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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C.  20549                                                                  |                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Form 10-K                                                                                                                               |                                                 |
| (Mark One)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                    |                                                 |
| [X]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                                               |                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                    | For the fiscal year ended December 31, 2010          |                                |                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                    | or                                                   |                                |
| [  ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934                                                 |                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | For the transition period from         to          |                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Commission file number 1-14236                                                                                                          |                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | FelCor Lodging Trust Incorporated                                                                                                       |                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | (Exact name of registrant as specified in its charter)                                                                                  |                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Maryland                                                                                                                                |                                                 | 75-2541756                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | (State or other jurisdiction ofincorporation or organization)                                                                           |                                                 | (I.R.S. EmployerIdentification No.) |
| 545 E. John Carpenter Frwy., Suite 1300, Irving, Texas                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                    | 75062                                                |
| (Address of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                    | (Zip Code)                                           |
| Registrant's telephone number, including area code  (972) 444-4900                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                    |
| Securities registered pursuant to Section 12(b) of the Act:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                    | 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                              |
| Securities registered pursuant to Section 12(g) of the Act:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                    |                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | None                                                                                                                                    |                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | (Title of class)                                                                                                                        |                                                 |
| Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the   Securities Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  R  Yes £  No                                                                                       |
| Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d)   of the Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | £  Yes R  No                                                                                                  |
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                                                                          R  Yes  £  No |
||
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files.                                  £ Yes  £ No                                                                                                                                                                                                                                             |
||
| Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.                   £                                                                                                                                                                                                                                                                                                                             |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.      Check one:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Large accelerated filer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | £                                                                                                                                 |                                                 |                                | Accelerated filer  |   | R |
| Non-accelerated filer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | £                                                                                                                                 |  (Do not check if a smaller reporting company). | Smaller reporting company           | £                 |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act.).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | £ Yes R  No                                                                                                   |
| The aggregate market value of shares of common stock held by non-affiliates of the registrant as of June 30, 2010, computed by reference to the price at which registrant's common stock was last sold at June 30, 2010, was approximately $466 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| As of February 18, 2011, the registrant had issued and outstanding 96,872,901 shares of common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| DOCUMENTS INCORPORATED BY REFERENCE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| The Registrant's definitive Proxy Statement pertaining to the 2011 Annual Meeting of Stockholders (the “Proxy Statement”), filed or to be filed not later than 120 days after the end of the fiscal year pursuant to Regulation 14A, is incorporated herein by reference into Part III.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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|          |                                                                                                                                                 |           |  |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--|
|     |                                                                                                                                            | Form 10-K |
|     |                                                                                                                                            | Report    |
| Item No. |                                                                                                                                            | Page      |
|     |                                                                                                                                            |      |
|     | PART I                                                                                                                                          |      |
| Item 1.  | Business                                                                                                                                        | 4         |
| Item 1A. | Risk Factors                                                                                                                                    | 12        |
| Item 1B. | Unresolved Staff Comments                                                                                                                       | 22        |
| Item 2.  | Properties                                                                                                                                      | 23        |
| Item 3.  | Legal Proceedings                                                                                                                               | 31        |
| Item 4.  | Submission of Matters to a Vote of Security Holders                                                                                             | 31        |
|     |                                                                                                                                            |      |
|     | PART II                                                                                                                                         |      |
| Item 5.  | Market for Registrant’s Common Equity, Related Stockholder Matters and     Issuer Purchases of Equity Securities | 31        |
| Item 6.  | Selected Financial Data                                                                                                                         | 33        |
| Item 7.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                     | 35        |
| Item 7A. | Quantitative and Qualitative Disclosures About Market Risk                                                                                      | 55        |
| Item 8.  | Financial Statements and Supplementary Data                                                                                                     | 56        |
| Item 9.  | Changes in and Disagreements With Accounts on Accounting and Financial Disclosure                                                               | 98        |
| Item 9A. | Controls and Procedures                                                                                                                         | 98        |
| Item 9B. | Other Information                                                                                                                               | 99        |
|     |                                                                                                                                            |      |
|     | PART III                                                                                                                                        |      |
| Item 10. | Directors, Executive Officers of the Registrant and Corporate Governance                                                                        | 99        |
| Item 11. | Executive Compensation                                                                                                                          | 99        |
| Item 12. | Security Ownership of Certain Beneficial Owners and Management and   Related Stockholder Matters                                 | 99        |
| Item 13. | Certain Relationships, Related Transactions and Director Independence                                                                           | 99        |
| Item 14. | Principal Accountant Fees and Services                                                                                                          | 99        |
|     |                                                                                                                                            |      |
|     | PART IV                                                                                                                                         |      |
| Item 15. | Exhibits and Financial Statement Schedules                                                                                                      | 100       |

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|                                |                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | general economic conditions, including, among others, unemployment, major bank failures and unsettled capital markets, sovereign debt uncertainty, 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, rising fuel costs and increased transportation security precautions; |

|                                |                                                                                                |
|--------------------------------|------------------------------------------------------------------------------------------------|
| •     | our overall debt levels and our ability to refinance or obtain new financing and service debt; |

|                                |                                   |
|--------------------------------|-----------------------------------|
| •     | our inability to retain earnings; |

|                                |                                         |
|--------------------------------|-----------------------------------------|
| •     | our liquidity and capital expenditures; |

|                                |                                                                                                                                   |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|
| •     | our ability to complete hotel dispositions at acceptable prices and to pursue our growth strategy and acquisition activities; and |

|                                |                                                 |
|--------------------------------|-------------------------------------------------|
| •     | competitive conditions in the lodging industry. |

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|                                         |        |                              |        |        |        |        |        |        |        |        |        |        |        |        |        |        |        |   |        |        |
|-----------------------------------------|--------|------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---|--------|--------|
|                                    |   | Year Ended December 31, |
|                                    |   | 2010                         |   | 2009   |   | 2008   |   | 2007   |   | 2006   |
| Number of FelCor Hotels                 |   | 80                           |   |   | 83     |   |   | 85     |   |   | 83     |   |   | 83     |   |
| Occupancy:                              |   |                         |   |   |   |   |   |   |   |   |
|   FelCor hotels(a)       |   | 70.5                         | %      |   | 66.2   | %      |   | 70.9   | %      |   | 70.4   | %      |   | 72.6   | %      |
|   All Upscale U.S. hotels(b)  |   | 58.9                         |   |   | 56.4   |   |   | 62.0   |   |   | 64.8   |   |   | 65.5   |   |
|   All Midprice U.S. hotels(c) |   | 53.8                         |   |   | 51.9   |   |   | 57.6   |   |   | 60.4   |   |   | 61.0   |   |
| All U.S. hotels                         |   | 57.6                         |   |   | 55.1   |   |   | 60.4   |   |   | 63.2   |   |   | 63.4   |   |
| ADR:                                    |   |                         |   |   |   |   |   |   |   |   |
|   FelCor hotels(a)       |   | $                            | 121.47 |   |   | $      | 123.23 |   |   | $      | 136.32 |   |   | $      | 134.21 |   |   | $ | 125.98 |   |
|   All Upscale U.S. hotels(b)  |   | 106.44                       |   |   | 106.66 |   |   | 115.96 |   |   | 113.56 |   |   | 107.37 |   |
|   All Midprice U.S. hotels(c) |   | 78.33                        |   |   | 78.12  |   |   | 84.21  |   |   | 82.18  |   |   | 78.12  |   |
| All U.S. hotels                         |   | 98.08                        |   |   | 97.51  |   |   | 106.55 |   |   | 103.64 |   |   | 97.31  |   |
| RevPAR:                                 |   |                         |   |   |   |   |   |   |   |   |
|   FelCor hotels(a)       |   | $                            | 85.58  |   |   | $      | 81.62  |   |   | $      | 96.67  |   |   | $      | 94.48  |   |   | $ | 91.45  |   |
|   All Upscale U.S. hotels(b)  |   | 62.71                        |   |   | 60.12  |   |   | 71.83  |   |   | 73.61  |   |   | 70.31  |   |
|   All Midprice U.S. hotels(c) |   | 42.16                        |   |   | 40.58  |   |   | 48.48  |   |   | 49.68  |   |   | 47.66  |   |
| All U.S. hotels                         |   | 56.47                        |   |   | 53.71  |   |   | 64.37  |   |   | 65.50  |   |   | 61.69  |   |

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|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Hilton Worldwide (www.hiltonworldwide.com) is recognized internationally as a preeminent hospitality company.  Hilton owns, manages or franchises more than 3,600 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, Hilton Garden Inn, Hampton Inn, Homewood Suites, Home2 Suites, and Hilton Grand Vacations.  At December 31, 2010, 53 of our Consolidated Hotels were managed by Hilton subsidiaries.  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 1,000 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, Element and Aloft.  Subsidiaries of Starwood managed eight of our Consolidated Hotels at December 31, 2010.  Starwood indirectly owns 40% of one of our Consolidated Hotels. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Marriott International, Inc. (www.marriott.com) is a leading lodging company with over 3,400 lodging properties worldwide.  Its portfolio includes 17 lodging and vacation resort ownership brands, including Ritz Carlton, Marriott, Renaissance, JW Marriott, Courtyard by Marriott, Fairfield Inn by Marriott and Residence Inn by Marriott.  At December 31, 2010, three of our Consolidated Hotels were managed by Marriott subsidiaries. |

|                                |                                                                                                                                                                                                                                       |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Fairmont Hotels & Resorts (www.fairmont.com) is a leading luxury global hotel company, with a collection of 56 distinctive hotels.  At December 31, 2010, a Fairmont subsidiary managed the Fairmont Copley Plaza in Boston. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | 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 4,500 hotels and over 650,000 guest rooms in 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.  IHG also manages the world’s largest hotel loyalty program, Priority Club Rewards.  At December 31, 2010,  IHG subsidiaries 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; |

|                                |                                                                                    |
|--------------------------------|------------------------------------------------------------------------------------|
| •     | limit our ability to pay dividends, invest in unconsolidated joint ventures, etc.; |

|                                |                                                                                                                                      |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
| •     | 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. |

|                                |                                                                                |
|--------------------------------|--------------------------------------------------------------------------------|
| •     | adverse changes in general or local economic or real estate market conditions; |

|                                |                         |
|--------------------------------|-------------------------|
| •     | 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 property losses; |

|                                |                                                      |
|--------------------------------|------------------------------------------------------|
| •     | 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. |

----

|                                |                                                                       |
|--------------------------------|-----------------------------------------------------------------------|
| •     | 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; |

|                                |                                                      |
|--------------------------------|------------------------------------------------------|
| •     | 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 2010HotelEBITDA(a) |
| Embassy Suites Hotels    | 45     |               |   |                    | 58     |   |   |
| Holiday Inn              | 15     |               |   |                    | 18     |   |   |
| Sheraton and Westin      | 8      |               |   |                    | 9      |   |   |
| Doubletree               | 7      |               |   |                    | 7      |   |   |
| Renaissance and Marriott | 3      |               |   |                    | 3      |   |   |
| Hilton                   | 2      |               |   |                    | 3      |   |   |
| Fairmont                 |   | 1                  |   |                    |   | 2      |   | (b)  |

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|                          |        |        |              |        |             |        |                 |        |                                |        |        |        |        |        |        |           |  |
|--------------------------|--------|--------|--------------|--------|-------------|--------|-----------------|--------|--------------------------------|--------|--------|--------|--------|--------|--------|-----------|--|
| Market                   |   |   |  Hotels |   |  Rooms |   | % ofTotal Rooms |   | % of 2010 Hotel EBITDA(a) |
| South Florida Area       | 5      |   |         |   | 1,439       |   |            |   | 6                              |   |   |   | 7      |   |   |
| Los Angeles              |   | 4      |         |   |        | 899    |            |   |                           | 4      |   |   |   | 6      |   |      |
| San Francisco Area       |   | 6      |         |   |        | 2,138  |            |   |                           | 9      |   |   |   | 6      |   |      |
| Atlanta                  |   | 5      |         |   |        | 1,462  |            |   |                           | 6      |   |   |   | 6      |   |      |
| Dallas                   |   | 4      |         |   |        | 1,333  |            |   |                           | 6      |   |   |   | 5      |   |      |
| Boston                   |   | 3      |         |   |        | 915    |            |   |                           | 4      |   |   |   | 5      |   | (b)  |
| Minneapolis              |   | 3      |         |   |        | 736    |            |   |                           | 3      |   |   |   | 4      |   |      |
| Philadelphia             |   | 2      |         |   |        | 729    |            |   |                           | 3      |   |   |   | 4      |   |      |
| Orlando                  |   | 4      |         |   |        | 1,038  |            |   |                           | 4      |   |   |   | 4      |   |      |
| Central California Coast |   | 2      |         |   |        | 408    |            |   |                           | 2      |   |   |   | 4      |   |      |
| Myrtle Beach             |   | 2      |         |   |        | 640    |            |   |                           | 3      |   |   |   | 4      |   |      |
| New Orleans              |   | 2      |         |   |        | 744    |            |   |                           | 3      |   |   |   | 4      |   |      |
| San Antonio              |   | 3      |         |   |        | 874    |            |   |                           | 4      |   |   |   | 3      |   |      |
| San Diego                |   | 1      |         |   |        | 600    |            |   |                           | 3      |   |   |   | 3      |   |      |
| Other                    |   | 35     |         |   |        | 9,381  |            |   |                           | 40     |   |   |   | 35     |   |      |
|                     |   |   |         |   |        |   |            |   |                           |   |   |   |   |
| Location                 |   |   |         |   |        |   |            |   |                           |   |   |   |   |
| Urban                    |   | 21     |         |   |        | 6,741  |            |   |                           | 29     |   |   |   | 32     |   | (b)  |
| Suburban                 | 32     |   |         |   | 7,880       |   |            |   | 34                             |   |   |   | 29     |   |   |
| Airport                  |   | 18     |         |   |        | 5,788  |            |   |                           | 25     |   |   |   | 23     |   |      |
| Resort                   |   | 10     |         |   |        | 2,927  |            |   |                           | 12     |   |   |   | 16     |   |      |

----

|                          |        |        |              |        |             |        |                 |        |                                |    |        |        |        |    |        |           |  |
|--------------------------|--------|--------|--------------|--------|-------------|--------|-----------------|--------|--------------------------------|----|--------|--------|--------|----|--------|-----------|--|
| Brand                    |   |   |  Hotels |   |  Rooms |   | % ofTotal Rooms |   | % of 2010 Hotel EBITDA(a) |
| Embassy Suites Hotels    |   | 45     |         |   |        | 11,674 |            |   |                           | 50 |   |   |   | 58 |   |      |
| Holiday Inn              |   | 15     |         |   |        | 5,154  |            |   |                           | 22 |   |   |   | 18 |   |      |
| Sheraton and Westin      |   | 8      |         |   |        | 2,774  |            |   |                           | 12 |   |   |   | 9  |   |      |
| Doubletree               |   | 7      |         |   |        | 1,471  |            |   |                           | 6  |   |   |   | 7  |   |      |
| Renaissance and Marriott |   | 3      |         |   |        | 1,321  |            |   |                           | 6  |   |   |   | 3  |   |      |
| Hilton                   |   | 2      |         |   |        | 559    |            |   |                           | 2  |   |   |   | 3  |   |      |
| Fairmont                 |   | 1      |         |   |        | 383    |            |   |                           | 2  |   |   |   | 2  |   | (b)  |

----

|                          |                         |        |        |        |           |        |        |        |      |        |        |
|--------------------------|-------------------------|--------|--------|--------|-----------|--------|--------|--------|------|--------|--------|
|                     |  Occupancy (%)     |
|                     | Year Ended December 31, |   |   |   |
|                     | 2010                    |   | 2009   |   | %Variance |
| Embassy Suites Hotels    | 72.2                    |   |   |   | 68.1      |   |   |   | 5.9  |   |   |
| Holiday Inn              | 71.5                    |   |   |   | 68.7      |   |   |   | 4.1  |   |   |
| Sheraton and Westin      | 64.9                    |   |   |   | 60.4      |   |   |   | 7.5  |   |   |
| Doubletree               | 72.6                    |   |   |   | 65.5      |   |   |   | 10.8 |   |   |
| Renaissance and Marriott | 63.9                    |   |   |   | 61.4      |   |   |   | 4.0  |   |   |
| Hilton                   | 61.5                    |   |   |   | 60.0      |   |   |   | 2.4  |   |   |
|                     |                    |   |   |   |      |   |   |   |
| Total hotels             | 70.5                    |   |   |   | 66.6      |   |   |   | 5.8  |   |   |
|                     |                    |   |   |   |      |   |   |   |
|                     |  ADR ($)           |
|                     | Year Ended December 31, |   |   |   |
|                     | 2010                    |   | 2009   |   | %Variance |
| Embassy Suites Hotels    | 124.81                  |   |   |   | 128.33    |   |   |   | (2.7 | )      |   |
| Holiday Inn              | 114.16                  |   |   |   | 112.22    |   |   |   | 1.7  |   |   |
| Sheraton and Westin      | 102.64                  |   |   |   | 105.25    |   |   |   | (2.5 | )      |   |
| Doubletree               | 116.37                  |   |   |   | 122.59    |   |   |   | (5.1 | )      |   |
| Renaissance and Marriott | 165.95                  |   |   |   | 163.16    |   |   |   | 1.7  |   |   |
| Hilton                   | 123.55                  |   |   |   | 115.46    |   |   |   | 7.0  |   |   |
|                     |                    |   |   |   |      |   |   |   |
| Total hotels             | 121.47                  |   |   |   | 123.26    |   |   |   | (1.5 | )      |   |
|                     |                    |   |   |   |      |   |   |   |
|                     |  RevPAR ($)        |
|                     | Year Ended December 31, |   |   |   |
|                     | 2010                    |   | 2009   |   | %Variance |
| Embassy Suites Hotels    | 90.10                   |   |   |   | 87.44     |   |   |   | 3.0  |   |   |
| Holiday Inn              | 81.65                   |   |   |   | 77.11     |   |   |   | 5.9  |   |   |
| Sheraton and Westin      | 66.64                   |   |   |   | 63.58     |   |   |   | 4.8  |   |   |
| Doubletree               | 84.52                   |   |   |   | 80.35     |   |   |   | 5.2  |   |   |
| Renaissance and Marriott | 106.00                  |   |   |   | 100.21    |   |   |   | 5.8  |   |   |
| Hilton                   | 75.96                   |   |   |   | 69.32     |   |   |   | 9.6  |   |   |
|                     |                    |   |   |   |      |   |   |   |
| Total hotels             | 85.58                   |   |   |   | 82.07     |   |   |   | 4.3  |   |   |

----

|                          |        |                              |        |        |        |           |        |        |        |      |        |        |
|--------------------------|--------|------------------------------|--------|--------|--------|-----------|--------|--------|--------|------|--------|--------|
|                     |   | Occupancy (%)                |
|                     |   | Year Ended December 31, |   |   |
|                     |   | 2010                         |   | 2009   |   | %Variance |
| South Florida            |   | 76.0                         |   |   |   | 73.0      |   |   |   | 4.1  |   |   |
| Los Angeles area         |   | 73.8                         |   |   |   | 71.6      |   |   |   | 3.2  |   |   |
| San Francisco area       |   | 74.5                         |   |   |   | 69.1      |   |   |   | 7.9  |   |   |
| Atlanta                  |   | 73.4                         |   |   |   | 69.7      |   |   |   | 5.3  |   |   |
| Dallas                   |   | 64.3                         |   |   |   | 58.6      |   |   |   | 9.7  |   |   |
| Minneapolis              |   | 74.6                         |   |   |   | 66.6      |   |   |   | 12.1 |   |   |
| Philadelphia             |   | 70.9                         |   |   |   | 66.4      |   |   |   | 6.8  |   |   |
| Orlando                  |   | 74.0                         |   |   |   | 74.0      |   |   |   | 0.1  |   |   |
| Central California Coast |   | 73.5                         |   |   |   | 72.8      |   |   |   | 0.9  |   |   |
| Myrtle Beach             |   | 61.0                         |   |   |   | 59.6      |   |   |   | 2.4  |   |   |
| New Orleans              |   | 68.5                         |   |   |   | 58.9      |   |   |   | 16.3 |   |   |
| Boston                   |   | 81.2                         |   |   |   | 77.8      |   |   |   | 4.4  |   |   |
| San Antonio              |   | 73.6                         |   |   |   | 70.0      |   |   |   | 5.1  |   |   |
| San Diego                |   | 75.8                         |   |   |   | 72.6      |   |   |   | 4.4  |   |   |
|                     |   | ADR ($)                      |
|                     |   | Year Ended December 31, |   |   |
|                     |   | 2010                         |   | 2009   |   | %Variance |
| South Florida            |   | 125.88                       |   |   |   | 129.18    |   |   |   | (2.6 | )      |   |
| Los Angeles area         |   | 137.01                       |   |   |   | 135.63    |   |   |   | 1.0  |   |   |
| San Francisco area       |   | 134.83                       |   |   |   | 129.66    |   |   |   | 4.0  |   |   |
| Atlanta                  |   | 104.02                       |   |   |   | 104.71    |   |   |   | (0.7 | )      |   |
| Dallas                   |   | 108.92                       |   |   |   | 114.92    |   |   |   | (5.2 | )      |   |
| Minneapolis              |   | 124.74                       |   |   |   | 127.53    |   |   |   | (2.2 | )      |   |
| Philadelphia             |   | 125.56                       |   |   |   | 135.22    |   |   |   | (7.1 | )      |   |
| Orlando                  |   | 107.20                       |   |   |   | 110.75    |   |   |   | (3.2 | )      |   |
| Central California Coast |   | 158.07                       |   |   |   | 156.45    |   |   |   | 1.0  |   |   |
| Myrtle Beach             |   | 135.78                       |   |   |   | 133.48    |   |   |   | 1.7  |   |   |
| New Orleans              |   | 124.45                       |   |   |   | 123.90    |   |   |   | 0.4  |   |   |
| Boston                   |   | 138.58                       |   |   |   | 133.97    |   |   |   | 3.4  |   |   |
| San Antonio              |   | 96.80                        |   |   |   | 102.74    |   |   |   | (5.8 | )      |   |
| San Diego                |   | 120.13                       |   |   |   | 124.75    |   |   |   | (3.7 | )      |   |
|                     |   | RevPAR ($)                   |
|                     |   | Year Ended December 31, |   |   |
|                     |   | 2010                         |   | 2009   |   | %Variance |
| South Florida            |   | 95.62                        |   |   |   | 94.28     |   |   |   | 1.4  |   |   |
| Los Angeles area         |   | 101.17                       |   |   |   | 97.07     |   |   |   | 4.2  |   |   |
| San Francisco area       |   | 100.50                       |   |   |   | 89.54     |   |   |   | 12.2 |   |   |
| Atlanta                  |   | 76.40                        |   |   |   | 73.01     |   |   |   | 4.6  |   |   |
| Dallas                   |   | 70.00                        |   |   |   | 67.34     |   |   |   | 4.0  |   |   |
| Minneapolis              |   | 93.04                        |   |   |   | 84.88     |   |   |   | 9.6  |   |   |
| Philadelphia             |   | 89.03                        |   |   |   | 89.81     |   |   |   | (0.9 | )      |   |
| Orlando                  |   | 79.36                        |   |   |   | 81.93     |   |   |   | (3.1 | )      |   |
| Central California Coast |   | 116.19                       |   |   |   | 113.95    |   |   |   | 2.0  |   |   |
| Myrtle Beach             |   | 82.81                        |   |   |   | 79.49     |   |   |   | 4.2  |   |   |
| New Orleans              |   | 85.28                        |   |   |   | 73.00     |   |   |   | 16.8 |   |   |
| Boston                   |   | 112.55                       |   |   |   | 104.22    |   |   |   | 8.0  |   |   |
| San Antonio              |   | 71.19                        |   |   |   | 71.89     |   |   |   | (1.0 | )      |   |
| San Diego                |   | 91.10                        |   |   |   | 90.58     |   |   |   | 0.6  |   |   |

----

|                                                          |                               |        |          |        |       |        |            |        |   |
|----------------------------------------------------------|-------------------------------|--------|----------|--------|-------|--------|------------|--------|---|
| Consolidated Hotel                                       | Brand                         |   | State    |   | Rooms |   | % Owned(a) |
| Birmingham                                               |  Embassy Suites Hotel    |   |  AL |   | 242   |   |       |   |
| Phoenix – Biltmore                                 |  Embassy Suites Hotel    |   |  AZ |   | 232   |   |       |   |
| Phoenix – Crescent                                 |  Sheraton                |   |  AZ |   | 342   |   |       |   |
| Phoenix – Tempe                                    |  Embassy Suites Hotel    |   |  AZ |   | 224   |   |       |   |
| Anaheim – North                                    |  Embassy Suites Hotel    |   |  CA |   | 222   |   |       |   |
| Dana Point – Doheny Beach                          |  Doubletree Guest Suites |   |  CA |   | 196   |   |       |   |
| Indian Wells – Esmeralda Resort & Spa          |  Renaissance Resort      |   |  CA |   | 560   |   |       |   |
| Los Angeles – International Airport/South          |  Embassy Suites Hotel    |   |  CA |   | 349   |   |       |   |
| Milpitas – Silicon Valley                          |  Embassy Suites Hotel    |   |  CA |   | 266   |   |       |   |
| Napa Valley                                              |  Embassy Suites Hotel    |   |  CA |   | 205   |   |       |   |
| Oxnard – Mandalay Beach – Hotel & Resort |  Embassy Suites Hotel    |   |  CA |   | 248   |   |       |   |
| San Diego – On the Bay                             |  Holiday Inn             |   |  CA |   | 600   |   |       |   |
| San Francisco – Airport/Burlingame                 |  Embassy Suites Hotel    |   |  CA |   | 340   |   |       |   |
| San Francisco – Airport/South San Francisco        |  Embassy Suites Hotel    |   |  CA |   | 312   |   |       |   |
| San Francisco – Fisherman’s Wharf            |  Holiday Inn             |   |  CA |   | 585   |   |       |   |
| San Francisco – Union Square                       |  Marriott                |   |  CA |   | 400   |   |       |   |
| San Rafael – Marin County                          |  Embassy Suites Hotel    |   |  CA |   | 235   |   |       | 50     | % |
| Santa Barbara – Goleta                             |  Holiday Inn             |   |  CA |   | 160   |   |       |   |
| Santa Monica Beach – at the Pier                   |  Holiday Inn             |   |  CA |   | 132   |   |       |   |
| Wilmington                                               |  Doubletree              |   |  DE |   | 244   |   |       | 90     | % |
| Boca Raton                                               |  Embassy Suites Hotel    |   |  FL |   | 263   |   |       |   |
| Deerfield Beach – Resort & Spa                 |  Embassy Suites Hotel    |   |  FL |   | 244   |   |       |   |
| Ft. Lauderdale – 17th Street                       |  Embassy Suites Hotel    |   |  FL |   | 361   |   |       |   |
| Ft. Lauderdale – Cypress Creek                     |  Sheraton Suites         |   |  FL |   | 253   |   |       |   |
| Jacksonville – Baymeadows                          |  Embassy Suites Hotel    |   |  FL |   | 277   |   |       |   |
| Miami – International Airport                      |  Embassy Suites Hotel    |   |  FL |   | 318   |   |       |   |
| Orlando – International Airport                    |  Holiday Inn             |   |  FL |   | 288   |   |       |   |
| Orlando – International Drive South/Convention     |  Embassy Suites Hotel    |   |  FL |   | 244   |   |       |   |
| Orlando– North                                     |  Embassy Suites Hotel    |   |  FL |   | 277   |   |       |   |
| Orlando – Walt Disney World Resort                 |  Doubletree Guest Suites |   |  FL |   | 229   |   |       |   |
| St. Petersburg – Vinoy Resort & Golf Club      |  Renaissance Resort      |   |  FL |   | 361   |   |       |   |
| Tampa – Tampa Bay                                  |  Doubletree Guest Suites |   |  FL |   | 203   |   |       |   |
| Atlanta – Airport                                  |  Embassy Suites Hotel    |   |  GA |   | 232   |   |       |   |
| Atlanta – Buckhead                                 |  Embassy Suites Hotel    |   |  GA |   | 316   |   |       |   |
| Atlanta – Galleria                                 |  Sheraton Suites         |   |  GA |   | 278   |   |       |   |
| Atlanta – Gateway – Atlanta Airport          |  Sheraton                |   |  GA |   | 395   |   |       |   |
| Atlanta – Perimeter Center                         |  Embassy Suites Hotel    |   |  GA |   | 241   |   |       | 50     | % |
| Chicago – Lombard/Oak Brook                        |  Embassy Suites Hotel    |   |  IL |   | 262   |   |       | 50     | % |
| Chicago – Gateway – O’Hare             |  Sheraton Suites         |   |  IL |   | 296   |   |       |   |
| Indianapolis – North                               |  Embassy Suites Hotel    |   |  IN |   | 221   |   |       | 82     | % |
| Kansas City – Overland Park                        |  Embassy Suites Hotel    |   |  KS |   | 199   |   |       | 50     | % |
| Lexington – Lexington Green                        |  Hilton Suites           |   |  KY |   | 174   |   |       |   |
| Baton Rouge                                              |  Embassy Suites Hotel    |   |  LA |   | 223   |   |       |   |
| New Orleans – Convention Center                    |  Embassy Suites Hotel    |   |  LA |   | 370   |   |       |   |

----

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

----

|                       |        |                         |        |        |        |        |        |        |        |   |        |        |
|-----------------------|--------|-------------------------|--------|--------|--------|--------|--------|--------|--------|---|--------|--------|
|                  |   | Year Ended December 31, |
|                  |   | 2010                    |   | 2009   |   | 2008   |
| Base fees             |   | $                       | 26,406 |   |   | $      | 25,879 |   |   | $ | 31,036 |   |
| Incentive fees        |   | 1,136                   |   |   | 769    |   |   | 4,720  |   |
| Total management fees |   | $                       | 27,542 |   |   | $      | 26,648 |   |   | $ | 35,756 |   |

|          |        |                                          |        |        |        |            |        |        |        |         |        |        |
|----------|--------|------------------------------------------|--------|--------|--------|------------|--------|--------|--------|---------|--------|--------|
|     |   | Number of Management Agreements Expiring |
| Manager  |   | 2014                                     |   | 2015   |   | Thereafter |
| Hilton   |   | 6                                        |   |   |   | 6          |   |   |   | 41      |   |   |
| IHG      |   | —                                  |   |   |   | —    |   |   |   | 15      |   |   |
| Starwood |   | —                                  |   |   |   | —    |   |   |   | 8       |   |   |
| Marriott |   | —                                  |   |   |   | —    |   |   |   | 3       |   |   |
| Fairmont |   | —                                  |   |   |   | —    |   |   |   | 1       |   |   |
| Other    |   | —                                  |   |   |   | 1          |   |   |   | — |   |   |
| Total    |   | 6                                        |   |   |   | 7          |   |   |   | 68      |   |   |

----

|                       |        |                              |        |        |        |        |        |        |        |   |        |        |  |
|-----------------------|--------|------------------------------|--------|--------|--------|--------|--------|--------|--------|---|--------|--------|--|
|                  |   | Year Ended December 31, |
| Brand                 |   |                         | 2010   |   | 2009   |   | 2008   |
| Embassy Suites Hotels |   | $                            | 15,611 |   |   | $      | 15,025 |   |   | $ | 17,994 |   |
| Hilton Suites         |   | 302                          |   |   | 252    |   |   | 299    |   |
| Total                 |   | $                            | 15,913 |   |   | $      | 15,277 |   |   | $ | 18,293 |   |

----

|                |        |        |        |        |                              |        |         |        |   |         |        |
|----------------|--------|--------|--------|--------|------------------------------|--------|---------|--------|---|---------|--------|
|           | High   |   | Low    |   | Dividends Declared Per Share |
| 2010           |   |   |   |   |                         |
| First quarter  | $      | 6.42   |   |   | $                            | 3.49   |    |   | $ | — |   |
| Second quarter | 8.99   |   |   | 4.95   |                         |   | — |   |
| Third quarter  | 6.16   |   |   | 3.91   |                         |   | — |   |
| Fourth quarter | 7.48   |   |   | 4.53   |                         |   | — |   |
|           |   |   |   |   |                         |
| 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   |                         |   | — |   |

----

|                                                                                            |           |                                                                                         |        |                                                                             |        |                                                          |        |        |  |  |
|--------------------------------------------------------------------------------------------|-----------|-----------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|----------------------------------------------------------|--------|--------|--|--|
| 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                                                                              | 15,000    |                                                                                    |   | $                                                                           | 15.62  |                                                     |   |   |
| Unvested Restricted Stock                                                                  | 1,554,817 |                                                                                    |   |                                                                        |   |                                                     |
| Total                                                                                      | 1,569,817 |                                                                                    |   |                                                                        |   | 178,083                                                  |   |

----

|                                                                                                                                                                                                                                                                                                                                                                             |        |                              |         |        |        |        |         |        |        |        |       |        |        |       |        |        |        |   |       |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|--------|--------|--------|---------|--------|--------|--------|-------|--------|--------|-------|--------|--------|--------|---|-------|--------|
|                                                                                                                                                                                                                                                                                                                                                                        |   | Year Ended December 31, |
|                                                                                                                                                                                                                                                                                                                                                                        |   | 2010                         |    | 2009   |   | 2008   |    | 2007   |   | 2006   |
| Statement of Operations Data:(a)                                                                                                                                                                                                                                                                                                                                            |   |                         |    |   |   |   |    |   |   |   |
| Total revenues                                                                      |   | $                            | 928     |   |   | $      | 874     |   |   | $      | 1,059 |   |   | $     | 946    |   |   | $ | 917   |   |
|   Income (loss) from continuing operations(b)                                                                                                                                                                                                                                                                                                                     |   | (218                         | )       |   | (99    | )      |    | (61    | )      |   | 55    |   |   | 6     |   |
|                                                                                                                                                                                                                                                                                                                                                                        |   |                         |    |   |   |   |    |   |   |   |
| Diluted earnings per share:                                                                                                                                                                                                                                                                                                                                                 |   |                         |    |   |   |   |    |   |   |   |
| Income (loss) from continuing operations                                                                                                                                                                                                                                                                                                                                    |   | $                            | (3.16   | )      |   | $      | (2.17   | )      |   | $      | (1.61 | )      |   | $     | 0.26   |   |   | $ | (0.50 | )      |
|                                                                                                                                                                                                                                                                                                                                                                        |   |                         |    |   |   |   |    |   |   |   |
| Other Data:                                                                                                                                                                                                                                                                                                                                                                 |   |                         |    |   |   |   |    |   |   |   |
|   Cash distributions declared per common    share(c)                                                                                                                                                                                                                                                                                          |   | $                            | — |   |   | $      | — |   |   | $      | 0.85  |   |   | $     | 1.20   |   |   | $ | 0.80  |   |
| Adjusted FFO per share(d)                                                                                                                                                                                                                                                                                                                                                   |   | $                            | (0.09   | )      |   | $      | 0.39    |   |   | $      | 1.99  |   |   | $     | 2.17   |   |   | $ | 1.98  |   |
| Adjusted EBITDA(d)                                                                                                                                                                                                                                                                                                                                                          |   | 188                          |    |   | 179    |   |    | 276    |   |   | 285   |   |   | 291   |   |
| Cash flows provided by operating activities                                                                                                                                                                                                                                                                                                                                 |   | 59                           |    |   | 73     |   |    | 153    |   |   | 137   |   |   | 148   |   |
|                                                                                                                                                                                                                                                                                                                                                                        |   |                         |    |   |   |   |    |   |   |   |
| Balance Sheet Data (at end of period):                                                                                                                                                                                                                                                                                                                                      |   |                         |    |   |   |   |    |   |   |   |
| Total assets                                                                        |   | $                            | 2,359   |   |   | $      | 2,626   |   |   | $      | 2,512 |   |   | $     | 2,684  |   |   | $ | 2,583 |   |
| Total debt, net of discount                                                         |   | 1,548                        |    |   | 1,773  |   |    | 1,552  |   |   | 1,476 |   |   | 1,369 |   |
| Redeemable noncontrolling interests in   FelCor LP at redemption value                                                                                                                                                                                                                                                                                       |   | 2                            |    |   | 1      |   |    | 1      |   |   | 21    |   |   | 30    |   |

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|                                          |        |                              |        |        |         |        |         |         |        |        |         |        |        |         |         |        |        |   |         |        |
|------------------------------------------|--------|------------------------------|--------|--------|---------|--------|---------|---------|--------|--------|---------|--------|--------|---------|---------|--------|--------|---|---------|--------|
|                                     |   | Year Ended December 31, |
|                                     |   | 2010                         |   | 2009   |    | 2008   |    | 2007    |   | 2006   |
| Impairment loss                          |   | $                            | (153   | )      |    | $      | — |    |   | $      | (61     | )      |   | $       | — |   |   | $ | — |   |
| Impairment loss on unconsolidated hotels |   | —                      |   |   | (2      | )      |    | (13     | )      |   | — |   |   | — |    |
| Hurricane loss                           |   | —                      |   |   | — |   |    | (1      | )      |   | — |   |   | — |    |
| Conversion costs                         |   | —                      |   |   | — |   |    | (1      | )      |   | — |   |   | — |    |
| Severance costs                          |   | —                      |   |   | (1      | )      |    | (1      | )      |   | — |   |   | — |    |
| Debt extinguishment                      |   | 44                           |   |   | (2      | )      |    | — |   |   | — |   |   | (14     | )       |
| Gain (loss) on sale of assets            |   | —                      |   |   | 1       |   |    | — |   |   | — |   |   | — |    |
| Gain on sale of condominiums             |   | —                      |   |   | — |   |    | — |   |   | 19      |   |   | — |    |
| Gain on involuntary conversion           |   | —                      |   |   | — |   |    | 3       |   |   | — |   |   | — |    |

----

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | In June 2010, we completed a public offering of 31,625,000 shares of our common stock at $5.50 per share.  The net proceeds from the offering, after underwriting discounts and commissions, were approximately $166 million.  We used these proceeds, together with cash on hand, to repay $177 million of secured debt for $130 million, representing a 27% discount, and for our $98.5 million acquisition of the Fairmont Copley Plaza in Boston. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | In May 2010, we obtained a new $212 million loan, secured by nine hotels, that matures in 2015.  This loan bears interest at LIBOR (subject to a 3.0% floor) plus 5.1%.  The proceeds were used to repay $210 million in loans that were secured by 11 hotels and scheduled to mature in May 2010.  The terms and interest rate of this financing are significantly more favorable than the refinanced debt, and we unencumbered two previously mortgaged hotels in the process.   |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Two loans (totaling $32 million) matured in May 2010.   The cash flows for the hotels that secured those loans did not cover debt service and we determined the hotels' fair values to be less than the loan amounts.  We stopped funding the shortfalls in December 2009.  We were unable to negotiate an acceptable debt modification or reduction that favored our stockholders, and we transferred these hotels to the lenders in full satisfaction of the related debt. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Selling underperforming and non-strategic hotels creates capacity, allows us to reduce concentration risk, reduce leverage, invest in higher yielding redevelopment opportunities at our remaining hotels and/or acquire hotels in our target markets.  In addition, selling non-strategic hotels reduces our future capital expenditure requirements and enables management to focus on “core” long-term investments.  As part of our long-term strategic plan to enhance shareholder value and achieve or exceed targeted returns on invested capital, we sell and acquire hotels to improve our overall portfolio quality, enhance diversification and improve growth rates.  In that regard, we reviewed each hotel in our portfolio in terms of projected performance, future capital expenditure requirements and market dynamics and concentration risk.  Based on this analysis, we developed a plan to sell our interests in 35 hotels (29 of which we consolidate the real estate interest and six of which are owned by unconsolidated joint ventures) that no longer meet our investment criteria.  As a consequence, the hold periods for the hotels |

----

|                                                                                                                                                                                                                                                                                                                                                            |        |                              |        |        |        |                   |        |        |         |                    |         |        |        |       |        |        |       |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|--------|-------------------|--------|--------|---------|--------------------|---------|--------|--------|-------|--------|--------|-------|----|
|                                                                                                                                                                                                                                                                                                                                                       |   | Year Ended December 31, |
|                                                                                                                                                                                                                                                                                                                                                       |   | 2010                         |   | 2009   |   | % Change2010-2009 |   | 2008   |    | % Change 2009-2008 |
| RevPAR                                                                       |   | $                            | 85.58  |   |   | $                 | 82.07  |   |    | 4.3                |  % |   | $      | 99.44 |   |   | (17.5 | )% |
| Hotel EBITDA(a)                                                              |   | 218                          |   |   | 206    |              |   | 5.8    |  % |               | 301     |   |   | (31.6 | )%     |
| Hotel EBITDA margin(a)                                                       |   | 24.0                         | %      |   | 23.7   | %                 |   | 1.3    |  % |               | 28.5    | %      |   | (16.8 | )%     |
| Loss from continuing operations(b)                                                                                                                                                                                                                                                                                                                         |   | (218                         | )      |   | (99    | )                 |   | (120.2 | )%      |               | (61     | )      |   | (62.3 | )%     |

|                                          |        |                              |        |        |         |        |         |         |        |   |     |   |
|------------------------------------------|--------|------------------------------|--------|--------|---------|--------|---------|---------|--------|---|-----|---|
|                                     |   | Year Ended December 31, |
|                                     |   | 2010                         |   | 2009   |    | 2008   |
| Impairment loss                          |   | $                            | (153   | )      |    | $      | — |    |   | $ | (61 | ) |
| Impairment loss on unconsolidated hotels |   | —                      |   |   | (2      | )      |    | (13     | )      |
| Hurricane loss                           |   | —                      |   |   | — |   |    | (1      | )      |
| Conversion costs                         |   | —                      |   |   | — |   |    | (1      | )      |
| Severance costs                          |   | —                      |   |   | (1      | )      |    | (1      | )      |
| Debt extinguishment                      |   | 44                           |   |   | (2      | )      |    | — |   |
| Gain (loss) on sale of assets            |   | —                      |   |   | 1       |   |    | — |   |
| Gain on involuntary conversion           |   | —                      |   |   | — |   |    | 3       |   |

----

|                                |                                                                                                                                                                                                                                                                                                                                                            |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Total revenue was $928.3 million, a 6.2% increase compared to 2009.  The increase in revenue is attributed principally to a 4.3% increase in same-store RevPAR, which was driven by a 5.8% increase in occupancy partially offset by a 1.5% decrease in ADR.  The Fairmont Copley Plaza, which we acquired in August 2010, contributed $16.8 million. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Hotel departmental expenses increased $22.6 million (7.3%) compared to 2009, reflecting improved occupancy and $7.8 million of expenses at the Fairmont Copley Plaza.  As a percentage of total revenue, hotel departmental expenses increased from 35.6% to 36.0% compared to 2009.  Cost reductions implemented during 2009 continued to provide savings throughout 2010, which helped us achieve a reduction in 2010 per occupied room costs compared to 2009.  However, decreases in revenue per occupied room (predominately from lower ADR) more than offset the cost reductions.  Typically in a lodging recovery occupancy recovers sooner than ADR, so operating expenses increase without the benefit of an increase in ADR. |

|                                |                                                                                                                                                                                                                                                                                        |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Other property related costs increased $16.0 million, reflecting improved occupancy and $3.9 million of costs from the hotel acquired in August 2010.  As a percentage of total revenue, other property related costs remained essentially unchanged, compared to 2009. |

|                                |                                                                                                                                                                                                                                                                                                                             |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Management and franchise fees increased $1.5 million, compared to 2009, due to higher revenues (which serve as the basis for determining such fees) and $505,000 of such fees at the Fairmont Copley Plaza.  As a percent of total revenue, management and franchise fees remained essentially unchanged, compared to 2009. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Taxes, insurance and lease expenses increased $1.1 million compared to 2009.  The Fairmont Copley Plaza added $1.2 million of taxes, insurance and lease expense in 2010, and same-store hotels remained essentially unchanged, compared to 2009.  As a percentage of total revenue, taxes, insurance and lease expense improved from 10.3% in 2009 to 9.8%.  Favorable resolution of property tax appeals in 2010 and changes in franchise tax filing status combined to offset increases in percentage rent expenses. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Corporate expenses increased $6.5 million and increased as a percentage of total revenue from 2.8% to 3.3%.  This increase primarily reflects a temporary change in our long-term compensation program and increased corporate bonus accruals.  Because of the impact of the recession on the trading price of our common stock, our Board of Directors determined that issuing restricted stock at exceptionally low trading prices would be unduly dilutive to our stockholders.  In lieu of issuing restricted stock, restricted cash with which grantees could (and did) purchase stock, was granted.  Because those grants were subject to payroll tax withholding, amounts withheld were recognized as an expense in the first quarter of 2010, rather than |

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|                                |                                                                                                                                                                                                                                                   |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Depreciation and amortization expense increased $1.4 million, compared to 2009, primarily attributable to  depreciation of $38.9 million and $75.9 million on consolidated hotel capital assets placed in service in 2010 and 2009, respectively. |

|                                |                                                                                                                                                                                                                                                                                                                      |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Impairment charge.  We recorded a $152.7 million impairment loss (in continuing operations) in 2010 when we decided to sell our interest in 29 hotels (we consolidate the related real estate) and shortened the hold period.  Sixteen of these hotels were impaired in light of the reduced estimated hold periods. |

|                                |                                                                                                                                                                                                                              |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Net interest expense increased $38.7 million compared to 2009, largely attributable to our Senior Notes, which were issued in October 2009.  These notes bear interest at a higher rate than the notes they refinanced. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Debt extinguishment.  We repaid $177 million of secured debt for $130 million and recorded a corresponding $46.1 million gain on extinguishment of debt.  This gain was partially offset by losses from retirement of $40.3 million of our senior notes due June 2011.  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 income of unconsolidated entities was $16.9 million compared to a $4.8 million loss in 2009.  In 2010, we had $20.5 million gain from the sale of our interest in an unconsolidated entity (which owned the Sheraton Premier hotel in Tysons Corner, Virginia). |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Discontinued operations primarily reflects a $21.1 million impairment charge and $15.2 million gain from debt extinguishment related to two hotels transferred to lenders in full satisfaction of the related debt in 2010.   Discontinued operations in 2009 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); (ii) the following items related to two hotels sold in December 2009: a $3.4 million impairment loss and a $911,000 loss on sale (primarily related to selling costs), and (iii) $7.5 million of 2009 operating losses and interest expense related to hotels placed in discontinued operations in 2010 and 2009. |

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|                                |                                                                                                                                                                                                                                       |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Total revenue was $874.4 million, a 17.5% decrease compared to 2008.  The decrease in revenue is attributed principally to a 17.5% decrease in RevPAR, which was driven by a 7.2% decrease in occupancy and an 11.1% decrease in ADR. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Hotel departmental expenses decreased $43.4 million (12.2%), compared to 2008.  This expense reduction reflects: (i) the 7.2% decrease in occupancy; (ii) a $23.6 million decrease in labor costs, which included permanent reductions 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 33.5% to 35.6% compared to 2008.  While we made significant reductions in our departmental expenses, they were not sufficient to completely offset the decrease in revenue. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Other property related costs decreased $34.0 million (12.0%), compared to 2008.  The expense reduction consisted of: (i) a $11.6 million decrease in labor costs; (ii) a $9.7 million decrease in marketing assessments, credit card commissions and frequent guest expense (all of which reflect the decrease in revenue); (iii) a $3.1 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 to completely offset the decrease in revenue. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Management and franchise fees decreased $12.1 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 $12.5 million compared to 2008.  This decrease relates primarily to: (i) a $12.1 million decrease in hotel percentage lease expense, attributed to decreased revenue at our consolidated hotel lessees; (ii) a $1.1 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 favorable resolutions of property tax appeals in 2008.  As a percentage of total revenue, taxes, insurance and lease expense increased from 9.7% in 2008 to 10.3%. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | 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 $9.7 million, compared to 2008, primarily attributable to depreciation of $75.9 million and $142.9 million of consolidated hotel capital assets placed in service in 2009 and 2008, respectively. |

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|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Impairment charge.  In 2008, we identified six hotels as candidates to be sold (these hotels were 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. |

|                                |                                                                                                                                                                                     |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Net interest expense increased $6.8 million compared to 2008.  This increase is primarily attributable to the issuance of our Senior Notes, which were issued in October 2009. |

|                                |                                                                                                                                                                                                     |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Debt extinguishment.  In 2009, we retired $428 million of senior notes due June 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 unconsolidated hotels. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | 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); (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 (iii) $7.5 million of 2009 operating losses and interest expense related to hotels placed in discontinued operations in 2010 and 2009.  Discontinued operationsin 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;  (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; and (iii) $13.3 million of 2008 operating losses and interest expense related to hotels placed in discontinued operations in 2010 and 2009. |

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|                                                                                                                               |                              |          |        |         |                  |        |         |          |        |          |                  |        |         |        |          |         |                  |          |          |        |        |         |        |         |         |        |        |        |        |   |      |        |
|-------------------------------------------------------------------------------------------------------------------------------|------------------------------|----------|--------|---------|------------------|--------|---------|----------|--------|----------|------------------|--------|---------|--------|----------|---------|------------------|----------|----------|--------|--------|---------|--------|---------|---------|--------|--------|--------|--------|---|------|--------|
|                                                                                                                          | Year Ended December 31, |
|                                                                                                                          | 2010                         | 2009     | 2008   |
|                                                                                                                          | Dollars                      |     | Shares |    | Per Share Amount |   | Dollars |     | Shares |     | Per Share Amount |   | Dollars |   | Shares   |    | Per Share Amount |
| Net loss                                                                                                                      | $                            | (225,837 | )      |    |             |   |    |     | $      | (109,091 | )                |   |    |   |     |    | $                | (120,487 | )        |   |   |    |   |
| Noncontrolling interests                                                                                                      | 2,796                        |     |   |    |             |   |    | 969      |   |     |             |   |    |   | 1,242    |    |             |     |     |   |
| Preferred dividends                                                                                                           | (38,713                      | )        |   |    |             |   |    | (38,713  | )      |     |             |   |    |   | (38,713  | )       |             |     |     |   |
| Net loss attributable to   FelCor common   stockholders                                         | (261,754                     | )        |   |    |             |   |    | (146,835 | )      |     |             |   |    |   | (157,958 | )       |             |     |     |   |
| Less: Dividends declared   on unvested restricted   stock                                       | —                      |     |   |    |             |   |    | —  |   |     |             |   |    |   | (1,041   | )       |             |     |     |   |
| Numerator for basic and   diluted loss attributable to   common stockholders                    | (261,754                     | )        |   | 80,611  |             |   | (3.25   | )        |   | (146,835 | )                |   | 63,114  |   |     | (2.33   | )                |     | (158,999 | )      |   | 61,979  |   |    | (2.57   | )      |
| Depreciation and   amortization                                                                                | 145,536                      |     |   | — |             |   | 1.81    |     |   | 144,152  |             |   | — |   |     | 2.28    |             |     | 134,409  |   |   | — |   |    | 2.17    |   |
| Depreciation,   discontinued operations   and unconsolidated   entities          | 16,690                       |     |   | — |             |   | 0.21    |     |   | 20,497   |             |   | — |   |     | 0.32    |             |     | 21,422   |   |   | — |   |    | 0.35    |   |
| Gain on involuntary   conversion                                                                               | —                      |     |   | — |             |   | — |     |   | —  |             |   | — |   |     | — |             |     | (3,095   | )      |   | — |   |    | (0.05   | )      |
| Gain on sale of hotels                                                                                                        | —                      |     |   | — |             |   | — |     |   | (910     | )                |   | — |   |     | (0.01   | )                |     | (1,193   | )      |   | — |   |    | (0.02   | )      |
| Gain on sale of   unconsolidated    entities                                                    | (21,103                      | )        |   | — |             |   | (0.26   | )        |   | —  |             |   | — |   |     | — |             |     | —  |   |   | — |   |    | — |   |
| Noncontrolling interests in FelCor LP                                                                                         | (881                         | )        |   | 294     |             |   | (0.01   | )        |   | (672     | )                |   | 296     |   |     | (0.01   | )                |     | (2,433   | )      |   | 1,199   |   |    | (0.04   | )      |
| Dividend declared on   unvested restricted stock                                                               | —                      |     |   | — |             |   | — |     |   | —  |             |   | — |   |     | — |             |     | 1,041    |   |   | — |   |    | 0.02    |   |
| Unvested restricted stock                                                                                                     | —                      |     |   | — |             |   | — |     |   | —  |             |   | 331     |   |     | — |             |     | —  |   |   | — |   |    | — |   |
| FFO                                                                                                                           | (121,512                     | )        |   | 80,905  |             |   | (1.50   | )        |   | 16,232   |             |   | 63,741  |   |     | 0.25    |             |     | (8,848   | )      |   | 63,178  |   |    | (0.14   | )      |
| Impairment loss                                                                                                               | 152,654                      |     |   | — |             |   | 1.89    |     |   | —  |             |   | — |   |     | — |             |     | 60,822   |   |   | — |   |    | 0.96    |   |
| Impairment loss,   discontinued operations   and unconsolidated    entities | 20,322                       |     |   | — |             |   | 0.25    |     |   | 5,516    |             |   | — |   |     | 0.08    |             |     | 59,837   |   |   | — |   |    | 0.94    |   |
| Acquisition costs                                                                                                             | 449                          |     |   | — |             |   | 0.01    |     |   | —  |             |   | — |   |     | — |             |     | —  |   |   | — |   |    | — |   |
| Extinguishment of debt                                                                                                        | (59,465                      | )        |   | — |             |   | (0.74   | )        |   | 1,721    |             |   | — |   |     | 0.03    |             |     | —  |   |   | — |   |    | — |   |
| Hurricane loss                                                                                                                | —                      |     |   | — |             |   | — |     |   | —  |             |   | — |   |     | — |             |     | 952      |   |   | — |   |    | 0.02    |   |
| Hurricane loss,   discontinued operations   and unconsolidated   entities        | —                      |     |   | — |             |   | — |     |   | —  |             |   | — |   |     | — |             |     | 767      |   |   | — |   |    | 0.01    |   |
| Conversion costs                                                                                                              | —                      |     |   | — |             |   | — |     |   | 447      |             |   | — |   |     | 0.01    |             |     | 507      |   |   | — |   |    | 0.01    |   |
| Severance costs                                                                                                               | —                      |     |   | — |             |   | — |     |   | 612      |             |   | — |   |     | 0.01    |             |     | 850      |   |   | — |   |    | 0.01    |   |
| Liquidated damages,   discontinued operations                                                                  | —                      |     |   | — |             |   | — |     |   | —  |             |   | — |   |     | — |             |     | 11,060   |   |   | — |   |    | 0.18    |   |
| Lease termination costs                                                                                                       | —                      |     |   | — |             |   | — |     |   | 469      |             |   | — |   |     | 0.01    |             |     | —  |   |   | — |   |    | — |   |
| Unvested restricted stock                                                                                                     | —                      |     |   | — |             |   | — |     |   | —  |             |   | — |   |     | — |             |     | —  |   |   | 98      |   |    | — |   |
| Adjusted FFO                                                                                                                  | $                            | (7,552   | )      |    | 80,905           |   |    | $        | (0.09  | )        |             | $      | 24,997  |   |     | 63,741  |             |     | $        | 0.39   |   |    | $      | 125,947 |    |   | 63,276 |   |   | $ | 1.99 |   |

----

|                                                                                                 |                         |         |        |         |                  |        |         |         |        |         |                  |        |         |        |        |         |        |        |   |      |        |
|-------------------------------------------------------------------------------------------------|-------------------------|---------|--------|---------|------------------|--------|---------|---------|--------|---------|------------------|--------|---------|--------|--------|---------|--------|--------|---|------|--------|
|                                                                                            | Year Ended December 31, |
|                                                                                            | 2007                    | 2006    |
|                                                                                            | Dollars                 |    | Shares |    | Per Share Amount |   | Dollars |    | Shares |    | Per Share Amount |
| Net income                                                                                      | $                       | 89,824  |   |    |             |   |    |    | $      | 50,256  |             |   |    |   |   |
| Noncontrolling interests                                                                        | (785                    | )       |   |    |             |   |    | 789     |   |    |             |   |    |
| Preferred dividends                                                                             | (38,713                 | )       |   |    |             |   |    | (38,713 | )      |    |             |   |    |
| Net income attributable to FelCor    common stockholders                    | 50,326                  |    |   |    |             |   |    | 12,332  |   |    |             |   |    |
| Less: Dividends declared on unvested    restricted stock                    | (1,011                  | )       |   |    |             |   |    | (612    | )      |    |             |   |    |
| Numerator for basic and diluted loss    attributable to common stockholders | 49,315                  |    |   | 61,600  |             |   | 0.80    |    |   | 11,720  |             |   | 60,734  |   |   | 0.19    |   |
| Depreciation and amortization                                                                   | 103,932                 |    |   | — |             |   | 1.69    |    |   | 88,641  |             |   | — |   |   | 1.46    |   |
| Depreciation, discontinued operations and    unconsolidated entities        | 18,890                  |    |   | — |             |   | 0.31    |    |   | 32,849  |             |   | — |   |   | 0.54    |   |
| Gain on sale of hotels                                                                          | (27,330                 | )       |   | — |             |   | (0.44   | )       |   | (40,650 | )                |   | — |   |   | (0.67   | )      |
| Gain on sale of unconsolidated entities                                                         | (10,993                 | )       |   | — |             |   | (0.18   | )       |   | — |             |   | — |   |   | — |   |
| Noncontrolling interests in FelCor LP                                                           | 1,094                   |    |   | 1,354   |             |   | (0.04   | )       |   | 279     |             |   | 1,864   |   |   | (0.04   | )      |
| Dividends declared on unvested restricted stock                                                 | 1,011                   |    |   | — |             |   | 0.02    |    |   | 612     |             |   | — |   |   | 0.01    |   |
| Unvested restricted stock                                                                       | —                 |    |   | 297     |             |   | (0.01   | )       |   | — |             |   | 327     |   |   | — |   |
| FFO                                                                                             | 135,919                 |    |   | 63,251  |             |   | 2.15    |    |   | 93,451  |             |   | 62,925  |   |   | 1.49    |   |
| Impairment loss, discontinued operations    and unconsolidated entities     | —                 |    |   | — |             |   | — |    |   | 15,547  |             |   | — |   |   | 0.24    |   |
| Extinguishment of debt                                                                          | 811                     |    |   | — |             |   | 0.01    |    |   | 17,472  |             |   | — |   |   | 0.28    |   |
| Conversion costs                                                                                | 491                     |    |   | — |             |   | 0.01    |    |   | — |             |   | — |   |   | — |   |
| Abandoned projects                                                                              | 22                      |    |   | — |             |   | — |    |   | 112     |             |   | — |   |   | — |   |
| Gain on swap termination                                                                        | —                 |    |   | — |             |   | — |    |   | (1,715  | )                |   | — |   |   | (0.03   | )      |
| Adjusted FFO                                                                                    | $                       | 137,243 |   |    | 63,251           |   |    | $       | 2.17   |    |             | $      | 124,867 |   |   | 62,925  |   |   | $ | 1.98 |   |

----

|                                                                                                                                                      |                              |          |        |         |        |          |         |        |        |          |        |        |         |         |        |        |   |         |        |
|------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|----------|--------|---------|--------|----------|---------|--------|--------|----------|--------|--------|---------|---------|--------|--------|---|---------|--------|
|                                                                                                                                                 | Year Ended December 31, |
|                                                                                                                                                 | 2010                         |     | 2009   |    | 2008   |     | 2007    |   | 2006   |
| Net income (loss)                                                                                                                                    | $                            | (225,837 | )      |    | $      | (109,091 | )       |   | $      | (120,487 | )      |   | $       | 89,824  |   |   | $ | 50,256  |   |
| Depreciation and amortization                                                                                                                        | 145,536                      |     |   | 144,152 |   |     | 134,409 |   |   | 103,932  |   |   | 88,641  |    |
| Depreciation, discontinued operations and    unconsolidated entities                                                                                 | 16,690                       |     |   | 20,497  |   |     | 21,422  |   |   | 18,890   |   |   | 32,849  |    |
| Interest expense                                                                                                                                     | 141,876                      |     |   | 103,458 |   |     | 97,484  |   |   | 95,923   |   |   | 111,857 |    |
| Interest expense, discontinued operations and      unconsolidated entities                                             | 7,633                        |     |   | 6,603   |   |     | 9,164   |   |   | 8,993    |   |   | 10,709  |    |
| Amortization of stock compensation                                                                                                                   | 7,445                        |     |   | 5,165   |   |     | 4,451   |   |   | 4,255    |   |   | 5,080   |    |
| Noncontrolling interests in other partnerships                                                                                                       | 1,915                        |     |   | 297     |   |     | (1,191  | )      |   | 309      |   |   | 1,068   |    |
| EBITDA                                                                                                                                               | 95,258                       |     |   | 171,081 |   |     | 145,252 |   |   | 322,126  |   |   | 300,460 |    |
| Impairment loss                                                                                                                                      | 152,654                      |     |   | — |   |     | 60,822  |   |   | —  |   |   | — |    |
| Impairment loss, discontinued operations and    unconsolidated entities                                                                              | 20,322                       |     |   | 5,516   |   |     | 59,837  |   |   | —  |   |   | 15,547  |    |
| Hurricane loss                                                                                                                                       | —                      |     |   | — |   |     | 952     |   |   | —  |   |   |    |
| Hurricane loss, discontinued operations    and unconsolidated entities                                                           | —                      |     |   | — |   |     | 767     |   |   | —  |   |   | — |    |
| Extinguishment of debt                                                                                                                               | (59,465                      | )        |   | 1,721   |   |     | — |   |   | 811      |   |   | 17,472  |    |
| Conversion costs                                                                                                                                     | —                      |     |   | 447     |   |     | 507     |   |   | 491      |   |   | — |    |
| Acquisition costs                                                                                                                                    | 449                          |     |   | — |   |     | — |   |   | —  |   |   | — |    |
| Severance costs                                                                                                                                      | —                      |     |   | 612     |   |     | 850     |   |   | —  |   |   | — |    |
| Liquidated damages, discontinued operations                                                                                                          | —                      |     |   | — |   |     | 11,060  |   |   | —  |   |   | — |    |
| Lease termination costs                                                                                                                              | —                      |     |   | 469     |   |     | — |   |   | —  |   |   | — |    |
| Abandoned projects                                                                                                                                   | —                      |     |   | — |   |     | — |   |   | 22       |   |   | 112     |    |
| Gain on swap termination                                                                                                                             | —                      |     |   | — |   |     | — |   |   | —  |   |   | (1,715  | )       |
| Gain on sale of hotels                                                                                                                               | —                      |     |   | (910    | )      |     | (1,193  | )      |   | (27,330  | )      |   | (40,650 | )       |
| Gain on involuntary conversion                                                                                                                       | —                      |     |   | — |   |     | (3,095  | )      |   | —  |   |   | — |    |
| Gain on sale of unconsolidated entities                                                                                                              | (21,103                      | )        |   | — |   |     | — |   |   | (10,993  | )      |   | — |    |
| Adjusted EBITDA                                                                                                                                      | 188,115                      |     |   | 178,936 |   |     | 275,759 |   |   | 285,127  |   |   | 291,226 |    |
| Other revenue                                                                                                                                        | (3,174                       | )        |   | (2,843  | )      |     | (2,983  | )      |   | (3,089   | )      |   | (79     | )       |
| Adjusted EBITDA from acquired hotels                                                                                                                 | (3,416                       | )        |   | — |   |     | — |   |   | 14,400   |   |   | 13,147  |    |
| Equity in income from unconsolidated subsidiaries    (excluding interest, depreciation and impairment    expense) | (16,283                      | )        |   | (14,829 | )      |     | (21,144 | )      |   | (24,309  | )      |   | (26,351 | )       |
| Noncontrolling interests in other partnerships   (excluding interest, depreciation and severance)                                     | 2,150                        |     |   | 2,305   |   |     | 3,648   |   |   | 311      |   |   | (357    | )       |
| Consolidated hotel lease expense                                                                                                                     | 36,327                       |     |   | 34,187  |   |     | 46,264  |   |   | 51,197   |   |   | 50,682  |    |
| Unconsolidated taxes, insurance and lease expense                                                                                                    | (6,630                       | )        |   | (7,092  | )      |     | (7,093  | )      |   | (6,327   | )      |   | (5,380  | )       |
| Interest income                                                                                                                                      | (363                         | )        |   | (693    | )      |     | (1,562  | )      |   | (6,331   | )      |   | (3,941  | )       |
| Other expenses (excluding conversion costs,   severance costs and lease termination costs)                                            | 2,831                        |     |   | 2,566   |   |     | 3,417   |   |   | 2,312    |   |   | — |    |
| Corporate expenses (excluding amortization   expense of stock compensation)                                                           | 23,302                       |     |   | 19,051  |   |     | 16,247  |   |   | 16,463   |   |   | 18,228  |    |
| Gain on sale of asset                                                                                                                                | —                      |     |   | (723    | )      |     | — |   |   | —  |   |   | 92      |    |
| Gain on sale of condominiums                                                                                                                         | —                      |     |   | — |   |     | — |   |   | (18,622  | )      |   | — |    |
| Adjusted EBITDA from disposed hotels                                                                                                                 | (5,075                       | )        |   | (4,656  | )      |     | (11,398 | )      |   | (21,965  | )      |   | (49,661 | )       |
| Hotel EBITDA                                                                                                                                         | $                            | 217,784  |   |    | $      | 206,209  |    |   | $      | 301,155  |   |   | $       | 289,167 |   |   | $ | 287,606 |   |

----

|                                     |        |                              |         |        |          |        |         |           |        |   |           |        |
|-------------------------------------|--------|------------------------------|---------|--------|----------|--------|---------|-----------|--------|---|-----------|--------|
|                                |   | Year Ended December 31, |
|                                |   | 2010                         |    | 2009   |     | 2008   |
| Total revenue                       |   | $                            | 928,311 |   |     | $      | 874,395 |      |   | $ | 1,059,394 |   |
| Other revenue                       |   | (3,174                       | )       |   | (2,843   | )      |    | (2,983    | )      |
| Hotel operating revenue             |   | 925,137                      |    |   | 871,552  |   |    | 1,056,411 |   |
| Acquired hotel revenue(a)           |   | (16,839                      | )       |   | —  |   |    | —   |   |
| Same-store hotel operating revenue  |   | 908,298                      |    |   | 871,552  |   |    | 1,056,411 |   |
| Same-store hotel operating expenses |   | (690,514                     | )       |   | (665,343 | )      |    | (755,256  | )      |
| Hotel EBITDA                        |   | $                            | 217,784 |   |     | $      | 206,209 |      |   | $ | 301,155   |   |
| Hotel EBITDA margin(b)              |   | 24.0                         | %       |   | 23.7     | %      |    | 28.5      | %      |

|                                                   |        |                              |           |        |          |        |         |          |        |   |           |        |
|---------------------------------------------------|--------|------------------------------|-----------|--------|----------|--------|---------|----------|--------|---|-----------|--------|
|                                              |   | Year Ended December 31, |
|                                              |   | 2010                         |      | 2009   |     | 2008   |
| Total operating expenses                          |   | $                            | 1,065,851 |   |     | $      | 864,875 |     |   | $ | 1,016,143 |   |
| Unconsolidated taxes, insurance and lease expense |   | 6,630                        |      |   | 7,092    |   |    | 7,093    |   |
| Consolidated hotel lease expense                  |   | (36,327                      | )         |   | (34,187  | )      |    | (46,264  | )      |
| Corporate expenses                                |   | (30,747                      | )         |   | (24,216  | )      |    | (20,698  | )      |
| Depreciation and amortization                     |   | (145,536                     | )         |   | (144,152 | )      |    | (134,409 | )      |
| Impairment loss                                   |   | (152,654                     | )         |   | —  |   |    | (60,822  | )      |
| Other expenses                                    |   | (3,280                       | )         |   | (4,069   | )      |    | (5,787   | )      |
| Acquired hotel expenses(a)                   |   | (13,423                      | )         |   | —  |   |    | —  |   |
| Hotel operating expenses                          |   | $                            | 690,514   |   |     | $      | 665,343 |     |   | $ | 755,256   |   |

----

|                                                    |        |                              |         |        |         |         |        |         |         |
|----------------------------------------------------|--------|------------------------------|---------|--------|---------|---------|--------|---------|---------|
|                                               |   | Year Ended December 31, |
|                                               |   | 2010                         |    | 2009   |    | 2008    |
| Ratio of operating income (loss) to total revenues |   | (14.8                        | )%      |   | 1.1     |  % |   | 4.1     |  % |
| Other revenue                                      |   | (0.3                         | )       |   | (0.3    | )       |   | (0.3    | )       |
|   Acquired hotel revenue(a)         |   | (2.2                         | )       |   | — |    |   | — |    |
| Unconsolidated taxes, insurance and lease expense  |   | (0.7                         | )       |   | (0.8    | )       |   | (0.7    | )       |
| Consolidated lease expense                         |   | 4.0                          |    |   | 3.9     |    |   | 4.4     |    |
| Other expenses                                     |   | 0.4                          |    |   | 0.5     |    |   | 0.6     |    |
| Corporate expenses                                 |   | 3.4                          |    |   | 2.8     |    |   | 2.0     |    |
| Depreciation and amortization                      |   | 16.0                         |    |   | 16.5    |    |   | 12.7    |    |
| Impairment loss                                    |   | 16.7                         |    |   | — |    |   | 5.7     |    |
|   Acquired hotel expenses(a)        |   | 1.5                          |    |   | — |    |   | — |    |
| Hotel EBITDA margin                                |   | 24.0                         |  % |   | 23.7    |  % |   | 28.5    |  % |

----

----

----

----

----

|                         |        |                  |        |                  |              |              |        |                            |        |           |         |        |         |           |         |        |
|-------------------------|--------|------------------|--------|------------------|--------------|--------------|--------|----------------------------|--------|-----------|---------|--------|---------|-----------|---------|--------|
|                    |   | EncumberedHotels |   | Interest Rate(%) |         |         |   | December 31,               |
|                    |   |             |   | Maturity Date    |         | 2010         |   | December 31, 2009     |
| Mortgage debt           |   |             |   |             |         |         |   |                       |   |      |    |
| Mortgage debt           |   | 12 hotels        |   | L + 0.93         |         | (a)     |   |  November 2011        |   | $         | 250,000 |   |    | $         | 250,000 |   |
| Mortgage debt           |   |  9 hotels   |   | L + 5.10         |         | (b)     |   |  April 2015           |   | 212,000   |    |   | — |      |
| Mortgage debt           |   |  9 hotels   |   | L + 3.50         |         | (c)     |   |  August 2011 (d) |   | 198,300   |    |   | 200,425 |      |
| Mortgage debt           |   |  7 hotels   |   | 9.02             |         |    |   |  April 2014           |   | 113,220   |    |   | 117,422 |      |
| Mortgage debt(e)        |   |  5 hotels   |   | 6.66             |         |         |   |  June - August 2014   |   | 69,206    |    |   | 70,917  |      |
| Mortgage debt           |   |  2 hotels   |   | L + 4.25         |         |         |   | November 2011(f)           |   | 29,000    |    |   | — |      |
| Mortgage debt           |   |  1 hotel    |   | 8.77             |         |    |   |  May 2013             |   | 27,770    |    |   | 27,829  |      |
| Mortgage debt           |   |  1 hotel    |   | 5.81             |         |    |   |  July 2016            |   | 11,321    |    |   | 11,741  |      |
| Mortgage debt           |   |  1 hotel    |   | 6.15             |         |    |   | June 2011                  |   | 7,800     |    |   | 9,228   |      |
| Other                   |   |  —    |   | 4.25             |         |    |   | May 2011                   |   | 524       |    |   | 354     |      |
| Senior notes            |   |             |   |             |         |         |   |                       |   |      |    |
| Senior secured notes(g) |   |  14 hotels  |   | 10.00            |         |         |   |  October 2014         |   | 582,821   |    |   | 572,500 |      |
| Senior notes            |   |  —    |   | 9.00             |         |         |   |  June 2011            |   | 46,347    |    |   | 86,604  |      |
| Retired debt            |   |  —    |   | —          |         |         |   | —                    |   | —   |    |   | 426,294 |      |
| Total                   |   | 61 hotels        |   |             |    |         |   |                       | $      | 1,548,309 |    |   | $       | 1,773,314 |    |

|                             |                                                                                                                                   |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------|
| (a)     | We purchased an interest rate cap that caps LIBOR at 7.8% and expires November 2011 for a $250 million notional amount. |

|                             |                                                                                                                                                                                  |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)     | LIBOR for this loan is subject to a 3% floor.  We purchased an interest rate cap that caps LIBOR at 5.0% and expires May 2012 for a $212 million notional amount. |

|                             |                                               |
|-----------------------------|-----------------------------------------------|
| (c)     | LIBOR for this loan is subject to a 2% floor. |

|                             |                                                                                                         |
|-----------------------------|---------------------------------------------------------------------------------------------------------|
| (d)     | This loan can be extended for as many as two years (to 2013), subject to satisfying certain conditions. |

|                             |                                                                                                         |
|-----------------------------|---------------------------------------------------------------------------------------------------------|
| (e)     | The hotels securing this debt are subject to separate loan agreements and are not cross-collateralized. |

|                             |                                                                                   |
|-----------------------------|-----------------------------------------------------------------------------------|
| (f)     | This loan can be extended for one year, subject to satisfying certain conditions. |

|                             |                                                                                                                                                                       |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (g)     | These notes have $636 million in aggregate principal outstanding and were sold at a discount that provides a 12.875% yield to maturity before transaction costs. |

----

|                               |        |         |           |                 |        |        |                  |        |                  |        |              |         |        |        |         |           |        |        |   |         |        |
|-------------------------------|--------|---------|-----------|-----------------|--------|--------|------------------|--------|------------------|--------|--------------|---------|--------|--------|---------|-----------|--------|--------|---|---------|--------|
|                          |   | Total   |      | Less Than1 Year |   |   | 1 – 3Years |   | 4 – 5Years |   | After5 Years |
| Debt(a)                       |   | $       | 1,986,851 |            |   | $      | 650,450          |   | (b)         |   | $            | 234,071 |   |   | $       | 1,093,261 |   |   | $ | 9,069   |   |
| Operating leases              |   | 343,424 |      |            | 26,992 |   |             |   | 30,132           |   |         | 11,687  |   |   | 274,613 |      |
| Purchase obligations          |   | 62,627  |      |            | 62,627 |   |             |   | —          |   |         | — |   |   | — |      |
| IHG liquidated damages(c)     |   | 8,526   |      |            | 8,526  |   |             |   | —          |   |         | — |   |   | — |      |
| Total contractual obligations |   | $       | 2,401,428 |            |   | $      | 748,595          |   |             |   | $            | 264,203 |   |   | $       | 1,104,948 |   |   | $ | 283,682 |   |

----

|                                 |                                                                                  |
|---------------------------------|----------------------------------------------------------------------------------|
| ◦     |     Annual cash flow growth rates for revenues and expenses; |

----

|                                 |                                            |
|---------------------------------|--------------------------------------------|
| ◦     | 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 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. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | 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 2010, 2009 and 2008 were $5.8 million, $5.9 million and $6.8 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 based on purchase price and allocated to land, property and equipment, identifiable intangible assets and assumed debt and other liabilities at fair value.  Any remaining unallocated purchase price, if any, is 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. |

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|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | 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 54 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 $3.5 million, at December 31, 2010, 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 recorded no contingent liabilities with regard to property or catastrophic losses at December 31, 2010. |

|                                |                                                                                                  |
|--------------------------------|--------------------------------------------------------------------------------------------------|
| •     | Our Taxable REIT Subsidiaries, or TRSs, have cumulative potential future tax deductions totaling |

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|                                            |                        |         |           |        |        |        |        |        |        |        |        |            |        |         |           |            |         |        |         |         |        |        |         |        |        |   |           |        |        |        |           |        |
|--------------------------------------------|------------------------|---------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|---------|-----------|------------|---------|--------|---------|---------|--------|--------|---------|--------|--------|---|-----------|--------|--------|--------|-----------|--------|
| December 31, 2010                          |
|                                       | Expected Maturity Date |
|                                       | 2011                   |    |      | 2012   |   | 2013   |   | 2014   |   | 2015   |   | Thereafter |   | Total   |      | Fair Value |
| Liabilities                                | (dollars in thousands) |
| Fixed rate:                                |                   |    |      |   |   |   |   |   |   |   |   |       |   |    |      |       |
| Debt                                       | $                      | 60,191  |      |   |   | $      | 4,561  |   |   | $      | 32,708 |       |   | $       | 804,842   |       |    | $      | 563     |    |   | $      | 8,813   |   |   | $ | 911,678   |   |   | $      | 1,001,102 |   |
| Average interest rate                      | 8.54                   | %       |      |   | 7.68   | %      |   | 8.61   | %      |   | 9.61   | %          |   | 5.81    | %         |       | 5.81    | %      |    | 9.45    | %      |   |    |
| Floating rate:                             |                   |    |      |   |   |   |   |   |   |   |   |       |   |    |      |       |
| Debt                                       | 478,966                |    | (b)  |   | 1,832  |   |   | 1,986  |   |   | 2,153  |       |   | 204,887 |      |       | — |   |    | 689,824 |   |   | 676,725 |   |
|    Average interest rate(a) | 3.36                   | %       |      |   | 8.10   | %      |   | 8.10   | %      |   | 8.16   | %          |   | 8.16    | %         |       | — |   |    | 4.83    | %      |   |    |
| Total debt                                 | $                      | 539,157 |      |   |   | $      | 6,393  |   |   | $      | 34,694 |       |   | $       | 806,995   |       |    | $      | 205,450 |    |   | $      | 8,813   |   |   | $ | 1,601,502 |   |   |   |
| Average interest rate                      | 3.94                   | %       |      |   | 7.80   | %      |   | 8.58   | %      |   | 9.60   | %          |   | 8.16    | %         |       | 5.81    | %      |    | 7.46    | %      |   |    |
| Net discount                               |                   |    |      |   |   |   |   |   |   |   |   |       |   | (53,193 | )         |       |    |
| Total debt                                 |                   |    |      |   |   |   |   |   |   |   |   |       |   | $       | 1,548,309 |       |    |   |

|                                            |        |                        |         |        |         |        |         |         |        |        |         |            |        |         |           |            |         |        |         |         |        |        |         |        |        |   |           |        |        |        |           |        |
|--------------------------------------------|--------|------------------------|---------|--------|---------|--------|---------|---------|--------|--------|---------|------------|--------|---------|-----------|------------|---------|--------|---------|---------|--------|--------|---------|--------|--------|---|-----------|--------|--------|--------|-----------|--------|
| 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 |       |    |   |

----

|                                                                                                    |    |
|----------------------------------------------------------------------------------------------------|----|
| Report of Independent Registered Public Accounting Firm                                            | 57 |
| Consolidated Balance Sheets — December 2010 and 2009                                         | 59 |
| Consolidated Statements of Operations for the years ended December 31, 2010, 2009 and 2008         | 60 |
| Consolidated Statements of Comprehensive Loss for the years ended December 31, 2010, 2009 and 2008 | 61 |
| Consolidated Statements of Equity for the years ended December 31, 2010, 2009 and 2008             | 62 |
| Consolidated Statements of Cash Flows for the years ended December 31, 2010, 2009 and 2008         | 65 |
| Notes to Consolidated Financial Statements                                                         | 66 |
| Schedule III — Real Estate and Accumulated Depreciation as of December 31, 2010              | 94 |

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|                                                                                                                                                                                              |            |           |                        |            |        |           |        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|-----------|------------------------|------------|--------|-----------|--------|
|                                                                                                                                                                                         | 2010       |      | December 31, 2009 |
| Assets                                                                                                                                                                                       |       |      |                   |
| Investment in hotels, net of accumulated depreciation of $982,564 and   $916,604 at December 31, 2010 and 2009, respectively                                                  | $          | 1,985,779 |                   |       | $      | 2,180,394 |   |
| Investment in unconsolidated entities                                                                                                                                                        | 75,920     |      |                   | 82,040     |   |
| Cash and cash equivalents                                                                                                                                                                    | 200,972    |      |                   | 263,531    |   |
| Restricted cash                                                                                                                                                                              | 16,702     |      |                   | 18,708     |   |
| Accounts receivable, net of allowance for doubtful accounts of $696 and   $406 at December 31, 2010 and 2009, respectively                                               | 27,851     |      |                   | 28,678     |   |
| Deferred expenses, net of accumulated amortization of $17,892 and   $14,502 at December 31, 2010 and 2009, respectively                                                       | 19,940     |      |                   | 19,977     |   |
| Other assets                                                                                                                                                                                 | 32,271     |      |                   | 32,666     |   |
| Total assets                                                                                                                                                                                 | $          | 2,359,435 |                   |       | $      | 2,625,994 |   |
| Liabilities and Equity                                                                                                                                                                       |       |      |                   |
| Debt, net of discount of $53,193 and $64,267 at December 31, 2010 and  2009, respectively                                                                                     | $          | 1,548,309 |                   |       | $      | 1,773,314 |   |
| Preferred dividends payable                                                                                                                                                                  | 76,293     |      |                   | 37,580     |   |
| Accrued expenses and other liabilities                                                                                                                                                       | 144,451    |      |                   | 131,339    |   |
| Total liabilities                                                                                                                                                                            | 1,769,053  |      |                   | 1,942,233  |   |
| Commitments and contingencies                                                                                                                                                                |       |      |                   |
| Redeemable noncontrolling interests in FelCor LP at redemption value,   285 and 295 units issued and outstanding at December 31, 2010 and   2009, respectively | 2,004      |      |                   | 1,062      |   |
| 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,      2010 and 2009        | 309,362    |      |                   | 309,362    |   |
|     Series C Cumulative Redeemable Preferred Stock, 68 shares,      liquidation value of $169,950, issued and outstanding at December 31,      2010 and 2009             | 169,412    |      |                   | 169,412    |   |
| Common stock, $0.01 par value, 200,000 shares authorized and 101,038 and     69,413 shares issued, including shares in treasury, at December 31, 2010     and 2009, respectively             | 1,010      |      |                   | 694        |   |
| Additional paid-in capital                                                                                                                                                                   | 2,190,308  |      |                   | 2,021,837  |   |
| Accumulated other comprehensive income                                                                                                                                                       | 26,457     |      |                   | 23,528     |   |
| Accumulated deficit                                                                                                                                                                          | (2,054,625 | )         |                   | (1,792,822 | )      |
| Less: Common stock in treasury, at cost, of 4,156 and 3,845 shares at   December 31, 2010 and 2009, respectively                                                              | (73,341    | )         |                   | (71,895    | )      |
| Total FelCor stockholders’ equity                                                                                                                                                      | 568,583    |      |                   | 660,116    |   |
| Noncontrolling interests in other partnerships                                                                                                                                               | 19,795     |      |                   | 22,583     |   |
| Total equity                                                                                                                                                                                 | 588,378    |      |                   | 682,699    |   |
| Total liabilities and equity                                                                                                                                                                 | $          | 2,359,435 |                   |       | $      | 2,625,994 |   |

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|                                                                                                   |           |          |        |          |        |          |           |        |   |           |        |
|---------------------------------------------------------------------------------------------------|-----------|----------|--------|----------|--------|----------|-----------|--------|---|-----------|--------|
|                                                                                              | 2010      |     | 2009   |     | 2008   |
| Revenues:                                                                                         |      |     |   |     |   |
| Hotel operating revenue                                                                           | $         | 925,137  |   |     | $      | 871,552  |      |   | $ | 1,056,411 |   |
| Other revenue                                                                                     | 3,174     |     |   | 2,843    |   |     | 2,983     |   |
| Total revenues                                                                                    | 928,311   |     |   | 874,395  |   |     | 1,059,394 |   |
| Expenses:                                                                                         |      |     |   |     |   |
| Hotel departmental expenses                                                                       | 333,779   |     |   | 311,200  |   |     | 354,628   |   |
| Other property operating costs                                                                    | 264,968   |     |   | 248,980  |   |     | 282,954   |   |
| Management and franchise fees                                                                     | 43,455    |     |   | 41,925   |   |     | 54,049    |   |
| Taxes, insurance and lease expenses                                                               | 91,432    |     |   | 90,333   |   |     | 102,796   |   |
| Corporate expenses                                                                                | 30,747    |     |   | 24,216   |   |     | 20,698    |   |
| Depreciation and amortization                                                                     | 145,536   |     |   | 144,152  |   |     | 134,409   |   |
| Impairment loss                                                                                   | 152,654   |     |   | —  |   |     | 60,822    |   |
| Other expenses                                                                                    | 3,280     |     |   | 4,069    |   |     | 5,787     |   |
| Total operating expenses                                                                          | 1,065,851 |     |   | 864,875  |   |     | 1,016,143 |   |
|                                                                                              |      |     |   |     |   |
| Operating income (loss)                                                                           | (137,540  | )        |   | 9,520    |   |     | 43,251    |   |
| Interest expense, net                                                                             | (141,513  | )        |   | (102,765 | )      |     | (95,922   | )      |
| Debt extinguishment                                                                               | 44,224    |     |   | (1,721   | )      |     | —   |   |
| Loss before equity in income (loss) from       unconsolidated entities                            | (234,829  | )        |   | (94,966  | )      |     | (52,671   | )      |
| Equity in income (loss) from unconsolidated entities                                              | 16,916    |     |   | (4,814   | )      |     | (10,932   | )      |
| Gain on involuntary conversion                                                                    | —   |     |   | —  |   |     | 3,095     |   |
| Gain on sale of assets                                                                            | —   |     |   | 723      |   |     | —   |   |
| Loss from continuing operations                                                                   | (217,913  | )        |   | (99,057  | )      |     | (60,508   | )      |
| Discontinued operations                                                                           | (7,924    | )        |   | (10,034  | )      |     | (59,979   | )      |
| Net loss                                                                                          | (225,837  | )        |   | (109,091 | )      |     | (120,487  | )      |
| Net loss (income) attributable to noncontrolling interests in other   partnerships | 1,915     |     |   | 297      |   |     | (1,191    | )      |
| Net loss attributable to redeemable noncontrolling interests  in FelCor LP              | 881       |     |   | 672      |   |     | 2,433     |   |
| Net loss attributable to FelCor                                                                   | (223,041  | )        |   | (108,122 | )      |     | (119,245  | )      |
| Preferred dividends                                                                               | (38,713   | )        |   | (38,713  | )      |     | (38,713   | )      |
| Net loss attributable to FelCor common stockholders                                               | $         | (261,754 | )      |     | $      | (146,835 | )         |   | $ | (157,958  | )      |
| Basic and diluted per common share data:                                                          |      |     |   |     |   |
| Loss from continuing operations                                                                   | $         | (3.16    | )      |     | $      | (2.17    | )         |   | $ | (1.61     | )      |
| Net loss                                                                                          | $         | (3.25    | )      |     | $      | (2.33    | )         |   | $ | (2.57     | )      |
| Basic and diluted weighted average common shares    outstanding               | 80,611    |     |   | 63,114   |   |     | 61,979    |   |

----

|                                                                                                          |        |          |          |        |          |        |          |          |        |   |          |   |
|----------------------------------------------------------------------------------------------------------|--------|----------|----------|--------|----------|--------|----------|----------|--------|---|----------|---|
|                                                                                                     |   | 2010     |     | 2009   |     | 2008   |
| Net loss                                                                                                 |   | $        | (225,837 | )      |     | $      | (109,091 | )        |   | $ | (120,487 | ) |
| Foreign currency translation adjustment                                                                  |   | 2,937    |     |   | 8,219    |   |     | (12,032  | )      |
| Comprehensive loss                                                                                       |   | (222,900 | )        |   | (100,872 | )      |     | (132,519 | )      |
| Comprehensive loss attributable to noncontrolling    interests in other partnerships |   | 1,915    |     |   | 297      |   |     | (1,191   | )      |
| Comprehensive loss to redeemable noncontrolling    interests in FelCor LP            |   | 873      |     |   | 634      |   |     | 2,612    |   |
| Comprehensive loss attributable to FelCor                                                                |   | $        | (220,112 | )      |     | $      | (99,941  | )        |   | $ | (131,098 | ) |

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|                                                                                                |                 |        |              |         |                            |        |                                               |        |        |         |                    |        |                                                |        |                                   |           |                    |        |          |          |        |         |          |            |            |         |        |          |         |         |        |        |        |        |        |        |        |           |         |        |  |  |  |
|------------------------------------------------------------------------------------------------|-----------------|--------|--------------|---------|----------------------------|--------|-----------------------------------------------|--------|--------|---------|--------------------|--------|------------------------------------------------|--------|-----------------------------------|-----------|--------------------|--------|----------|----------|--------|---------|----------|------------|------------|---------|--------|----------|---------|---------|--------|--------|--------|--------|--------|--------|--------|-----------|---------|--------|--|--|--|
|                                                                                           | Preferred Stock |   | Common Stock |    | Additional Paid-in Capital |   | Accumulated Other Comprehensive Income (Loss) |   |   |    |               |   | Noncontrolling Interests in Other Partnerships |   |  Comprehensive Income (Loss) |      |               |
|                                                                                           | Numberof Shares |   | Amount       |    | Number of Shares           |   |  Amount                                  |   |   |    | AccumulatedDeficit |   | Treasury Stock                                 |   |                              |      |  Total Equity |
| 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 |    | Additional Paid-in Capital |   | Accumulated Other Comprehensive Income (Loss) |   |   |    |               |   | Noncontrolling Interests in Other Partnerships |   |  Comprehensive Income (Loss) |      |               |
|                                                                                                                             | Numberof Shares |   | Amount       |    | Number of Shares           |   |  Amount                                  |   |   |    | AccumulatedDeficit |   | Treasury Stock                                 |   |                              |      |  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     | )      |
| Preferred dividends accrued:                                                                                                     |            |   |         |    |                       |   |                                          |   |   |    |               |   |                                           |   |                              |      |               |   |     |     |   |
|  $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 per Series C depository    preferred share) | —         |   |         | — |                       |   | —                                       |   |   | — |               |   | —                                        |   |                              | —   |               |   | (1,134   | )        |   | — |     |   | —    |   |   |     |    | (1,134  | )      |
| Comprehensive loss:                                                                                                              |            |   |         |    |                       |   |                                          |   |   |    |               |   |                                           |   |                              |      |               |   |     |     |   |
| Foreign exchange translation                                                                                                     | —         |   |         | — |                       |   | —                                       |   |   | — |               |   | —                                        |   |                              | 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 |   |

----

|                                                                                                |                      |        |              |         |                            |         |                                               |         |                            |         |        |                    |                                                |                |        |         |                                   |        |                    |           |        |         |          |        |            |        |         |          |         |            |        |         |        |        |         |        |         |        |         |        |        |        |        |        |   |         |        |  |  |
|------------------------------------------------------------------------------------------------|----------------------|--------|--------------|---------|----------------------------|---------|-----------------------------------------------|---------|----------------------------|---------|--------|--------------------|------------------------------------------------|----------------|--------|---------|-----------------------------------|--------|--------------------|-----------|--------|---------|----------|--------|------------|--------|---------|----------|---------|------------|--------|---------|--------|--------|---------|--------|---------|--------|---------|--------|--------|--------|--------|--------|---|---------|--------|--|--|
|                                                                                           | Preferred Stock      |   | Common Stock |    |                       |    | Accumulated Other Comprehensive Income (Loss) |    |                       |    |   |               | Noncontrolling Interests in Other Partnerships |           |   |    |                              |
|                                                                                           | Numberof Shares |   | Amount       |    | Number of Shares |    |  Amount                                  |    | Additional Paid-in Capital |    |   | AccumulatedDeficit |                                           | Treasury Stock |   |    |  Comprehensive Income (Loss) |   |  Total Equity |
| 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 |   |
| Issuance of common stock                                                                       | —              |   |         | — |                       |    | 31,625                                        |    |                       | 316     |   |               | 166,011                                        |           |   | — |                              |   | —            |      |   | — |     |   | —    |   |    |     |    | 166,327    |   |
| Issuance of stock awards                                                                       | —              |   |         | — |                       |    | —                                       |    |                       | — |   |               | (229                                           | )              |   | — |                              |   | —            |      |   | 297     |     |   | —    |   |    |     |    | 68         |   |
| Amortization of stock awards                                                                   | —              |   |         | — |                       |    | —                                       |    |                       | — |   |               | 5,400                                          |           |   | — |                              |   | —            |      |   | — |     |   | —    |   |    |     |    | 5,400      |   |
| Forfeiture of stock awards                                                                     | —              |   |         | — |                       |    | —                                       |    |                       | — |   |               | 405                                            |           |   | — |                              |   | —            |      |   | (1,928  | )        |   | —    |   |    |     |    | (1,523     | )      |
| Conversion of operating   partnership units into common   shares | —              |   |         | — |                       |    | —                                       |    |                       | — |   |               | (185                                           | )              |   | — |                              |   | —            |      |   | 185     |     |   | —    |   |    |     |    | —    |   |
| Allocation to redeemable   noncontrolling interests                             | —              |   |         | — |                       |    | —                                       |    |                       | — |   |               | (1,815                                         | )              |   | — |                              |   | —            |      |   | — |     |   | —    |   |    |     |    | (1,815     | )      |
| Contribution from noncontrolling   interests                                    | —              |   |         | — |                       |    | —                                       |    |                       | — |   |               | —                                        |           |   | — |                              |   | —            |      |   | — |     |   | 1,394      |   |    |     |    | 1,394      |   |
| Distribution to noncontrolling   interests                                      | —              |   |         | — |                       |    | —                                       |    |                       | — |   |               | —                                        |           |   | — |                              |   | —            |      |   | — |     |   | (2,383     | )      |    |     |    | (2,383     | )      |
| Other                                                                                          | —              |   |         | — |                       |    | —                                       |    |                       | — |   |               | (1,116                                         | )              |   | — |                              |   | (49                | )         |   | — |     |   | 116        |   |    |     |    | (1,049     | )      |
| Preferred dividends accrued:                                                                   |                 |   |         |    |                       |    |                                          |    |                       |    |   |               |                                           |           |   |    |                              |   |               |      |   |
|  $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                                                                   | —              |   |         | — |                       |    | —                                       |    |                       | — |   |               | —                                        |           |   | 2,929   |                              |   | —            |      |   | — |     |   | —    |   |    | $        | 2,929   |       |   |    |
| Net loss                                                                                       | —              |   |         | — |                       |    | —                                       |    |                       | — |   |               | —                                        |           |   | — |                              |   | (223,041           | )         |   | — |     |   | (1,915     | )      |    | (224,956 | )       |       |   |
| Comprehensive loss                                                                             |                 |   |         |    |                       |    |                                          |    |                       |    |   |               |                                           |           |   |    |                              |   | $                  | (222,027  | )      |    | (222,027 | )      |
| Balance at December 31, 2010                                                                   | 12,948               |   |         | $       | 478,774                    |    | —                                       |    | 101,038                    |    |   | $                  | 1,010                                          |           |   | $       | 2,190,308                         |   |               | $         | 26,457 |    |     | $      | (2,054,625 | )      |    | $        | (73,341 | )          |   | $       | 19,795 |   |    |   |    | $      | 588,378 |   |

----

|                                                                                                        |          |          |        |          |        |          |          |          |        |          |        |  |
|--------------------------------------------------------------------------------------------------------|----------|----------|--------|----------|--------|----------|----------|----------|--------|----------|--------|--|
|                                                                                                   | 2010     |     | 2009   |     | 2008   |
| Cash flows from operating activities:                                                                  |     |     |   |     |   |
| Net loss                                                                                               | $        | (225,837 | )      |     | $      | (109,091 | )        |     | $      | (120,487 | )      |
|    Adjustments to reconcile net loss to net cash provided by operating activities: |     |     |   |     |   |
| Depreciation and amortization                                                                          | 147,663  |     |   | 150,088  |   |     | 141,668  |     |
| Gain on involuntary conversion                                                                         | —  |     |   | —  |   |     | (3,095   | )        |
| Gain on sale of assets                                                                                 | —  |     |   | (1,633   | )      |     | (1,193   | )        |
| Amortization of deferred financing fees and debt discount                                              | 17,849   |     |   | 7,120    |   |     | 2,959    |     |
| Amortization of unearned officers' and directors' compensation                                         | 7,445    |     |   | 5,165    |   |     | 4,451    |     |
| Equity in (income) loss from unconsolidated entities                                                   | (16,916  | )        |   | 4,814    |   |     | 10,932   |     |
| Distributions of income from unconsolidated entities                                                   | 2,190    |     |   | 2,789    |   |     | 2,973    |     |
| Debt extinguishment                                                                                    | (59,464  | )        |   | 1,721    |   |     | —  |     |
| Impairment loss                                                                                        | 173,713  |     |   | 3,448    |   |     | 107,963  |     |
| Changes in assets and liabilities:                                                                     |     |     |   |     |   |
| Accounts receivable                                                                                    | (746     | )        |   | 5,369    |   |     | 3,675    |     |
| Restricted cash—operations                                                                       | 3,986    |     |   | 345      |   |     | (71      | )        |
| Other assets                                                                                           | (2,809   | )        |   | (1,520   | )      |     | (386     | )        |
| Accrued expenses and other liabilities                                                                 | 11,738   |     |   | 4,292    |   |     | 3,774    |     |
| Net cash flow provided by operating activities                                                         | 58,812   |     |   | 72,907   |   | —  |     | 153,163  |   |
| Cash flows from investing activities:                                                                  |     |     |   |     |   |
| Acquisition of hotel                                                                                   | (97,513  | )        |   | —  |   |     | —  |     |
| Improvements and additions to hotels                                                                   | (38,936  | )        |   | (75,949  | )      |     | (142,897 | )        |
| Additions to condominium project                                                                       | (274     | )        |   | (154     | )      |     | (752     | )        |
| Proceeds from sale of hotels                                                                           | —  |     |   | 25,038   |   |     | —  |     |
| Change in restricted cash – investing                                                            | (4,143   | )        |   | (3,373   | )      |     | 1,705    |     |
| Proceeds from property damage insurance                                                                | 492      |     |   | —  |   |     | 2,005    |     |
| Redemption of investment securities                                                                    | —  |     |   | 1,719    |   |     | 5,397    |     |
| Distributions from unconsolidated entities                                                             | 46,084   |     |   | 6,200    |   |     | 24,858   |     |
| Contributions to unconsolidated entities                                                               | (25,172  | )        |   | (444     | )      |     | (5,995   | )        |
| Net cash flow used in investing activities                                                             | (119,462 | )        |   | (46,963  | )      | —  |     | (115,679 | )      |
| Cash flows from financing activities:                                                                  |     |     |   |     |   |
| Proceeds from borrowings                                                                               | 241,171  |     |   | 988,486  |   |     | 187,285  |     |
| Repayment of borrowings                                                                                | (400,968 | )        |   | (772,375 | )      |     | (111,744 | )        |
| Payment of deferred financing fees                                                                     | (7,848   | )        |   | (19,532  | )      |     | (21      | )        |
| Change in restricted cash – financing                                                            | 1,016    |     |   | —  |   |     | —  |     |
| Acquisition of noncontrolling interest                                                                 | (1,000   | )        |   | —  |   |     | —  |     |
| Distributions paid to noncontrolling interests                                                         | (2,383   | )        |   | (1,606   | )      |     | (3,236   | )        |
| Contribution from noncontrolling interests                                                             | 1,394    |     |   | 534      |   |     | 565      |     |
| Distributions paid to redeemable noncontrolling interests in FelCor LP                                 | —  |     |   | —  |   |     | (1,559   | )        |
| Distributions paid to preferred stockholders                                                           | —  |     |   | (9,679   | )      |     | (38,713  | )        |
| Distributions paid to common stockholders                                                              | —  |     |   | —  |   |     | (75,686  | )        |
| Net proceeds from common stock issuance                                                                | 166,327  |     |   | —  |   |     | —  |     |
| Net cash flow provided by (used in) financing activities                                               | (2,291   | )        |   | 185,828  |   |     | (43,109  | )        |
| Effect of exchange rate changes on cash                                                                | 382      |     |   | 1,572    |   |     | (1,797   | )        |
| Net change in cash and cash equivalents                                                                | (62,559  | )        |   | 213,344  |   |     | (7,422   | )        |
| Cash and cash equivalents at beginning of periods                                                      | 263,531  |     |   | 50,187   |   |     | 57,609   |     |
| Cash and cash equivalents at end of periods                                                            | $        | 200,972  |   |     | $      | 263,531  |     |     | $      | 50,187   |   |
| Supplemental cash flow information — interest paid                                               | $        | 127,793  |   |     | $      | 85,587   |     |     | $      | 100,505  |   |

----

|                            |              |
|----------------------------|--------------|
| 1.     | Organization |

|                                      |        |        |        |        |        |        |        |  |
|--------------------------------------|--------|--------|--------|--------|--------|--------|--------|--|
| Brand                                |   | Hotels |   | Rooms  |
|  Embassy Suites Hotels     | 45     |   |   |   | 11,674 |   |   |
|  Holiday Inn               | 15     |   |   |   | 5,154  |   |   |
|  Sheraton and Westin  | 8      |   |   |   | 2,774  |   |   |
|  Doubletree and Hilton     | 9      |   |   |   | 2,030  |   |   |
|  Renaissance and Marriott  | 3      |   |   |   | 1,321  |   |   |
|  Fairmont                  | 1      |   |   |   | 383    |   |   |
|  Total                          | 81     |   |   |   | 23,336 |   |   |

----

|                            |                                  |
|----------------------------|----------------------------------|
| 1.     | Organization – (continued) |

|                            |                                            |
|----------------------------|--------------------------------------------|
| 2.     | Summary of Significant Accounting Policies |

----

|                            |                                                                |
|----------------------------|----------------------------------------------------------------|
| 2.     | Summary of Significant Accounting Policies — (continued) |

|                                |                                                                                                                                                                       |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | 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). |

----

----

|                            |                                                                |
|----------------------------|----------------------------------------------------------------|
| 2.     | Summary of Significant Accounting Policies — (continued) |

----

|                            |                                                                |
|----------------------------|----------------------------------------------------------------|
| 2.     | Summary of Significant Accounting Policies — (continued) |

|                            |                      |
|----------------------------|----------------------|
| 3.     | Investment in Hotels |

|                                                                                                                                                                                                                                                                                                                                                                                                                                       |        |              |           |        |           |        |           |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-----------|--------|-----------|--------|-----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | December 31, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2010         |      | 2009   |
| Building and improvements                                                                   |   | $            | 2,179,926 |   |      | $      | 2,265,846 |   |
| Furniture, fixtures and equipment                                                                                                                                                                                                                                                                                                                                                                                                     |   | 525,448      |      |   | 591,994   |   |
| Land                                                                                        |   | 249,647      |      |   | 226,436   |   |
| Construction in progress                                                                    |   | 13,322       |      |   | 12,722    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2,968,343    |      |   | 3,096,998 |   |
| Accumulated depreciation                                                                    |   | (982,564     | )         |   | (916,604  | )      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $            | 1,985,779 |   |      | $      | 2,180,394 |   |

|                            |                   |
|----------------------------|-------------------|
| 4.     | Hotel Acquisition |

|        |                                        |         |        |        |        |
|--------|----------------------------------------|---------|--------|--------|--------|
|   | Assets                                 |    |   |
|   | Investment in hotels(a)                | $       | 98,500 |   |   |
|   | Accounts receivable                    | 1,349   |   |   |
|   | Other assets                           | 898     |   |   |
|   | Total assets acquired                  | 100,747 |   |   |
|   |                                   |    |   |
|   | Liabilities                            |    |   |
|   | Accrued expenses and other liabilities | 3,234   |   |   |
|   | Net assets acquired                    | $       | 97,513 |   |   |

----

|                            |                                       |
|----------------------------|---------------------------------------|
| 4.     | Hotel Acquisition — (continued) |

|                                        |        |                                          |          |        |        |   |          |        |
|----------------------------------------|--------|------------------------------------------|----------|--------|--------|---|----------|--------|
|                                   |   | Year Ended December 31, (unaudited) |
|                                   |   | 2010                                     |     | 2009   |
| Total revenues                         |   | $                                        | 951,420  |   |   | $ | 913,661  |   |
| Net loss                               |   | $                                        | (227,360 | )      |   | $ | (107,490 | )      |
| Earnings per share - basic and diluted |   | $                                        | (3.27    | )      |   | $ | (2.30    | )      |

|                            |                    |
|----------------------------|--------------------|
| 5.     | Impairment Charges |

----

----

|                            |                         |
|----------------------------|-------------------------|
| 6.     | Discontinued Operations |

|                                   |        |                         |        |        |         |        |         |          |        |   |         |        |
|-----------------------------------|--------|-------------------------|--------|--------|---------|--------|---------|----------|--------|---|---------|--------|
|                              |   | Year Ended December 31, |
|                              |   | 2010                    |   | 2009   |    | 2008   |
| Hotel operating revenue           |   | $                       | 32,706 |   |    | $      | 54,491  |     |   | $ | 70,382  |   |
| Operating expenses(a)        |   | (53,295                 | )      |   | (62,563 | )      |    | (128,687 | )      |
| Loss from discontinued operations |   | (20,589                 | )      |   | (8,072  | )      |    | (58,305  | )      |
| Interest expense, net             |   | (2,575                  | )      |   | (2,872  | )      |    | (2,867   | )      |
| Debt extinguishment               |   | 15,240                  |   |   | — |   |    | —  |   |
| Gain on sale, net of tax          |   | —                 |   |   | 910     |   |    | 1,193    |   |
| Loss from discontinued operations |   | $                       | (7,924 | )      |    | $      | (10,034 | )        |   | $ | (59,979 | )      |

|                            |                                       |
|----------------------------|---------------------------------------|
| 7.     | Investment in Unconsolidated Entities |

----

|                            |                                                           |
|----------------------------|-----------------------------------------------------------|
| 7.     | Investment in Unconsolidated Entities — (continued) |

|                                                                                           |              |         |                        |        |   |         |        |
|-------------------------------------------------------------------------------------------|--------------|---------|------------------------|--------|---|---------|--------|
|                                                                                      | December 31, |
|                                                                                      | 2010         |    | December 31, 2009 |
|  Balance sheet information:                                                          |         |    |                   |
|       Investment in hotels, net of accumulated depreciation | $            | 192,584 |                   |   | $ | 259,977 |   |
|       Total assets                                          | $            | 209,742 |                   |   | $ | 279,611 |   |
|       Debt                                                  | $            | 154,590 |                   |   | $ | 214,963 |   |
|       Total liabilities                                     | $            | 159,171 |                   |   | $ | 220,389 |   |
|       Equity                                                | $            | 50,571  |                   |   | $ | 59,222  |   |

|                                                      |        |                              |        |           |        |         |        |           |        |           |        |           |         |        |           |
|------------------------------------------------------|--------|------------------------------|--------|-----------|--------|---------|--------|-----------|--------|-----------|--------|-----------|---------|--------|-----------|
|                                                 |   | Year Ended December 31, |
|                                                 |   | 2010                         |   | 2009      |   | 2008    |
| Total revenues                                       |   | $                            | 64,500 |      |   |    | $      | 66,261    |   |      |   | $         | 90,113  |   |      |
| Net income (loss)                                    |   | $                            | (5,302 | )         |   |    | $      | (4,988    | )      | (a)  |   | $         | 3,946   |   | (a)  |
|                                                 |   |                         |   |      |   |    |   |      |   |
| Net income (loss) attributable to FelCor             |   | $                            | (2,327 | )         |   |    | $      | (2,494    | )      |      |   | $         | 1,973   |   |      |
| Impairment loss                                      |   | —                      |   |      |   | (476    | )      | (b)  |   | (11,038   | )      | (c)  |
| Gain on joint venture dispositions                   |   | 21,103                       |   | (d)  |   | — |   |      |   | —   |   |      |
| Depreciation of cost in excess of book value         |   | (1,860                       | )      |      |   | (1,844  | )      |      |   | (1,867    | )      |      |
| Equity in income (loss) from unconsolidated entities |   | $                            | 16,916 |      |   |    | $      | (4,814    | )      |      |   | $         | (10,932 | )      |      |

----

|                            |                                                           |
|----------------------------|-----------------------------------------------------------|
| 7.     | Investment in Unconsolidated Entities — (continued) |

|                                                   |                   |        |                        |        |        |        |        |
|---------------------------------------------------|-------------------|--------|------------------------|--------|--------|--------|--------|
|                                              | December 31, |
|                                              | 2010              |   | December 31, 2009 |
| Hotel-related investments                         | $                 | 15,736 |                   |   | $      | 18,969 |   |
| Cost in excess of book value of hotel investments | 50,634            |   |                   | 52,429 |   |
| Land and condominium investments                  | 9,550             |   |                   | 10,642 |   |
|                                              | $                 | 75,920 |                   |   | $      | 82,040 |   |

|                                                      |        |                         |        |        |        |      |        |      |        |   |         |   |
|------------------------------------------------------|--------|-------------------------|--------|--------|--------|------|--------|------|--------|---|---------|---|
|                                                 |   | Year Ended December 31, |
|                                                 |   | 2010                    |   | 2009   |   | 2008 |
| Hotel investments                                    |   | $                       | 17,509 |   |   | $    | (4,291 | )    |   | $ | (10,366 | ) |
| Other investments                                    |   | (593                    | )      |   | (523   | )    |   | (566 | )      |
| Equity in income (loss) from unconsolidated entities |   | $                       | 16,916 |   |   | $    | (4,814 | )    |   | $ | (10,932 | ) |

----

|                            |      |
|----------------------------|------|
| 8.     | Debt |

|                         |                        |        |                        |              |              |        |                          |        |           |         |        |         |           |         |        |
|-------------------------|------------------------|--------|------------------------|--------------|--------------|--------|--------------------------|--------|-----------|---------|--------|---------|-----------|---------|--------|
|                    |  EncumberedHotels |   |  Interest Rate(%) |         |         |   | December 31,             |
|                    |                   |   |  Maturity Date    |         | 2010         |   | December 31, 2009   |
| Mortgage debt           |                   |   |                   |         |         |   |                     |   |      |    |
| Mortgage debt           | 12 hotels              |   | L + 0.93               |         | (a)     |   |  November 2011      |   | $         | 250,000 |   |    | $         | 250,000 |   |
| Mortgage debt           |  9 hotels         |   | L + 5.10               |         | (b)     |   |  April 2015         |   | 212,000   |    |   | — |      |
| Mortgage debt           |  9 hotels         |   | L + 3.50               |         | (c)     |   |  August 2011(d)     |   | 198,300   |    |   | 200,425 |      |
| Mortgage debt           |  7 hotels         |   | 9.02                   |         |    |   |  April 2014         |   | 113,220   |    |   | 117,422 |      |
| Mortgage debt(e)        |  5 hotels         |   | 6.66                   |         |         |   |  June - August 2014 |   | 69,206    |    |   | 70,917  |      |
| Mortgage debt           |  2 hotels         |   | L + 4.25               |         |         |   | November 2011(f)         |   | 29,000    |    |   | — |      |
| Mortgage debt           |  1 hotel          |   | 8.77                   |         |    |   | May 2013                 |   | 27,770    |    |   | 27,829  |      |
| Mortgage debt           |  1 hotel          |   | 5.81                   |         |    |   |  July 2016          |   | 11,321    |    |   | 11,741  |      |
| Mortgage debt           |  1 hotel          |   | 6.15                   |         |    |   | June 2011                |   | 7,800     |    |   | 9,228   |      |
| Other                   |  —          |   | 4.25                   |         |    |   | May 2011                 |   | 524       |    |   | 354     |      |
| Senior notes            |                   |   |                   |         |         |   |                     |   |      |    |   |    |
| Senior secured notes(g) |  14 hotels        |   | 10.00                  |         |         |   |  October 2014       |   | 582,821   |    |   | 572,500 |      |
| Senior notes            |  —          |   | 9.00                   |         |         |   |  June 2011          |   | 46,347    |    |   | 86,604  |      |
| Retired debt            |  —          |   | —                |         |         |   | —                  |   | —   |    |   | 426,294 |      |
| Total                   | 61 hotels              |   |                   |    |         |   |                     | $      | 1,548,309 |    |   | $       | 1,773,314 |    |

|                             |                                                                                                                                   |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------|
| (a)     | We purchased an interest rate cap that caps LIBOR at 7.8% and expires November 2011 for a $250 million notional amount. |

|                             |                                                                                                                                                                                  |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)     | LIBOR for this loan is subject to a 3% floor.  We purchased an interest rate cap that caps LIBOR at 5.0% and expires May 2012 for a $212 million notional amount. |

|                             |                                               |
|-----------------------------|-----------------------------------------------|
| (c)     | LIBOR for this loan is subject to a 2% floor. |

|                             |                                                                                                         |
|-----------------------------|---------------------------------------------------------------------------------------------------------|
| (d)     | This loan can be extended for as many as two years (to 2013), subject to satisfying certain conditions. |

|                             |                                                                                                         |
|-----------------------------|---------------------------------------------------------------------------------------------------------|
| (e)     | The hotels securing this debt are subject to separate loan agreements and are not cross-collateralized. |

|                             |                                                                                   |
|-----------------------------|-----------------------------------------------------------------------------------|
| (f)     | This loan can be extended for one year, subject to satisfying certain conditions. |

|                             |                                                                                                                                                                       |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (g)     | These notes have $636 million in aggregate principal outstanding and were sold at a discount that provides a 12.875% yield to maturity before transaction costs. |

----

|                            |                          |
|----------------------------|--------------------------|
| 8.     | Debt — (continued) |

----

|                            |                          |
|----------------------------|--------------------------|
| 8.     | Debt — (continued) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |        |           |           |        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-----------|--------|
| Year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |      |
| 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $         | 539,157   |   |
| 2012                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 6,393     |      |
| 2013                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 34,694    |      |
| 2014                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 806,995   |      |
| 2015                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 205,450   |      |
| 2016 and thereafter                                                                                           |   | 8,813     |      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 1,601,502 |      |
| Discount accretion over term                                                                                  |   | (53,193   | )         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $         | 1,548,309 |   |

----

|                            |                                     |
|----------------------------|-------------------------------------|
| 9.     | Fair Value of Financial Instruments |

|                             |              |
|-----------------------------|--------------|
| 10.     | Income Taxes |

----

|                             |                                  |
|-----------------------------|----------------------------------|
| 10.     | Income Taxes — (continued) |

|                                                                                                     |        |                              |          |        |         |        |          |         |        |   |          |   |
|-----------------------------------------------------------------------------------------------------|--------|------------------------------|----------|--------|---------|--------|----------|---------|--------|---|----------|---|
|                                                                                                |   | Year Ended December 31, |
|                                                                                                |   | 2010                         |     | 2009   |    | 2008   |
| GAAP  consolidated net loss attributable to FelCor                                        |   | $                            | (223,041 | )      |    | $      | (108,122 | )       |   | $ | (119,245 | ) |
| GAAP net loss from REIT operations                                                                  |   | 172,495                      |     |   | 66,977  |   |     | 84,287  |   |
| GAAP net loss of taxable subsidiaries                                                               |   | (50,546                      | )        |   | (41,145 | )      |     | (34,958 | )      |
| Impairment loss not deductible for tax                                                              |   | 8,852                        |     |   | — |   |     | — |   |
| Tax gain (loss) in excess of book gains on sale of hotels                                           |   | —                      |     |   | (1,821  | )      |     | (346    | )      |
| Depreciation and amortization(a)                                                               |   | (106                         | )        |   | (269    | )      |     | (482    | )      |
| Employee benefits not deductible for tax                                                            |   | 3,534                        |     |   | (4,205  | )      |     | (4,224  | )      |
| Unearned fee reductions                                                                             |   | 916                          |     |   | 4,828   |   |     | — |   |
| Tax adjustment to lease expense(b)                                                             |   | 40,572                       |     |   | 11,769  |   |     | 11,773  |   |
| Other book/tax differences                                                                          |   | 5,251                        |     |   | 7,799   |   |     | (8      | )      |
| Tax gain (loss) of taxable subsidiaries before utilization   of net operating losses |   | 8,473                        |     |   | (23,044 | )      |     | (28,245 | )      |
| Utilization of net operating loss                                                                   |   | (8,473                       | )        |   | — |   |     | — |   |
| Net tax gain (loss) of taxable subsidiaries                                                         |   | $                            | —  |   |    | $      | (23,044  | )       |   | $ | (28,245  | ) |

|                                                  |        |              |         |        |          |        |         |        |
|--------------------------------------------------|--------|--------------|---------|--------|----------|--------|---------|--------|
|                                             |   | December 31, |
|                                             |   | 2010         |    | 2009   |
| Accumulated net operating losses of our TRS      |   | $            | 125,085 |   |     | $      | 128,305 |   |
| Tax property basis in excess of book             |   | 2,822        |    |   | —  |   |
| Accrued employee benefits not deductible for tax |   | 984          |    |   | 3,967    |   |
| Other                                            |   | 997          |    |   | 147      |   |
| Gross deferred tax assets                        |   | 129,888      |    |   | 132,419  |   |
| Valuation allowance                              |   | (127,795     | )       |   | (132,291 | )      |
| Deferred tax asset after valuation allowance     |   | 2,093        |    |   | 128      |   |
| Other - deferred tax liability                   |   | (2,093       | )       |   | (128     | )      |
| Net deferred tax asset                           |   | $            | — |   |     | $      | — |   |

----

|                             |                                  |
|-----------------------------|----------------------------------|
| 10.     | Income Taxes — (continued) |

|                                                              |        |                              |          |        |         |        |          |         |        |   |         |        |
|--------------------------------------------------------------|--------|------------------------------|----------|--------|---------|--------|----------|---------|--------|---|---------|--------|
|                                                         |   | Year Ended December 31, |
|                                                         |   | 2010                         |     | 2009   |    | 2008   |
| GAAP net loss from REIT operations                           |   | $                            | (172,495 | )      |    | $      | (66,977  | )       |   | $ | (84,287 | )      |
| Book/tax differences, net:                                   |   |                         |     |   |    |   |
|    Depreciation and amortization(a)      |   | (11,308                      | )        |   | (11,608 | )      |     | (21,927 | )      |
| Noncontrolling interests                                     |   | (1,631                       | )        |   | (222    | )      |     | (2,889  | )      |
| Equity in loss from unconsolidated entities                  |   | —                      |     |   | 2,068   |   |     | 12,696  |   |
| Tax gain (loss) on dispositions in excess of book            |   | 17,274                       |     |   | (26,922 | )      |     | — |   |
| Impairment loss not deductible for tax                       |   | 164,861                      |     |   | 3,448   |   |     | 107,963 |   |
| Liquidated damages                                           |   | —                      |     |   | (1,000  | )      |     | 11,060  |   |
|    Tax adjustment to lease revenue(b)    |   | (39,962                      | )        |   | (11,769 | )      |     | (11,773 | )      |
| Other                                                        |   | (6,548                       | )        |   | 6,431   |   |     | 704     |   |
| Taxable income (loss) subject to distribution requirement(c) |   | $                            | (49,809  | )      |    | $      | (106,551 | )       |   | $ | 11,547  |   |

----

|                             |                                  |
|-----------------------------|----------------------------------|
| 10.     | Income Taxes — (continued) |

|                                  |        |         |         |        |         |         |         |        |        |         |              |        |
|----------------------------------|--------|---------|---------|--------|---------|---------|---------|--------|--------|---------|--------------|--------|
|                             |   |    |
|                             |   | 2009    |    | 2008   |
|                             |   | Amount  |    | %      |    | Amount  |    | %      |
| Common Stock                     |   |    |    |   |    |    |    |   |
| Dividend income                  |   | $       | — |   |    | — |    | $      | 0.85   |    | (a)     | 100.00 |
| Return of capital                |   | — |    |   | — |    | — |   |   | — |
|                             |   | $       | — |   |    | — |    | $      | 0.85   |    |         | 100.00 |
| Preferred Stock – Series A |   |    |    |   |    |    |    |   |
| Dividend income                  |   | $       | — |   |    | — |    | $      | 1.463  |    | (a)(b)  | 100.00 |
| Return of capital                |   | 0.4875  |    |   | 100.00  |    | — |   |   | — |
|                             |   | $       | 0.4875  |   |    | 100.00  |    | $      | 1.463  |    |         | 100.00 |
| Preferred Stock – Series C |   |    |    |   |    |    |    |   |
| Dividend income                  |   | $       | — |   |    | — |    | $      | 1.50   |    | (a)(b)  | 100.00 |
| Return of capital                |   | 0.50    |    |   | 100.00  |    | — |   |   | — |
|                             |   | $       | 0.50    |   |    | 100.00  |    | $      | 1.50   |    |         | 100.00 |

|                             |                     |
|-----------------------------|---------------------|
| 11.     |  Capital Stock |

----

|                             |                                   |
|-----------------------------|-----------------------------------|
| 11.     | Capital Stock — (continued) |

|                             |                                                                                   |
|-----------------------------|-----------------------------------------------------------------------------------|
| 12.     | Hotel Operating Revenue, Departmental Expenses and Other Property Operating Costs |

|                               |                              |         |        |         |        |         |         |        |   |           |        |
|-------------------------------|------------------------------|---------|--------|---------|--------|---------|---------|--------|---|-----------|--------|
|                          | Year Ended December 31, |
|                          | 2010                         |    | 2009   |    | 2008   |
| Room revenue                  | $                            | 726,497 |   |    | $      | 687,486 |    |   | $ | 836,089   |   |
| Food and beverage revenue     | 142,239                      |    |   | 128,781 |   |    | 160,042 |   |
| Other operating departments   | 56,401                       |    |   | 55,285  |   |    | 60,280  |   |
| Total hotel operating revenue | $                            | 925,137 |   |    | $      | 871,552 |    |   | $ | 1,056,411 |   |

----

|                             |                                                                                                       |
|-----------------------------|-------------------------------------------------------------------------------------------------------|
| 12.     | Hotel Operating Revenue, Departmental Expenses and Other Property Operating Costs — (continued) |

|                                   |                              |         |        |         |        |         |         |        |   |         |        |
|-----------------------------------|------------------------------|---------|--------|---------|--------|---------|---------|--------|---|---------|--------|
|                              | Year Ended December 31, |
|                              | 2010                         |    | 2009   |    | 2008   |
| Room                              | $                            | 196,147 |   |    | $      | 182,184 |    |   | $ | 203,662 |   |
| Food and beverage                 | 112,185                      |    |   | 103,844 |   |    | 123,572 |   |
| Other operating departments       | 25,447                       |    |   | 25,172  |   |    | 27,394  |   |
| Total hotel departmental expenses | $                            | 333,779 |   |    | $      | 311,200 |    |   | $ | 354,628 |   |

|                                          |                              |         |        |        |        |         |        |        |   |         |        |
|------------------------------------------|------------------------------|---------|--------|--------|--------|---------|--------|--------|---|---------|--------|
|                                     | Year Ended December 31, |
|                                     | 2010                         |    | 2009   |   | 2008   |
| Hotel general and administrative expense | $                            | 86,121  |   |   | $      | 79,546  |   |   | $ | 91,720  |   |
| Marketing                                | 79,586                       |    |   | 73,214 |   |    | 85,929 |   |
| Repair and maintenance                   | 50,730                       |    |   | 48,071 |   |    | 53,478 |   |
| Utilities                                | 48,531                       |    |   | 48,149 |   |    | 51,827 |   |
| Total other property operating costs     | $                            | 264,968 |   |   | $      | 248,980 |   |   | $ | 282,954 |   |

----

|                                                                                  |                              |        |        |        |        |        |        |        |   |         |        |
|----------------------------------------------------------------------------------|------------------------------|--------|--------|--------|--------|--------|--------|--------|---|---------|--------|
|                                                                             | Year Ended December 31, |
|                                                                             | 2010                         |   | 2009   |   | 2008   |
| Hotel lease expense(a)                                                      | $                            | 36,327 |   |   | $      | 34,187 |   |   | $ | 46,264  |   |
| Land lease expense(b)                                                       | 10,210                       |   |   | 9,507  |   |   | 11,500 |   |
| Real estate and other taxes                                                      | 32,500                       |   |   | 34,344 |   |   | 31,641 |   |
| Property insurance, general liability insurance    and other | 12,395                       |   |   | 12,295 |   |   | 13,391 |   |
|   Total taxes, insurance and lease expense                             | $                            | 91,432 |   |   | $      | 90,333 |   |   | $ | 102,796 |   |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | Hotel lease expense is recorded by the consolidated operating lessees of 12 hotels owned by unconsolidated entities, and is partially (generally 49%) offset through noncontrolling interests in other partnerships.  Our 50% share of the corresponding lease income is recorded through equity in income from unconsolidated entities.  Hotel lease expense includes percentage rent of $15.0 million, $13.0 million and $24.7 million for the year ended December 31, 2010, 2009, and 2008 respectively. |

|                             |                                                                                                                                                                                    |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)     | Land lease expense includes percentage rent of $4.1 million, $3.6 million and $5.5 million for the year ended December 31, 2010, 2009, and 2008, respectively. |

|                             |                            |
|-----------------------------|----------------------------|
| 14.     | Land Leases and Hotel Rent |

|                     |         |         |        |
|---------------------|---------|---------|--------|
| Year                |    |
| 2011                | $       | 26,992  |   |
| 2012                | 24,135  |    |
| 2013                | 5,997   |    |
| 2014                | 5,866   |    |
| 2015                | 5,821   |    |
| 2016 and thereafter | 274,613 |    |
|                | $       | 343,424 |   |

----

|                             |                    |
|-----------------------------|--------------------|
| 15.     | Earnings Per Share |

|                                                                                                        |                              |          |        |          |        |          |          |        |   |          |   |
|--------------------------------------------------------------------------------------------------------|------------------------------|----------|--------|----------|--------|----------|----------|--------|---|----------|---|
|                                                                                                   | Year Ended December 31, |
|                                                                                                   | 2010                         |     | 2009   |     | 2008   |
| Numerator:                                                                                             |                         |     |   |     |   |
| Net loss attributable to FelCor                                                                        | $                            | (223,041 | )      |     | $      | (108,122 | )        |   | $ | (119,245 | ) |
| Discontinued operations attributable to FelCor                                                         | 6,949                        |     |   | 9,988    |   |     | 58,936   |   |
|   Loss from continuing operations attributable to FelCor                                     | (216,092                     | )        |   | (98,134  | )      |     | (60,309  | )      |
|       Less:Preferred dividends                                           | (38,713                      | )        |   | (38,713  | )      |     | (38,713  | )      |
| Dividends declared on unvested restricted stock compensation                                           | —                      |     |   | —  |   |     | (1,041   | )      |
| Loss from continuing operations attributable to FelCor    common stockholders      | (254,805                     | )        |   | (136,847 | )      |     | (100,063 | )      |
| Discontinued operations attributable to FelCor                                                         | (6,949                       | )        |   | (9,988   | )      |     | (58,936  | )      |
| Numerator for basic and diluted loss attributable to FelCor    common stockholders | $                            | (261,754 | )      |     | $      | (146,835 | )        |   | $ | (158,999 | ) |
| Denominator:                                                                                           |                         |     |   |     |   |
| Denominator for basic and diluted loss per share                                                       | 80,611                       |     |   | 63,114   |   |     | 61,979   |   |
| Basic and diluted loss per share data:                                                                 |                         |     |   |     |   |
| Loss from continuing operations                                                                        | $                            | (3.16    | )      |     | $      | (2.17    | )        |   | $ | (1.61    | ) |
| Discontinued operations                                                                                | $                            | (0.09    | )      |     | $      | (0.16    | )        |   | $ | (0.95    | ) |
| Net  loss                                                                                              | $                            | (3.25    | )      |     | $      | (2.33    | )        |   | $ | (2.57    | ) |

|                                       |        |       |        |        |        |        |        |       |        |
|---------------------------------------|--------|-------|--------|--------|--------|--------|--------|-------|--------|
|                                  |   | 2010  |   | 2009   |   | 2008   |
| Series A convertible preferred shares |   | 9,985 |   |   | 9,985  |   |   | 9,985 |   |

----

|                             |                                                           |
|-----------------------------|-----------------------------------------------------------|
| 16.     | Commitments, Contingencies and Related Party Transactions |

----

|                             |                                   |
|-----------------------------|-----------------------------------|
| 17.     | Supplemental Cash Flow Disclosure |

|                                                            |        |                              |         |        |        |        |         |        |        |   |         |        |
|------------------------------------------------------------|--------|------------------------------|---------|--------|--------|--------|---------|--------|--------|---|---------|--------|
|                                                       |   | Year Ended December 31, |
|                                                       |   | 2010                         |    | 2009   |   | 2008   |
| Depreciation and amortization from continuing operations   |   | $                            | 145,536 |   |   | $      | 144,152 |   |   | $ | 134,409 |   |
| Depreciation and amortization from discontinued operations |   | 2,127                        |    |   | 5,936  |   |    | 7,259  |   |
| Total depreciation and amortization expense                |   | $                            | 147,663 |   |   | $      | 150,088 |   |   | $ | 141,668 |   |

|                             |                                |
|-----------------------------|--------------------------------|
| 18.     | Stock Based Compensation Plans |

----

|                             |                                                    |
|-----------------------------|----------------------------------------------------|
| 18.     | Stock Based Compensation Plans — (continued) |

|                                      |                            |        |                                |        |                            |        |                                |         |                            |        |                                |         |        |        |          |        |        |   |       |        |
|--------------------------------------|----------------------------|--------|--------------------------------|--------|----------------------------|--------|--------------------------------|---------|----------------------------|--------|--------------------------------|---------|--------|--------|----------|--------|--------|---|-------|--------|
|                                 | 2010                       |   | 2009                           |   | 2008                       |
|                                 | Shares ofUnderlyingOptions |   | WeightedAverage ExercisePrices |   | Shares ofUnderlyingOptions |   | WeightedAverage ExercisePrices |    | Shares ofUnderlyingOptions |   | WeightedAverage ExercisePrices |
| Outstanding at beginning of the year | 40,000                     |   |                           | $      | 18.05                      |   |                           | 40,000  |                       |   | $                              | 18.05   |   |   | 161,356  |   |   | $ | 21.11 |   |
| Forfeited or expired                 | (25,000                    | )      |                           | $      | 19.50                      |   |                           | — |                       |   | $                              | — |   |   | (121,356 | )      |   | $ | 22.13 |   |
| Outstanding at end of year           | 15,000                     |   |                           | $      | 15.62                      |   |                           | 40,000  |                       |   | $                              | 18.05   |   |   | 40,000   |   |   | $ | 18.05 |   |
| Exercisable at end of year           | 15,000                     |   |                           | $      | 15.62                      |   |                           | 40,000  |                       |   | $                              | 18.05   |   |   | 40,000   |   |   | $ | 18.05 |   |

|                                     |        |                                     |        |                               |        |                         |      |        |        |   |       |        |
|-------------------------------------|--------|-------------------------------------|--------|-------------------------------|--------|-------------------------|------|--------|--------|---|-------|--------|
| Options Exercisable and Outstanding |
| Range ofExercise Prices             |   | Number Outstanding at 12/31/10 |   | Wgtd. Avg.Life Remaining |   | Wgtd Avg.Exercise Price |
| $                                   | 15.62  |                                |   | 15,000                        |   |                    | 0.85 |   |   | $ | 15.62 |   |

----

|                             |                                                    |
|-----------------------------|----------------------------------------------------|
| 18.     | Stock Based Compensation Plans — (continued) |

|                                             |            |        |                                             |        |         |        |                                           |            |        |        |                                           |         |        |        |            |        |        |        |         |        |
|---------------------------------------------|------------|--------|---------------------------------------------|--------|---------|--------|-------------------------------------------|------------|--------|--------|-------------------------------------------|---------|--------|--------|------------|--------|--------|--------|---------|--------|
|                                        | 2010       |   | 2009                                        |   | 2008    |
|                                        | Shares     |   | Weighted Average Fair Market Value at Grant |   | Shares  |   | WeightedAverage Fair Market Valueat Grant |       | Shares |   | WeightedAverage Fair Market Valueat Grant |
| Outstanding at beginning of the year        | 4,255,187  |   |                                        | $      | 10.90   |   |                                      | 2,829,330  |   |   | $                                         | 15.20   |   |   | 2,329,230  |   |   | $      | 15.85   |   |
| Granted(a):                                 |       |   |                                        |   |    |   |                                      |       |   |   |                                      |
|    With immediate vesting(b) | 16,166     |   |                                        | $      | 4.21    |   |                                      | 16,000     |   |   | $                                         | 1.01    |   |   | 45,800     |   |   | $      | 12.20   |   |
| With 3-year pro rata vesting                | —    |   |                                        | $      | — |   |                                      | 1,444,810  |   |   | $                                         | 2.64    |   |   | —    |   |   | $      | — |   |
| With 4-year pro rata vesting                | —    |   |                                        | $      | — |   |                                      | —    |   |   | $                                         | — |   |   | 449,300    |   |   | $      | 12.20   |   |
| With 5-year pro rata vesting                | —    |   |                                        | $      | — |   |                                      | —    |   |   | $                                         | — |   |   | 5,000      |   |   | $      | 12.20   |   |
| Forfeited                                   | (71,264    | )      |                                        | $      | 21.71   |   |                                      | (34,953    | )      |   | $                                         | 12.52   |   |   | —    |   |   |   |
| Outstanding at end of year                  | 4,200,089  |   |                                        | $      | 10.69   |   |                                      | 4,255,187  |   |   | $                                         | 10.90   |   |   | 2,829,330  |   |   | $      | 15.20   |   |
| Vested at end of year                       | (2,645,272 | )      |                                        | $      | 13.00   |   |                                      | (1,774,839 | )      |   | $                                         | 14.06   |   |   | (1,483,976 | )      |   | $      | 14.09   |   |
| Unvested at end of year                     | 1,554,817  |   |                                        | $      | 6.76    |   |                                      | 2,480,348  |   |   | $                                         | 8.65    |   |   | 1,345,354  |   |   | $      | 16.44   |   |

|                             |                   |
|-----------------------------|-------------------|
| 19.     | Employee Benefits |

----

|                             |                     |
|-----------------------------|---------------------|
| 20.     | Segment Information |

|              |        |                                              |         |                                              |         |        |         |         |        |        |           |        |        |         |           |        |         |        |           |        |        |   |           |        |
|--------------|--------|----------------------------------------------|---------|----------------------------------------------|---------|--------|---------|---------|--------|--------|-----------|--------|--------|---------|-----------|--------|---------|--------|-----------|--------|--------|---|-----------|--------|
|         |   | Revenue For the Year Ended December 31, |    | Investment in Hotel Assetsas of December 31, |
|         |   | 2010                                         |    | 2009                                         |    | 2008   |    | 2010    |   | 2009   |      | 2008   |
| California   |   | $                                            | 224,155 |                                         |    | $      | 211,124 |    |   | $      | 258,748   |   |   | $       | 505,753   |   |    | $      | 527,345   |   |   | $ | 526,770   |   |
| Florida      |   | 143,092                                      |    |                                         | 146,011 |   |    | 177,788 |   |   | 348,823   |   |   | 405,479 |      |   | 455,636 |   |
| Texas        |   | 99,840                                       |    |                                         | 98,180  |   |    | 118,856 |   |   | 175,483   |   |   | 203,841 |      |   | 214,294 |   |
| Georgia      |   | 51,734                                       |    |                                         | 48,930  |   |    | 58,345  |   |   | 109,677   |   |   | 126,118 |      |   | 126,851 |   |
| Other states |   | 380,560                                      |    |                                         | 345,775 |   |    | 413,048 |   |   | 795,596   |   |   | 859,852 |      |   | 904,105 |   |
| Canada       |   | 28,930                                       |    |                                         | 24,375  |   |    | 32,609  |   |   | 50,447    |   |   | 57,759  |      |   | 51,370  |   |
| Total        |   | $                                            | 928,311 |                                         |    | $      | 874,395 |    |   | $      | 1,059,394 |   |   | $       | 1,985,779 |   |    | $      | 2,180,394 |   |   | $ | 2,279,026 |   |

|                             |                          |
|-----------------------------|--------------------------|
| 21.     | Noncontrolling Interests |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |        |                              |        |        |        |        |       |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|--------|--------|-------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Year Ended December 31, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2010                         |   | 2009   |
| Balance at beginning of period                                                                                                  |   | $                            | 1,062  |   |   | $      | 545   |   |
| Redemption value allocation                                                                                                     |   | 1,815                        |   |   | 1,152  |   |
| Comprehensive loss:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                         |   |   |
| Foreign exchange translation                                                                                                              |   | 8                            |   |   | 37     |   |
| Net loss                                                                                                                                  |   | (881                         | )      |   | (672   | )      |
| Balance at end of period                                                                                                        |   | $                            | 2,004  |   |   | $      | 1,062 |   |

----

|                             |                                         |
|-----------------------------|-----------------------------------------|
| 22.     | Quarterly Operating Results (unaudited) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |        |              |         |               |        |              |         |               |        |        |         |        |        |   |          |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|---------------|--------|--------------|---------|---------------|--------|--------|---------|--------|--------|---|----------|--------|
| 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | FirstQuarter |    | SecondQuarter |   | ThirdQuarter |    | FourthQuarter |
| Total revenues                                                                                         |   | $            | 219,167 |          |   | $            | 240,406 |          |   | $      | 236,563 |   |   | $ | 232,175  |   |
| Income (loss) from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $            | (39,097 | )             |   | $            | 22,949  |          |   | $      | (95,678 | )      |   | $ | (106,087 | )      |
| Discontinued operations                                                                                |   | $            | (23,845 | )             |   | $            | (959    | )             |   | $      | 6,398   |   |   | $ | 10,482   |   |
| Net income (loss) attributable to FelCor                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $            | (62,388 | )             |   | $            | 21,614  |          |   | $      | (88,810 | )      |   | $ | (93,457  | )      |
| Net income (loss) attributable to FelCor common    stockholders                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $            | (72,066 | )             |   | $            | 11,936  |          |   | $      | (98,488 | )      |   | $ | (103,136 | )      |
| Comprehensive income (loss) attributable to FelCor                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $            | (60,318 | )             |   | $            | 18,895  |          |   | $      | (86,889 | )      |   | $ | (91,800  | )      |
| Basic per common share data:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |         |    |          |   |         |    |          |
| Net income (loss) from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $            | (0.76   | )             |   | $            | 0.19    |          |   | $      | (1.10   | )      |   | $ | (1.20    | )      |
| Discontinued operations                                                                                |   | $            | (0.37   | )             |   | $            | (0.01   | )             |   | $      | 0.07    |   |   | $ | 0.12     |   |
| Net income (loss)                                                                                      |   | $            | (1.14   | )             |   | $            | 0.17    |          |   | $      | (1.04   | )      |   | $ | (1.08    | )      |
| Basic weighted average common shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 63,475       |    |          | 66,531 |         |    | 95,034        |   |   | 95,490  |   |
| Diluted weighted average common shares   outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 63,475       |    |          | 66,531 |         |    | 95,034        |   |   | 95,490  |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |        |              |         |               |        |              |         |               |        |        |         |        |        |   |         |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|---------------|--------|--------------|---------|---------------|--------|--------|---------|--------|--------|---|---------|--------|
| 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | FirstQuarter |    | SecondQuarter |   | ThirdQuarter |    | FourthQuarter |
| Total revenues                                                                                         |   | $            | 219,927 |          |   | $            | 226,965 |          |   | $      | 217,110 |   |   | $ | 210,393 |   |
| Loss from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $            | (18,614 | )             |   | $            | (10,540 | )             |   | $      | (20,566 | )      |   | $ | (49,337 | )      |
| Discontinued operations                                                                                |   | $            | (2,808  | )             |   | $            | (428    | )             |   | $      | (4,908  | )      |   | $ | (1,890  | )      |
| Net loss attributable to FelCor                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $            | (21,064 | )             |   | $            | (11,195 | )             |   | $      | (25,140 | )      |   | $ | (50,723 | )      |
| Net 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 loss from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $            | (0.44   | )             |   | $            | (0.32   | )             |   | $      | (0.47   | )      |   | $ | (0.93   | )      |
| Discontinued operations                                                                                |   | $            | (0.04   | )             |   | $            | (0.01   | )             |   | $      | (0.08   | )      |   | $ | (0.03   | )      |
| Net 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  |   |

----

|                                                                 |        |              |        |              |         |                                            |        |                                                   |        |                           |         |                                                       |        |                           |         |        |         |                                          |             |         |               |        |         |        |        |        |        |        |        |        |            |        |             |   |        |        |        |      |        |          |        |             |
|-----------------------------------------------------------------|--------|--------------|--------|--------------|---------|--------------------------------------------|--------|---------------------------------------------------|--------|---------------------------|---------|-------------------------------------------------------|--------|---------------------------|---------|--------|---------|------------------------------------------|-------------|---------|---------------|--------|---------|--------|--------|--------|--------|--------|--------|--------|------------|--------|-------------|---|--------|--------|--------|------|--------|----------|--------|-------------|
|                                                            |   |         |   | Initial Cost |    | Cost Capitalized Subsequent to Acquisition |   | Gross Amounts at Which Carried at Close of Period |   |                      |    | Accumulated Depreciation Buildings & Improvements |   |                      |    |   |    | Life Upon Which Depreciation is Computed |
| Location                                                        |   | Encumbrances |   | Land         |    | Building and Improvements                  |   | Land                                              |   | Building and Improvements |    | Land                                                  |   | Building and Improvements |    | Total  |    |                                     | Year Opened |    | Date Acquired |   |
| Birmingham, AL (a)                                              |   | $            | 17,048 |         |    | $                                          | 2,843  |                                              |   | $                         | 29,286  |                                                  |   | $                         | — |   |    | $                                        | 4,224       |    |          | $      | 2,843   |   |   | $      | 33,510 |   |   | $      | 36,353     |   |        | $ | 11,703 |   |   | 1987 |   | 1/3/1996 |   | 15 - 40 Yrs |
| Phoenix - Biltmore, AZ (a)                                      |   | 18,850       |   |         | 4,694   |                                       |   | 38,998                                            |   |                      | — |                                                  |   | 3,653                     |    |   | 4,694   |                                     |        | 42,651  |          |   | 47,345  |   |   | 15,337 |   |   | 1985   |   | 1/3/1996   |   | 15 - 40 Yrs |
| Phoenix – Crescent, AZ (b)                                |   | —      |   |         | 3,608   |                                       |   | 29,583                                            |   |                      | — |                                                  |   | 1,774                     |    |   | 3,608   |                                     |        | 31,357  |          |   | 34,965  |   |   | 10,512 |   |   | 1986   |   | 6/30/1997  |   | 15 - 40 Yrs |
| Phoenix – Tempe, AZ (a)                                   |   | 22,944       |   |         | 3,951   |                                       |   | 34,371                                            |   |                      | — |                                                  |   | 2,831                     |    |   | 3,951   |                                     |        | 37,202  |          |   | 41,153  |   |   | 11,356 |   |   | 1986   |   | 5/4/1998   |   | 15 - 40 Yrs |
| Anaheim – North, CA (a)                                   |   | 23,595       |   |         | 2,548   |                                       |   | 14,832                                            |   |                      | — |                                                  |   | 1,900                     |    |   | 2,548   |                                     |        | 16,732  |          |   | 19,280  |   |   | 6,058  |   |   | 1987   |   | 1/3/1996   |   | 15 - 40 Yrs |
| Dana Point – Doheny Beach, CA (c)                         |   | 18,125       |   |         | 1,787   |                                       |   | 15,545                                            |   |                      | — |                                                  |   | 3,349                     |    |   | 1,787   |                                     |        | 18,894  |          |   | 20,681  |   |   | 6,262  |   |   | 1992   |   | 2/21/1997  |   | 15 - 40 Yrs |
| Indian Wells – Esmeralda Resort & Spa, CA (d)         |   | —      |   |         | 30,948  |                                       |   | 73,507                                            |   |                      | — |                                                  |   | 1,784                     |    |   | 30,948  |                                     |        | 75,291  |          |   | 106,239 |   |   | 5,687  |   |   | 1989   |   | 12/16/2007 |   | 15 - 40 Yrs |
| Los Angeles – International Airport – South, CA (a) |   | —      |   |         | 2,660   |                                       |   | 17,997                                            |   |                      | — |                                                  |   | 1,863                     |    |   | 2,660   |                                     |        | 19,860  |          |   | 22,520  |   |   | 7,785  |   |   | 1985   |   | 3/27/1996  |   | 15 - 40 Yrs |
| Milpitas – Silicon Valley, CA(a)                          |   | 11,085       |   |         | 4,021   |                                       |   | 23,677                                            |   |                      | — |                                                  |   | 3,590                     |    |   | 4,021   |                                     |        | 27,267  |          |   | 31,288  |   |   | 9,755  |   |   | 1987   |   | 1/3/1996   |   | 15 - 40 Yrs |
| Napa Valley, CA (a)                                             |   | 15,508       |   |         | 2,218   |                                       |   | 14,205                                            |   |                      | — |                                                  |   | 2,853                     |    |   | 2,218   |                                     |        | 17,058  |          |   | 19,276  |   |   | 5,926  |   |   | 1985   |   | 5/8/1996   |   | 15 - 40 Yrs |
| Oxnard - Mandalay Beach – Hotel & Resort, CA (a)      |   | 34,381       |   |         | 2,930   |                                       |   | 22,125                                            |   |                      | — |                                                  |   | 7,845                     |    |   | 2,930   |                                     |        | 29,970  |          |   | 32,900  |   |   | 9,805  |   |   | 1986   |   | 5/8/1996   |   | 15 - 40 Yrs |
| San Diego – On the Bay, CA (e)                            |   | (j)          |   |         | — |                                       |   | 68,229                                            |   |                      | — |                                                  |   | 8,659                     |    |   | — |                                     |        | 76,888  |          |   | 76,888  |   |   | 28,644 |   |   | 1965   |   | 7/28/1998  |   | 15 - 40 Yrs |
| San Francisco – Airport/Burlingame, CA (a)                |   | (j)          |   |         | — |                                       |   | 39,929                                            |   |                      | — |                                                  |   | 2,172                     |    |   | — |                                     |        | 42,101  |          |   | 42,101  |   |   | 15,493 |   |   | 1986   |   | 11/6/1995  |   | 15 - 40 Yrs |
| San Francisco – Airport/South San Francisco, CA (a)       |   | 24,312       |   |         | 3,418   |                                       |   | 31,737                                            |   |                      | — |                                                  |   | 3,667                     |    |   | 3,418   |                                     |        | 35,404  |          |   | 38,822  |   |   | 12,791 |   |   | 1988   |   | 1/3/1996   |   | 15 - 40 Yrs |
| San Francisco - Fisherman’s Wharf, CA (e)                 |   | (j)          |   |         | — |                                       |   | 61,883                                            |   |                      | — |                                                  |   | 3,064                     |    |   | — |                                     |        | 64,947  |          |   | 64,947  |   |   | 31,933 |   |   | 1970   |   | 7/28/1998  |   | 15 - 40 Yrs |
| San Francisco –Union Square, CA (f)                       |   | (j)          |   |         | 8,466   |                                       |   | 73,684                                            |   |                      | (434    | )                                                     |   | 48,475                    |    |   | 8,032   |                                     |        | 122,159 |          |   | 130,191 |   |   | 28,291 |   |   | 1970   |   | 7/28/1998  |   | 15 - 40 Yrs |
| Santa Barbara – Goleta, CA (e)                            |   | 14,946       |   |         | 1,683   |                                       |   | 14,647                                            |   |                      | 4       |                                                  |   | 1,579                     |    |   | 1,687   |                                     |        | 16,226  |          |   | 17,913  |   |   | 4,914  |   |   | 1969   |   | 7/28/1998  |   | 15 - 40 Yrs |
| Santa Monica Beach – at the Pier, CA (e)                  |   | 27,197       |   |         | 10,200  |                                       |   | 16,580                                            |   |                      | — |                                                  |   | 337                       |    |   | 10,200  |                                     |        | 16,917  |          |   | 27,117  |   |   | 2,884  |   |   | 1967   |   | 3/11/2004  |   | 15 - 40 Yrs |
| Toronto - Airport, Canada (e)                                   |   | (j)          |   |         | — |                                       |   | 21,041                                            |   |                      | — |                                                  |   | 17,556                    |    |   | — |                                     |        | 38,597  |          |   | 38,597  |   |   | 12,942 |   |   | 1970   |   | 7/28/1998  |   | 15 - 40 Yrs |
| Toronto - Yorkdale, Canada (e)                                  |   | (j)          |   |         | 1,566   |                                       |   | 13,633                                            |   |                      | 829     |                                                  |   | 15,199                    |    |   | 2,395   |                                     |        | 28,832  |          |   | 31,227  |   |   | 10,326 |   |   | 1970   |   | 7/28/1998  |   | 15 - 40 Yrs |
| Wilmington, DE (c)                                              |   | 7,800        |   |         | 1,379   |                                       |   | 12,487                                            |   |                      | — |                                                  |   | 11,190                    |    |   | 1,379   |                                     |        | 23,677  |          |   | 25,056  |   |   | 7,485  |   |   | 1972   |   | 3/20/1998  |   | 15 - 40 Yrs |
| Boca Raton, FL (a)                                              |   | 10,875       |   |         | 1,868   |                                       |   | 16,253                                            |   |                      | — |                                                  |   | 3,163                     |    |   | 1,868   |                                     |        | 19,416  |          |   | 21,284  |   |   | 7,724  |   |   | 1989   |   | 2/28/1996  |   | 15 - 40 Yrs |
| Deerfield Beach – Resort & Spa, FL (a)                |   | 28,420       |   |         | 4,523   |                                       |   | 29,443                                            |   |                      | 68      |                                                  |   | 6,131                     |    |   | 4,591   |                                     |        | 35,574  |          |   | 40,165  |   |   | 12,243 |   |   | 1987   |   | 1/3/1996   |   | 15 - 40 Yrs |

----

|                                                                         |        |              |        |              |         |                                            |        |                                                   |        |                           |         |                                                       |        |                           |        |        |         |                                          |             |         |               |        |         |        |        |        |        |        |        |           |            |             |             |        |        |        |      |        |          |        |             |
|-------------------------------------------------------------------------|--------|--------------|--------|--------------|---------|--------------------------------------------|--------|---------------------------------------------------|--------|---------------------------|---------|-------------------------------------------------------|--------|---------------------------|--------|--------|---------|------------------------------------------|-------------|---------|---------------|--------|---------|--------|--------|--------|--------|--------|--------|-----------|------------|-------------|-------------|--------|--------|--------|------|--------|----------|--------|-------------|
|                                                                    |   |         |   | Initial Cost |    | Cost Capitalized Subsequent to Acquisition |   | Gross Amounts at Which Carried at Close of Period |   |                      |    | Accumulated Depreciation Buildings & Improvements |   |                      |   |   |    | Life Upon Which Depreciation is Computed |
| Location                                                                |   | Encumbrances |   | Land         |    | Building and Improvements                  |   | Land                                              |   | Building and Improvements |    | Land                                                  |   | Building and Improvements |   | Total  |    |                                     | Year Opened |    | Date Acquired |   |
| Ft. Lauderdale – 17th Street, FL (a)                              |   | $            | 19,691 |         |    | $                                          | 5,329  |                                              |   | $                         | 47,850  |                                                  |   | (163                      | )      |   | $       | 4,955                                    |        |    | $             | 5,166  |    |   | $      | 52,805 |   |   | $      | 57,971    |       |        | $           | 19,224 |   |   | 1986 |   | 1/3/1996 |   | 15 - 40 Yrs |
| Ft. Lauderdale – Cypress Creek, FL (b)                            |   | 13,862       |   |         | 3,009   |                                       |   | 26,177                                            |   |                      | — |                                                  |   | 2,592                     |   |   | 3,009   |                                     |        | 28,769  |          |   | 31,778  |   |   | 9,065  |   |   | 1986   |      | 5/4/1998   |        | 15 - 40 Yrs |
| Jacksonville – Baymeadows, FL (a)                                 |   | 23,590       |   |         | 1,130   |                                       |   | 9,608                                             |   |                      | — |                                                  |   | 7,993                     |   |   | 1,130   |                                     |        | 17,601  |          |   | 18,731  |   |   | 6,410  |   |   | 1986   |      | 7/28/1994  |        | 15 - 40 Yrs |
| Miami – International Airport, FL (a)                             |   | 18,292       |   |         | 4,135   |                                       |   | 24,950                                            |   |                      | — |                                                  |   | 5,954                     |   |   | 4,135   |                                     |        | 30,904  |          |   | 35,039  |   |   | 10,509 |   |   | 1983   |      | 1/3/1996   |        | 15 - 40 Yrs |
| Orlando – International Airport, FL (e)                           |   | 8,670        |   |         | 2,549   |                                       |   | 22,188                                            |   |                      | 6       |                                                  |   | 3,011                     |   |   | 2,555   |                                     |        | 25,199  |          |   | 27,754  |   |   | 8,209  |   |   | 1984   |      | 7/28/1998  |        | 15 - 40 Yrs |
| Orlando – International Drive South/Convention,  FL (a) |   | 19,975       |   |         | 1,632   |                                       |   | 13,870                                            |   |                      | — |                                                  |   | 3,067                     |   |   | 1,632   |                                     |        | 16,937  |          |   | 18,569  |   |   | 6,737  |   |   | 1985   |      | 7/28/1994  |        | 15 - 40 Yrs |
| Orlando (North), FL (a)                                                 |   | (j)          |   |         | 1,673   |                                       |   | 14,218                                            |   |                      | (18     | )                                                     |   | 8,332                     |   |   | 1,655   |                                     |        | 22,550  |          |   | 24,205  |   |   | 8,745  |   |   | 1985   |      | 7/28/1994  |        | 15 - 40 Yrs |
| Orlando – Walt Disney World Resort, FL (c)                        |   | (j)          |   |         | — |                                       |   | 28,092                                            |   |                      | — |                                                  |   | 1,639                     |   |   | — |                                     |        | 29,731  |          |   | 29,731  |   |   | 11,653 |   |   | 1987   |      | 7/28/1997  |        | 15 - 40 Yrs |
| St. Petersburg – Vinoy Resort & Golf Club, FL (d)             |   | —      |   |         | — |                                       |   | 100,823                                           |   |                      | — |                                                  |   | 3,715                     |   |   | — |                                     |        | 104,538 |          |   | 104,538 |   |   | 8,492  |   |   | 1925   |      | 12/16/2007 |        | 15 - 40 Yrs |
| Tampa – Tampa Bay, FL (c)                                         |   | 12,950       |   |         | 2,142   |                                       |   | 18,639                                            |   |                      | 1       |                                                  |   | 2,828                     |   |   | 2,143   |                                     |        | 21,467  |          |   | 23,610  |   |   | 7,296  |   |   | 1986   |      | 7/28/1997  |        | 15 - 40 Yrs |
| Atlanta – Airport, GA (a)                                         |   | 11,947       |   |         | 2,568   |                                       |   | 22,342                                            |   |                      | — |                                                  |   | 2,922                     |   |   | 2,568   |                                     |        | 25,264  |          |   | 27,832  |   |   | 7,718  |   |   | 1989   |      | 5/4/1998   |        | 15 - 40 Yrs |
| Atlanta – Buckhead, GA (a)                                        |   | 34,584       |   |         | 7,303   |                                       |   | 38,996                                            |   |                      | (300    | )                                                     |   | 2,811                     |   |   | 7,003   |                                     |        | 41,807  |          |   | 48,810  |   |   | 14,538 |   |   | 1988   |      | 10/17/1996 |        | 15 - 40 Yrs |
| Atlanta – Galleria, GA (b)                                        |   | 17,328       |   |         | 5,052   |                                       |   | 28,507                                            |   |                      | — |                                                  |   | 1,911                     |   |   | 5,052   |                                     |        | 30,418  |          |   | 35,470  |   |   | 10,220 |   |   | 1990   |      | 6/30/1997  |        | 15 - 40 Yrs |
| Atlanta – Gateway-Atlanta Airport, GA (b)                         |   | (j)          |   |         | 5,113   |                                       |   | 22,857                                            |   |                      | — |                                                  |   | 1,889                     |   |   | 5,113   |                                     |        | 24,746  |          |   | 29,859  |   |   | 8,063  |   |   | 1986   |      | 6/30/1997  |        | 15 - 40 Yrs |
| Chicago – Gateway – O’Hare, IL (b)                    |   | —      |   |         | 8,178   |                                       |   | 37,043                                            |   |                      | — |                                                  |   | 4,263                     |   |   | 8,178   |                                     |        | 41,306  |          |   | 49,484  |   |   | 12,804 |   |   | 1994   |      | 6/30/1997  |        | 15 - 40 Yrs |
| Indianapolis – North, IN (a)                                      |   | 11,321       |   |         | 5,125   |                                       |   | 13,821                                            |   |                      | — |                                                  |   | 7,492                     |   |   | 5,125   |                                     |        | 21,313  |          |   | 26,438  |   |   | 9,195  |   |   | 1986   |      | 8/1/1996   |        | 15 - 40 Yrs |
| Lexington – Lexington Green, KY (g)                               |   | 17,721       |   |         | 1,955   |                                       |   | 13,604                                            |   |                      | — |                                                  |   | 870                       |   |   | 1,955   |                                     |        | 14,474  |          |   | 16,429  |   |   | 5,216  |   |   | 1987   |      | 1/10/1996  |        | 15 - 40 Yrs |
| Baton Rouge, LA (a)                                                     |   | 12,079       |   |         | 2,350   |                                       |   | 19,092                                            |   |                      | 1       |                                                  |   | 2,335                     |   |   | 2,351   |                                     |        | 21,427  |          |   | 23,778  |   |   | 7,711  |   |   | 1985   |      | 1/3/1996   |        | 15 - 40 Yrs |
| New Orleans – Convention Center, LA (a)                           |   | 27,770       |   |         | 3,647   |                                       |   | 31,993                                            |   |                      | — |                                                  |   | 8,438                     |   |   | 3,647   |                                     |        | 40,431  |          |   | 44,078  |   |   | 15,451 |   |   | 1984   |      | 12/1/1994  |        | 15 - 40 Yrs |
| New Orleans – French Quarter, LA (e)                              |   | (j)          |   |         | — |                                       |   | 50,732                                            |   |                      | — |                                                  |   | 9,473                     |   |   | — |                                     |        | 60,205  |          |   | 60,205  |   |   | 19,053 |   |   | 1969   |      | 7/28/1998  |        | 15 - 40 Yrs |
| Boston – at Beacon Hill, MA(e)                                    |   | (j)          |   |         | — |                                       |   | 45,192                                            |   |                      | — |                                                  |   | 9,028                     |   |   | — |                                     |        | 54,220  |          |   | 54,220  |   |   | 22,000 |   |   | 1968   |      | 7/28/1998  |        | 15 - 40 Yrs |
| Boston – Copley  Plaza, MA(h)                                     |   | —      |   |         | 27,600  |                                       |   | 62,500                                            |   |                      | — |                                                  |   | 44                        |   |   | 27,600  |                                     |        | 62,544  |          |   | 90,144  |   |   | 521    |   | 1912   |   | 8/18/2010 |       | 15 - 40 Yrs |
| Boston – Marlborough, MA (a)                                      |   | 20,544       |   |         | 948     |                                       |   | 8,143                                             |   |                      | 761     |                                                  |   | 14,608                    |   |   | 1,709   |                                     |        | 22,751  |          |   | 24,460  |   |   | 7,770  |   |   | 1988   |      | 6/30/1995  |        | 15 - 40 Yrs |

----

|                                                                     |        |              |         |              |         |                                            |         |                                                   |        |                           |           |                                                       |        |                           |        |        |         |                                          |             |        |               |        |         |        |        |        |           |        |        |        |            |        |             |        |         |        |        |           |        |             |        |        |
|---------------------------------------------------------------------|--------|--------------|---------|--------------|---------|--------------------------------------------|---------|---------------------------------------------------|--------|---------------------------|-----------|-------------------------------------------------------|--------|---------------------------|--------|--------|---------|------------------------------------------|-------------|--------|---------------|--------|---------|--------|--------|--------|-----------|--------|--------|--------|------------|--------|-------------|--------|---------|--------|--------|-----------|--------|-------------|--------|--------|
|                                                                |   |         |    | Initial Cost |    | Cost Capitalized Subsequent to Acquisition |    | Gross Amounts at Which Carried at Close of Period |   |                      |      | Accumulated Depreciation Buildings & Improvements |   |                      |   |   |    | Life Upon Which Depreciation is Computed |
| Location                                                            |   | Encumbrances |    | Land         |    | Building and Improvements                  |    | Land                                              |   | Building and Improvements |      | Land                                                  |   | Building and Improvements |   | Total  |    |                                     | Year Opened |   | Date Acquired |   |
| Baltimore – at BWI Airport, MD(a)                             |   | $            | 21,229  |         |    | $                                          | 2,568   |                                              |   | $                         | 22,433    |                                                  |   | $                         | (2     | )      |    | $                                        | 3,694       |   |          | $      | 2,566   |   |   | $      | 26,127    |   |   | 28,693 |       |   | 8,748       |   |    | 1987   |   | 3/20/1997 |   | 15 - 40 Yrs |
| Bloomington, MN (a)                                                 |   | 18,350       |    |         | 2,038   |                                       |    | 17,731                                            |   |                      | —   |                                                  |   | 3,111                     |   |   | 2,038   |                                     |        | 20,842 |          |   | 22,880  |   |   | 6,851  |      |   | 1980   |   | 2/1/1997   |   | 15 - 40 Yrs |
| Minneapolis – Airport, MN (a)                                 |   | 19,517       |    |         | 5,417   |                                       |    | 36,508                                            |   |                      | 24        |                                                  |   | 2,125                     |   |   | 5,441   |                                     |        | 38,633 |          |   | 44,074  |   |   | 14,210 |      |   | 1986   |   | 11/6/1995  |   | 15 - 40 Yrs |
| St Paul – Downtown, MN (a)                                    |   | —      |    |         | 1,156   |                                       |    | 17,315                                            |   |                      | —   |                                                  |   | 1,726                     |   |   | 1,156   |                                     |        | 19,041 |          |   | 20,197  |   |   | 6,902  |      |   | 1983   |   | 11/15/1995 |   | 15 - 40 Yrs |
| Charlotte – SouthPark, NC (c)                                 |   | 18,152       |    |         | 1,458   |                                       |    | 12,681                                            |   |                      | —   |                                                  |   | 3,245                     |   |   | 1,458   |                                     |        | 15,926 |          |   | 17,384  |   |   | 3,638  |      |   | N/A    |   | 7/12/2002  |   | 15 - 40 Yrs |
| Raleigh/Durham, NC (c)                                              |   | 17,290       |    |         | 2,124   |                                       |    | 18,476                                            |   |                      | —   |                                                  |   | 2,307                     |   |   | 2,124   |                                     |        | 20,783 |          |   | 22,907  |   |   | 6,897  |      |   | 1987   |   | 7/28/1997  |   | 15 - 40 Yrs |
| Philadelphia – Historic District, PA (e)                      |   | 26,298       |    |         | 3,164   |                                       |    | 27,535                                            |   |                      | 7         |                                                  |   | 9,403                     |   |   | 3,171   |                                     |        | 36,938 |          |   | 40,109  |   |   | 12,553 |      |   | 1972   |   | 7/28/1998  |   | 15 - 40 Yrs |
| Philadelphia – Society Hill, PA(b)                            |   | 43,184       |    |         | 4,542   |                                       |    | 45,121                                            |   |                      | —   |                                                  |   | 7,872                     |   |   | 4,542   |                                     |        | 52,993 |          |   | 57,535  |   |   | 16,560 |      |   | 1986   |   | 10/1/1997  |   | 15 - 40 Yrs |
| Pittsburgh – at University Center (Oakland), PA (e)           |   | 14,753       |    |         | — |                                       |    | 25,031                                            |   |                      | —   |                                                  |   | 3,018                     |   |   | — |                                     |        | 28,049 |          |   | 28,049  |   |   | 9,028  |      |   | 1988   |   | 11/1/1998  |   | 15 - 40 Yrs |
| Charleston – Mills House, SC(e)                               |   | 25,538       |    |         | 3,251   |                                       |    | 28,295                                            |   |                      | 7         |                                                  |   | 5,021                     |   |   | 3,258   |                                     |        | 33,316 |          |   | 36,574  |   |   | 9,615  |      |   | 1982   |   | 7/28/1998  |   | 15 - 40 Yrs |
| Myrtle Beach – Oceanfront Resort, SC (a)                      |   | (j)          |    |         | 2,940   |                                       |    | 24,988                                            |   |                      | —   |                                                  |   | 5,501                     |   |   | 2,940   |                                     |        | 30,489 |          |   | 33,429  |   |   | 9,946  |      |   | 1987   |   | 12/5/1996  |   | 15 - 40 Yrs |
| Myrtle Beach Resort (g)                                             |   | 21,296       |    |         | 9,000   |                                       |    | 19,844                                            |   |                      | 6         |                                                  |   | 29,520                    |   |   | 9,006   |                                     |        | 49,364 |          |   | 58,370  |   |   | 9,163  |      |   | 1974   |   | 7/23/2002  |   | 15 - 40 Yrs |
| Nashville – Airport – Opryland Area, TN (a)             |   | 18,698       |    |         | 1,118   |                                       |    | 9,506                                             |   |                      | —   |                                                  |   | 1,502                     |   |   | 1,118   |                                     |        | 11,008 |          |   | 12,126  |   |   | 4,930  |      |   | 1985   |   | 7/28/1994  |   | 15 - 40 Yrs |
| Nashville – Opryland – Airport (Briley Parkway), TN (e) |   | (j)          |    |         | — |                                       |    | 27,734                                            |   |                      | —   |                                                  |   | 3,271                     |   |   | — |                                     |        | 31,005 |          |   | 31,005  |   |   | 12,802 |      |   | 1981   |   | 7/28/1998  |   | 15 - 40 Yrs |
| Austin, TX (c)                                                      |   | 8,510        |    |         | 2,508   |                                       |    | 21,908                                            |   |                      | —   |                                                  |   | 2,860                     |   |   | 2,508   |                                     |        | 24,768 |          |   | 27,276  |   |   | 8,574  |      |   | 1987   |   | 3/20/1997  |   | 15 - 40 Yrs |
| Corpus Christi, TX (a)                                              |   | 7,501        |    |         | 1,113   |                                       |    | 9,618                                             |   |                      | 51        |                                                  |   | 4,491                     |   |   | 1,164   |                                     |        | 14,109 |          |   | 15,273  |   |   | 4,951  |      |   | 1984   |   | 7/19/1995  |   | 15 - 40 Yrs |
| Dallas – DFW International Airport South, TX (a)              |   | 19,302       |    |         | 4,041   |                                       |    | 35,156                                            |   |                      | —   |                                                  |   | 1,167                     |   |   | 4,041   |                                     |        | 36,323 |          |   | 40,364  |   |   | 10,907 |      |   | 1985   |   | 7/28/1998  |   | 15 - 40 Yrs |
| Dallas – Love Field, TX (a)                                   |   | 16,500       |    |         | 1,934   |                                       |    | 16,674                                            |   |                      | —   |                                                  |   | 3,344                     |   |   | 1,934   |                                     |        | 20,018 |          |   | 21,952  |   |   | 7,353  |      |   | 1986   |   | 3/29/1995  |   | 15 - 40 Yrs |
| Dallas – Market Center, TX (a)                                |   | (j)          |    |         | 2,560   |                                       |    | 23,751                                            |   |                      | —   |                                                  |   | 2,388                     |   |   | 2,560   |                                     |        | 26,139 |          |   | 28,699  |   |   | 8,543  |      |   | 1980   |   | 6/30/1997  |   | 15 - 40 Yrs |
| Dallas – Park Central, TX (i)                                 |   | —      |    |         | 4,513   |                                       |    | 43,125                                            |   |                      | 762       |                                                  |   | 7,865                     |   |   | 5,275   |                                     |        | 50,990 |          |   | 56,265  |   |   | 16,558 |      |   | 1983   |   | 6/30/1997  |   | 15 - 40 Yrs |
| Houston - Medical Center, TX(e)                                     |   | 22,579       |    |         | — |                                       |    | 22,027                                            |   |                      | —   |                                                  |   | 5,004                     |   |   | — |                                     |        | 27,031 |          |   | 27,031  |   |   | 7,980  |      |   | 1984   |   | 7/28/1998  |   | 15 - 40 Yrs |
| San Antonio - International Airport, TX (e)                         |   | 23,800       |    |         | 3,351   |                                       |    | 29,168                                            |   |                      | (185      | )                                                     |   | 3,915                     |   |   | 3,166   |                                     |        | 33,083 |          |   | 36,249  |   |   | 10,590 |      |   | 1981   |   | 7/28/1998  |   | 15 - 40 Yrs |
| Burlington Hotel & Conference Center, VT (b)                    |   | 30,710       |    |         | 3,136   |                                       |    | 27,283                                            |   |                      | (2        | )                                                     |   | 2,751                     |   |   | 3,134   |                                     |        | 30,034 |          |   | 33,168  |   |   | 9,665  |      |   | 1967   |   | 12/4/1997  |   | 15 - 40 Yrs |
|                                                                |   | $            | 918,617 |         |    | $                                          | 248,681 |                                              |   | $                         | 1,976,817 |                                                  |   | $                         | 1,423  |   |    | $                                        | 382,129     |   |          | $      | 250,104 |   |   | $      | 2,358,946 |   |   | $      | 2,609,050  |   |        | $      | 729,420 |   |   |      |   |        |   |   |

----

|                                                                               |        |                              |           |        |           |        |           |           |        |   |           |        |
|-------------------------------------------------------------------------------|--------|------------------------------|-----------|--------|-----------|--------|-----------|-----------|--------|---|-----------|--------|
|                                                                          |   | Year Ended December 31, |
|                                                                          |   | 2010                         |      | 2009   |      | 2008   |
| Reconciliation of Land and Buildings and Improvements                         |   |                         |      |   |      |   |
| Balance at beginning of period                                                |   | $                            | 2,541,962 |   |      | $      | 2,586,034 |      |   | $ | 2,542,784 |   |
| Additions during period:                                                      |   |                         |      |   |      |   |
| Acquisitions                                                                  |   | 90,100                       |      |   | —   |   |      | —   |   |
| Improvements                                                                  |   | 22,863                       |      |   | 51,895    |   |      | 43,250    |   |
| Deductions during period:                                                     |   |                         |      |   |      |   |
| Disposition of properties                                                     |   | —                      |      |   | (95,967   | )      |      | —   |   |
| Foreclosures                                                                  |   | (45,875                      | )         |   | —   |   |      | —   |   |
| Balance at end of period before impairment charges                            |   | 2,609,050                    |      |   | 2,541,962 |   |      | 2,586,034 |   |
| Cumulative impairment charges on real estate assets owned at    end of period |   | (179,477                     | )         |   | (49,680   | )      |      | (101,424  | )      |
| Balance at end of period                                                      |   | $                            | 2,429,573 |   |      | $      | 2,492,282 |      |   | $ | 2,484,610 |   |
| Reconciliation of Accumulated Depreciation                                    |   |                         |      |   |      |   |
| Balance at beginning of period                                                |   | $                            | 672,160   |   |      | $      | 629,920   |      |   | $ | 567,954   |   |
| Additions during period:                                                      |   |                         |      |   |      |   |
| Depreciation for the period                                                   |   | 71,821                       |      |   | 69,408    |   |      | 61,966    |   |
| Deductions during period:                                                     |   |                         |      |   |      |   |
| Disposition of properties                                                     |   | (14,561                      | )         |   | (27,168   | )      |      | —   |   |
| Balance at end of period                                                      |   | $                            | 729,420   |   |      | $      | 672,160   |      |   | $ | 629,920   |   |

----

----

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|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                        |        |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|--------|
| 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 3.1 to FelCor’s Form 8-K dated November 12, 2010 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 Form8-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). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.6.3  | Third Supplemental Indenture dated as of March 23, 2010, by and among FelCor, FelCor LP, certain subsidiary guarantors named therein, FelCor Holdings Trust and U.S. Bank National Association (Filed as Exhibit 4.1 to FelCor's Form 10-Q for the quarter ended March 31, 2010 (the “May 2010 Form 10-Q”), 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 by reference).                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                  |
| 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).                                                                                                      |

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|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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, 2005, 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 Form10-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). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

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|        |                                                                                                                                                                                                                                                                                                            |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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  | 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).                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                       |
| 10.11  | 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).                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                       |
| 10.12  | 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).                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                       |
| 10.13  | 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).                                                                                 |
|   |                                                                                                                                                                                                                                                                                                       |
| 10.14  | 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).                                                 |
|   |                                                                                                                                                                                                                                                                                                       |
| 10.15  | 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).                                                                            |

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|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.15.1 | 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).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.16   | 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).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.17   | 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).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.18   | 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).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.19   | 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).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.20   | Summary of  Amended Annual Compensation Program for Directors of FelCor (filed as exhibit 10.21 to FelCor's Form 10-K for the fiscal year ended December 31, 2009 and incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.21   | 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).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.22.1 | 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).                                                                                                                                                                                                                                                                                                                                                                             |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.22.2 | 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). |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.22.3   | 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). |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.22.4   | Form of Guaranty of Recourse 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).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.23.1   | 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).                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.23.1.1 | 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 to the 2006 Form 10-K and incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.23.2   | Form of Morgage, 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).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.23.3   | 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 teh 2006 Form 10-K and incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.23.4   | Guaranty of Recourse Obligations of Borrowers, 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).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.24.1   | 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).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

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|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.24.2 | 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).                                                                                                                    |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.24.3 | 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 by reference).                                                                                                                                                                           |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.24.4 | 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).                                                                                                                                                                              |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.25.1 | 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).                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.25.2 | 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).        |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.25.3 | 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).                                                                                                                                                 |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.25.4 | 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).                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.25.5 | 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).                                                                                                                                                                                           |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.26.1 | 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 by reference).                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.26.2 | Form of Mortgage, Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing by and among FelCor Lodging Trust Incorporated, FelCor Lodging Limited Partnership, certain of their subsidiaries, as guarantors, and U.S. Bank National Association, as trustee and collateral agent, relating to the 10% Senior Secured Notes due 2014 (Filed as exhibit 10.1 to the May 2010 Form 10-Q and incorporated herein by reference). |

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|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.27.1 | Credit Agreement, dated as of May 3, 2010, by and among FelCor/CMB Buckhead Hotel, L.L.C., FelCor/CMB Marlborough Hotel, L.L.C., FelCor/CMB Corpus Holdings, L.P., FelCor/CMB Orsouth Holdings, L.P., FelCor/CMB SSF Holdings, L.P., FelCor S-4 Hotels (SPE), L.L.C., DJONT/CMB Buckhead Leasing, L.L.C., DJONT/CMB FCOAM, L.L.C., DJONT/CMB Corpus Leasing, L.L.C., DJONT/CMB Orsouth Leasing, L.L.C., DJONT/CMB SSF Leasing, L.L.C., FelCor S-4 Leasing (SPE), L.L.C., FCH/SH Leasing II, L.L.C., and Fortress Credit Corp. (as administrative agent and initial lender) (filed as exhibit 10.33.1 to FelCor's Registration Statement on Form S-11 (Registration File No. 333-166779) (“FelCor's S-11 filed May 13, 2010”) and incorporated herein by reference). |
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| 10.27.2 | Form of Promissory Note, dated as of May 3, 2010, executed by FelCor/CMB Buckhead Hotel, L.L.C., FelCor/CMB Marlborough Hotel, L.L.C., FelCor/CMB Corpus Holdings, L.P., FelCor/CMB Orsouth Holdings, L.P., FelCor/CMB SSF Holdings, L.P., FelCor S-4 Hotels (SPE), L.L.C., DJONT/CMB Buckhead Leasing, L.L.C., DJONT/CMB FCOAM, L.L.C., DJONT/CMB Corpus Leasing, L.L.C., DJONT/CMB Orsouth Leasing, L.L.C., DJONT/CMB SSF Leasing, L.L.C., and FelCor S-4 Leasing (SPE), L.L.C. ) (filed as exhibit 10.33.2 to FelCor's S-11 filed May 13, 2010 and incorporated herein by reference).                                                                                                                                                                                        |
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| 10.27.3 | Pledge and Security Agreement, dated as of May 3, 2010, by and among FelCor LP, DJONT Operations, L.L.C., FelCor TRS Holdings, L.L.C., FelCor/CSS Holdings, L.P., and Fortress Credit Corp. (filed as exhibit 10.33.3 to FelCor's S-11 filed May 13, 2010 and incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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| 10.27.4 | Form of Mortgage, Fixture Filing and Security Agreement, dated as of May 3, 2010, granted by FelCor/CMB Buckhead Hotel, L.L.C., FelCor/CMB Marlborough Hotel, L.L.C., FelCor/CMB Corpus Holdings, L.P., FelCor/CMB Orsouth Holdings, L.P., FelCor/CMB SSF Holdings, L.P., FelCor S-4 Hotels (SPE), L.L.C., DJONT/CMB Buckhead Leasing, L.L.C., DJONT/CMB FCOAM, L.L.C., DJONT/CMB Corpus Leasing, L.L.C., DJONT/CMB Orsouth Leasing, L.L.C., DJONT/CMB SSF Leasing, L.L.C., and FelCor S-4 Leasing (SPE), L.L.C for the benefit of Fortress Credit Corp. (filed as exhibit 10.33.4 to FelCor's S-11 filed May 13, 2010 and incorporated herein by reference).                                                                                                                   |
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| 10.27.5 | Guaranty, dated as of May 3, 2010, granted by FelCor LP in favor of Fortress Credit Corp. (filed as exhibit 10.33.5 to FelCor's S-11 filed May 13, 2010 and incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
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| 21*     | List of Subsidiaries of FelCor.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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| 23*     | Consent of PricewaterhouseCoopers LLP.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 31.1*   | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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| 31.2*   | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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| 32*     | Certification of the Chief Executive Officer and 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 24, 2011                 |

|        |                   |                                                                                                   |        |        |           |        |
|--------|-------------------|---------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|
|   |              | Date                                                                                              |   |   | Signature |   |
|   | February 24, 2011 | /s/ Richard A. Smith                                                                              |
|   |              | Richard A. SmithPresident and Director (Chief Executive Officer)                                  |
|   | February 24, 2011 | /s/ Andrew J. Welch                                                                               |
|   |              | Andrew J. WelchExecutive Vice President and Chief Financial Officer(Principal Financial Officer)  |
|   | February 24, 2011 | /s/ Lester C. Johnson                                                                             |
|   |              | Lester C. JohnsonSenior Vice President and Chief Accounting Officer(Principal Accounting Officer) |
|   | February 24, 2011 | /s/ Thomas J. Corcoran, Jr.                                                                       |
|   |              | Thomas J. Corcoran, Jr.Chairman of the Board and Director                                         |
|   | February 24, 2011 | /s/ Melinda J. Bush                                                                               |
|   |              | Melinda J. Bush, Director                                                                         |
|   | February 24, 2011 | /s/ Glenn A. Carlin                                                                               |
|   |              | Glenn A. Carlin, Director                                                                         |
|   |              |                                                                                              |
|   |              | Robert F. Cotter, Director                                                                        |
|   | February 24, 2011 | /s/Christopher J. Hartung                                                                         |
|   |              | Christopher J. Hartung, Director                                                                  |
|   | February 24, 2011 | /s/ Thomas C. Hendrick                                                                            |
|   |              | Thomas C. Hendrick, Director                                                                      |
|   | February 24, 2011 | /s/ Charles A. Ledsinger, Jr.                                                                     |
|   |              | Charles A. Ledsinger, Jr., Director                                                               |

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|        |                   |                                    |  |  |  |  |
|--------|-------------------|------------------------------------|--|--|--|--|
|   | February 24, 2011 | /s/ Robert H. Lutz, Jr.            |
|   |              | Robert H. Lutz, Jr., Director      |
|   | February 24, 2011 | /s/ Robert A. Mathewson            |
|   |              | Robert A. Mathewson, Director |
|   | February 24, 2011 | /s/ Mark D. Rozells                |
|   |              | Mark D. Rozells, Director          |
|   | February 24, 2011 | /s/ C. Brian Strickland            |
|   |              | C. Brian Strickland, Director      |