | 1,553,230 |   |   |   |
|    Average      interest rate    |   | 7.27% |   |   | 8.70% |   |   | 5.48% |   |   | 4.67% |   |   | 6.49% |   |   | 6.54% |   |   | 6.17% |   |   |   |
| Net      discount                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,544 | ) |   |   |
|      Total      debt   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 1,551,686 |   |   |   |

|   | (a) | The      average floating interest rate represents the implied forward rates in the      yield curve at December 31,2008. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

----

| Report      of Independent Registered Public Accounting      Firm                                                                                                                                                         | 52 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----|
| Consolidated      Balance Sheets – December 31, 2009 and      2008                                                                                                                                                  | 53 |
| Consolidated      Statements of Operations for the years ended December 31, 2009, 2008      and 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 54 |
| Consolidated      Statements of Comprehensive Income (Loss) for the years ended      December 31, 2009, 2008 and 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 55 |
| Consolidated      Statements of Equity for the years ended December 31, 2009, 2008 and      2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 56 |
| Consolidated      Statements of Cash Flows for the years ended December 31, 2009, 2008      and 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 58 |
| Notes      to Consolidated Financial      Statements                                                                                                                                                                      | 59 |
| Schedule      III – Real Estate and Accumulated Depreciation as of December 31,      2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 85 |

----

----

|                                                                                                                                                                                                                                                | 2009    |       | 2008   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|------------|--------|
| Assets                                                                                                                                                                                                                                              |    |       |   |   |   |   |   |
| Investment      in hotels, net of accumulated depreciation of $916,604 at     December 31,      2009 and $816,271 at December 31, 2008                                                                                |  $ | 2,180,394  |   |   |  $ |  2,279,026 |   |
| Investment      in unconsolidated entities                                                                                                                                                                                                          |    | 82,040     |   |   |   | 94,506 |   |
| Cash      and cash equivalents                                                                                                                                                                                                                      |    | 263,531    |   |   |   | 50,187 |   |
| Restricted      cash                                                                                                                                                                                                                                |    | 18,708     |   |   |   | 13,213 |   |
| Accounts      receivable, net of allowance for doubtful accounts of $406     at      December 31, 2009 and $521 at December 31, 2008                                                                                  |    | 28,678     |   |   |   |  35,240 |   |
| Deferred      expenses, net of accumulated amortization of $14,502 at     December 31,      2009 and $13,087 at December 31, 2008                                                                                     |    | 19,977     |   |   |   |  5,556 |   |
| Other      assets                                                                                                                                                                                                                                   |    | 32,666     |   |   |   | 34,541 |   |
|           Total      assets                                                                                                                                                                       | $       | 2,625,994  |   |   | $ | 2,512,269 |   |
|                                                                                                                                                                                                                                                |    |       |   |   |   |   |   |
| Liabilities      and Equity                                                                                                                                                                                                                         |    |       |   |   |   |   |   |
| Debt,      net of discount of $64,267 at December 31, 2009 and $1,544 at     December      31, 2008                                                                                                                        |  $ | 1,773,314  |   |   |  $ |  1,551,686 |   |
| Distributions      payable                                                                                                                                                                                                                          |    | 37,580     |   |   |   | 8,545 |   |
| Accrued      expenses and other liabilities                                                                                                                                                                                                         |    | 131,339    |   |   |   | 132,604 |   |
|                                                                                                                                                                                                                                                |    |       |   |   |   |   |   |
|           Total      liabilities                                                                                                                                                                  |    | 1,942,233  |   |   |   | 1,692,835 |   |
|                                                                                                                                                                                                                                                |    |       |   |   |   |   |   |
| Commitments      and contingencies                                                                                                                                                                                                                  |    |       |   |   |   |   |   |
|                                                                                                                                                                                                                                                |    |       |   |   |   |   |   |
| Redeemable      noncontrolling interests in FelCor LP at redemption value, 295 and 296      units issued and outstanding at December 31, 2009 and 2008,      respectively                                                                           |    | 1,062      |   |   |   |   545 |   |
|                                                                                                                                                                                                                                                |    |       |   |   |   |   |   |
| Equity:                                                                                                                                                                                                                                             |    |       |   |   |   |   |   |
| Preferred      stock, $0.01 par value, 20,000 shares authorized:                                                                                                                                                                                    |    |       |   |   |   |   |   |
|    Series      A Cumulative Convertible Preferred Stock, 12,880 shares,     liquidation      value of $322,011, issued and outstanding at     December      31, 2009 and 2008      |    | 309,362    |   |   |   |   309,362 |   |
|    Series      C Cumulative Redeemable Preferred Stock, 68 shares,      liquidation     value      of $169,950, issued and outstanding at December 31, 2009     and      2008 |    | 169,412    |   |   |   |   169,412 |   |
| Common      stock, $.01 par value, 200,000 shares authorized and 69,413     shares      issued, including shares in treasury, at December 31,      2009     and      2008                    |    | 694        |   |   |   |   694 |   |
| Additional      paid-in capital                                                                                                                                                                                                                     |    | 2,021,837  |   |   |   | 2,045,482 |   |
| Accumulated      other comprehensive income                                                                                                                                                                                                         |    | 23,528     |   |   |   | 15,347 |   |
| Accumulated      deficit                                                                                                                                                                                                                            |    | (1,792,822 | )      |   |   | (1,645,947 | ) |
| Less:      Common stock in treasury, at cost, of 3,845 and 5,189 shares     at      December 31, 2009 and 2008, respectively                                                                                               |    | (71,895    | )      |   |   |  (99,245 |  ) |
|                                                                                                                                                                                                                                                |    |       |   |   |   |   |   |
|           Total      FelCor stockholders’ equity                                                                                                                                            |    | 660,116    |   |   |   | 795,105 |   |
| Noncontrolling      interests in other partnerships                                                                                                                                                                                                 |    | 22,583     |   |   |   | 23,784 |   |
| Total      equity                                                                                                                                                                                                                                   |    | 682,699    |   |   |   | 818,889 |   |
|                                                                                                                                                                                                                                                |    |       |   |   |   |   |   |
|           Total      liabilities and equity                                                                                                                                                       | $       | 2,625,994  |   |   | $ | 2,512,269 |   |

----

|                                                                                                                                                               | 2009   |                | 2008    |   | 2007   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|--------|
| Revenues:                                                                                                                                                          |   |                |    |   |   |   |   |   |   |   |   |
|    Hotel      operating revenue                                                                                                                     | $      | 905,858             |    |   | $      | 1,099,929 |   |   | $ | 990,745 |   |
|    Other      revenue                                                                                                                               |   | 2,843               |    |   |   | 2,983 |   |   |   | 3,089 |   |
| Total      revenues                                                                                                                                                |   | 908,701             |    |   |   | 1,102,912 |   |   |   | 993,834 |   |
|                                                                                                                                                               |   |                |    |   |   |   |   |   |   |   |   |
| Expenses:                                                                                                                                                          |   |                |    |   |   |   |   |   |   |   |   |
|    Hotel      departmental expenses                                                                                                                 |   | 326,704             |    |   |   | 372,319 |   |   |   | 318,424 |   |
|    Other      property operating costs                                                                                                              |   | 258,546             |    |   |   | 293,969 |   |   |   | 266,093 |   |
|    Management      and franchise fees                                                                                                               |   | 43,221              |    |   |   | 55,720 |   |   |   | 51,863 |   |
|    Taxes,      insurance and lease expenses                                                                                                         |   | 98,751              |    |   |   | 112,374 |   |   |   | 119,715 |   |
|    Corporate      expenses                                                                                                                          |   | 24,216              |    |   |   | 20,698 |   |   |   | 20,718 |   |
|    Depreciation      and amortization                                                                                                               |   | 147,445             |    |   |   | 137,570 |   |   |   | 106,682 |   |
|    Impairment      loss                                                                                                                             |   | -    |    |   |   | 60,822 |   |   |   | -    |   |
|    Other      expenses                                                                                                                              |   | 4,089               |    |   |   | 5,821 |   |   |   | 2,825 |   |
| Total      operating expenses                                                                                                                                      |   | 902,972             |    |   |   | 1,059,293 |   |   |   | 886,320 |   |
|                                                                                                                                                               |   |                |    |   |   |   |   |   |   |   |   |
| Operating      income (loss)                                                                                                                                       |   | 5,729               |    |   |   | 43,619 |   |   |   | 107,514 |   |
| Interest      expense, net                                                                                                                                         |   | (105,637            | )       |   |   | (98,789 | ) |   |   | (92,489 | ) |
| Charges      related to debt extinguishment                                                                                                                        |   | (1,721              | )       |   |   | -    |   |   |   | -    |   |
|                                                                                                                                                               |   |                |    |   |   |   |   |   |   |   |   |
| Income      (loss) before equity in income of unconsolidated      entities,      noncontrolling interests and gain on sale of assets |   |  (101,629      |  ) |   |   |  (55,170 |  ) |   |   |  15,025 |   |
|    Equity      in income (loss) from unconsolidated entities                                                                                        |   | (4,814              | )       |   |   | (10,932 | ) |   |   | 20,357 |   |
|    Gain      on involuntary conversion                                                                                                              |   | -    |    |   |   | 3,095 |   |   |   | -    |   |
|    Gain      on sale of assets                                                                                                                      |   | 723                 |    |   |   | -    |   |   |   | -    |   |
|    Gain      on sale of condominiums                                                                                                                |   | -    |    |   |   | -    |   |   |   | 18,622 |   |
|                                                                                                                                                               |   |                |    |   |   |   |   |   |   |   |   |
| Income      (loss) from continuing operations                                                                                                                      |   | (105,720            | )       |   |   | (63,007 | ) |   |   | 54,004 |   |
|    Discontinued      operations                                                                                                                     |   | (3,371              | )       |   |   | (57,480 | ) |   |   | 35,820 |   |
|                                                                                                                                                               |   |                |    |   |   |   |   |   |   |   |   |
| Net      income (loss)                                                                                                                                             |   | (109,091            | )       |   |   | (120,487 | ) |   |   | 89,824 |   |
|    Net      loss (income) attributable to noncontrolling interests in other      partnerships                                                       |   | 297                 |    |   |   | (1,191 | ) |   |   | 309 |   |
|    Net      loss (income) attributable to redeemable noncontrolling interests in      FelCor LP                                                     |   | 672                 |    |   |   | 2,433 |   |   |   | (1,094 | ) |
|    Net      income (loss) attributable to FelCor                                                                                                    |   | (108,122            | )       |   |   | (119,245 | ) |   |   | 89,039 |   |
|    Preferred      dividends                                                                                                                         |   | (38,713             | )       |   |   | (38,713 | ) |   |   | (38,713 | ) |
|                                                                                                                                                               |   |                |    |   |   |   |   |   |   |   |   |
| Net      income (loss) attributable to FelCor common stockholders                                                                                                  | $      | (146,835            | )       |   | $      | (157,958 | ) |   | $ | 50,326 |   |
|                                                                                                                                                               |   |                |    |   |   |   |   |   |   |   |   |
|    Basic      and diluted per common share data:                                                                                                    |   |                |    |   |   |   |   |   |   |   |   |
|      Income      (loss) from continuing operations                                                                                        | $      | (2.27               | )       |   | $      | (1.65 | ) |   | $ | 0.25 |   |
|      Net      income (loss)                                                                                                               | $      | (2.33               | )       |   | $      | (2.57 | ) |   | $ | 0.80 |   |
|      Basic      weighted average common shares outstanding                                                                                |   | 63,114              |    |   |   | 61,979 |   |   |   | 61,600 |   |
|      Diluted      weighted average common shares outstanding                                                                              |   | 63,114              |    |   |   | 61,979 |   |   |   | 61,618 |   |
|                                                                                                                                                               |   |                |    |   |   |   |   |   |   |   |   |

----

|                                                                                                                               | 2009   |     | 2008   |   | 2007   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------|--------|--------|
| Net      income (loss)                                                                                                             | $      | (109,091 | )      |   | $      | (120,487 | ) |   | $ | 89,824 |   |
| Foreign      currency translation adjustment                                                                                       |   | 8,219    |   |   |   | (12,032 | ) |   |   | 11,611 |   |
|      Comprehensive      income (loss)                                                                     |   | (100,872 | )      |   |   | (132,519 | ) |   |   | 101,435 |   |
|      Comprehensive      loss (income) attributable to noncontrolling interests in other      partnerships |   | 297      |   |   |   | (1,191 | ) |   |   | 309 |   |
|      Comprehensive      loss (income) to redeemable noncontrolling interests in FelCor      LP            |   | 634      |   |   |   | 2,612 |   |   |   | (1,342 | ) |
| Comprehensive      income (loss) attributable to FelCor                                                                            | $      | (99,941  | )      |   | $      | (131,098 | ) |   | $ | 100,402 |   |

----

|                                                              | Preferred      Stock      |   | Common      Stock |   |                      |   | Accumulated  |                      |                            |   |                                   |   | Noncontrolling     |                |                |   |                                 |
|-------------------------------------------------------------------|---------------------------|--------|-------------------|--------|---------------------------|--------|--------------|---------------------------|---------------------------------|--------|----------------------------------------|--------|--------------------|---------------------|---------------------|--------|--------------------------------------|
|                                                              | Number      of Shares     |   | Amount            |   | Number      of Shares     |   |  Amount |                      | Additional      Paid-in Capital |   | Other      Comprehensive Income (Loss) |   | AccumulatedDeficit |                | Treasury      Stock |   | Interests      in Other Partnerships |   |  Comprehensive      Income (Loss) |   |  Total      Equity |
| Balance      at December 31, 2006                                 | 12,948                    |   |              | $      | 478,774                   |   |         | 69,438                    |                            | $      | 694                                    |   | $                  | 2,049,078           |                |   | $                                    | 15,500 |   |   | $ | (1,409,790 | ) |   | $ | (141,280 | ) |   | $ | 28,172 |   |   |   |   |   |   | $ | 1,021,148 |   |
| Issuance of stock awards                                          | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | (8,850              | )                   |   |                                 | -    |   |   |   | -    |   |   |   | 9,259 |   |   |   | -    |   |   |   |   |   |   |   | 409 |   |
| Exercise of stock options                                         | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | 731                 |                |   |                                 | -    |   |   |   | -    |   |   |   | 5,569 |   |   |   | -    |   |   |   |   |   |   |   | 6,300 |   |
| Amortization      of stock awards                                 | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | 4,294               |                |   |                                 | -    |   |   |   | -    |   |   |   | – |   |   |   | -    |   |   |   |   |   |   |   | 4,294 |   |
| Forfeiture of stock awards                                        | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | 684                 |                |   |                                 | -    |   |   |   | -    |   |   |   | (2,564 | ) |   |   | -    |   |   |   |   |   |   |   | (1,880) |   |
| Common      stock exchanged for treasury shares                   | -          |   |              |   | -          |   |         | (25                       | )                               |   | -                       |   |               | (488                | )                   |   |                                 | -    |   |   |   | -    |   |   |   | 488 |   |   |   | -    |   |   |   |   |   |   |   | -    |   |
| Conversion      of operating partnership units into common shares | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | (24                 | )                   |   |                                 | -    |   |   |   | -    |   |   |   | 24 |   |   |   | -    |   |   |   |   |   |   |   | -    |   |
| Allocation      to redeemable noncontrolling interests            | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | 8,336               |                |   |                                 | 8 |   |   |   | -    |   |   |   | -    |   |   |   | -    |   |   |   |   |   |   |   | 8,344 |   |
| Contribution      from noncontrolling interests                   | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | -    |   |   |   | -    |   |   |   | 2,431 |   |   |   |   |   |   |   | 2,431 |   |
| Distribution      to noncontrolling interests                     | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | -    |   |   |   | -    |   |   |   | (5,030 | ) |   |   |   |   |   |   | (5,030) |   |
| Dividends      Declared:                                          |                      |   |              |   |                      |   |         |                      |                            |   |                                   |   |               |                |                |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $1.20 per common share                                            | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | (74,930 | ) |   |   | -    |   |   |   | – |   |   |   |   |   |   |   | (74,930) |   |
| $1.95      per Series A preferred share                           | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | (25,116 | ) |   |   | -    |   |   |   | – |   |   |   |   |   |   |   | (25,116) |   |
| $2.00      per Series C depositary preferred share                | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | (13,596 | ) |   |   | -    |   |   |   | – |   |   |   |   |   |   |   | (13,596) |   |
| Comprehensive      loss:                                          |                      |   |              |   |                      |   |         |                      |                            |   |                                   |   |               |                |                |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign      exchange translation                                 | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | -    |                |   |                                 | 11,363 |   |   |   | -    |   |   |   | -    |   |   |   | – |   |   | $ | 11,363 |   |   |   |   |   |
| Net income                                                        | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | 89,039 |   |   |   | -    |   |   |   | (309 | ) |   |   | 88.730 |   |   |   |   |   |
| Comprehensive income                                              |                      |   |              |   |                      |   |         |                      |                            |   |                                   |   |               |                |                |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 100,093 |   |   |   | 100,093 |   |
| Balance      at December 31, 2007                                 | 12,948                    |   |              |   | 478,774                   |   |         | 69,413                    |                            |   | 694                                    |   |               | 2,053,761           |                |   |                                 | 26,871 |   |   |   | (1,434,393 | ) |   |   | (128,504 | ) |   |   | 25,264 |   |   |   |   |   |   |   | 1,022,467 |   |
| Issuance      of stock awards                                     | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | (9,013              | )                   |   |                                 | -    |   |   |   | -    |   |   |   | 9,572 |   |   |   | -    |   |   |   |   |   |   |   | 559 |   |
| Amortization      of stock awards                                 | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | 4,943               |                |   |                                 | -    |   |   |   | -    |   |   |   | -    |   |   |   | -    |   |   |   |   |   |   |   | 4,943 |   |
| Forfeiture      of stock awards                                   | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | -    |   |   |   | (548 | ) |   |   | -    |   |   |   |   |   |   |   | (548 | ) |
| Conversion      of operating partnership units into common shares |  -    |   |              |   |  -    |   |         |  -    |                            |   |  -                 |   |               |  (20,235       | )                   |   |                                 |  -    |   |   |   |  -    |   |   |   |  20,235 |   |   |   | -    |   |   |   |   |   |   |   |  -    |   |
| Allocation      to redeemable noncontrolling interests            | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | 16,064              |                |   |                                 | 329 |   |   |   | -    |   |   |   | -    |   |   |   | -    |   |   |   |   |   |   |   | 16,393 |   |
| Costs      related to shelf registration                          | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | (38                 | )                   |   |                                 | -    |   |   |   | -    |   |   |   | -    |   |   |   | -    |   |   |   |   |   |   |   | (38 | ) |
| Contribution      from noncontrolling interests                   | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | -    |   |   |   | -    |   |   |   | 565 |   |   |   |   |   |   |   | 565 |   |
| Distribution      to noncontrolling interests                     | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | -    |   |   |   | -    |   |   |   | (3,236 | ) |   |   |   |   |   |   | (3,236 | ) |
| Dividends      declared:                                          |                      |   |              |   |                      |   |         |                      |                            |   |                                   |   |               |                |                |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   $0.85      per common share                           | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | (53,596 | ) |   |   | -    |   |   |   | -    |   |   |   |   |   |   |   | (53,596 | ) |
|   $1.95      per Series A preferred share               | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | (25,117 | ) |   |   | -    |   |   |   | -    |   |   |   |   |   |   |   | (25,117 | ) |
|   $2.00      per Series C depositary preferred share    | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | (13,596 | ) |   |   | -    |   |   |   | -    |   |   |   |   |   |   |   | (13,596 | ) |
| Comprehensive      loss:                                          |                      |   |              |   |                      |   |         |                      |                            |   |                                   |   |               |                |                |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign exchange translation                                      | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | -    |                |   |                                 | (11,853 | ) |   |   | -    |   |   |   | -    |   |   |   | -    |   |   | $ | (11,853 | ) |   |   |   |   |
| Net loss                                                          | -          |   |              |   | -          |   |         | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | (119,245 | ) |   |   | -    |   |   |   | 1,191 |   |   |   | (118,054 | ) |   |   |   |   |
| Comprehensive      loss                                           |                      |   |              |   |                      |   |         |                      |                            |   |                                   |   |               |                |                |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (129,907 | ) |   |   | (129,907 | ) |
| Balance      at December 31, 2008                                 | 12,948                    |   |              | $      | 478,774                   |   |         | 69,413                    |                            | $      | 694                                    |   | $                  | 2,045,482           |                |   | $                                    | 15,347 |   |   | $ | (1,645,947 | ) |   | $ | (99,245 | ) |   | $ | 23,784 |   |   |   |   |   |   | $ | 818,889 |   |

----

|                                                                                  | Preferred      Stock      |   | Common      Stock |   |                      |   | Accumulated        |                      |                            |   |                                   |   | Noncontrolling     |                |                |   |                                 |
|---------------------------------------------------------------------------------------|---------------------------|--------|-------------------|--------|---------------------------|--------|--------------------|---------------------------|---------------------------------|--------|----------------------------------------|--------|--------------------|---------------------|---------------------|--------|--------------------------------------|
|                                                                                  | Number      of Shares     |   | Amount            |   | Number      of Shares     |   |   Amount |                      | Additional      Paid-in Capital |   | Other      Comprehensive Income (Loss) |   | AccumulatedDeficit |                | Treasury      Stock |   | Interests      in Other Partnerships |   |  Comprehensive      Income (Loss) |   |  Total      Equity |
| Balance      at December 31, 2008                                                     | 12,948                    |   |              | $      | 478,774                   |   |               | 69,413                    |                            | $      | 694                                    |   | $                  | 2,045,482           |                |   | $                                    | 15,347 |   |   | $ | (1,645,947 | ) |   | $ | (99,245 | ) |   | $ | 23,784 |   |   |   |   |   |   | $ | 818,889 |   |
| Issuance      of stock awards                                                         | -          |   |              |   | -          |   |               | -          |                            |   | -                       |   |               | (27,510             | )                   |   |                                 | -    |   |   |   | -    |   |   |   | 27,526 |   |   |   | -    |   |   |   |   |   |   |   | 16 |   |
| Amortization      of stock awards                                                     | -          |   |              |   | -          |   |               | -          |                            |   | -                       |   |               | 5,139               |                |   |                                 | -    |   |   |   | -    |   |   |   | -    |   |   |   | -    |   |   |   |   |   |   |   | 5,139 |   |
| Forfeiture      of stock awards                                                       | -          |   |              |   | -          |   |               | -          |                            |   | -                       |   |               | 63                  |                |   |                                 | -    |   |   |   | -    |   |   |   | (193 | ) |   |   | -    |   |   |   |   |   |   |   | (130 | ) |
| Conversion      of operating partnership units into common shares                     |  -    |   |              |   |  -    |   |               |  -    |                            |   |  -                 |   |               | (17                 | )                   |   |                                 |  -    |   |   |   |  -    |   |   |   |  17 |   |   |   |  -    |   |   |   |   |   |   |   | -    |   |
| Allocation      to redeemable noncontrolling interests                                | -          |   |              |   | -          |   |               | -          |                            |   | -                       |   |               | (1,152              | )                   |   |                                 | -    |   |   |   | -    |   |   |   | -    |   |   |   | -    |   |   |   |   |   |   |   | (1,152 | ) |
| Contribution      from noncontrolling interests                                       | -          |   |              |   | -          |   |               | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | -    |   |   |   | -    |   |   |   | 534 |   |   |   |   |   |   |   | 534 |   |
| Distribution      to noncontrolling interests                                         | -          |   |              |   | -          |   |               | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | -    |   |   |   | -    |   |   |   | (1,606 | ) |   |   |   |   |   |   | (1,606 | ) |
| Other                                                                                 | -          |   |              |   | -          |   |               | -          |                            |   | -                       |   |               | (168                | )                   |   |                                 | -    |   |   |   | (40 | ) |   |   | -    |   |   |   | 168  |   |   |   |   |   |   |   | (40 | ) |
| Accrued      preferred dividends:                                                     |                      |   |              |   |                      |   |               |                      |                            |   |                                   |   |               |                |                |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   $1.833      per Series A preferred share                                  | -          |   |              |   | -          |   |               | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | (25,117 | ) |   |   | -    |   |   |   | -    |   |   |   |   |   |   |   | (25,117 | ) |
|   $2.00      per Series C depositary preferred share                        | -          |   |              |   | -          |   |               | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | (12,462 | ) |   |   | -    |   |   |   | -    |   |   |   |   |   |   |   | (12,462 | ) |
| Dividends      declared and paid ($0.167 perSeries      C depository preferred share) | -          |   |              |   | -          |   |               | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | (1,134 | ) |   |   | -    |   |   |   | -    |   |   |   |   |   |   |   | (1,134 | ) |
| Comprehensive      loss:                                                              |                      |   |              |   |                      |   |               |                      |                            |   |                                   |   |               |                |                |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign exchange tra nslation                                                    | -          |   |              |   | -          |   |               | -          |                            |   | -                       |   |               | -    |                |   |                                 | 8,181 |   |   |   | -    |   |   |   | -    |   |   |   | -    |   |   | $ | 8,181 |   |   |   |   |   |
| Net loss                                                                              | -          |   |              |   | -          |   |               | -          |                            |   | -                       |   |               | -    |                |   |                                 | -    |   |   |   | (108,122 | ) |   |   | -    |   |   |   | (297 | ) |   |   | (108,419 | ) |   |   |   |   |
| Comprehensive      loss                                                               |                      |   |              |   |                      |   |               |                      |                            |   |                                   |   |               |                |                |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (100,238 | ) |   |   | (100,238 | ) |
| Balance      at December 31, 2009                                                     | 12,948                    |   |              | $      | 478,774                   |   |               | 69,413                    |                            | $      | 694                                    |   | $                  | 2,021,837           |                |   | $                                    | 23,528 |   |   | $ | (1,792,822 | ) |   | $ | (71,895 | ) |   | $ | 22,583 |   |   |   |   |   |   | $ | 682,699 |   |

----

|                                                                                                                                                                                                          | 2009   |                | 2008   |   | 2007   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|--------|
| Cash      flows from operating activities:                                                                                                                                                                    |   |                |   |   |   |   |   |   |   |   |   |
|    Net      income (loss)                                                                                                                                                                      | $      | (109,091            | )      |   | $      | (120,487 | ) |   | $ | 89,824 |   |
|    Adjustments      to reconcile net income (loss) to net cash provided by operating      activities:                                                                                     |   |                |   |   |   |   |   |   |   |   |   |
|               Depreciation      and amortization                                                                                        |   | 150,088             |   |   |   | 141,668 |   |   |   | 110,765 |   |
|               Gain      on involuntary conversion                                                                                       |   | -    |   |   |   | (3,095 | ) |   |   | -    |   |
|               Gain      on sale of assets                                                                                               |   | (1,633              | )      |   |   | (1,193 | ) |   |   | (47,195 | ) |
|               Amortization      of deferred financing fees and debt discount                                                            |   | 7,120               |   |   |   | 2,959 |   |   |   | 2,663 |   |
|               Amortization      of unearned officers' and directors' compensation                                                       |   | 5,165               |   |   |   | 4,451 |   |   |   | 4,239 |   |
|               Equity      in (income) loss from unconsolidated entities                                                                 |   | 4,814               |   |   |   | 10,932 |   |   |   | (20,357 | ) |
|               Distributions      of income from unconsolidated entities                                                                 |   | 2,789               |   |   |   | 2,973 |   |   |   | 947 |   |
|               Charges      related to early debt extinguishment                                                                         |   | 1,721               |   |   |   | -    |   |   |   | 901 |   |
|               Impairment      loss hotels                                                                                               |   | 3,448               |   |   |   | 107,963 |   |   |   | -    |   |
|         Changes      in assets and liabilities:                                                                                                                       |   |                |   |   |   |   |   |   |   |   |   |
|               Accounts      receivable                                                                                                  |   | 5,369               |   |   |   | 3,675 |   |   |   | (19 | ) |
|               Restricted      cash-operations                                                                                           |   | 345                 |   |   |   | (71 | ) |   |   | 3,787 |   |
|               Other      assets                                                                                                         |   | (1,520              | )      |   |   | (386 | ) |   |   | 6,564 |   |
|               Accrued      expenses and other liabilities                                                                               |   | 4,292               |   |   |   | 3,774 |   |   |   | (14,782 | ) |
|                         Net      cash flow provided by operating activities           |   | 72,907              |   |   |   | 153,163 |   |   |   | 137,337 |   |
|                                                                                                                                                                                                          |   |                |   |   |   |   |   |   |   |   |   |
| Cash      flows provided by (used in) investing activities:                                                                                                                                                   |   |                |   |   |   |   |   |   |   |   |   |
|     Acquisition      of hotels                                                                                                                                                            |   | -    |   |   |   | -    |   |   |   | (50,424 | ) |
|     Improvements      and additions to hotels                                                                                                                                             |   | (75,949             | )      |   |   | (142,897 | ) |   |   | (227,518 | ) |
|     Additions      to condominium project                                                                                                                                                 |   | (154                | )      |   |   | (752 | ) |   |   | (8,299 | ) |
|     Proceeds      from sale of hotels                                                                                                                                                     |   | 25,038              |   |   |   | -    |   |   |   | 165,107 |   |
|     Proceeds      from sale of condominiums                                                                                                                                               |   | -    |   |   |   | -    |   |   |   | 20,669 |   |
|     Proceeds      received from property damage insurance                                                                                                                                 |   | -    |   |   |   | 2,005 |   |   |   | 2,034 |   |
|     Purchase      of investment securities                                                                                                                                                |   | -    |   |   |   | -    |   |   |   | (8,246 | ) |
|     Decrease      (increase) in restricted cash-investing                                                                                                                                 |   | (3,373              | )      |   |   | 1,705 |   |   |   | 7,334 |   |
|     Redemption      of investment securities                                                                                                                                              |   | 1,719               |   |   |   | 5,397 |   |   |   | 743 |   |
|     Cash      distributions from unconsolidated entities                                                                                                                                  |   | 6,200               |   |   |   | 24,858 |   |   |   | 8,812 |   |
|     Capital      contributions to unconsolidated entities                                                                                                                                 |   | (444                | )      |   |   | (5,995 | ) |   |   | (4,650 | ) |
|                         Net      cash flow used in investing activities               |   | (46,963             | )      |   |   | (115,679 | ) |   |   | (94,438 | ) |
|                                                                                                                                                                                                          |   |                |   |   |   |   |   |   |   |   |   |
| Cash      flows provided by (used in) financing activities:                                                                                                                                                   |   |                |   |   |   |   |   |   |   |   |   |
|     Proceeds      from borrowings                                                                                                                                                         |   | 988,486             |   |   |   | 187,285 |   |   |   | 25,492 |   |
|     Repayment      of borrowings                                                                                                                                                          |   | (772,375            | )      |   |   | (111,744 | ) |   |   | (30,312 | ) |
|     Payment      of debt issuance costs                                                                                                                                                   |   | (19,532             | )      |   |   | (21 | ) |   |   | (1,187 | ) |
|     Exercise      of stock options                                                                                                                                                        |   | -    |   |   |   | -    |   |   |   | 6,280 |   |
|     Distributions      paid to other partnerships’ noncontrolling interests                                                                                                         |   | (1,606              | )      |   |   | (3,236 | ) |   |   | (5,030 | ) |
|     Contribution      from noncontrolling interests                                                                                                                                       |   | 534                 |   |   |   | 565 |   |   |   | 2,431 |   |
|     Distributions      paid to redeemable noncontrolling interests in FelCor LP                                                                                                           |   | -    |   |   |   | (1,559 | ) |   |   | (1,481 | ) |
|     Distributions      paid to preferred stockholders                                                                                                                                     |   | (9,679              | )      |   |   | (38,713 | ) |   |   | (38,712 | ) |
|     Distributions      paid to common stockholders                                                                                                                                        |   | -    |   |   |   | (75,686 | ) |   |   | (68,599 | ) |
|                         Net      cash flow provided by (used in) financing activities |   | 185,828             |   |   |   | (43,109 | ) |   |   | (111,118 | ) |
|                                                                                                                                                                                                          |   |                |   |   |   |   |   |   |   |   |   |
| Effect      of exchange rate changes on cash                                                                                                                                                                  |   | 1,572               |   |   |   | (1,797 | ) |   |   | 1,649 |   |
| Net      change in cash and cash equivalents                                                                                                                                                                  |   | 213,344             |   |   |   | (7,422 | ) |   |   | (66,570 | ) |
| Cash      and cash equivalents at beginning of periods                                                                                                                                                        |   | 50,187              |   |   |   | 57,609 |   |   |   | 124,179 |   |
| Cash      and cash equivalents at end of periods                                                                                                                                                              | $      | 263,531             |   |   | $      | 50,187 |   |   | $ | 57,609 |   |
|                                                                                                                                                                                                          |   |                |   |   |   |   |   |   |   |   |   |
| Supplemental      cash flow information — interest paid                                                                                                                                                 | $      | 85,587              |   |   | $      | 100,505 |   |   | $ | 101,657 |   |

----

|   | Brand                         |   |   | Hotels |   | Rooms  |   |
|--------|-------------------------------|--------|--------|--------|--------|--------|--------|
|   | Embassy      Suites Hotels    |   | 47     |   |   | 12,132 |   |   |
|   | Holiday      Inn              |   | 15     |   |   | 5,154  |   |   |
|   | Sheraton      and Westin      |   | 9      |   |   | 3,217  |   |   |
|   | Doubletree                    |   | 7      |   |   | 1,471  |   |   |
|   | Renaissance      and Marriott |   | 3      |   |   | 1,321  |   |   |
|   | Hilton                        |   | 2      |   |   | 559    |   |   |
|   | Total      hotels             |   | 83     |   |   |   |   |   |

----

----

|   | • | Cash      distributions up to the aggregate historical earnings of the      unconsolidated entity are recorded as an operating activity (i.e. a distribution of      earnings); and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Cash      distributions in excess of aggregate historical earnings are recorded as      an investing activity (i.e. a distribution of      contributed capital). |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                            | December      31, |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                            | 2009              |   | 2008 |
| Building      and      improvements                                                                   | $                 | 2,265,846 |   |   | $ | 2,251,052 |   |
| Furniture,      fixtures and equipment                                                                                                                                                                                                                                                                                                                                                                                                          |              | 591,994 |   |   |   | 580,797 |   |
| Land                                                                                                  |              | 226,436 |   |   |   | 233,558 |   |
| Construction      in      progress                                                                    |              | 12,722 |   |   |   | 29,890 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |              | 3,096,998 |   |   |   | 3,095,297 |   |
| Accumulated      depreciation                                                                         |              | (916,604 | ) |   |   | (816,271 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            | $                 | 2,180,394 |   |   | $ | 2,279,026 |   |

| 4. | Acquisitions      of Hotels |
|----|-----------------------------|

| Total      revenues                     | $      | 1,087,998 |   |
|-----------------------------------------|--------|-----------|--------|
| Net      income                         |   | 82,780    |   |
| Earnings      per share – basic   |   | 0.69      |   |
| Earnings      per share – diluted |   | 0.69      |   |

----

----

|                                            | Year      Ended December 31, |
|-------------------------------------------------|------------------------------|
|                                            | 2009                         |   | 2008 |   | 2007 |
| Hotel      operating revenue                    | $                            | 20,185 |   |   | $ | 26,864  |   |   | $ | 54,570 |   |
| Operating      expenses(a)                 |                         | (24,466 | ) |   |   | (85,537 | ) |   |   | (45,822 | ) |
| Operating      income (loss)                    |                         | (4,281 | ) |   |   | (58,673 | ) |   |   | 8,748 |   |
| Direct      interest costs, net                 |                         | -    |   |   |   | -    |   |   |   | (14 | ) |
| Loss      on the early extinguishment of debt   |                         | -    |   |   |   | -    |   |   |   | (902 | ) |
| Gain      on sale, net of tax                   |                         | 910 |   |   |   | 1,193 |   |   |   | 27,988 |   |
| Income      (loss) from discontinued operations | $                            | (3,371 | ) |   | $ | (57,480 | ) |   | $ | 35,820 |   |

|   | (a) | Includes      impairment charges of $3.4 million and $47.1 million for the      years ended December 31, 2009 and 2008, respectively, and liquidated      damages of $11.1 million for the year ended December 31,      2008. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                       | December 31, |
|------------------------------------------------------------|-------------------|
|                                                       | 2009              |   | 2008 |
| Investment      in hotels, net of accumulated depreciation | $                 | 259,977 |   | $ | 290,504 |
| Total      assets                                          | $                 | 279,611 |   | $ | 317,672 |
| Debt                                                       | $                 | 214,963 |   | $ | 224,440 |
| Total      liabilities                                     | $                 | 220,389 |   | $ | 233,296 |
| Equity                                                     | $                 | 59,222 |   | $ | 84,376 |

|                                                      | Year      Ended December 31, |
|-----------------------------------------------------------|-----------------------------------|
|                                                      | 2009                              |   | 2008 |   | 2007 |
| Total      revenues                                       | $                                 | 66,261 |   |   | $ | 90,113 |   |   | $ | 103,801 |   |
| Net      income (loss)                                    | $                                 | (4,988 | )(a) |   | $ | 3,946 | (a) |   | $ | 38,908 | (b) |
|                                                      |                              |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) attributable to FelCor             | $                                 | (2,494 | ) |   | $ | 1,973 |   |   | $ | 19,173 |   |
| Impairment      loss                                      |                              | (476 | )(c) |   |   | (11,038 | )(d) |   |   | -    |   |
| Additional      gain on sale related to basis difference  |                              | -    |   |   |   | -    |   |   |   | 3,336 | (b) |
| Tax      related to sale of asset by venture              |                              | -    |   |   |   | -    |   |   |   | (310 | )(e) |
| Depreciation      of cost in excess of book value         |                              | (1,844 | ) |   |   | (1,867 | ) |   |   | (1,842 | ) |
| Equity      in income (loss) from unconsolidated entities | $                                 | (4,814 | ) |   | $ | (10,932 | ) |   | $ | 20,357 |   |

|   | (a) | Net      income (loss) included impairment charges of $3.2 million for 2009      and $3.3 million for 2008.  These impairments were based on      sales contracts (a Level 2 input) for two hotels owned by one of our joint      ventures. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | In      the first quarter of 2007, a 50% owned joint venture entity sold its      Embassy Suites Hotel in Covina, California.  The sale of this      hotel resulted in a gain of $15.6 million for this      venture.  Our basis in this unconsolidated hotel was lower than      the venture’s basis, resulting in an additional gain on    sale. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | As      a result of an impairment charge recorded by one of our joint ventures,      the net book value of the joint venture’s assets no longer supported the      recovery of our investment.  Therefore, we recorded an      additional impairment charge to reduce our investment in this joint      venture to zero.  We have no obligation to provide this joint      venture with future funding. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Represents      an $11.0 million impairment charge related to other-than-temporary      declines in fair value related to certain unconsolidated      entities. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | In      the third quarter of 2007, a 50% owned joint venture entity sold its      Hampton Inn in Hays, Kansas for an insignificant book      gain.  This sale caused FelCor to incur a $310,000 tax      obligation. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | December      31, |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2009              |   |   | 2008 |   |
| Hotel      related      investments                                                                            | $                 | 18,969 |   |   | $ | 28,762 |   |
| Cost      in excess of book value of hotel investments                                                                                                                                                                                                                                                                                                                                                                                                                                                |              | 52,429 |   |   |   | 54,273 |   |
| Land      and condominium investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |              | 10,642 |   |   |   | 11,471 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | $                 | 82,040 |   |   | $ | 94,506 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Year      Ended December 31, |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 2009                         |   | 2008 |   | 2007 |
| Hotel      related      investments                                                                     | $                            | (4,291 | ) |   | $ | (10,366 | ) |   | $ | 20,500 |   |
| Other      investments                                                                                  |                         | (523 | ) |   |   | (566 | ) |   |   | (143 | ) |
| Equity      in income (loss) from unconsolidated entities                                                                                                                                                                                                                                                                                                                                                                                                   | $                            | (4,814 | ) |   | $ | (10,932 | ) |   | $ | 20,357 |   |

----

|                            | Encumbered                     |   |               |   |               |   | December      31,       |
|---------------------------------|--------------------------------|--------|--------------------|--------|--------------------|--------|-------------------------|
|                            | Hotels                         |   | Interest      Rate |   | Maturity      Date |   | 2009                    |   | 2008 |
| Mortgage      debt(a)           | 7      hotels                  |   |               | 8.68   | %                  |   | May      2010           |   | $ | 130,379 |   | $ | 133,704 |
| Mortgage      debt              | 6      hotels                  |   |               | 8.73   |               |   | May      2010           |   |   | 112,703 |   |   | 116,285 |
| Senior      notes               | none                           |   |               | 8.50   | (b)                |   | June      2011          |   |   | 86,604 |   |   | 299,414 |
| Mortgage      debt(a)           | 2      hotels                  |   |               | 6.15   |               |   | June      2011(c)       |   |   | 14,150 |   |   | 14,641 |
| Mortgage      debt              | 9      hotels                  |   | L      +           | 3.50   | (d)                |   | August      2011(e)     |   |   | 200,425 |   |   | -    |
| Line      of credit             | none                           |   | L      +           | 0.80   |               |   | August      2011        |   |   | -    |   |   | 113,000 |
| Mortgage      debt              | 12      hotels                 |   | L      +           | 0.93   | (f)                |   | November      2011(g)   |   |   | 250,000 |   |   | 250,000 |
| Senior      floating rate notes | none                           |   | L      +           | 1.875  |               |   | December      2011      |   |   | -    |   |   | 215,000 |
| Mortgage      debt(a)           | 2      hotels                  |   | L      +           | 1.55   | (h)                |   | May      2012(i)        |   |   | 176,555 |   |   | 176,267 |
| Mortgage      debt              | 1      hotel                   |   |               | 8.77   |               |   | May      2013(j)        |   |   | 27,829 |   |   | 28,546 |
| Mortgage      debt              | 7      hotels                  |   |               | 9.02   |               |   | April      2014         |   |   | 117,422 |   |   | 117,131 |
| Mortgage      debt(a)           | 5      hotels                  |   |               | 6.66   |               |   | June      - August 2014 |   |   | 70,917 |   |   | 72,517 |
| Senior      secured notes(k)    | 14      hotels                 |   |               | 10.00  |               |   | October      2014       |   |   | 572,500 |   |   | -    |
| Mortgage      debt              | 1      hotel                   |   |               | 5.81   |               |   | July      2016          |   |   | 11,741 |   |   | 12,137 |
| Capital      lease and other    | 1      hotel    |   |               | 9.44   |               |   | various                 |   |   | 2,089 |   |   | 3,044 |
|   Total               | 67      hotels                 |   |               |   |               |   |                    |   | $ | 1,773,314 |   | $ | 1,551,686 |

| (a) | The      hotels securing this debt are subject to separate loan agreements and are      not cross-collateralized.                                                                                                |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | As      a result of a rating down-grade in February 2009, the interest rate on our      81⁄2% senior notes increased to 9%.                                                                                   |
| (c) | In      February 2010, the maturity date on these loans was extended from June      2009 to June 2011.                                                                                                           |
| (d) | LIBOR      for this loan is subject to a 2% floor.                                                                                                                                                               |
| (e) | This      loan can be extended for as many as two years, subject to satisfying      certain conditions.                                                                                                          |
| (f) | We      have purchased an interest rate cap that caps LIBOR at 7.8% and expires in      November 2010 for this notional amount.                                                                             |
| (g) | The      maturity date assumes that we will exercise the remaining one-year      extension option that is exercisable, at our sole discretion, and would      extend the current November 2010 maturity to 2011. |
| (h) | We      have purchased interest rate caps that cap LIBOR at 6.5% and expire in May      2010 for aggregate notional amounts of  $177 million.                                                               |
| (i) | We      have exercised the first of three successive one-year extension options      that extend, at our sole discretion, maturity to 2012.                                                                      |
| (j) | In      February 2010, the maturity date on this loan was extended from May 2010      to May 2013.                                                                                                               |
| (k) | These      senior notes have $636 million in aggregate principal outstanding and      were sold at a discount that provides an effective yield of 12.875% before      transaction costs.                    |

----

| 9. | Debt      — (continued) |
|----|-------------------------------|

----

| 9. | Debt      — (continued) |
|----|-------------------------------|

| Year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|
| 2010                                                                                                                    | $      | 253,818   |   |
| 2011                                                                                                                    |   | 554,755   | (a) |
| 2012                                                                                                                    |   | 181,764   | (b) |
| 2013                                                                                                                    |   | 32,742    |   |
| 2014                                                                                                                    |   | 805,126   |   |
| 2015      and      thereafter                                                                                           |   | 9,376     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 1,837,581 |   |
| Discount      accretion over      term                                                                                  |   | (64,267   | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $      | 1,773,314 |   |

|   | (a) | Assumes      our exercise of extension options through November 2011 on debt      aggregating $250 million. |
|--------|-----|------------------------------------------------------------------------------------------------------------------|

|   | (b) | Assumes      our exercise of extension options through May 2012 on debt aggregating      $176 million. |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

----

|                                                                       | Year      Ended December 31, |
|----------------------------------------------------------------------------|------------------------------|
|                                                                       | 2009                         |   | 2008 |   | 2007 |
| GAAP  consolidated      net income (loss) attributable to FelCor | $                            | (108,122 | ) |   | $ | (119,245 | ) |   | $ | 89,039 |   |
| GAAP      net loss (income) from REIT operations                           |                         | 66,977 |   |   |   | 84,287 |   |   |   | (75,688 | ) |
| GAAP      net income (loss) of taxable subsidiaries                        |                         | (41,145 | ) |   |   | (34,958 | ) |   |   | 13,351 |   |
| Tax      gain (loss) in excess of book gains on sale of hotels             |                         | (1,821 | ) |   |   | (346 | ) |   |   | 2,928 |   |
| Depreciation      and amortization(a)                                 |                         | (269 | ) |   |   | (482 | ) |   |   | (2,410 | ) |
| Employee      benefits not deductible for tax                              |                         | (4,205 | ) |   |   | (4,224 | ) |   |   | (5,107 | ) |
| Unearned      fee reductions                                               |                         | 4,828 |   |   |   | -    |   |   |   | -    |   |
| Tax      adjustment to lease expense(b)                               |                         | 11,769 |   |   |   | 11,773 |   |   |   | 10,137 |   |
| Other      book/tax differences                                            |                         | 7,799 |   |   |   | (8 | ) |   |   | 2,514 |   |
| Tax      gain (loss) of taxable subsidiaries                               | $                            | (23,044 | ) |   | $ | (28,245 | ) |   | $ | 21,413 |   |

|   | (a) | The      changes in book/tax differences in depreciation and amortization      principally result from book and tax basis differences, differences in      depreciable lives and accelerated depreciation  methods. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | For      tax purposes, we record a reduction in intercompany rent between our REIT      entities and TRS entities.  In February 2010, we filed amended      TRS tax returns for the years ending December 31, 2008, 2007 and 2006 to      reflect rent reductions of $11.8 million, $10.1 million and      $7.6 million, respectively.  These amendments had no impact      on our consolidated financial statements as sufficient TRS NOLs were      available to absorb the reduction inrents. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                     | December      31, |
|--------------------------------------------------------------------------|-------------------|
|                                                                     | 2009              |   | 2008 |
| Accumulated      net operating losses of our TRS                         | $                 | 128,305 |   |   | $ | 116,600 |   |
| Tax      property basis in excess of book                                |              | -    |   |   |   | 1,350 |   |
| Accrued      employee benefits not deductible for tax                    |              | 3,967 |   |   |   | 5,565 |   |
| Bad      debt allowance not deductible for tax                           |              | 147 |   |   |   | 198 |   |
| Gross      deferred tax assets                                           |              | 132,419 |   |   |   | 123,713 |   |
| Valuation      allowance                                                 |              | (132,291 | ) |   |   | (123,713 | ) |
| Deferred      tax asset after valuation allowance                        |              | 128 |   |   |   | -    |   |
| Deferred      tax liability – book property basis in excess of tax |              | (128 | ) |   |   | -    |   |
| Net      deferred tax asset                                              | $                 | -    |   |   | $ | -    |   |

|                                                                      | Year      Ended December 31, |
|---------------------------------------------------------------------------|-----------------------------------|
|                                                                      | 2009                              |   | 2008 |   | 2007 |
| GAAP      net income (loss) from REIT operations                          | $                                 | (66,977 | ) |   | $ | (84,287 | ) |   | $ | 75,688 |   |
| Book/tax      differences, net:                                           |                              |   |   |   |   |   |   |   |   |   |   |
|    Depreciation      and amortization(a)              |                              | (11,608 | ) |   |   | (21,927 | ) |   |   | (9,246 | ) |
|    Noncontrolling      interests                           |                              | (222 | ) |   |   | (2,889 | ) |   |   | (339 | ) |
|    Equity      in loss from unconsolidated entities        |                              | 2,068 |   |   |   | 12,696 |   |   |   | -    |   |
|    Tax      loss in excess of book gains on sale of hotels |                              | (26,922 | ) |   |   | -    |   |   |   | 427 |   |
|    Impairment      loss not deductible for tax             |                              | 3,448 |   |   |   | 107,963 |   |   |   | -    |   |
|    Liquidated      damages                                 |                              | (1,000 | ) |   |   | 11,060 |   |   |   | -    |   |
|    Tax      adjustment to lease revenue(b)            |                              | (11,769 | ) |   |   | (11,773 | ) |   |   | (10,137 | ) |
|    Other                                                   |                              | 6,431 |   |   |   | 704 |   |   |   | (618 | ) |
| Taxable      income (loss) subject to distribution requirement(c)         | $                                 | (106,551 | ) |   | $ | 11,547 |   |   | $ | 55,775 |   |

|   | (a) | Book/tax      differences in depreciation and amortization principally result from      differences in depreciable lives and accelerated depreciation      methods. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | For      tax purposes, we record a reduction in intercompany rent between our REIT      entities and TRS entities.  In February 2010, we filed amended      TRS tax returns for the years ending December 31, 2008, 2007 and 2006 to      reflect rent reductions of $11.8 million, $10.1 million and      $7.6 million, respectively.  These amendments had no impact      on our consolidated financial statements as sufficient TRS NOLs were      available to absorb the reduction inrents. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The      dividend distribution requirement is 90% of taxable  income. |
|--------|-----|-----------------------------------------------------------------------|

----

|                                  | Year      Ended December 31, |
|---------------------------------------|------------------------------|
|                                  | 2009                         |   | 2008 |   | 2007 |
|                                  | Amount                       |   | % |   | Amount |   | % |   | Amount |   | % |
| Common      Stock                     |                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend      income                  | $                            | -    |   | -    |   | $ | 0.85 | (a) | 100.00 |   | $ | 0.860 |   | 71.63 |
| Return      of capital                |                         | -    |   | -    |   |   | -    |   | -    |   |   | 0.340 |   | 28.37 |
|                                  | $                            | -    |   | -    |   | $ | 0.85 |   | 100.00 |   | $ | 1.200 |   | 100.00 |
|                                  |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred      Stock – Series A |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend      income                  | $                            | -    |   | -    |   | $ | 1.463 | (a)(b) | 100.00 |   | $ | 1.95 |   | 100.00 |
| Return      of capital                |                         | 0.4875 |   | 100.00 |   |   | -    |   | -    |   |   | -    |   |  -    |
|                                  | $                            | 0.4875 |   | 100.00 |   | $ | 1.463 |   | 100.00 |   | $ | 1.95 |   | 100.00 |
|                                  |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred      Stock – Series C |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend      income                  | $                            | -    |   | -    |   | $ | 1.50 | (a)(b) | 100.00 |   | $ | 2.00 |   | 100.00 |
| Return      of capital                |                         | 0.50 |   | 100.00 |   |   | -    |   | -    |   |   | -    |   |  -    |
|                                  | $                            | 0.50 |   | 100.00 |   | $ | 1.50 |   | 100.00 |   | $ | 2.00 |   | 100.00 |

|   | (a) | Dividend      income in 2008 consists of ordinary dividend income and qualified dividend      income. |
|--------|-----|-------------------------------------------------------------------------------------------------------|

|   | (b) | The      fourth quarter 2008 preferred distributions paid January 31, 2009,      were treated as 2009 distributions for tax  purposes. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                              | Year      Ended December 31, |
|-------------------------------------------------------------------|------------------------------|
|                                                              | 2009                         |   | 2008 |   | 2007 |   |
| Room      revenue                                                 | $                            | 710,530 |   | $ | 864,980 |   | $ | 809,415 |   |
| Food      and beverage revenue                                    |                         | 139,045 |   |   | 173,432 |   |   | 131,023 |   |
| Other      operating departments                                  |                         | 56,283 |   |   | 61,517 |   |   | 50,307 |   |
|                                                              |                         |   |   |   |   |   |   |   |   |
|      Total      hotel operating revenues | $                            | 905,858 |   | $ | 1,099,929 |   | $ | 990,745 |   |

----

| 13. | Hotel      Operating Revenue, Departmental Expenses, and Other Property Operating      Costs – (continued) |
|-----|------------------------------------------------------------------------------------------------------------------|

|                                   | Year      Ended December 31, |
|----------------------------------------|------------------------------|
|                                   | 2009                         |   |   | 2008 |   |   | 2007 |
| Room                                   | $                            | 189,587 |   |   | $ | 211,732 |   |   | $ | 198,461 |
| Food      and beverage                 |                         | 111,514 |   |   |   | 132,732 |   |   |   | 99,343 |
| Other      operating departments       |                         | 25,603 |   |   |   | 27,855 |   |   |   | 20,620 |
|                                   |                         |   |   |   |   |   |   |   |   |   |
| Total hotel departmental      expenses | $                            | 326,704 |   |   | $ | 372,319 |   |   | $ | 318,424 |

|                                          | Year      Ended December 31, |
|-----------------------------------------------|------------------------------|
|                                          | 2009                         |   | 2008 |   | 2007 |
| Hotel      general and administrative expense | $                            | 82,598 |   | $ | 95,539 |   | $ | 84,026 |
| Marketing                                     |                         | 76,030 |   |   | 89,195 |   |   | 82,235 |
| Repair      and maintenance                   |                         | 50,085 |   |   | 55,683 |   |   | 53,052 |
| Utilities                                     |                         | 49,833 |   |   | 53,552 |   |   | 46,780 |
|                                          |                         |   |   |   |   |   |   |   |
| Total      other property operating costs     | $                            | 258,546 |   | $ | 293,969 |   | $ | 266,093 |

|                                                 | Year      Ended December 31, |
|------------------------------------------------------|------------------------------|
|                                                 | 2009                         |   |   | 2008 |   |   | 2007 |
| Operating      lease expense(a)                 | $                            | 50,628 |   |   | $ | 65,766 |   |   | $ | 70,695 |
| Real      estate and other taxes                     |                         | 35,622 |   |   |   | 32,904 |   |   |   | 34,021 |
| Property,      general liability insurance and other |                         | 12,501 |   |   |   | 13,704 |   |   |   | 14,999 |
|                                                 |                         |   |   |   |   |   |   |   |   |   |
| Total      taxes, insurance and lease expenses       | $                            | 98,751 |   |   | $ | 112,374 |   |   | $ | 119,715 |

| (a) | Includes      hotel lease expense of $41.1 million, $54.3 million,      $61.7 million, respectively, associated with 13 hotels in 2009, 2008      and 2007, respectively, owned by unconsolidated entities and leased to our      consolidated lessees.  Included in lease expense is      $16.9 million, $33.9 million and $37.0 million in      percentage rent for hotel leases and ground leases the year ended      December 31, 2009, 2008 and 2007,  respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Year                     |   |    |
|--------------------------|--------|---------|
| 2010                     | $      | 34,349  |
| 2011                     |   | 32,002  |
| 2012                     |   | 31,025  |
| 2013                     |   | 13,013  |
| 2014                     |   | 12,880  |
| 2015      and thereafter |   | 281,356 |
|                     | $      | 404,625 |

----

|                                                                                                         | Year      Ended December 31, |
|--------------------------------------------------------------------------------------------------------------|------------------------------|
|                                                                                                         | 2009                         |   | 2008 |   | 2007 |
| Numerator:                                                                                                   |                         |   |   |   |   |   |   |   |   |   |   |
|    Net      income (loss) attributable to FelCor                                              | $                            | (108,122 | ) |   | $ | (119,245 | ) |   | $ | 89,039 |   |
|    Discontinued      operations attributable to FelCor                                        |                         | 3,355 |   |   |   | 56,484 |   |   |   | (33,992 | ) |
|    Income      (loss) from continuing operations attributable to FelCor                       |                         | (104,767 | ) |   |   | (62,761 | ) |   |   | 55,047 |   |
|       Less:Preferred    dividends                                              |                         | (38,713 | ) |   |   | (38,713 | ) |   |   | (38,713 | ) |
| Dividends declared on unvested      restricted stock compensation                                            |                         | -    |   |   |   | (1,041 | ) |   |   | (1,011 | ) |
|    Income      (loss) from continuing operations available to FelCor common      stockholders |                         | (143,480 | ) |   |   | (102,515 | ) |   |   | 15,323 |   |
|    Discontinued      operations attributable to FelCor                                        |                         | (3,355 | ) |   |   | (56,484 | ) |   |   | 33,992 |   |
| Numerator      for basic and diluted income (loss) available to FelCor common      stockholders              | $                            | (146,835 | ) |   | $ | (158,999 | ) |   | $ | 49,315 |   |
| Denominator:                                                                                                 |                         |   |   |   |   |   |   |   |   |   |   |
|    Denominator      for basic earnings (loss) per share                                       |                         | 63,114 |   |   |   | 61,979 |   |   |   | 61,600 |   |
|    Denominator      for diluted earnings (loss) per share                                     |                         | 63,114 |   |   |   | 61,979 |   |   |   | 61,618 |   |
| Basic      and diluted income (loss) per share data:                                                         |                         |   |   |   |   |   |   |   |   |   |   |
|    Income      (loss) from continuing operations                                              | $                            | (2.27 | ) |   | $ | (1.65 | ) |   | $ | 0.25 |   |
|    Discontinued      operations                                                               | $                            | (0.05 | ) |   | $ | (0.91 | ) |   | $ | 0.55 |   |
|    Net      income (loss)                                                                     | $                            | (2.33 | ) |   | $ | (2.57 | ) |   | $ | 0.80 |   |

|                                       | 2009  |   | 2008  |   | 2007  |
|--------------------------------------------|-------|--------|-------|--------|-------|
| Series      A convertible preferred shares | 9,985 |   | 9,985 |   | 9,985 |

----

----

|                                                            | Year      Ended December 31, |
|-----------------------------------------------------------------|------------------------------|
|                                                            | 2009                         |   |   | 2008 |   |   | 2007 |
| Depreciation      and amortization from continuing operations   | $                            | 147,445 |   |   | $ | 137,570 |   |   | $ | 106,682 |
| Depreciation      and amortization from discontinued operations |                         | 2,642 |   |   |   | 4,098 |   |   |   | 4,083 |
| Total      depreciation and amortization expense                | $                            | 150,087 |   |   | $ | 141,668 |   |   | $ | 110,765 |

----

|                                      | 2009                                |   | 2008                                |   | 2007                                |
|-------------------------------------------|-------------------------------------|--------|-------------------------------------|--------|-------------------------------------|
|                                      | No.      Shares ofUnderlyingOptions |   | WeightedAverage      ExercisePrices |   | No.      Shares ofUnderlyingOptions |   | WeightedAverage      ExercisePrices |   | No.      Shares ofUnderlyingOptions |   | WeightedAverage      ExercisePrices |
| Outstanding      at beginning of the year | 40,000                              |   |                                | $      | 18.05                               |   | 161,356 |   |   | $ | 21.11 |   | 598,366 |   |   | $ | 22.62 |
| Forfeited      or expired                 | -                    |   |                                | $      |   -        |   | (121,356 | ) |   | $ | 22.13 |   | (147,639 | ) |   | $ | 26.11 |
| Exercised                                 | -                    |   |                                | $      |   -        |   | -    |   |   | $ |   -    |   | (289,371 | ) |   | $ | 21.68 |
| Outstanding      at end of year           | 40,000                              |   |                                | $      | 18.05                               |   | 40,000 |   |   | $ | 18.05 |   | 161,356 |   |   | $ | 21.11 |
| Exercisable      at end of year           | 40,000                              |   |                                | $      | 18.05                               |   | 40,000 |   |   | $ | 18.05 |   | 161,356 |   |   | $ | 21.11 |

| Options      Exercisable and Outstanding |
|------------------------------------------|
| Range      ofExercise      Prices        |   | Number      Outstanding at      12/31/09 |   | Wgtd.      Avg.Life      Remaining |   | Wgtd      Avg.Exercise      Price |
| $15.62      to $19.50                    |   | 40,000 |   | 0.85 |   | $18.05 |

|                                                | 2009                |   | 2008                                                |   | 2007                |
|-----------------------------------------------------|---------------------|--------|-----------------------------------------------------|--------|---------------------|
|                                                | No.      Shares     |   | WeightedAverage      Fair Market Valueat      Grant |   | No.      Shares     |   | WeightedAverage      Fair Market Valueat      Grant |   | No.      Shares |   | WeightedAverage      Fair Market Valueat      Grant |
| Outstanding      at beginning of the year           | 2,829,330           |   |                                                | $      | 15.20               |   |   | 2,329,230 |   |   | $15.85 |   | 1,880,129 |   |   | $14.56 |
| Granted(a):                                         |                |   |                                                |   |                |   |   |   |   |   |   |   |   |   |   |   |
|    With      immediate vesting(b)    | 16,000              |   |                                                | $      | 1.01                |   |   | 45,800 |   |   | $12.20 |   | 24,100 |   |   | $23.61 |
|    With      3-year pro rata vesting | 1,444,810           |   |                                                | $      | 2.64                |   |   | -    |   |   | $  -    |   | -    |   |   | $  -    |
|    With      4-year pro rata vesting | -    |   |                                                | $      | -    |   |   | 449,300 |   |   | $12.20 |   | 454,600 |   |   | $20.87 |
|    With      5-year pro rata vesting | -    |   |                                                | $      | -    |   |   | 5,000 |   |   | $12.20 |   | 5,000 |   |   | $21.66 |
| Forfeited                                           | (34,953             | )      |                                                | $      | 12.52               |   |   | -    |   |   |   |   | (34,599 | ) |   | $17.80 |
| Outstanding      at end of year                     | 4,255,187           |   |                                                | $      | 10.90               |   |   | 2,829,330 |   |   | $15.20 |   | 2,329,230 |   |   | $15.85 |
| Vested      at end of year                          | (1,774,839          | )      |                                                | $      | 14.06               |   |   | (1,483,976 | ) |   | $14.09 |   | (1,283,724 | ) |   | $14.38 |
| Unvested      at end of year                        | 2,480,348           |   |                                                | $      | 8.65                |   |   | 1,345,354 |   |   | $16.44 |   | 1,045,506 |   |   | $17.66 |

|   | (a) | All      shares granted are issued out oftreasury. |
|--------|-----|----------------------------------------------------|

|   | (b) | Shares      awarded to directors. |
|--------|-----|-----------------------------------|

----

|              | Revenue      For the Year Ended December 31, |    | Investment      in Hotel Assetsas      of December 31, |
|-------------------|---------------------------------------------------|---------|--------------------------------------------------------|
|              | 2009                                              |    | 2008                                                   |   | 2007 |   | 2009 |   | 2008 |   | 2007 |
| California        | $                                                 | 211,124 |                                                   | $ | 258,748 |   | $ | 208,495 |   | $ | 527,345 |   | $ | 526,770 |   | $ | 547,451 |
| Texas             |                                              | 98,180  |                                                   |   | 118,856 |   |   | 114,802 |   |   | 203,841 |   |   | 214,294 |   |   | 226,724 |
| Florida           |                                              | 146,011 |                                                   |   | 177,788 |   |   | 126,889 |   |   | 405,479 |   |   | 455,636 |   |   | 505,480 |
| Georgia           |                                              | 48,930  |                                                   |   | 58,345 |   |   | 59,198 |   |   | 126,118 |   |   | 126,851 |   |   | 126,896 |
| Other      states |                                              | 380,081 |                                                   |   | 456,566 |   |   | 452,730 |   |   | 859,852 |   |   | 904,105 |   |   | 928,378 |
| Canada            |                                              | 24,375  |                                                   |   | 32,609 |   |   | 31,720 |   |   | 57,759 |   |   | 51,370 |   |   | 65,128 |
| Total             | $                                                 | 908,701 |                                                   | $ | 1,102,912 |   | $ | 993,834 |   | $ | 2,180,394 |   | $ | 2,279,026 |   | $ | 2,400,057 |

| 22. | Recently      Issued Statements of Financial Accounting  Standards |
|-----|--------------------------------------------------------------------|

----

|  2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | FirstQuarter |   |   | SecondQuarter |    |   | ThirdQuarter |   |    | FourthQuarter |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|---------------|---------|--------|--------------|--------|---------|---------------|--------|
| Total      revenues                                                                                                                       | $      | 228,019      |   |   | $             | 236,258 |   |         | $      | 225,289 |          |   | $ | 219,135 |   |
| Income      (loss) from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | $      | (20,568      | )      |   | $             | (11,454 | )      |         | $      | (22,538 | )             |   | $ | (51,160 | ) |
| Discontinued      operations                                                                                                              | $      | (854         | )      |   | $             | 486     |   |         | $      | (2,936  | )             |   | $ | (67 | ) |
| Net      income (loss) attributable to FelCor                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | $      | (21,064      | )      |   | $             | (11,195 | )      |         | $      | (25,140 | )             |   | $ | (50,723 | ) |
| Net      income (loss) attributable to FelCor common stockholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | $      | (30,742      | )      |   | $             | (20,873 | )      |         | $      | (34,818 | )             |   | $ | (60,402 | ) |
| Comprehensive      income (loss) attributable to FelCor                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | $      | (22,765      | )      |   | $             | (7,055  | )      |         | $      | (20,455 | )             |   | $ | (49,666 | ) |
| Basic      per common share data:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |         |   |   |          |    |   |         |   |    |          |   |   |   |   |
|      Net      income (loss) from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | $      | (0.47        | )      |   | $             | (0.34   | )      |         | $      | (0.51   | )             |   | $ | (0.96 | ) |
|      Discontinued      operations                                                                                | $      | (0.01        | )      |   | $             | 0.01    |   |         | $      | (0.05   | )             |   | $ | -    |   |
|      Net      income      (loss)                                                                                 | $      | (0.49        | )      |   | $             | (0.33   | )      |         | $      | (0.55   | )             |   | $ | (0.96 | ) |
|      Basic      weighted average common shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 62,989       |   |   |          | 63,101  |   |         |   | 63,086  |          |   |   | 63,087 |   |
| Diluted weighted average common      shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 62,989       |   |   |          | 63,101  |   |         |   | 63,086  |          |   |   | 63,087 |   |

|  2008                                                                      |   | FirstQuarter |   | SecondQuarter |   | ThirdQuarter |   | FourthQuarter |
|---------------------------------------------------------------------------------|--------|--------------|--------|---------------|--------|--------------|--------|---------------|
| Total      revenues                                                             | $      | 283,915      |   |          | $      | 298,633      |   |          | $ | 271,371 |   |   | $ | 248,993 |   |
| Income      (loss) from continuing operations                                   | $      | (13,676      | )      |          | $      | 23,960       |   |          | $ | (5,879 | ) |   | $ | (67,412 | ) |
| Discontinued      operations                                                    | $      | 797          |   |          | $      | 484          |   |          | $ | (36,691 | ) |   | $ | (22,070 | ) |
| Net      income (loss) attributable to FelCor                                   | $      | (12,473      | )      |          | $      | 23,262       |   |          | $ | (41,640 | ) |   | $ | (88,394 | ) |
| Net      income (loss) attributable to FelCor common stockholders               | $      | (22,151      | )      |          | $      | 13,584       |   |          | $ | (51,318 | ) |   | $ | (98,073 | ) |
| Comprehensive      income (loss) attributable to FelCor                         | $      | (14,166      | )      |          | $      | 23,499       |   |          | $ | (44,265 | ) |   | $ | (96,166 | ) |
| Basic      and diluted per common share data:                                   |   |         |   |          |   |         |   |          |   |   |   |   |   |   |   |
|     Net      income (loss) from continuing operations       | $      | (0.38        | )      |          | $      | 0.20         |   |          | $ | (0.25 | ) |   | $ | (1.22 | ) |
|     Discontinued      operations                            | $      | 0.01         |   |          | $      | 0.01         |   |          | $ | (0.58 | ) |   | $ | (0.35 | ) |
|     Net      income (loss)                                  | $      | (0.37        | )      |          | $      | 0.21         |   |          | $ | (0.83 | ) |   | $ | (1.57 | ) |
|     Basic      weighted average common shares outstanding   |   | 61,714       |   |          |   | 61,822       |   |          |   | 61,828 |   |   |   | 62,429 |   |
|     Diluted      weighted average common shares outstanding |   | 61,714       |   |          |   | 61,822       |   |          |   | 61,828 |   |   |   | 62,429 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Year      Ended December 31, |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2009                              |   | 2008 |
| Balance      at beginning of      period                                                                                                  | $                                 | 545 |   |   | $ | 21,109 |   |
| Redemption      value      allocation                                                                                                     |                              | 1,152 |   |   |   | (16,393 | ) |
| Distributions                                                                                                                             |                              | -    |   |   |   | (1,559 | ) |
| Comprehensive      income (loss):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                              |   |   |   |   |   |   |
| Foreign exchange      translation                                                                                                                   |                              | 37 |   |   |   | (179 | ) |
| Net income      (loss)                                                                                                                              |                              | (672 | ) |   |   | (2,433 | ) |
| Balance      at end of      period                                                                                                        | $                                 | 1,062 |   |   | $ | 545 |   |

----

|                                                                         |   |         |                | Initial      Cost |   | Cost      CapitalizedSubsequent      to Acquisition |   | Gross      Amounts at Which Carried at Close of Period |    |   |                    |                |   Accumulated |   |                    |   |              |   |   Life      Upon                   |
|------------------------------------------------------------------------------|--------|--------------|---------------------|-------------------|--------|-----------------------------------------------------|--------|--------------------------------------------------------|---------|--------|-------------------------|---------------------|-------------------------|--------|-------------------------|--------|-------------------|--------|----------------------------------------------|
|   Location                                                         |   | Encumbrances |                | Land              |   | BuildingandImprovements                             |   | Land                                                   |    |   | BuildingandImprovements |                |   Land        |   | BuildingandImprovements |   |   Total |   | DepreciationBuildings      &Improvements |   |  Year      Opened |   |  DateAcquired |   | WhichDepreciationis      Computed |
| Birmingham,      AL (a)                                                      |   | $            | 24,705              |              | $      | 2,843                                               |   | $                                                      | 29,286  |   | $                       | -    |                    |   | $                       | 3,643  |              | $      | 2,843                                        |   | $ | 32,929 |   | $ | 35,772 |   | $ | 10,770 |   | 1987 |   | 1/3/1996 |   | 15 -      40 Yrs |
| Phoenix      - Biltmore, AZ (a)                                              |   |         | 19,314              |              |   | 4,694                                               |   |                                                   | 38,998  |   |                    | -    |                    |   |                    | 3,001  |              |   | 4,694                                        |   |   | 41,999 |   |   | 46,693 |   |   | 14,223 |   | 1985 |   | 1/3/1996 |   | 15 -      40 Yrs |
| Phoenix      – Crescent, AZ (b)                                        |   |         | 22,051              |              |   | 3,608                                               |   |                                                   | 29,583  |   |                    | -    |                    |   |                    | 1,721  |              |   | 3,608                                        |   |   | 31,304 |   |   | 34,912 |   |   | 9,741 |   | 1986 |   | 6/30/1997 |   | 15 -      40 Yrs |
| Phoenix      – Tempe, AZ (a)                                           |   |         | 22,944              |              |   | 3,951                                               |   |                                                   | 34,371  |   |                    | -    |                    |   |                    | 2,025  |              |   | 3,951                                        |   |   | 36,396 |   |   | 40,347 |   |   | 10,464 |   | 1986 |   | 5/4/1998 |   | 15 -      40 Yrs |
| Anaheim      – North, CA (a)                                           |   |         | 23,595              |              |   | 2,548                                               |   |                                                   | 14,832  |   |                    | -    |                    |   |                    | 1,807  |              |   | 2,548                                        |   |   | 16,639 |   |   | 19,187 |   |   | 5,609 |   | 1987 |   | 1/3/1996 |   | 15 -      40 Yrs |
| Dana      Point – Doheny Beach, CA (c)                                 |   |         | -    |              |   | 1,787                                               |   |                                                   | 15,545  |   |                    | -    |                    |   |                    | 3,329  |              |   | 1,787                                        |   |   | 18,874 |   |   | 20,661 |   |   | 5,708 |   | 1992 |   | 2/21/1997 |   | 15 -      40 Yrs |
| Indian      Wells – Esmeralda Resort & Spa, CA (d)                 |   |         | 87,642              |              |   | 30,948                                              |   |                                                   | 73,507  |   |                    | -    |                    |   |                    | 1,278  |              |   | 30,948                                       |   |   | 74,785 |   |   | 105,733 |   |   | 3,753 |   | 1989 |   | 12/16/2007 |   | 15 -      40 Yrs |
| Los      Angeles – International Airport – South, CA (a)         |   |         | -    |              |   | 2,660                                               |   |                                                   | 17,997  |   |                    | -    |                    |   |                    | 1,761  |              |   | 2,660                                        |   |   | 19,758 |   |   | 22,418 |   |   | 7,250 |   | 1985 |   | 3/27/1996 |   | 15 -      40 Yrs |
| Milpitas      – Silicon Valley, CA (a)                                 |   |         | 18,399              |              |   | 4,021                                               |   |                                                   | 23,677  |   |                    | -    |                    |   |                    | 3,471  |              |   | 4,021                                        |   |   | 27,148 |   |   | 31,169 |   |   | 9,006 |   | 1987 |   | 1/3/1996 |   | 15 -      40 Yrs |
| Napa      Valley, CA (a)                                                     |   |         | 11,293              |              |   | 2,218                                               |   |                                                   | 14,205  |   |                    | -    |                    |   |                    | 2,789  |              |   | 2,218                                        |   |   | 16,994 |   |   | 19,212 |   |   | 5,439 |   | 1985 |   | 5/8/1996 |   | 15 -      40 Yrs |
| Oxnard      - Mandalay Beach – Hotel & Resort, CA (a)              |   |         | 34,749              |              |   | 2,930                                               |   |                                                   | 22,125  |   |                    | -    |                    |   |                    | 6,188  |              |   | 2,930                                        |   |   | 28,313 |   |   | 31,243 |   |   | 8,881 |   | 1986 |   | 5/8/1996 |   | 15 -      40 Yrs |
| San      Diego – On the Bay, CA (e)                                    |   |         | (i)                 |              |   | -                                    |   |                                                   | 68,229  |   |                    | -    |                    |   |                    | 8,240  |              |   | -                             |   |   | 76,469 |   |   | 76,469 |   |   | 25,424 |   | 1965 |   | 7/28/1998 |   | 15 -      40 Yrs |
| San      Francisco – Airport/Burlingame, CA (a)                        |   |         | (i)                 |              |   | -                                    |   |                                                   | 39,929  |   |                    | -    |                    |   |                    | 2,009  |              |   | -                             |   |   | 41,938 |   |   | 41,938 |   |   | 14,383 |   | 1986 |   | 11/6/1995 |   | 15 -      40 Yrs |
| San      Francisco – Airport/South San Francisco, CA (a)               |   |         | 22,389              |              |   | 3,418                                               |   |                                                   | 31,737  |   |                    | -    |                    |   |                    | 3,459  |              |   | 3,418                                        |   |   | 35,196 |   |   | 38,614 |   |   | 11,826 |   | 1988 |   | 1/3/1996 |   | 15 -      40 Yrs |
| San      Francisco - Fisherman’s Wharf, CA (e)                         |   |         | (i)                 |              |   | -                                    |   |                                                   | 61,883  |   |                    | -    |                    |   |                    | 2,864  |              |   | -                             |   |   | 64,747 |   |   | 64,747 |   |   | 30,103 |   | 1970 |   | 7/28/1998 |   | 15 -      40 Yrs |
| San      Francisco –Union Square, CA (f)                               |   |         | (i)                 |              |   | 8,466                                               |   |                                                   | 73,684  |   |                    | (434                | )                       |   |                    | 47,400 |              |   | 8,032                                        |   |   | 121,084 |   |   | 129,116 |   |   | 24,056 |   | 1970 |   | 7/28/1998 |   | 15 -      40 Yrs |
| Santa      Barbara – Goleta, CA (e)                                    |   |         | 15,106              |              |   | 1,683                                               |   |                                                   | 14,647  |   |                    | 4                   |                    |   |                    | 1,569  |              |   | 1,687                                        |   |   | 16,216 |   |   | 17,903 |   |   | 4,466 |   | 1969 |   | 7/28/1998 |   | 15 -      40 Yrs |
| Santa      Monica Beach – at the Pier, CA (e)                          |   |         | 27,489              |              |   | 10,200                                              |   |                                                   | 16,580  |   |                    | -    |                    |   |                    | 329    |              |   | 10,200                                       |   |   | 16,909 |   |   | 27,109 |   |   | 2,464 |   | 1967 |   | 3/11/2004 |   | 15 -      40 Yrs |
| Toronto      - Airport, Canada (e)                                           |   |         | (i)                 |              |   | -                                    |   |                                                   | 21,041  |   |                    | -    |                    |   |                    | 15,457 |              |   | -                             |   |   | 36,498 |   |   | 36,498 |   |   | 11,220 |   | 1970 |   | 7/28/1998 |   | 15 -      40 Yrs |
| Toronto      - Yorkdale, Canada (e)                                          |   |         | (i)                 |              |   | 1,566                                               |   |                                                   | 13,633  |   |                    | 701                 |                    |   |                    | 13,467 |              |   | 2,267                                        |   |   | 27,100 |   |   | 29,367 |   |   | 8,868 |   | 1970 |   | 7/28/1998 |   | 15 -      40 Yrs |
| Wilmington,      DE (c)                                                      |   |         | 9,228               |              |   | 1,379                                               |   |                                                   | 12,487  |   |                    | -    |                    |   |                    | 11,159 |              |   | 1,379                                        |   |   | 23,646 |   |   | 25,025 |   |   | 6,805 |   | 1972 |   | 3/20/1998 |   | 15 -      40 Yrs |
| Boca      Raton, FL (a)                                                      |   |         | 4,922               |              |   | 1,868                                               |   |                                                   | 16,253  |   |                    | -    |                    |   |                    | 2,801  |              |   | 1,868                                        |   |   | 19,054 |   |   | 20,922 |   |   | 6,685 |   | 1989 |   | 2/28/1996 |   | 15 -      40 Yrs |
| Deerfield      Beach – Resort & Spa, FL (a)                        |   |         | 28,420              |              |   | 4,523                                               |   |                                                   | 29,443  |   |                    | 68                  |                    |   |                    | 5,761  |              |   | 4,591                                        |   |   | 35,204 |   |   | 39,795 |   |   | 11,194 |   | 1987 |   | 1/3/1996 |   | 15 -      40 Yrs |
| Ft.      Lauderdale – 17th Street, FL (a)                              |   |         | 15,407              |              |   | 5,329                                               |   |                                                   | 47,850  |   |                    | (163                | )                       |   |                    | 4,513  |              |   | 5,166                                        |   |   | 52,363 |   |   | 57,529 |   |   | 17,779 |   | 1986 |   | 1/3/1996 |   | 15 -      40 Yrs |
| Ft.      Lauderdale – Cypress Creek, FL (b)                            |   |         | 10,617              |              |   | 3,009                                               |   |                                                   | 26,177  |   |                    | -    |                    |   |                    | 2,148  |              |   | 3,009                                        |   |   | 28,325 |   |   | 31,334 |   |   | 8,274 |   | 1986 |   | 5/4/1998 |   | 15 -      40 Yrs |
| Jacksonville      – Baymeadows, FL (a)                                 |   |         | 23,590              |              |   | 1,130                                               |   |                                                   | 9,608   |   |                    | -    |                    |   |                    | 7,928  |              |   | 1,130                                        |   |   | 17,536 |   |   | 18,666 |   |   | 5,882 |   | 1986 |   | 7/28/1994 |   | 15 -      40 Yrs |
| Miami      – International Airport, FL (a)                             |   |         | 12,393              |              |   | 4,135                                               |   |                                                   | 24,950  |   |                    | -    |                    |   |                    | 5,260  |              |   | 4,135                                        |   |   | 30,210 |   |   | 34,345 |   |   | 9,588 |   | 1983 |   | 7/28/1998 |   | 15 -      40 Yrs |
| Orlando      – International Airport, FL (e)                           |   |         | 8,881               |              |   | 2,549                                               |   |                                                   | 22,188  |   |                    | 6                   |                    |   |                    | 3,005  |              |   | 2,555                                        |   |   | 25,193 |   |   | 27,748 |   |   | 7,486 |   | 1984 |   | 7/28/1998 |   | 15 -      40 Yrs |
| Orlando      – International Drive South/Convention,  FL (a) |   |         | 21,716              |              |   | 1,632                                               |   |                                                   | 13,870  |   |                    | -    |                    |   |                    | 3,044  |              |   | 1,632                                        |   |   | 16,914 |   |   | 18,546 |   |   | 6,223 |   | 1985 |   | 7/28/1994 |   | 15 -      40 Yrs |
| Orlando      (North), FL (a)                                                 |   |         | (i)                 |              |   | 1,673                                               |   |                                                   | 14,218  |   |                    | (18                 | )                       |   |                    | 8,332  |              |   | 1,655                                        |   |   | 22,550 |   |   | 24,205 |   |   | 8,093 |   | 1985 |   | 7/28/1994 |   | 15 -      40 Yrs |
| Orlando      – Walt Disney World Resort, FL (c)                        |   |         | (i)                 |              |   | -                                    |   |                                                   | 28,092  |   |                    | -    |                    |   |                    | 1,337  |              |   | -                             |   |   | 29,429 |   |   | 29,429 |   |   | 9,919 |   | 1987 |   | 7/28/1997 |   | 15 -      40 Yrs |
| St.      Petersburg – Vinoy Resort & Golf Club, FL (d)             |   |         | 88,912              |              |   | -                                    |   |                                                   | 100,823 |   |                    | -    |                    |   |                    | 2,187  |              |   | -                             |   |   | 103,010 |   |   | 103,010 |   |   | 4,578 |   | 1925 |   | 12/16/07 |   | 15 -      40 Yrs |
| Tampa      – Tampa Bay, FL (c)                                         |   |         | 12,950              |              |   | 2,142                                               |   |                                                   | 18,639  |   |                    | 1                   |                    |   |                    | 2,708  |              |   | 2,143                                        |   |   | 21,347 |   |   | 23,490 |   |   | 6,691 |   | 1986 |   | 7/28/1997 |   | 15 -      40 Yrs |
| Atlanta      – Airport, GA (a)                                         |   |         | 12,237              |              |   | 2,568                                               |   |                                                   | 22,342  |   |                    | -    |                    |   |                    | 2,843  |              |   | 2,568                                        |   |   | 25,185 |   |   | 27,753 |   |   | 7,036 |   | 1989 |   | 5/4/1998 |   | 15 -      40 Yrs |
| Atlanta      – Buckhead, GA (a)                                        |   |         | 32,602              |              |   | 7,303                                               |   |                                                   | 38,996  |   |                    | (300                | )                       |   |                    | 2,730  |              |   | 7,003                                        |   |   | 41,726 |   |   | 48,729 |   |   | 13,435 |   | 1988 |   | 10/17/1996 |   | 15 -      40 Yrs |
| Atlanta      – Galleria, GA (b)                                        |   |         | 14,700              |              |   | 5,052                                               |   |                                                   | 28,507  |   |                    | -    |                    |   |                    | 1,875  |              |   | 5,052                                        |   |   | 30,382 |   |   | 35,434 |   |   | 9,454 |   | 1990 |   | 6/30/1997 |   | 15 -      40 Yrs |
| Atlanta      – Gateway-Atlanta Airport, GA (b)                         |   |         | (i)                 |              |   | 5,113                                               |   |                                                   | 22,857  |   |                    | -    |                    |   |                    | 1,597  |              |   | 5,113                                        |   |   | 24,454 |   |   | 29,567 |   |   | 7,398 |   | 1986 |   | 6/30/1997 |   | 15 -      40 Yrs |

----

|                                                                     |   |         |                | Initial      Cost |   | Cost      CapitalizedSubsequent      to Acquisition |   | Gross      Amounts at Which Carried at Close of Period |      |   |                    |                |   Accumulated |   |                    |    |              |   |   Life      Upon                   |
|--------------------------------------------------------------------------|--------|--------------|---------------------|-------------------|--------|-----------------------------------------------------|--------|--------------------------------------------------------|-----------|--------|-------------------------|---------------------|-------------------------|--------|-------------------------|---------|-------------------|--------|----------------------------------------------|
|   Location                                                     |   | Encumbrances |                | Land              |   | BuildingandImprovements                             |   | Land                                                   |      |   | BuildingandImprovements |                |   Land        |   | BuildingandImprovements |    |   Total |   | DepreciationBuildings      &Improvements |   |  Year      Opened |   |  DateAcquired |   | WhichDepreciationis      Computed |
| Chicago      – Northshore/Deerfield (Northbrook), IL (a)           |   |         | 14,103              |              |   | 2,305                                               |   |                                                   | 20,054    |   |                    | -    |                    |   |                    | 1,839   |              |   | 2,305                                        |   |   | 21,893 |   |   | 24,198 |   |   | 7,153 |   | 1987 |   | 6/20/1996 |   | 15 -      40 Yrs |
| Chicago      – Gateway – O’Hare, IL (b)                |   |         | 20,417              |              |   | 8,178                                               |   |                                                   | 37,043    |   |                    | -    |                    |   |                    | 4,063   |              |   | 8,178                                        |   |   | 41,106 |   |   | 49,284 |   |   | 12,004 |   | 1994 |   | 6/30/1997 |   | 15 -      40 Yrs |
| Indianapolis      – North, IN (a)                                  |   |         | 11,741              |              |   | 5,125                                               |   |                                                   | 13,821    |   |                    | -    |                    |   |                    | 7,291   |              |   | 5,125                                        |   |   | 21,112 |   |   | 26,237 |   |   | 8,551 |   | 1986 |   | 8/1/1996 |   | 15 -      40 Yrs |
| Lexington      – Lexington Green, KY (g)                           |   |         | 17,721              |              |   | 1,955                                               |   |                                                   | 13,604    |   |                    | -    |                    |   |                    | 490     |              |   | 1,955                                        |   |   | 14,094 |   |   | 16,049 |   |   | 4,845 |   | 1987 |   | 1/10/1996 |   | 15 -      40 Yrs |
| Baton      Rouge, LA (a)                                                 |   |         | 19,014              |              |   | 2,350                                               |   |                                                   | 19,092    |   |                    | 1                   |                    |   |                    | 2,312   |              |   | 2,351                                        |   |   | 21,404 |   |   | 23,755 |   |   | 7,131 |   | 1985 |   | 1/3/1996 |   | 15 -      40 Yrs |
| New      Orleans – Convention Center, LA (a)                       |   |         | 27,829              |              |   | 3,647                                               |   |                                                   | 31,993    |   |                    | -    |                    |   |                    | 8,323   |              |   | 3,647                                        |   |   | 40,316 |   |   | 43,963 |   |   | 14,337 |   | 1984 |   | 12/1/1994 |   | 15 -      40 Yrs |
| New      Orleans – French Quarter, LA (e)                          |   |         | (i)                 |              |   | -                                    |   |                                                   | 50,732    |   |                    | -    |                    |   |                    | 9,098   |              |   | -                             |   |   | 59,830 |   |   | 59,830 |   |   | 17,310 |   | 1969 |   | 7/28/1998 |   | 15 -      40 Yrs |
| Boston      – at Beacon Hill, MA (e)                               |   |         | (i)                 |              |   | -                                    |   |                                                   | 45,192    |   |                    | -    |                    |   |                    | 8,948   |              |   | -                             |   |   | 54,140 |   |   | 54,140 |   |   | 19,539 |   | 1968 |   | 7/28/1998 |   | 15 -      40 Yrs |
| Boston      – Marlborough, MA (a)                                  |   |         | 17,401              |              |   | 948                                                 |   |                                                   | 8,143     |   |                    | 761                 |                    |   |                    | 14,238  |              |   | 1,709                                        |   |   | 22,381 |   |   | 24,090 |   |   | 7,166 |   | 1988 |   | 6/30/1995 |   | 15 -      40 Yrs |
| Baltimore      – at BWI Airport, MD (a)                            |   |         | 21,768              |              |   | 2,568                                               |   |                                                   | 22,433    |   |                    | (2                  | )                       |   |                    | 3,205   |              |   | 2,566                                        |   |   | 25,638 |   |   | 28,204 |   |   | 8,025 |   | 1987 |   | 3/20/1997 |   | 15 -      40 Yrs |
| Bloomington,      MN (a)                                                 |   |         | 18,350              |              |   | 2,038                                               |   |                                                   | 17,731    |   |                    | -    |                    |   |                    | 3,087   |              |   | 2,038                                        |   |   | 20,818 |   |   | 22,856 |   |   | 6,233 |   | 1980 |   | 2/1/1997 |   | 15 -      40 Yrs |
| Minneapolis      – Airport, MN (a)                                 |   |         | 16,212              |              |   | 5,417                                               |   |                                                   | 36,508    |   |                    | 24                  |                    |   |                    | 2,091   |              |   | 5,441                                        |   |   | 38,599 |   |   | 44,040 |   |   | 13,180 |   | 1986 |   | 11/6/1995 |   | 15 -      40 Yrs |
| St      Paul – Downtown, MN (a)                                    |   |         | 1,735               |              |   | 1,156                                               |   |                                                   | 17,315    |   |                    | -    |                    |   |                    | 1,596   |              |   | 1,156                                        |   |   | 18,911 |   |   | 20,067 |   |   | 6,360 |   | 1983 |   | 11/15/1995 |   | 15 -      40 Yrs |
| Charlotte      – SouthPark, NC (c)                                 |   |         | 18,347              |              |   | 1,458                                               |   |                                                   | 12,681    |   |                    | -    |                    |   |                    | 2,735   |              |   | 1,458                                        |   |   | 15,416 |   |   | 16,874 |   |   | 3,159 |   | N/A |   | 7/12/2002 |   | 15 -      40 Yrs |
| Raleigh/Durham,      NC (c)                                              |   |         | 17,290              |              |   | 2,124                                               |   |                                                   | 18,476    |   |                    | -    |                    |   |                    | 2,174   |              |   | 2,124                                        |   |   | 20,650 |   |   | 22,774 |   |   | 6,315 |   | 1987 |   | 7/28/1997 |   | 15 -      40 Yrs |
| Piscataway      – Somerset, NJ (a)                                 |   |         | 17,637              |              |   | 1,755                                               |   |                                                   | 17,563    |   |                    | -    |                    |   |                    | 2,227   |              |   | 1,755                                        |   |   | 19,790 |   |   | 21,545 |   |   | 6,666 |   | 1988 |   | 1/10/1996 |   | 15 -      40 Yrs |
| Philadelphia      – Historic District, PA (e)                      |   |         | 26,580              |              |   | 3,164                                               |   |                                                   | 27,535    |   |                    | 7                   |                    |   |                    | 9,301   |              |   | 3,171                                        |   |   | 36,836 |   |   | 40,007 |   |   | 11,425 |   | 1972 |   | 7/28/1998 |   | 15 -      40 Yrs |
| Philadelphia      – Society Hill, PA (b)                           |   |         | 27,767              |              |   | 4,542                                               |   |                                                   | 45,121    |   |                    | -    |                    |   |                    | 5,981   |              |   | 4,542                                        |   |   | 51,102 |   |   | 55,644 |   |   | 15,059 |   | 1986 |   | 10/1/1997 |   | 15 -      40 Yrs |
| Pittsburgh      – at University Center (Oakland), PA (e)           |   |         | 14,911              |              |   | -                                    |   |                                                   | 25,031    |   |                    | -    |                    |   |                    | 2,947   |              |   | -                             |   |   | 27,978 |   |   | 27,978 |   |   | 8,242 |   | 1988 |   | 11/1/1998 |   | 15 -      40 Yrs |
| Charleston      – Mills House, SC (e)                              |   |         | 25,538              |              |   | 3,251                                               |   |                                                   | 28,295    |   |                    | 7                   |                    |   |                    | 4,663   |              |   | 3,258                                        |   |   | 32,958 |   |   | 36,216 |   |   | 8,693 |   | 1982 |   | 7/28/1998 |   | 15 -      40 Yrs |
| Myrtle      Beach – Oceanfront Resort, SC (a)                      |   |         | (i)                 |              |   | 2,940                                               |   |                                                   | 24,988    |   |                    | -    |                    |   |                    | 5,311   |              |   | 2,940                                        |   |   | 30,299 |   |   | 33,239 |   |   | 9,063 |   | 1987 |   | 12/5/1996 |   | 15 -      40 Yrs |
| Myrtle      Beach Resort (g)                                             |   |         | 21,524              |              |   | 9,000                                               |   |                                                   | 19,844    |   |                    | 6                   |                    |   |                    | 29,247  |              |   | 9,006                                        |   |   | 49,091 |   |   | 58,097 |   |   | 7,380 |   | 1974 |   | 7/23/2002 |   | 15 -      40 Yrs |
| Nashville      – Airport – Opryland Area, TN (a)             |   |         | 18,899              |              |   | 1,118                                               |   |                                                   | 9,506     |   |                    | -    |                    |   |                    | 1,313   |              |   | 1,118                                        |   |   | 10,819 |   |   | 11,937 |   |   | 4,625 |   | 1985 |   | 7/28/1994 |   | 15 -      40 Yrs |
| Nashville      – Opryland – Airport (Briley Parkway), TN (e) |   |         | (i)                 |              |   | -                                    |   |                                                   | 27,734    |   |                    | -    |                    |   |                    | 3,236   |              |   | -                             |   |   | 30,970 |   |   | 30,970 |   |   | 11,389 |   | 1981 |   | 7/28/1998 |   | 15 -      40 Yrs |
| Austin,      TX (c)                                                      |   |         | 8,716               |              |   | 2,508                                               |   |                                                   | 21,908    |   |                    | -    |                    |   |                    | 2,839   |              |   | 2,508                                        |   |   | 24,747 |   |   | 27,255 |   |   | 7,894 |   | 1987 |   | 3/20/1997 |   | 15 -      40 Yrs |
| Corpus      Christi, TX (a)                                              |   |         | 4,531               |              |   | 1,113                                               |   |                                                   | 9,618     |   |                    | 51                  |                    |   |                    | 4,480   |              |   | 1,164                                        |   |   | 14,098 |   |   | 15,262 |   |   | 4,527 |   | 1984 |   | 7/19/1995 |   | 15 -      40 Yrs |
| Dallas      – DFW International Airport South, TX (a)              |   |         | 19,302              |              |   | 4,041                                               |   |                                                   | 35,156    |   |                    | -    |                    |   |                    | 1,164   |              |   | 4,041                                        |   |   | 36,320 |   |   | 40,361 |   |   | 10,202 |   | 1985 |   | 7/28/1998 |   | 15 -      40 Yrs |
| Dallas      – Love Field, TX (a)                                   |   |         | 16,500              |              |   | 1,934                                               |   |                                                   | 16,674    |   |                    | -    |                    |   |                    | 3,215   |              |   | 1,934                                        |   |   | 19,889 |   |   | 21,823 |   |   | 6,749 |   | 1986 |   | 3/29/1995 |   | 15 -      40 Yrs |
| Dallas      – Market Center, TX (a)                                |   |         | (i)                 |              |   | 2,560                                               |   |                                                   | 23,751    |   |                    | -    |                    |   |                    | 2,311   |              |   | 2,560                                        |   |   | 26,062 |   |   | 28,622 |   |   | 7,875 |   | 1980 |   | 6/30/1997 |   | 15 -      40 Yrs |
| Dallas      – Park Central, TX (h)                                 |   |         | -    |              |   | 4,513                                               |   |                                                   | 43,125    |   |                    | 762                 |                    |   |                    | 7,728   |              |   | 5,275                                        |   |   | 50,853 |   |   | 56,128 |   |   | 15,176 |   | 1983 |   | 6/30/1997 |   | 15 -      40 Yrs |
| Houston      - Medical Center, TX (e)                                    |   |         | 22,821              |              |   | -                                    |   |                                                   | 22,027    |   |                    | -    |                    |   |                    | 4,689   |              |   | -                             |   |   | 26,716 |   |   | 26,716 |   |   | 7,210 |   | 1984 |   | 7/28/1998 |   | 15 -      40 Yrs |
| San      Antonio - International Airport, TX (e)                         |   |         | 23,800              |              |   | 3,351                                               |   |                                                   | 29,168    |   |                    | (185                | )                       |   |                    | 3,758   |              |   | 3,166                                        |   |   | 32,926 |   |   | 36,092 |   |   | 9,672 |   | 1981 |   | 7/28/1998 |   | 15 -      40 Yrs |
| Burlington      Hotel & Conference Center, VT (b)                    |   |         | 17,150              |              |   | 3,136                                               |   |                                                   | 27,283    |   |                    | (2                  | )                       |   |                    | 2,657   |              |   | 3,134                                        |   |   | 29,940 |   |   | 33,074 |   |   | 8,831 |   | 1967 |   | 12/4/1997 |   | 15 -      40 Yrs |
|                                                                     |   | $            | 1,113,855           |              | $      | 225,141                                             |   | $                                                      | 1,951,934 |   | $                       | 1,295               |                    |   | $                       | 363,592 |              | $      | 226,436                                      |   | $ | 2,315,526 |   | $ | 2,541,962 |   | $ | 672,160 |   |   |   |   |   |   |

----

| (a)Embassy      Suites Hotel                                                                            |
|---------------------------------------------------------------------------------------------------------|
| (b)Sheraton                                                                                             |
| (c)Doubletree      Guest Suites                                                                         |
| (d)Renaissance      Resort                                                                              |
| (e)Holiday      Inn                                                                                     |
| (f)Marriott                                                                                             |
| (g)Hilton                                                                                               |
| (h)Westin                                                                                               |
| (i)This      hotel provides collateral for our $636 million senior notes due in      October 2014. |

|                                                                                 | Year      Ended December 31, |
|--------------------------------------------------------------------------------------|------------------------------|
|                                                                                 | 2009                         |   | 2008 |   | 2007 |
| Reconciliation      of Land and Buildings and Improvements                           |                         |   |   |   |   |   |   |   |   |   |   |
| Balance      at beginning of period                                                  | $                            | 2,586,034 |   |   | $ | 2,542,784 |   |   | $ | 2,262,354 |   |
| Additions      during period:                                                        |                         |   |   |   |   |   |   |   |   |   |   |
| Acquisitions                                                                         |                         | -    |   |   |   | -    |   |   |   | 205,278 |   |
| Improvements                                                                         |                         | 51,895 |   |   |   | 43,250 |   |   |   | 75,152 |   |
| Deductions      during period:                                                       |                         |   |   |   |   |   |   |   |   |   |   |
| Sale      of properties                                                              |                         | (95,967 | ) |   |   | -    |   |   |   | -    |   |
| Balance      at end of period before impairment charges                              |                         | 2,541,962 |   |   |   | 2,586,034 |   |   |   | 2,542,784 |   |
| Cumulative      impairment charges on real estate assets owned at end of      period |                         | (49,680 | ) |   |   | (101,424 | ) |   |   | -    |   |
|                                                                                 |                         |   |   |   |   |   |   |   |   |   |   |
| Balance      at end of period                                                        | $                            | 2,492,282 |   |   | $ | 2,484,610 |   |   | $ | 2,542,784 |   |
|                                                                                 |                         |   |   |   |   |   |   |   |   |   |   |
| Reconciliation      of Accumulated Depreciation                                      |                         |   |   |   |   |   |   |   |   |   |   |
| Balance      at beginning of period                                                  | $                            | 629,920 |   |   | $ | 567,954 |   |   | $ | 503,145 |   |
| Additions      during period:                                                        |                         |   |   |   |   |   |   |   |   |   |   |
| Depreciation      for the period                                                     |                         | 69,408 |   |   |   | 61,966 |   |   |   | 64,809 |   |
| Deductions      during period:                                                       |                         |   |   |   |   |   |   |   |   |   |   |
| Sale      of properties                                                              |                         | (27,168 | ) |   |   | -    |   |   |   | -    |   |
|                                                                                 |                         |   |   |   |   |   |   |   |   |   |   |
| Balance      at end of period                                                        | $                            | 672,160 |   |   | $ | 629,920 |   |   | $ | 567,954 |   |

----

----

| Item      12.   Security Ownership of Certain Beneficial Owners and      Management and Related StockholderMatters |
|-----------------------------------------------------------------------------------------------------------------------------------|

----

| ExhibitNumber |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Description      of Exhibit |   |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|--------|
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 3.1           | Articles      of Amendment and Restatement dated June 22, 1995, amending and restating      the Charter of FelCor Lodging Trust Incorporated (“FelCor”), as amended or      supplemented by Articles of Merger dated June 23, 1995, Articles      Supplementary dated April 30, 1996, Articles of Amendment dated August 8,      1996, Articles of Amendment dated June 16, 1997, Articles of Amendment      dated October 30, 1997, Articles Supplementary filed May 6, 1998, Articles      of Merger and Articles of Amendment dated July 27, 1998, Certificate of      Correction dated March 11, 1999, Certificate of Correction to the      Articles of Merger between FelCor and Bristol Hotel Company, dated August      30, 1999, Articles Supplementary, dated April 1, 2002, Certificate of      Correction, dated March 29, 2004, to Articles Supplementary filed May 2,      1996, Articles Supplementary filed April 2, 2004, Articles Supplementary      filed August 20, 2004, Articles Supplementary filed April 6, 2005, and      Articles Supplementary filed August 29, 2005 (filed as Exhibit 4.1 to      FelCor’s Registration Statement on Form S-3 (Registration No. 333-128862)      and incorporated herein by reference). |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 3.2           | Bylaws      of FelCor Lodging Trust Incorporated (filed as Exhibit 4.2 to FelCor’s      Form 10-Q for the quarter ended June 30, 2008 and incorporated herein by      reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.1           | Form      of Share Certificate for Common Stock (filed as Exhibit 4.1 to FelCor’s      Form 10-Q for the quarter ended June 30, 1996 and incorporated herein by      reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.2           | Form      of Share Certificate for $1.95 Series A Cumulative Convertible Preferred      Stock (filed as Exhibit 4.4 to FelCor’s Form 8-K, dated May 1, 1996, and      incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.3           | Form      of Share Certificate for 8% Series C Cumulative Redeemable Preferred Stock      (filed as Exhibit 4.10.1 to FelCor’s Form 8-K, dated April 6, 2005, and      incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.4           | Deposit      Agreement, dated April 7, 2005, between FelCor and SunTrust Bank, as      preferred share depositary (filed as Exhibit 4.11.1 to FelCor’s Form 8-K,      dated April 6, 2005, and incorporated herein by  reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

----

| 4.4.1  | Supplement      and Amendment to Deposit Agreement, dated August 30, 2005, between the      Company and SunTrust Bank, as depositary (filed as Exhibit 4.11.2 to      FelCor’s Form 8-K, dated April 6, 2005, and incorporated herein by      reference).                                                                                                                                                                     |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.5    | Form      of Depositary Receipt evidencing the Depositary Shares, which represent      the 8% Series C Cumulative Redeemable Preferred Stock (filed as Exhibit      4.12.1 to FelCor’s Form 8-K, dated April 6, 2005, and incorporated herein      by reference).                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.6    | Indenture,      dated as of October 1, 2009, by and between FelCor Escrow Holdings, L.L.C.      and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to      FelCor’s Form 8-K, dated October 1, 2009, and incorporated herein by      reference).                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.6.1  | First      Supplemental Indenture dated as of October 12, 2009, by and between FelCor      Escrow Holdings, L.L.C. and U.S. Bank National Association (filed as      Exhibit 4.1 to FelCor’s Form 8-K, dated October 13, 2009, and incorporated      herein by reference).                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.6.2  | Second      Supplemental Indenture dated as of October 13, 2009, by and among FelCor,      FelCor Lodging Limited Partnership (“FelCor LP”), certain subsidiary      guarantors named therein, FelCor Holdings Trust, FelCor Escrow Holdings,      L.L.C. and U.S. Bank National Association (filed as Exhibit 4.2 to      FelCor’s Form 8-K dated, October 13, 2009, and incorporated herein by      reference). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.7    | Registration      Rights Agreement dated October 1, 2009 to be effective as of October 13,      2009, by and among FelCor, FelCor LP, certain subsidiary guarantors named      therein, and J.P. Morgan Securities Inc. on behalf of itself and the      initial purchasers (filed as Exhibit 4.3 to FelCor’s Form 8-K, dated      October 13, 2009, and incorporated herein byreference).                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.1   | Second      Amended and Restated Agreement of Limited Partnership of FelCor LP, dated      as of December 31, 2001 (filed as Exhibit 10.1 to FelCor’s Form 10-K for      the fiscal year ended December 31, 2001 (the “2001 Form 10-K”) and      incorporated herein by reference).                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.1.1 | First      Amendment to Second Amended and Restated Agreement of Limited Partnership      of FelCor LP, dated April 1, 2002 (filed as Exhibit 10.1.1 to FelCor’s      Form 8-K, dated April 1, 2002, and incorporated herein by      reference).                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.1.2 | Second      Amendment to Second Amended and Restated Agreement of Limited Partnership      of FelCor LP, dated August 31, 2002 (filed as Exhibit 10.1.2 to FelCor’s      Form 10-K for the fiscal year ended December 31, 2002 (the “2002 Form      10-K”), and incorporated herein by reference).                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.1.3 | Third      Amendment to Second Amended and Restated Agreement of Limited Partnership      of FelCor LP, dated October 1, 2002 (filed as Exhibit 10.1.3 to the 2002      Form 10-K and incorporated herein by reference).                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.1.4 | Fourth      Amendment to Second Amended and Restated Agreement of Limited Partnership      of FelCor LP, dated as of July 1, 2003 (filed as Exhibit 10.1.4 to      FelCor’s Form 10-Q for the quarter ended March 31, 2004, and incorporated      herein by reference).                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.1.5 | Fifth      Amendment to Second Amended and Restated Agreement of Limited Partnership      of FelCor LP, dated as of April 2, 2004 (filed as Exhibit 10.1.5 to      FelCor’s Form 10-Q for the quarter ended March 31, 2004, and incorporated      herein by reference).                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.1.6 | Sixth      Amendment to Second Amended and Restated Agreement of Limited Partnership      of FelCor LP, dated as of August 23, 2004 (filed as Exhibit 10.1.6 to      FelCor’s Form 8-K, dated August 26, 2004, and incorporated herein by      reference).                                                                                                                                                                    |

----

| 10.1.7 | Seventh      Amendment to Second Amended and Restated Agreement of Limited Partnership      of FelCor LP, dated as of April 7, 2005, which contains Addendum No. 4 to      the Second Amended and Restated Agreement of Limited Partnership of FelCor      Lodging Limited Partnership (filed as Exhibit 10.1.8 to FelCor’s Form 8-K,      dated April 6, 2006, and incorporated herein by  reference).                                                                                                                               |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.1.8 | Eighth      Amendment to Second Amended and Restated Agreement of Limited Partnership      of FelCor LP, dated as of August 30, 2005 (filed as Exhibit 10.1.9 to      FelCor’s Form 8-K, dated August 29, 2005, and incorporated herein by      reference).                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.2.1 | Form      of Management Agreement between subsidiaries of FelCor, as owner, and a      subsidiary of InterContinental Hotels, as manager, with respect to      FelCor’s InterContinental Hotels branded hotels (included as an exhibit to      the Leasehold Acquisition Agreement, which was filed as Exhibit 10.28 to      FelCor’s Form 10-Q for the quarter ended March 31, 2001, and incorporated      herein by reference).                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.2.2 | Omnibus      Agreement between FelCor and all its various subsidiaries, controlled      entities and affiliates, and Six Continents Hotels, Inc. and all its      various subsidiaries, controlled entities and affiliates, with respect to      FelCor’s InterContinental Hotels branded hotels (filed as Exhibit 10.2.2      to FelCor’s Form 10-K for the fiscal year ended December 31, 2005 (the      “2005 Form 10-K”), and incorporated herein by  reference).                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.3.1 | Form      of Management Agreement between subsidiaries of FelCor, as owner, and a      subsidiary of Hilton Hotels Corporation, as manager, with respect to      FelCor’s Embassy Suites Hotels branded hotels, including the form of      Embassy Suites Hotels License Agreement attached as an exhibit thereto,      effective prior to July 28, 2004 (filed as Exhibit 10.5 to the 2001 Form      10-K, and incorporated herein by reference).                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.3.2 | Form      of Management Agreement between subsidiaries of FelCor, as owner, and a      subsidiary of Hilton Hotels Corporation, as manager, with respect to      FelCor’s Embassy Suites Hotels branded hotels, including the form of      Embassy Suites Hotels License Agreement attached as an exhibit thereto,      effective July 28, 2004 (filed as Exhibit 10.3.2 to FelCor’s Form 10-K for      the fiscal year ended December 31, 2004 (the “2004 Form 10-K”), and      incorporated herein by reference). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.4   | Form      of Management Agreement between subsidiaries of FelCor, as owner, and a      subsidiary of Hilton Hotels Corporation, as manager, with respect to      FelCor’s Doubletree and Doubletree Guest Suites branded hotels (filed as      Exhibit 10.6 to the 2001 Form 10-K and incorporated herein by      reference).                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.5   | Form      of Management Agreement between subsidiaries of FelCor, as owner, and a      subsidiary of Starwood Hotels & Resorts, Inc., as manager, with      respect to FelCor’s Sheraton and Westin branded hotels (filed as Exhibit      10.7 to the 2001 Form 10-K and incorporated herein by      reference).                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.6   | Executive      Employment Agreement, dated effective as of February 1, 2006, between      FelCor and Thomas J. Corcoran, Jr. (filed as Exhibit 10.36 to FelCor’s      Form 8-K, dated February 7, 2006, and incorporated herein by      reference).                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.6.1 | Letter      Agreement dated March 1, 2008 between Thomas J. Corcoran, Jr. and FelCor      (filed as Exhibit 101 to FelCor’s Form 10-Q for the quarter ended March      31, 2008, and incorporated herein by reference).                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.7   | Executive      Employment Agreement dated October 19, 2007, between FelCor and Richard A.      Smith (filed as Exhibit 10.1 to FelCor’s Form 10-Q for the quarter ended      September 30, 2007, and incorporated herein by  reference).                                                                                                                                                                                                                                                                                              |

----

| 10.8    | Form      of 2007 Change in Control and Severance Agreement between FelCor and each      of Rick Smith, Andy Welch, Mike DeNicola, Troy Pentecost, Jon Yellen and      Tom Corcoran (filed as Exhibit 10.1 to FelCor’s Form 8-K dated October 23,      2007, and incorporated herein by reference).                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.9    | Savings      and Investment Plan of FelCor (filed as Exhibit 10.10 to the 2001 Form      10-K and incorporated herein by reference).                                                                                                                                                                                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.10   | 1998      Restricted Stock and Stock Option Plan (filed as Exhibit 4.2 to FelCor’s      Registration Statement on Form S-8 (Registration File No. 333-66041) and      incorporated herein by reference).                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.11   | 2001      Restricted Stock and Stock Option Plan of FelCor (filed as Exhibit 10.14      to the 2002 Form 10-K and incorporated herein by    reference).                                                                                                                                                                                                                                                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.12   | Form      of Nonstatutory Stock Option Contract under Restricted Stock and Stock      Option Plans of FelCor (filed as Exhibit 10.16 to the 2004 Form 10-K and      incorporated herein by reference).                                                                                                                                                                                                                                               |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.13   | Form      of Employee Stock Grant Contract under Restricted Stock and Stock Option      Plans of FelCor (filed as Exhibit 10.17 to the 2004 Form 10-K and      incorporated herein by reference).                                                                                                                                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.14   | FelCor’s      2005 Restricted Stock and Stock Option Plan as amended (filed as Exhibit      4.4 to FelCor’s Registration Statement on Form S-8 (Registration File No.      333-151066) and incorporated herein by reference).                                                                                                                                                                                                            |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.15   | Form      of Employee Stock Grant Contract under Restricted Stock and Stock Option      Plans of FelCor applicable to grants in 2005 and thereafter (filed as      Exhibit 10.33 to FelCor’s Form 8-K, dated April 26, 2005, and incorporated      herein by reference).                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.16   | Form      of Employee Stock Grant and Supplemental Long-Term Cash Payment Agreement      dated as of February 19, 2009 (filed as Exhibit 10.1 to FelCor’s Form 8-K,      dated February 20, 2009, and incorporated herein by      reference).                                                                                                                                                                                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.16.1 | Amendment      to Employee Stock Grant and Supplemental Long-Term Cash Payment Agreement      dated as of February 19, 2009 (filed as Exhibit 10.1 to FelCor’s Form 8-K,      dated December 28, 2009, and incorporated herein by      reference).                                                                                                                                                                                             |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.17   | Form      of Restricted Payment Contract (filed as Exhibit 10.2 to FelCor’s Form      8-K, dated December 28, 2009, and incorporated herein by      reference).                                                                                                                                                                                                                                                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.18   | Form      of Employee Stock Grant Contract (filed as Exhibit 10.3 to FelCor’s Form      8-K, dated December 28, 2009, and incorporated herein by      reference).                                                                                                                                                                                                                                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.19   | Form      of Indemnification Agreement by and among FelCor, FelCor LP and individual      officers and directors of FelCor (filed as Exhibit 10.1 to FelCor’s 10-Q      for the quarter ended March 31, 2009, and incorporated herein by      reference; superseding the form of Indemnification Agreement that was      filed as Exhibit 10.1 to FelCor’s Form 8-K, dated November 9, 2006, and      incorporated herein by reference). |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.20   | Form      of Guaranty Agreement by and among FelCor, FelCor LP and individual      employees of FelCor (filed as Exhibit 10.2 to FelCor’s Form 10-Q for the      quarter ended March 31, 2009, and incorporated herein by      reference).                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.21*  | Summary      of Amended Annual Compensation Program for Directors of      FelCor.                                                                                                                                                                                                                                                                                                                                                                    |

----

| 10.22   | Summary      of FelCor’s Performance-Based Annual Incentive Compensation Programs      (filed as Exhibit 10.1 to FelCor’s Form 8-K, dated February 18, 2010, and      incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.23.1 | Form      Deed of Trust and Security Agreement and Fixture Filing with Assignment of      Leases and Rents, each dated as of April 20, 2000, from FelCor/MM S-7      Holdings, L.P., as Mortgagor, in favor of Massachusetts Mutual Life      Insurance Company and Teachers Insurance and Annuity Association of      America, as Mortgagee, each covering a separate hotel and securing one of      the separate Promissory Notes described in Exhibit 10.22.3 (filed as      Exhibit 10.24 to FelCor’s Form 10-Q for the quarter ended June 30, 2000      (the “June 2000 10-Q”) and incorporated herein by    reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.23.2 | Form      of Accommodation Cross-Collateralization Mortgage and Security Agreement,      each dated as of April 20, 2000, executed by FelCor/MM S-7 Holdings, L.P.,      in favor of Massachusetts Mutual Life Insurance Company and Teachers      Insurance and Annuity Association of America (filed as Exhibit 10.24.1 to      the June 2000 10-Q and incorporated herein by  reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.23.3 | Form      of fourteen separate Promissory Notes, each dated April 20, 2000, each      made by FelCor/MM S-7 Holdings, L.P., each separately payable to the order      of Massachusetts Mutual Life Insurance Company and Teachers Insurance and      Annuity Association of America, respectively, in the respective original      principal amounts of $13,500,000 (Phoenix (Crescent), Arizona),      $13,500,000 (Phoenix (Crescent), Arizona), $6,500,000 (Cypress Creek/Ft.      Lauderdale, Florida), $6,500,000 (Cypress Creek/Ft. Lauderdale, Florida),      $9,000,000 (Atlanta Galleria, Georgia), $9,000,000 (Atlanta Galleria,      Georgia), $12,500,000 (Chicago O’Hare Airport, Illinois), $12,500,000      (Chicago O’Hare Airport, Illinois), $3,500,000 (Lexington, Kentucky),      $3,500,000 (Lexington, Kentucky), $17,000,000 (Philadelphia Society Hill,      Philadelphia), $17,000,000 (Philadelphia Society Hill, Philadelphia),      $10,500,000 (South Burlington, Vermont) and $10,500,000 (South Burlington,      Vermont) (filed as Exhibit 10.24.2 to the June 2000 10-Q and incorporated      herein by reference). |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.24.1 | Form      Deed of Trust and Security Agreement, each dated as of May 2, 2000, from      each of FelCor/CMB Buckhead Hotel, L.L.C., FelCor/CMB Marlborough Hotel,      L.L.C., FelCor/CMB Deerfield Hotel, L.L.C., FelCor/CMB Corpus Holdings,      L.P., FelCor/CMB Orsouth Holdings, L.P., FelCor/CMB New Orleans Hotel,      L.L.C., FelCor/CMB Piscataway Hotel, L.L.C., and FelCor/CMB SSF Holdings,      L.P., each as Borrower, in favor of The Chase Manhattan Bank, as      Beneficiary, each covering a separate hotel and securing one of the      separate Promissory Notes described in Exhibit 10.23.2 (filed as Exhibit      10.25 to the June 2000 10-Q and incorporated herein by      reference).                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.24.2 | Form      of eight separate Promissory Notes, each dated May 2, 2000, made by      FelCor/CMB Buckhead Hotel, L.L.C., FelCor/CMB Marlborough Hotel, L.L.C.,      FelCor/CMB Deerfield Hotel, L.L.C., FelCor/CMB Corpus Holdings, L.P.,      FelCor/CMB Orsouth Holdings, L.P., FelCor/CMB New Orleans Hotel, L.L.C.,      FelCor/CMB Piscataway Hotel, L.L.C. and FelCor/CMB SSF Holdings, L.P.,      each separately payable to the order of The Chase Manhattan Bank in the      respective original principal amounts of $38,250,000 (Atlanta Buckhead,      Georgia), $20,500,000 (Boston Marlborough, Massachusetts), $16,575,000      (Chicago Deerfield, Illinois), $5,338,000 (Corpus Christi, Texas),      $25,583,000 (Orlando South, Florida), $32,650,000 (New Orleans,      Louisiana), $20,728,000 (Piscataway, New Jersey) and $26,268,000 (South      San Francisco, California) (filed as Exhibit 10.25.1 to the June 2000 10-Q      and incorporated herein by reference).                                                                                                                                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.25.1 | Form      of Loan Agreement, each dated either May 26, 2004, June 10, 2004 or July      19, 2004, between JPMorgan Chase Bank, as lender, and each of FelCor/JPM      Boca Raton Hotel, L.L.C., FelCor/JPM Phoenix Hotel, L.L.C., FelCor/JPM      Wilmington Hotel, L.L.C., FelCor/JPM Atlanta ES Hotel, L.L.C., FelCor/JPM      Austin Holdings, L.P., FelCor/JPM Orlando Hotel, L.L.C., and FelCor/JPM      BWI Hotel, L.L.C. and FCH/DT BWI Hotel, L.L.C., as borrowers, and      acknowledged and agreed by FelCor LP (filed as Exhibit 10.34 to FelCor’s      Form 10-Q for the quarter ended June 30, 2004, and incorporated herein by      reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

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| 10.25.2   | Form      of Mortgage, Renewal Mortgage, Deed of Trust, Deed to Secure Debt,      Indemnity Deed of Trust and Assignment of Leases and Rents, Security      Agreement and Fixture Filing, each dated either May 26, 2004, June 10,      2004 or July 19, 2004, from FelCor/JPM Wilmington Hotel, L.L.C., DJONT/JPM      Wilmington Leasing, L.L.C., FelCor/JPM Phoenix Hotel, L.L.C., DJONT/JPM      Phoenix Leasing, L.L.C., FelCor/JPM Boca Raton Hotel, L.L.C., DJONT/JPM      Boca Raton Leasing, L.L.C., FelCor/JPM Atlanta ES Hotel, L.L.C., DJONT/JPM      Atlanta ES Leasing, L.L.C., FelCor/JPM Austin Holdings, L.P., DJONT/JPM      Austin Leasing, L.P., FelCor/JPM Orlando Hotel, L.L.C., DJONT/JPM Orlando      Leasing, L.L.C., FCH/DT BWI Holdings, L.P., FCH/DT BWI Hotel, L.L.C. and      DJONT/JPM BWI Leasing, L.L.C., to, and for the benefit of, JPMorgan Chase      Bank, as mortgagee or beneficiary (filed as Exhibit 10.34.1 to FelCor’s      Form 10-Q for the quarter ended June 30, 2004, and incorporated herein by      reference). |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.25.3   | Form      of seven separate Promissory Notes, each dated either May 26, 2004, June      10, 2004 or July 19, 2004, made by FelCor/JPM Wilmington Hotel, L.L.C.,      FelCor/JPM Phoenix Hotel, L.L.C., FelCor/JPM Boca Raton Hotel, L.L.C.,      FelCor/JPM Atlanta ES Hotel, L.L.C., FelCor/JPM Austin Holdings, L.P.,      FelCor/JPM Orlando Hotel, L.L.C., and FelCor/JPM BWI Hotel, L.L.C., each      separately payable to the order of JPMorgan Chase Bank in the respective      original principal amounts of $11,000,000 (Wilmington, Delaware),      $21,368,000 (Phoenix, Arizona), $5,500,000 (Boca Raton, Florida),      $13,500,000 (Atlanta, Georgia), $9,616,000 (Austin, Texas), $9,798,000      (Orlando, Florida), and $24,120,000 (Linthicum, Maryland) (filed as      Exhibit 10.34.2 to FelCor’s Form 10-Q for the quarter ended June 30, 2004,      and incorporated herein by reference).                                                                                                                                                 |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.25.4   | Form      of Guaranty of Recourse Obligations of Borrower, each dated either May 26,      2004, June 10, 2004 or July 19, 2004, made by FelCor LP in favor of      JPMorgan Chase Bank (filed as Exhibit 10.34.3 to FelCor’s Form 10-Q for      the quarter ended June 30, 2004, and incorporated herein by      reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.26.1   | Loan      Agreement, dated as of November 10, 2006, by and among FelCor/JPM Hotels,      L.L.C. and DJONT/JPM Leasing, L.L.C., as borrowers, and Bank of America,      N.A., as lender, relating to a $250 million loan from lender to borrower      (filed as Exhibit 10.35.1 to the FelCor’s Form 10-K for the fiscal year      ended December 31, 2006 (the “2006 Form 10-K”), and incorporated herein by      reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.26.1.1 | First      Amendment to Loan Agreement and Other Loan Documents, dated as of January      31, 2007, by and among FelCor/JPM Hotels, L.L.C. and DJONT/JPM Leasing,      L.L.C., as borrowers, and Bank of America, N.A., as lender (filed as      Exhibit 10.35.1.1 to the 2006 Form 10-K and incorporated herein by      reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.26.2   | Form      of Mortgage, Deed of Trust and Security Agreement, each dated as of      November 10, 2006, from FelCor/JPM Hotels, L.L.C. and DJONT/JPM Leasing,      L.L.C., as borrowers, in favor of Bank of America, N.A., as lender, each      covering a separate hotel and securing the Mortgage Loan (filed as Exhibit      10.35.2 to the 2006 Form 10-K and incorporated herein by      reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.26.3   | Form      of Amended and Restated Promissory Note, each dated as of January 31,      2007, made by FelCor/JPM Hotels, L.L.C. and DJONT/JPM Leasing, L.L.C.      payable to the order of either Bank of America, N.A. or JPMorgan Chase      Bank, N.A., as lender, in the original aggregate principal amount of $250      million (filed as Exhibit 10.35.3 to the 2006 Form 10-K and incorporated      herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.26.4   | Guaranty      of Recourse Obligations of Borrower, dated as of November 10, 2006, made      by FelCor LP in favor of Bank of America, N.A (filed as Exhibit 10.35.4 to      the 2006 Form 10-K and incorporated herein by  reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

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| 10.27.1 | Assumption      Agreement dated December 14, 2007 by Greenwich Capital Financial Products,      Inc., WSRH Indian Wells, L.L.C., FelCor Esmeralda (SPE), L.L.C. and FelCor      Esmeralda Leasing (SPE), L.L.C. (filed as Exhibit 10.28.1 to the FelCor’s      Form 10-K for the fiscal year ended December 31, 2007 (the “2007 Form      10-K”), and incorporated herein by reference).                        |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.27.2 | Amended      and Restated Loan Agreement dated December 14, 2007 between FelCor      Esmeralda (SPE), L.L.C. and FelCor Esmeralda Leasing (SPE), L.L.C., as      borrowers, and Greenwich Financial Products, Inc., as lender (filed as      Exhibit 10.28.2 to the 2007 Form 10-K and incorporated herein by      reference).                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.27.3 | Amended      and Restated Promissory Note dated December 14, 2007, in the amount of      $87,975,000, made by FelCor Esmeralda (SPE), L.L.C. and FelCor Esmeralda      Leasing (SPE), L.L.C., as borrower, in favor of Greenwich Capital      Financial Products, Inc., as lender (filed as Exhibit 10.28.3 to the 2007      Form 10-K and incorporated herein by reference).                                                     |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.27.4 | Amended      and Restated Deed of Trust, Security Agreement and Fixture Filing dated      December 14, 2007 by FelCor Esmeralda (SPE), L.L.C. and FelCor Esmeralda      Leasing (SPE), L.L.C., as trustors, to First American Title Insurance      Company, as trustee, and Greenwich Capital Financial Products, Inc., as      lender(filed as Exhibit 10.28.4 to the 2007 Form 10-K and incorporated      herein by reference). |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.28.1 | Assumption      Agreement dated December 14, 2007 by Greenwich Capital Financial Products,      Inc., WSRH VSP, L.P., FelCor St. Pete (SPE), L.L.C. and FelCor St. Pete      Leasing (SPE), L.L.C. (filed as Exhibit 10.29.1 to the 2007 Form 10-K and      incorporated herein by reference).                                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.28.2 | Second      Amended and Restated Loan Agreement dated December 14, 2007 between FelCor      St. Pete (SPE), L.L.C. and FelCor St. Pete Leasing (SPE), L.L.C., as      borrowers, and Greenwich Financial Products, Inc., as lender (filed as      Exhibit 10.29.2 to the 2007 Form 10-K and incorporated herein by      reference).                                                                                               |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.28.3 | Second      Amended and Restated Promissory Note dated December 14, 2007, in the      amount of $89,250,000, made by FelCor St. Pete (SPE), L.L.C. and FelCor      St. Pete Leasing (SPE), L.L.C., as borrower, in favor of Greenwich Capital      Financial Products, Inc., as lender (filed as Exhibit 10.29.3 to the 2007      Form 10-K and incorporated herein by reference).                                                |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.28.4 | Second      Amended and Restated Leasehold Mortgage, Security Agreement and Fixture      Filing dated December 14, 2007 by FelCor St. Pete (SPE), L.L.C. and FelCor      St. Pete Leasing (SPE), L.L.C., as borrower, and Greenwich Capital      Financial Products, Inc., as lender (filed as Exhibit 10.29.4 to the 2007      Form 10-K and incorporated herein by reference).                                                  |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.29.1 | Loan      Agreement, dated March 31, 2009, by and between FelCor/CSS (SPE), L.L.C.,      as borrower, The Prudential Insurance Company of America, as lender, and      joined by DJONT Operations, L.L.C. (filed as Exhibit 10.3 to FelCor’s Form      10-Q for the quarter ended March 31, 2009, and incorporated herein by      reference).                                                                               |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.29.2 | Form      of Mortgage and Security Agreement, dated March 31, 2009, executed by      FelCor/CSS (SPE), L.L.C. and DJONT Operations, L.L.C. for the benefit of      The Prudential Insurance Company of America (filed as Exhibit 10.4 to      FelCor’s Form 10-Q for the quarter ended March 31, 2009, and incorporated      herein by reference).                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.29.3 | Promissory      Note, dated March 31, 2009, made by FelCor/CSS (SPE), L.L.C., as borrower,      in favor of The Prudential Insurance Company of America (filed as Exhibit      10.5 to FelCor’s Form 10-Q for the quarter ended March 31, 2009, and      incorporated herein byreference).                                                                                                                                  |

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| 10.29.4 | Recourse      Liabilities Guarantee, dated March 31, 2009, made by FelCor and FelCor LP      in favor of The Prudential Insurance Company of America (filed as Exhibit      10.6 to FelCor’s Form 10-Q for the quarter ended March 31, 2009, and      incorporated herein by reference).                                                                                                                                                                            |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.30.1 | Term      Loan Agreement, dated as of June 12, 2009, among FelCor/JPM Hospitality      (SPE), L.L.C. and DJONT/JPM Hospitality Leasing (SPE), L.L.C., as      borrowers, JPMorgan Chase Bank, N.A., as administrative agent, and the      other lenders party hereto (filed as Exhibit 10.1 to FelCor’s Form 10-Q      for the quarter ended June 3, 2009, and incorporated herein by      reference).                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.30.2 | Form      of Mortgage/Deed of Trust, Assignment of Leases and Rents, Security      Agreement and Fixture Filing, dated as of June 12, 2009, granted by      FelCor/JPM Hospitality (SPE), L.L.C. and DJONT/JPM Hospitality Leasing      (SPE), L.L.C. for the benefit of JPMorgan Chase Bank, N.A., as      administrative agent (filed as Exhibit 10.2 to FelCor’s Form 10-Q for the      quarter ended June 30, 2009, and incorporated herein by      reference). |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.30.3 | Form      of Note, dated as of June 12, 2009, executed by FelCor/JPM Hospitality      (SPE), L.L.C. and DJONT/JPM Hospitality Leasing (SPE), L.L.C. for the      benefit of the lenders (filed as Exhibit 10.3 to FelCor’s Form 10-Q for      the quarter ended June 30, 2009, and incorporated herein by      reference).                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.30.4 | Form      of Carve Out Guaranty, dated as of June 12, 2009, by FelCor in favor of      JPMorgan Chase Bank, N.A., as administrative agent (filed as Exhibit 10.4      to FelCor’s Form 10-Q for the quarter ended June 30, 2009, and      incorporated herein by reference).                                                                                                                                                                                        |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.30.5 | Form      of Recourse Guaranty, dated as of June 12, 2009, by FelCor in favor of      JPMorgan Chase Bank, N.A., as administrative agent (filed as Exhibit 10.5      to FelCor’s Form 10-Q for the quarter ended June 30, 2009, and      incorporated herein by reference).                                                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.31   | Pledge      Agreement dated October 13, 2009, by and among FelCor, FelCor LP, certain      subsidiary pledgors named therein, FelCor Holdings Trust, and U.S. Bank      National Association (filed as Exhibit 10.1 to FelCor’s Form 8-K dated      October 13, 2009, and incorporated herein byreference).                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 21*     | List      of Subsidiaries of FelCor.                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 23*     | Consent      of PricewaterhouseCoopers LLP.                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 31.1*   | Certification      of the Chief Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 31.2*   | Certification      of the Chief Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 32.1*   | Certification      of the Chief Executive Officer pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).                                                                                                                                                                                                                                                                                                                                        |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 32.2*   | Certification      of the Chief Financial Officer pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002 (18 U.S.C.1350).                                                                                                                                                                                                                                                                                                                                         |

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|   | FELCOR      LODGING TRUST INCORPORATED |
|--------|----------------------------------------|
|   |                                   |   |
|   | By:                                    | /s/      Jonathan H. Yellen |
|   |                                   | Jonathan      H. Yellen |
|   |                                   | Executive      Vice President |
| Date:  | February      25, 2010                 |

|                   | Date                                                                                                             |   |   | Signature |   |
|------------------------|------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|
| February      25, 2010 | /s/      Richard A. Smith                                                                                        |
|                   | Richard      A. SmithPresident      and Director (Chief Executive Officer)                                       |
| February      25, 2010 | /s/      Andrew J. Welch                                                                                         |
|                   | Andrew      J. WelchExecutive      Vice President and Chief Financial Officer(Principal      Financial Officer)  |
| February      25, 2010 | /s/      Lester C. Johnson                                                                                       |
|                   | Lester      C. JohnsonSenior      Vice President and Chief Accounting Officer(Principal      Accounting Officer) |
| February      25, 2010 | /s/      Thomas J. Corcoran, Jr.                                                                                 |
|                   | Thomas      J. Corcoran, Jr.Chairman      of the Board and Director                                              |
| February      25, 2010 | /s/      Melinda J. Bush                                                                                         |
|                   | Melinda      J. Bush, Director                                                                                   |
| February      25, 2010 | /s/      Glenn A. Carlin                                                                                         |
|                   | Glenn      A. Carlin, Director                                                                                   |
| February      25, 2010 | /s/      Robert F. Cotter                                                                                        |
|                   | Robert      F. Cotter, Director                                                                                  |
| February      25, 2010 | /s/      Thomas C. Hendrick                                                                                      |
|                   | Thomas      C. Hendrick, Director                                                                                |
| February      25, 2010 | /s/      Charles A. Ledsinger, Jr.                                                                               |
|                   | Charles      A. Ledsinger, Jr., Director                                                                         |
| February      25, 2010 | /s/      Robert H. Lutz, Jr.                                                                                     |
|                   | Robert      H. Lutz, Jr., Director                                                                               |
| February      25, 2010 | /s/      Robert A. Mathewson                                                                                     |
|                   | Robert A.      Mathewson, Director                                                                          |
| February      25, 2010 | /s/      Mark D. Rozells                                                                                         |
|                   | Mark      D. Rozells, Director                                                                                   |

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