----

| Delaware                        |   | 75-2544994          |
|---------------------------------|--------|---------------------|
| (State or other jurisdiction of |   | (I.R.S. Employer    |
| incorporation or organization)  |   | Identification No.) |

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

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

----

|      | PART I - FINANCIAL INFORMATION                                                              |                                                                                                   |                                          |   |   |
|-----------|---------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|-----------------------------------------------|--------|--------|
|      |                                                                                        |                                                                                                   |                                          |   |   |   |   |   |   |   |   |
| Item 1.   | Financial Statements                                                                        |                                                                                                   |                                          |   |   |   |   |   | 3 |
|      |                                                                                        | Consolidated Balance Sheets June 30, 2010 and December 31, 2009 (unaudited)                  |                                          | 3      |
|      |                                                                                        | Consolidated Statements of Operations – For the Three and Six Months Ended                       |                                          |   |
|      |                                                                                        |                                                                                                   | June 30, 2010 and 2009 (unaudited)            |   |   |   |   | 4 |
|      |                                                                                        | Consolidated Statements of Comprehensive Income (Loss) – For the Three and Six Months            |                                          |
|      |                                                                                        |                                                                                                   | Ended June 30, 2010 and 2009 (unaudited) |   |   |   |   | 5 |
|      |                                                                                        | Consolidated Statements of Partners’ Capital – For the Six Months Ended June 30, 2010 |                                          |   |
|      |                                                                                        |                                                                                                   | and 2009 (unaudited)                          |   |   |   |   |   |   | 6 |
|      |                                                                                        | Consolidated Statements of Cash Flows – For the Six Months Ended June 30, 2010 and          |                                          |   |
|      |                                                                                        |                                                                                                   | 2009 (unaudited)                              |   |   |   |   |   |   | 7 |
|      |                                                                                        |                                                                                                   | Notes to Consolidated Financial Statements    |   |   |   |   | 8 |
| Item 2.   | Management’s Discussion and Analysis of Financial Condition and Results of Operations |                                                                                                   | 25                                            |
|      |                                                                                        | General                                                                                                |                                          |   |   |   |   |   |   |   | 25 |
|      |                                                                                        | Results of Operations                                                                                  |                                          |   |   |   |   |   |   | 26 |
|      |                                                                                        | Non-GAAP Financial Measures                                                                            |                                          |   |   |   |   |   | 28 |
|      |                                                                                        | Pro Rata Share of Rooms Owned                                                                          |                                          |   |   |   |   | 30 |
|      |                                                                                        | Hotel Portfolio Composition                                                                            |                                          |   |   |   |   |   | 31 |
|      |                                                                                        | Hotel Operating Statistics                                                                             |                                          |   |   |   |   |   | 32 |
|      |                                                                                        | Hotel Portfolio                                                                                        |                                          |   |   |   |   |   |   | 34 |
|      |                                                                                        | Liquidity and Capital Resources                                                                        |                                          |   |   |   |   |   | 36 |
|      |                                                                                        | Inflation                                                                                              |                                          |   |   |   |   |   |   |   | 38 |
|      |                                                                                        | Seasonality                                                                                            |                                          |   |   |   |   |   |   | 38 |
|      |                                                                                        | Disclosure Regarding Forward-Looking Statements                                                        |                                          |   |   |   | 38 |
| Item 3.   | Quantitative and Qualitative Disclosures about Market Risk                                  |                                                                                                   |                                          |   |   | 39 |
| Item 4.   | Controls and Procedures                                                                     |                                                                                                   |                                          |   |   |   |   |   | 39 |
|      |                                                                                        |                                                                                                   |                                          |   |   |   |   |   |   |   |   |
|      | PART II - OTHER INFORMATION                                                                 |                                                                                                   |                                          |   |   |   |
|      |                                                                                        |                                                                                                   |                                          |   |   |   |   |   |   |   |   |
| Item 3.   | Defaults Upon Senior Securities                                                             |                                                                                                   |                                          |   |   |   |   |   | 40 |
| Item 6.   | Exhibits                                                                                    |                                                                                                   |                                          |   |   |   |   |   |   | 40 |
|      |                                                                                        |                                                                                                   |                                          |   |   |   |   |   |   |   |   |
| SIGNATURE |                                                                                        |                                                                                                   |                                          |   |   |   |   |   |   | 41 |

----

|                                                                                                                                                     | June 30, 2010 |      | December 31, 2009 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|-----------|------------------------|
| Assets                                                                                                                                                   |               |      |                   |   |   |   |   |
| Investment in hotels, net of accumulated depreciation of $958,462 at June 30, 2010 and $916,604 at December 31, 2009                                | $                  | 2,102,908 |                   |   | $ | 2,180,394 |   |
| Investment in unconsolidated entities                                                                                                                    |               | 104,372   |                   |   |   | 82,040 |   |
| Cash and cash equivalents                                                                                                                                |               | 281,474   |                   |   |   | 263,531 |   |
| Restricted cash                                                                                                                                          |               | 17,288    |                   |   |   | 18,708 |   |
| Accounts receivable, net of allowance for doubtful accounts of $315 at June 30, 2010 and $406 at December 31, 2009                                  |               | 33,618    |                   |   |   | 28,678 |   |
| Deferred expenses, net of accumulated amortization of $13,993 at June 30, 2010 and $14,502 at December 31, 2009                                     |               | 22,828    |                   |   |   | 19,977 |   |
| Other assets                                                                                                                                             |               | 37,387    |                   |   |   | 32,666 |   |
|           Total assets                                                                                 | $                  | 2,599,875 |                   |   | $ | 2,625,994 |   |
|                                                                                                                                                     |               |      |                   |   |   |   |   |
| Liabilities and Partners’ Capital                                                                                                                  |               |      |                   |   |   |   |   |
| Debt, net of discount of $58,567 at June 30, 2010 and $64,267 at December 31, 2009                                                             | $                  | 1,596,635 |                   |   | $ | 1,773,314 |   |
| Distributions payable                                                                                                                                    |               | 56,936    |                   |   |   | 37,580 |   |
| Accrued expenses and other liabilities                                                                                                                   |               | 156,808   |                   |   |   | 131,339 |   |
|           Total liabilities                                                                            |               | 1,810,379 |                   |   |   | 1,942,233 |   |
|                                                                                                                                                     |               |      |                   |   |   |   |   |
| Commitments and contingencies                                                                                                                            |               |      |                   |   |   |   |   |
|                                                                                                                                                     |               |      |                   |   |   |   |   |
| Redeemable units at redemption value, 295 units issued and outstanding at June 30, 2010 and December 31, 2009                                       |               | 1,472     |                   |   |   | 1,062 |   |
|                                                                                                                                                     |               |      |                   |   |   |   |   |
| Capital:                                                                                                                                                 |               |      |                   |   |   |   |   |
| Preferred units, $0.01 par value, 20,000 units authorized:                                                                                               |               |      |                   |   |   |   |   |
|    Series A Cumulative Convertible Preferred Units, 12,880 units issued and outstanding at June 30, 2010 and December 31, 2009  |               | 309,362   |                   |   |   | 309,362 |   |
|    Series C Cumulative Redeemable Preferred Units, 68 units issued and  outstanding at June 30, 2010 and December 31, 2009 |               | 169,412   |                   |   |   | 169,412 |   |
| Common units, 101,038 and 69,413 units issued at June 30, 2010 and December 31, 2009, respectively                                             |               | 264,435   |                   |   |   | 157,705 |   |
| Accumulated other comprehensive income                                                                                                                   |               | 22,985    |                   |   |   | 23,637 |   |
|                                                                                                                                                     |               |      |                   |   |   |   |   |
|           Total FelCor LP partners’ capital                                                      |               | 766,194   |                   |   |   | 660,116 |   |
| Noncontrolling interests                                                                                                                                 |               | 21,830    |                   |   |   | 22,583 |   |
| Total partners’ capital                                                                                                                            |               | 788,024   |                   |   |   | 682,699 |   |
|                                                                                                                                                     |               |      |                   |   |   |   |   |
|           Total liabilities and partners’ capital                                                | $                  | 2,599,875 |                   |   | $ | 2,625,994 |   |

----

|                                                                                                    | Three Months EndedJune 30, |                | Six Months EndedJune 30, |
|---------------------------------------------------------------------------------------------------------|----------------------------|---------------------|--------------------------|
|                                                                                                    | 2010                       |                | 2009                     |   | 2010 |   | 2009 |
| Revenues:                                                                                               |                       |                |                     |   |   |   |   |   |   |   |   |   |   |   |   |
|    Hotel operating revenue                                                               | $                          | 249,329             |                     |   | $ | 235,269 |   |   | $ | 475,368 |   |   | $ | 463,002 |   |
|    Other revenue                                                                         |                       | 1,007               |                     |   |   | 988 |   |   |   | 1,372 |   |   |   | 1,274 |   |
| Total revenues                                                                                          |                       | 250,336             |                     |   |   | 236,257 |   |   |   | 476,740 |   |   |   | 464,276 |   |
|                                                                                                    |                       |                |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                               |                       |                |                     |   |   |   |   |   |   |   |   |   |   |   |   |
|    Hotel departmental expenses                                                           |                       | 86,974              |                     |   |   | 81,487 |   |   |   | 168,756 |   |   |   | 160,732 |   |
|    Other property related costs                                                          |                       | 67,466              |                     |   |   | 63,956 |   |   |   | 133,070 |   |   |   | 129,310 |   |
|    Management and franchise fees                                                         |                       | 11,884              |                     |   |   | 11,043 |   |   |   | 22,419 |   |   |   | 22,184 |   |
|    Taxes, insurance and lease expense                                                    |                       | 26,921              |                     |   |   | 24,656 |   |   |   | 51,601 |   |   |   | 49,318 |   |
|    Corporate expenses                                                                    |                       | 6,510               |                     |   |   | 5,236 |   |   |   | 16,357 |   |   |   | 11,358 |   |
|    Depreciation and amortization                                                         |                       | 36,969              |                     |   |   | 35,935 |   |   |   | 74,567 |   |   |   | 72,586 |   |
|    Impairment loss                                                                       |                       | -    |                     |   |   | -    |   |   |   | 21,060 |   |   |   | -    |   |
|    Other expenses                                                                        |                       | 801                 |                     |   |   | 1,761 |   |   |   | 1,362 |   |   |   | 2,457 |   |
| Total operating expenses                                                                                |                       | 237,525             |                     |   |   | 224,074 |   |   |   | 489,192 |   |   |   | 447,945 |   |
|                                                                                                    |                       |                |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss)                                                                                 |                       | 12,811              |                     |   |   | 12,183 |   |   |   | (12,452 | ) |   |   | 16,331 |   |
|    Interest expense, net                                                                 |                       | (37,174             | )                        |   |   | (22,782 | ) |   |   | (73,414 | ) |   |   | (44,074 | ) |
|    Extinguishment of debt                                                                |                       | 46,060              |                     |   |   | (594 | ) |   |   | 46,060 |   |   |   | (594 | ) |
| Income (loss) before equity in income (loss) from unconsolidated entities                               |                       | 21,697              |                     |   |   | (11,193 | ) |   |   | (39,806 | ) |   |   | (28,337 | ) |
|    Equity in income (loss) from unconsolidated entities                                  |                       | 286                 |                     |   |   | (261 | ) |   |   | (1,188 | ) |   |   | (3,685 | ) |
| Income (loss) from continuing operations                                                                |                       | 21,983              |                     |   |   | (11,454 | ) |   |   | (40,994 | ) |   |   | (32,022 | ) |
|    Discontinued operations                                                               |                       | 7                   |                     |   |   | 486 |   |   |   | 42 |   |   |   | (368 | ) |
| Net income (loss)                                                                                       |                       | 21,990              |                     |   |   | (10,968 | ) |   |   | (40,952 | ) |   |   | (32,390 | ) |
| Net income attributable to noncontrolling interests                                                     |                       | (325                | )                        |   |   | (324 | ) |   |   | (96 | ) |   |   | (108 | ) |
| Net income (loss) attributable to FelCor LP                                                             |                       | 21,665              |                     |   |   | (11,292 | ) |   |   | (41,048 | ) |   |   | (32,498 | ) |
|    Preferred distributions                                                               |                       | (9,678              | )                        |   |   | (9,678 | ) |   |   | (19,356 | ) |   |   | (19,356 | ) |
| Net income (loss) attributable to FelCor LP common unitholders                                          | $                          | 11,987              |                     |   | $ | (20,970 | ) |   | $ | (60,404 | ) |   | $ | (51,854 | ) |
|                                                                                                    |                       |                |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted per common unit data:                                                                 |                       |                |                     |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income (loss) from continuing operations attributable to FelCor LP common unitholders | $                          | 0.17                |                     |   | $ | (0.34 | ) |   | $ | (0.93 | ) |   | $ | (0.81 | ) |
|    Net income (loss) attributable to FelCor LP common unitholders                        | $                          | 0.17                |                     |   | $ | (0.33 | ) |   | $ | (0.92 | ) |   | $ | (0.82 | ) |
|    Basic and diluted weighted average common units outstanding                           |                       | 66,826              |                     |   |   |  63,397 |   |   |   | 65,309 |   |   |   | 63,428 |   |

----

|                                                               | Three Months Ended |   | Six Months Ended |
|--------------------------------------------------------------------|--------------------|--------|------------------|
|                                                               | June 30,           |   | June 30,         |
|                                                               | 2010               |   | 2009             |   | 2010 |   | 2009 |
| Net income (loss)                                             | $                  | 21,990 |             |   | $ | (10,968 | ) |   | $ | (40,952 | ) |   | $ | (32,390 | ) |
| Foreign currency translation adjustment                            |               | (2,731 | )                |   |   | 4,159 |   |   |   | (652 | ) |   |   | 2,450 |   |
| Comprehensive income (loss)                                   |               | 19,259 |             |   |   | (6,809 | ) |   |   | (41,604 | ) |   |   | (29,940 | ) |
| Comprehensive income attributable to noncontrolling interests |               | (325   | )                |   |   | (324 | ) |   |   | (96 | ) |   |   | (108 | ) |
| Comprehensive income (loss) attributable to FelCor LP              | $                  | 18,934 |             |   | $ | (7,133 | ) |   | $ | (41,700 | ) |   | $ | (30,048 | ) |

----

|                                 | Preferred Units |                | Partnership Units |   | Accumulated Other Comprehensive Income (Loss) |                |   | Noncontrolling Interests |   | Total Partners’ Capital |
|--------------------------------------|-----------------|---------------------|-------------------|--------|-----------------------------------------------|---------------------|--------|--------------------------|--------|-------------------------------|
| Balance at December 31, 2008         | $               | 478,774             |              |   | $                                             | 300,913             |   |                     | $      | 15,418                        |   |   |   | $ | 23,784 |   |   | $ | 818,889 |   |
| Foreign exchange translation         |            | -    |              |   |                                          | -    |   |                     |   | 2,450                         |   |   |   |   | -    |   |   |   | 2,450 |   |
| FelCor restricted stock compensation |            | -    |              |   |                                          | 2,596               |   |                     |   | -              |   |   |   |   | -    |   |   |   | 2,596 |   |
| Contributions                        |            | -    |              |   |                                          | -    |   |                     |   | -              |   |   |   |   | 362 |   |   |   | 362 |   |
| Distributions                        |            | -    |              |   |                                          | (19,356             | )      |                     |   | -              |   |   |   |   | (725 | ) |   |   | (20,081 | ) |
| Allocation to redeemable units       |            | -    |              |   |                                          | (183                | )      |                     |   | -              |   |   |   |   | -    |   |   |   | (183 | ) |
| Other                                |            | -    |              |   |                                          | (208                | )      |                     |   | -              |   |   |   |   | 168 |   |   |   | (40 | ) |
| Net income (loss)                    |            | -    |              |   |                                          | (32,498             | )      |                     |   | -              |   |   |   |   | 108 |   |   |   | (32,390 | ) |
| Balance at June 30, 2009             | $               | 478,774             |              |   | $                                             | 251,264             |   |                     | $      | 17,868                        |   |   |   | $ | 23,697 |   |   | $ | 771,603 |   |
|                                 |            |                |              |   |                                          |                |   |                     |   |                          |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2009         | $               | 478,774             |              |   | $                                             | 157,705             |   |                     | $      | 23,637                        |   |   |   | $ | 22,583 |   |   | $ | 682,699 |   |
| Foreign exchange translation         |            | -    |              |   |                                          | -    |   |                     |   | (652                          | ) |   |   |   | -    |   |   |   | (652 | ) |
| Issuance of common units             |            | -    |              |   |                                          | 166,572             |   |                     |   | -              |   |   |   |   | -    |   |   |   | 166,572 |   |
| FelCor restricted stock compensation |            | -    |              |   |                                          | 2,098               |   |                     |   | -              |   |   |   |   | -    |   |   |   | 2,098 |   |
| Contributions                        |            | -    |              |   |                                          | -    |   |                     |   | -              |   |   |   |   | 15 |   |   |   | 15 |   |
| Distributions                        |            | -    |              |   |                                          | (19,356             | )      |                     |   | -              |   |   |   |   | (980 | ) |   |   | (20,336 | ) |
| Allocation to redeemable units       |            | -    |              |   |                                          | (410                | )      |                     |   | -              |   |   |   |   | -    |   |   |   | (410 | ) |
| Other                                |            | -    |              |   |                                          | (1,126              | )      |                     |   | -              |   |   |   |   | 116 |   |   |   | (1,010 | ) |
| Net income (loss)                    |            | -    |              |   |                                          | (41,048             | )      |                     |   | -              |   |   |   |   | 96 |   |   |   | (40,952 | ) |
| Balance at June 30, 2010             | $               | 478,774             |              |   | $                                             | 264,435             |   |                     | $      | 22,985                        |   |   |   | $ | 21,830 |   |   | $ | 788,024 |   |

----

|                                                                                                                                                                                           | Six Months EndedJune 30, |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|
|                                                                                                                                                                                           | 2010                     |   | 2009 |
| Cash flows from operating activities:                                                                                                                                                          |                     |   |   |   |   |   |   |
|   Net loss                                                                                                                                                                           | $                        | (40,952 | ) |   | $ | (32,390 | ) |
|   Adjustments to reconcile net loss to net cash provided by operating activities:                                                                                                    |                     |   |   |   |   |   |   |
|               Depreciation and amortization                                                                              |                     | 74,567 |   |   |   | 74,042 |   |
|               Amortization of deferred financing fees and debt discount                                                  |                     | 8,608 |   |   |   | 1,722 |   |
|               Amortization of unearned officers’ and directors’ compensation                                 |                     | 3,257 |   |   |   | 2,802 |   |
|               Equity in loss from unconsolidated entities                                                                |                     | 1,188 |   |   |   | 3,685 |   |
|               Distributions of income from unconsolidated entities                                                       |                     | 1,110 |   |   |   | 1,388 |   |
|               Extinguishment of debt                                                                                     |                     | (46,060 | ) |   |   | 594 |   |
|               Impairment loss                                                                                            |                     | 21,060 |   |   |   | 1,368 |   |
|         Changes in assets and liabilities:                                                                                                             |                     |   |   |   |   |   |   |
|               Accounts receivable                                                                                        |                     | (5,469 | ) |   |   | (751 | ) |
|               Restricted cash – operations                                                                         |                     | 4,066 |   |   |   | (676 | ) |
|               Other assets                                                                                               |                     | (4,059 | ) |   |   | (8,302 | ) |
|               Accrued expenses and other liabilities                                                                     |                     | 23,924 |   |   |   | 3,075 |   |
|                         Net cash flow provided by operating activities |                     | 41,240 |   |   |   | 46,557 |   |
|                                                                                                                                                                                           |                     |   |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                                                                          |                     |   |   |   |   |   |   |
|     Improvements and additions to hotels                                                                                                                                   |                     | (18,393 | ) |   |   | (45,539 | ) |
|     Additions to condominium project                                                                                                                                       |                     | (162 | ) |   |   | (88 | ) |
|     Acquisition of noncontrolling interest                                                                                                                                 |                     | (1,000 | ) |   |   | -    |   |
|     Change in restricted cash – investing                                                                                                                            |                     | (2,646 | ) |   |   | (1,255 | ) |
|     Redemption of investment securities                                                                                                                                    |                     | -    |   |   |   | 632 |   |
|     Distributions from unconsolidated entities                                                                                                                             |                     | 559 |   |   |   | 3,200 |   |
|     Contributions to unconsolidated entities                                                                                                                               |                     | (25,122 | ) |   |   | (409 | ) |
|                         Net cash flow used in investing activities     |                     | (46,764 | ) |   |   | (43,459 | ) |
| Cash flows from financing activities:                                                                                                                                                          |                     |   |   |   |   |   |   |
|     Proceeds from borrowings                                                                                                                                               |                     | 212,121 |   |   |   | 418,382 |   |
|     Repayment of borrowings                                                                                                                                                |                     | (347,692 | ) |   |   | (336,243 | ) |
|     Payment of deferred financing fees                                                                                                                                     |                     | (6,615 | ) |   |   | (7,343 | ) |
|     Distributions paid to noncontrolling interests                                                                                                                         |                     | (980 | ) |   |   | (725 | ) |
|     Contributions from noncontrolling interests                                                                                                                            |                     | 15 |   |   |   | 362 |   |
|     Distributions paid to preferred unitholders                                                                                                                            |                     | -    |   |   |   | (9,678 | ) |
|     Net proceeds from common unit issuance                                                                                                                                 |                     | 166,704 |   |   |   | -    |   |
|                         Net cash flow provided by financing activities |                     | 23,553 |   |   |   | 64,755 |   |
| Effect of exchange rate changes on cash                                                                                                                                                        |                     | (86 | ) |   |   | 468 |   |
| Net change in cash and cash equivalents                                                                                                                                                        |                     | 17,943 |   |   |   | 68,321 |   |
| Cash and cash equivalents at beginning of periods                                                                                                                                              |                     | 263,531 |   |   |   | 50,187 |   |
| Cash and cash equivalents at end of periods                                                                                                                                                    | $                        | 281,474 |   |   | $ | 118,508 |   |
|                                                                                                                                                                                           |                     |   |   |   |   |   |   |
| Supplemental cash flow information – interest paid                                                                                                                                       | $                        | 64,490 |   |   | $ | 43,187 |   |

----

| Brand                                      |   | Hotels |   | Rooms  |   |
|--------------------------------------------|--------|--------|--------|--------|--------|
| Embassy Suites Hotels®           |   | 47     |   |   | 12,132 |   |   |
| Holiday Inn®                     |   | 15     |   |   | 5,154  |   |   |
| Sheraton® and Westin®       |   | 9      |   |   | 3,217  |   |   |
| Doubletree®                      |   | 7      |   |   | 1,471  |   |   |
| Marriott® and Renaissance®  |   | 3      |   |   | 1,321  |   |   |
| Hilton®                          |   | 2      |   |   | 559    |   |   |
| Total                                      |   | 83     |   |   | 23,854 |   |   |

----

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

| 2. | Investment in Unconsolidated Entities |
|----|---------------------------------------|

|                                                                                | June 30, 2010 |    | December 31, 2009 |   |
|-------------------------------------------------------------------------------------|---------------|---------|------------------------|--------|
| Balance sheet information:                                                          |          |    |                   |   |   |   |   |   |
|      Investment in hotels, net of accumulated depreciation | $             | 246,415 |                   |   | $ | 259,977 |   |   |
|      Total assets                                          | $             | 272,004 |                   |   | $ | 279,611 |   |   |
|      Debt                                                  | $             | 160,261 |                   |   | $ | 214,963 |   |   |
|      Total liabilities                                     | $             | 166,630 |                   |   | $ | 220,389 |   |   |
|      Equity                                                | $             | 105,374 |                   |   | $ | 59,222 |   |   |

----

| 2. | Investment in Unconsolidated Entities – (continued) |
|----|-----------------------------------------------------------|

|                                                 | Three Months EndedJune 30, |                | Six Months EndedJune 30, |
|------------------------------------------------------|----------------------------|---------------------|--------------------------|
|                                                 | 2010                       |                | 2009                     |   | 2010 |   | 2009 |
| Total revenues                                       | $                          | 19,648              |                     |   | $ | 18,182 |   |   | $ | 32,387 |   |   | $ | 32,920 |   |
| Net income (loss)                                    | $                          | 1,022               |                     |   | $ | 374 |   |   | $ | (2,114 | ) |   | $ | (4,588 | )(a) |
|                                                 |                       |                |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) attributable to FelCor LP          | $                          | 751                 |                     |   | $ | 187 |   |   | $ | (817 | ) |   | $ | (2,295 | ) |
| Impairment loss                                      |                       | -    |                     |   |   | -    |   |   |   | -    |   |   |   | (476 | )(b) |
| Gain on joint venture liquidation                    |                       | -    |                     |   |   | -    |   |   |   | 559 | (b) |   |   | -    |   |
| Depreciation of cost in excess of book value         |                       | (465                | )                        |   |   | (448 | ) |   |   | (930 | ) |   |   | (914 | ) |
| Equity in income (loss) from unconsolidated entities | $                          | 286                 |                     |   | $ | (261 | ) |   | $ | (1,188 | ) |   | $ | (3,685 | ) |

|   | (a)Net loss includes a $3.2 million impairment charge.  The impairment was based on sales contracts for two hotels then owned by one of our joint ventures (a Level 2 input). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)As a result of a 2009 impairment charge recorded by a joint venture, the net book value of the joint venture’s assets no longer supported the recovery of our investment.  Therefore, we recorded an additional 2009 impairment charge to reduce our investment in the joint venture to zero.  In March 2010, the joint venture sold its remaining hotel asset for $3.7 million, with respect to which we received $559,000 in net proceeds. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                              | June 30, 2010 |    | December 31, 2009 |
|---------------------------------------------------|--------------------|---------|-------------------|
| Hotel-related investments                         | $                  | 42,739  |              |   | $ | 18,969 |   |
| Cost in excess of book value of hotel investments |               | 51,565  |              |   |   | 52,429 |   |
| Land and condominium investments                  |               | 10,068  |              |   |   | 10,642 |   |
|                                              | $                  | 104,372 |              |   | $ | 82,040 |   |

|                                                 | Three Months EndedJune 30, |   | Six Months EndedJune 30, |
|------------------------------------------------------|----------------------------|--------|--------------------------|
|                                                 | 2010                       |   | 2009                     |   | 2010 |   | 2009 |
| Hotel investments                                    | $                          | 292    |                     |   | $ | (371 | ) |   | $ | (613 | ) |   | $ | (3,196 | ) |
| Other investments                                    |                       | (6     | )                        |   |   | 110 |   |   |   | (575 | ) |   |   | (489 | ) |
| Equity in income (loss) from unconsolidated entities | $                          | 286    |                     |   | $ | (261 | ) |   | $ | (1,188 | ) |   | $ | (3,685 | ) |

----

|                    | Encumbered |   |          |   |          |   | June 30,           |   | December 31, |
|-------------------------|------------|--------|---------------|--------|---------------|--------|--------------------|--------|--------------|
|                    | Hotels     |   | Interest Rate |   | Maturity Date |   | 2010               |   | 2009         |
| Mortgage debt(a)        | none       |   |          | 8.73   | %             |   | May 2010           |   | $            | -    |   | $ | 112,703 |
| Mortgage debt(b)        | none       |   |          | 8.70   |          |   | May 2010           |   |         | -    |   |   | 98,639 |
| Mortgage debt(c)(d)     | 2 hotels   |   |          | 8.62   |          |   | May 2010           |   |         | 31,740 |   |   | 31,740 |
| Other                   | none       |   |          | 4.25   |          |   | May 2011           |   |         | 477 |   |   | 354 |
| Senior notes            | none       |   |          | 8.50   | (e)           |   | June 2011          |   |         | 86,640 |   |   | 86,604 |
| Mortgage debt(f)        | 1 hotel    |   |          | 6.15   |          |   | June 2011(g)       |   |         | 4,402 |   |   | 4,922 |
| Mortgage debt           | 1 hotel    |   |          | 6.15   |          |   | June 2011(g)       |   |         | 8,607 |   |   | 9,228 |
| Capital lease(f)        | 1 hotel    |   |          | 10.50  |          |   | August 2011        |   |         | 1,236 |   |   | 1,735 |
| Mortgage debt           | 9 hotels   |   | L +           | 3.50   | (h)           |   | August 2011(i)     |   |         | 199,300 |   |   | 200,425 |
| Mortgage debt           | 12 hotels  |   | L +           | 0.93   | (j)           |   | November 2011(k)   |   |         | 250,000 |   |   | 250,000 |
| Mortgage debt(l)        | none       |   | L +           | 1.55   |          |   | May 2012           |   |         | -    |   |   | 176,555 |
| Mortgage debt           | 1 hotel    |   |          | 8.77   |          |   | May 2013(m)        |   |         | 27,770 |   |   | 27,829 |
| Mortgage debt           | 7 hotels   |   |          | 9.02   |          |   | April 2014         |   |         | 115,368 |   |   | 117,422 |
| Mortgage debt(c)        | 5 hotels   |   |          | 6.66   |          |   | June - August 2014 |   |         | 70,069 |   |   | 70,917 |
| Senior secured notes(n) | 14 hotels  |   |          | 10.00  |          |   | October 2014       |   |         | 577,493 |   |   | 572,500 |
| Mortgage debt           | 9 hotels   |   | L+            | 5.10   | (o)           |   | April 2015         |   |         | 212,000 |   |   | -    |
| Mortgage debt           | 1 hotel    |   |          | 5.81   |          |   | July 2016          |   |         | 11,533 |   |   | 11,741 |
|   Total       | 63 hotels  |   |          |   |          |   |               |   | $            | 1,596,635 |   | $ | 1,773,314 |

| (a) | This loan was refinanced in May 2010, as a consequence of which two hotels were unencumbered.                                                                                                     |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | These loans were refinanced in May 2010.                                                                                                                                                          |
| (c) | The hotels securing this debt are subject to separate loan agreements and are not cross-collateralized.                                                                                           |
| (d) | We are in the process of transferring the two hotels securing this debt to the lenders in full satisfaction of the debt.                                                                          |
| (e) | As a result of a rating down-grade in February 2009, the interest rate on our 81⁄2% senior notes increased to 9%.                                                                              |
| (f) | Since the end of the second quarter 2010, we have repaid this debt.                                                                                                                               |
| (g) | In February 2010, the maturity date on these loans was extended to June 2011.                                                                                                                     |
| (h) | LIBOR for this loan is subject to a 2% floor.                                                                                                                                                     |
| (i) | This loan can be extended for as many as two years (to 2013), subject to satisfying certain conditions.                                                                                           |
| (j) | We purchased an interest rate cap that caps LIBOR at 7.8% and expires November 2010 for a $250 million notional amount.                                                                 |
| (k) | The maturity date assumes that we will exercise the remaining one-year extension option that is exercisable, at our sole discretion, and would extend the current November 2010 maturity to 2011. |
| (l) | This loan was repaid in June 2010 for a payment of $130 million plus accrued interest.                                                                                                       |
| (m) | In February 2010, the maturity date on this loan was extended to May 2013.                                                                                                                        |
| (n) | These notes have $636 million in aggregate principal outstanding and were sold at a discount that provides an effective yield of 12.875% before transaction costs.                           |
| (o) | 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.                  |

----

|                                                        | Three Months EndedJune 30, |    | Six Months EndedJune 30, |
|-------------------------------------------------------------|----------------------------|---------|--------------------------|
|                                                        | 2010                       |    | 2009                     |   | 2010 |   | 2009 |
| Room revenue                                                | $                          | 195,876 |                     |   | $ | 185,567 |   |   | $ | 373,136 |   |   | $ | 363,746 |   |
| Food and beverage revenue                                   |                       | 38,792  |                     |   |   | 35,063 |   |   |   | 74,288 |   |   |   | 70,914 |   |
| Other operating departments                                 |                       | 14,661  |                     |   |   | 14,639 |   |   |   | 27,944 |   |   |   | 28,342 |   |
|      Total hotel operating revenue | $                          | 249,329 |                     |   | $ | 235,269 |   |   | $ | 475,368 |   |   | $ | 463,002 |   |

----

| 5. | Hotel Operating Revenue, Departmental Expenses, and Other Property Operating Costs – (continued) |
|----|--------------------------------------------------------------------------------------------------------|

|                              | Three Months Ended June 30, |
|-----------------------------------|-----------------------------|
|                              | 2010                        |   | 2009 |
|                              | Amount                      |   | % of Total HotelOperating Revenue |   | Amount |   | % of Total HotelOperating Revenue |
| Room                              | $                           | 51,115 |   |   | 20.5 | % |   | $ | 47,685 |   |   | 20.3 | % |
| Food and beverage                 |                        | 29,373 |   |   | 11.8 |   |   |   | 27,589 |   |   | 11.7 |   |
| Other operating departments       |                        | 6,486 |   |   | 2.6 |   |   |   | 6,213 |   |   | 2.6 |   |
| Total hotel departmental expenses | $                           | 86,974 |   |   | 34.9 | % |   | $ | 81,487 |   |   | 34.6 | % |

|                              | Six Months Ended June 30, |
|-----------------------------------|---------------------------|
|                              | 2010                      |   | 2009 |
|                              | Amount                    |   | % of Total HotelOperating Revenue |   | Amount |   | % of Total HotelOperating Revenue |
| Room                              | $                         | 98,902 |   |   | 20.8 | % |   | $ | 92,907 |   |   | 20.0 | % |
| Food and beverage                 |                      | 57,282 |   |   | 12.1 |   |   |   | 55,476 |   |   | 12.0 |   |
| Other operating departments       |                      | 12,572 |   |   | 2.6 |   |   |   | 12,349 |   |   | 2.7 |   |
| Total hotel departmental expenses | $                         | 168,756 |   |   | 35.5 | % |   | $ | 160,732 |   |   | 34.7 | % |

|                                     | Three Months Ended June 30, |
|------------------------------------------|-----------------------------|
|                                     | 2010                        |   | 2009 |
|                                     | Amount                      |   | % of Total HotelOperating Revenue |   | Amount |   | % of Total HotelOperating Revenue |
| Hotel general and administrative expense | $                           | 21,833 |   |   | 8.8 | % |   | $ | 20,325 |   |   | 8.6 | % |
| Marketing                                |                        | 21,056 |   |   | 8.5 |   |   |   | 19,648 |   |   | 8.4 |   |
| Repair and maintenance                   |                        | 12,833 |   |   | 5.1 |   |   |   | 12,030 |   |   | 5.1 |   |
| Utilities                                |                        | 11,744 |   |   | 4.7 |   |   |   | 11,953 |   |   | 5.1 |   |
| Total other property operating costs     | $                           | 67,466 |   |   | 27.1 | % |   | $ | 63,956 |   |   | 27.2 | % |

----

| 5. | Hotel Operating Revenue, Departmental Expenses, and Other Property Operating Costs – (continued) |
|----|--------------------------------------------------------------------------------------------------------|

|                                     | Six Months Ended June 30, |
|------------------------------------------|---------------------------|
|                                     | 2010                      |   | 2009 |
|                                     |    Amount  |   | % of Total HotelOperating Revenue |   |    Amount |   | % of Total HotelOperating Revenue |
| Hotel general and administrative expense | $                         | 42,940 |   |   | 9.0 | % |   | $ | 41,219 |   |   | 8.9 | % |
| Marketing                                |                      | 40,618 |   |   | 8.6 |   |   |   | 39,173 |   |   | 8.4 |   |
| Repair and maintenance                   |                      | 25,782 |   |   | 5.4 |   |   |   | 24,590 |   |   | 5.3 |   |
| Utilities                                |                      | 23,730 |   |   | 5.0 |   |   |   | 24,328 |   |   | 5.3 |   |
| Total other property operating costs     | $                         | 133,070 |   |   | 28.0 | % |   | $ | 129,310 |   |   | 27.9 | % |

|                                                                   | Three Months EndedJune 30, |   | Six Months EndedJune 30, |
|------------------------------------------------------------------------|----------------------------|--------|--------------------------|
|                                                                   | 2010                       |   | 2009                     |   | 2010 |   | 2009 |
| Hotel lease expense(a)                                            | $                          | 11,769 |                     |   | $ | 10,853 |   |   | $ | 21,263 |   |   | $ | 20,913 |   |
| Land lease expense(b)                                             |                       | 2,550  |                     |   |   | 2,438 |   |   |   | 4,704 |   |   |   | 4,625 |   |
| Real estate and other taxes                                            |                       | 9,744  |                     |   |   | 8,499 |   |   |   | 19,207 |   |   |   | 17,516 |   |
| Property insurance, general liability insurance and other              |                       | 2,858  |                     |   |   | 2,866 |   |   |   | 6,427 |   |   |   | 6,264 |   |
|      Total taxes, insurance and lease expense | $                          | 26,921 |                     |   | $ | 24,656 |   |   | $ | 51,601 |   |   | $ | 49,318 |   |

|   | (a) | Hotel lease expense is recorded by the consolidated operating lessees of 13 hotels owned by unconsolidated entities, and is partially 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 $4.7 million and $3.8 million for the three months ended June 30, 2010 and 2009, respectively, and $7.1 million and $6.9 million for the six months ended June 30, 2010 and 2009, respectively. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Land lease expense includes percentage rent of $1.0 million and $1.1 million for the three months ended June 30, 2010 and 2009, respectively, and $1.6 million and $1.8 million for the six months ended June 30, 2010 and 2009, respectively. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                       | Three Months Ended June 30, |   | Six Months Ended June 30 |
|--------------------------------------------|----------------------------------|--------|-------------------------------|
|                                       | 2010                             |   | 2009                          |   | 2010 |   | 2009 |
| Hotel operating revenue                    | $                                | 9      |                          |   | $ | 6,309 |   |   |   | $ | 44 |   |   | $ | 12,578 |   |
| Operating expenses                         |                             | (2     | )                             |   |   | (5,823 | ) |   |   |   | (2 | ) |   |   | (12,946 | )(a) |
| Income (loss) from discontinued operations | $                                | 7      |                          |   | $ | 486 |   |   |   | $ | 42 |   |   | $ | (368 | ) |

|   | (a) |   Includes impairment charges of $1.4 million. |
|--------|-----|---------------------------------------------------------------|

----

|                                                                                                           | Three Months EndedJune 30, |                | Six Months Ended June 30, |
|----------------------------------------------------------------------------------------------------------------|---------------------------------|---------------------|--------------------------------|
|                                                                                                           | 2010                            |                | 2009                           |   | 2010 |   | 2009 |
| Numerator:                                                                                                     |                            |                |                           |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net income (loss) attributable to FelCor LP                                                  | $                               | 21,665              |                           |   | $ | (11,292 | ) |   | $ | (41,048 | ) |   | $ | (32,498 | ) |
|    Discontinued operations attributable to FelCor LP                                            |                            | (7                  | )                              |   |   | (486 | ) |   |   | (42 | ) |   |   | 368 |   |
|    Income (loss) from continuing operations attributable to FelCor LP                           |                            | 21,658              |                           |   |   | (11,778 | ) |   |   | (41,090 | ) |   |   | (32,130 | ) |
|       Less: Preferred distributions                                              |                            | (9,678              | )                              |   |   | (9,678 | ) |   |   | (19,356 | ) |   |   | (19,356 | ) |
|       Less: Undistributed earnings allocated to unvested FelCor restricted stock |                            | (352                | )                              |   |   | -    |   |   |   | -    |   |   |   | -    |   |
|    Numerator for continuing operations attributable to FelCor LP common unitholders   |                            | 11,628              |                           |   |   | (21,456 | ) |   |   | (60,446 | ) |   |   | (51,486 | ) |
|    Discontinued operations attributable to FelCor LP                                            |                            | 7                   |                           |   |   | 486 |   |   |   | 42 |   |   |   | (368 | ) |
| Numerator for basic and diluted income (loss) attributable to FelCor LP common unitholders                     | $                               | 11,635              |                           |   | $ | (20,970 | ) |   | $ | (60,404 | ) |   | $ | (51,854 | ) |
| Denominator:                                                                                                   |                            |                |                           |   |   |   |   |   |   |   |   |   |   |   |   |
|    Denominator for basic and diluted income (loss) per unit                                     |                            | 66,826              | (a)                            |   |   | 63,397 |   |   |   | 65,309 |   |   |   | 63,428 |   |
| Basic and diluted income (loss) per unit data:                                                                 |                            |                |                           |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income (loss) from continuing operations                                                     | $                               | 0.17                |                           |   | $ | (0.34 | ) |   | $ | (0.93 | ) |   | $ | (0.81 | ) |
|    Discontinued operations                                                                      | $                               | -    |                           |   | $ | 0.01 |   |   | $ | -    |   |   | $ | (0.01 | ) |
|    Net income (loss)                                                                            | $                               | 0.17                |                           |   | $ | (0.33 | ) |   | $ | (0.92 | ) |   | $ | (0.82 | ) |

| (a) | Reflects issuance of 31.6 million units on June 22, 2010. |
|-----|----------------------------------------------------------------|

|                                       | Three Months Ended |   | Six Months Ended |
|--------------------------------------------|--------------------|--------|------------------|
|                                       | June 30,           |   | June 30,    |
|                                       | 2010               |   | 2009             |   | 2010 |   | 2009 |
| Series A convertible preferred units  | 9,985              |   |             | 9,985 |   |   |   | 9,985 |   |   |   | 9,985 |   |

----

----

|                                       | FelCor LP |                | Subsidiary Guarantors |   | Non-Guarantor Subsidiaries |                | Eliminations |   | Total Consolidated  |
|--------------------------------------------|-----------|---------------------|-----------------------|--------|----------------------------|---------------------|--------------|--------|---------------------|
| Net investment in hotel properties         | $         | 103,003             |                  |   | $                          | 426,919             |         | $      | 1,572,986           |   |   | $ | -    |   |   | $ | 2,102,908 |
| Equity investment in consolidated entities |      | 1,072,411           |                  |   |                       | -    |         |   | -    |   |   |   | (1,072,411 | ) |   |   | -    |
| Investment in unconsolidated entities      |      | 89,430              |                  |   |                       | 13,237              |         |   | 1,705               |   |   |   | -    |   |   |   | 104,372 |
| Cash and cash equivalents                  |      | 230,318             |                  |   |                       | 49,661              |         |   | 1,495               |   |   |   | -    |   |   |   | 281,474 |
| Restricted cash                            |      | -    |                  |   |                       | 3,377               |         |   | 13,911              |   |   |   | -    |   |   |   | 17,288 |
| Accounts receivable                        |      | 1,091               |                  |   |                       | 32,368              |         |   | 159                 |   |   |   | -    |   |   |   | 33,618 |
| Deferred expenses                          |      | 11,382              |                  |   |                       | -    |         |   | 11,446              |   |   |   | -    |   |   |   | 22,828 |
| Other assets                               |      | 10,459              |                  |   |                       | 21,487              |         |   | 5,441               |   |   |   | -    |   |   |   | 37,387 |
|                                       |      |                |                  |   |                       |                |         |   |                |   |   |   |   |   |   |   |   |
| Total assets                               | $         | 1,518,094           |                  |   | $                          | 547,049             |         | $      | 1,607,143           |   |   | $ | (1,072,411 | ) |   | $ | 2,599,875 |
|                                       |      |                |                  |   |                       |                |         |   |                |   |   |   |   |   |   |   |   |
| Debt                                       | $         | 664,133             |                  |   | $                          | 1,237               |         | $      | 931,265             |   |   | $ | -    |   |   | $ | 1,596,635 |
| Distributions payable                      |      | 56,936              |                  |   |                       | -    |         |   | -    |   |   |   | -    |   |   |   | 56,936 |
| Accrued expenses and other liabilities     |      | 29,359              |                  |   |                       | 111,520             |         |   | 15,929              |   |   |   | -    |   |   |   | 156,808 |
|                                       |      |                |                  |   |                       |                |         |   |                |   |   |   |   |   |   |   |   |
| Total liabilities                          |      | 750,428             |                  |   |                       | 112,757             |         |   | 947,194             |   |   |   | -    |   |   |   | 1,810,379 |
|                                       |      |                |                  |   |                       |                |         |   |                |   |   |   |   |   |   |   |   |
| Redeemable units, at redemption value      |      | 1,472               |                  |   |                       | -    |         |   | -    |   |   |   | -    |   |   |   | 1,472 |
|                                       |      |                |                  |   |                       |                |         |   |                |   |   |   |   |   |   |   |   |
| Preferred units                            |      | 478,774             |                  |   |                       | -    |         |   | -    |   |   |   | -    |   |   |   | 478,774 |
| Common units                               |      | 287,420             |                  |   |                       | 411,212             |         |   | 638,214             |   |   |   | (1,072,411 | ) |   |   | 264,435 |
| Accumulated other comprehensive income     |      | -    |                  |   |                       | 22,985              |         |   | -    |   |   |   | -    |   |   |   | 22,985 |
| Total FelCor LP partners’ capital    |      | 766,194             |                  |   |                       | 434,197             |         |   | 638,214             |   |   |   | (1,072,411 | ) |   |   | 766,194 |
| Noncontrolling interests                   |      | -    |                  |   |                       | 95                  |         |   | 21,735              |   |   |   | -    |   |   |   | 21,830 |
| Total capital                              |      | 766,194             |                  |   |                       | 434,292             |         |   | 659,949             |   |   |   | (1,072,411 | ) |   |   | 788,024 |
| Total liabilities and capital              | $         | 1,518,094           |                  |   | $                          | 547,049             |         | $      | 1,607,143           |   |   | $ | (1,072,411 | ) |   | $ | 2,599,875 |

----

|   | December 31, 2009 |
|--------|-------------------|

|                                                                                                                                                                                                                                                                                                                                                                           | FelCor LP |                | Subsidiary Guarantors |   | Non-Guarantor Subsidiaries |                | Eliminations |   | Total Consolidated  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|---------------------|-----------------------|--------|----------------------------|---------------------|--------------|--------|---------------------|
| Net investment in hotel properties                                                                                                                                                                                                                                                                                                                                             | $         | 62,691              |                  |   | $                          | 441,046             |         | $      | 1,676,657           |   |   | $ | -    |   |   | $ | 2,180,394 |
| Equity investment in consolidated entities                                                                                                                                                                                                                                                                                                                                     |      | 1,015,822           |                  |   |                       | -    |         |   | -    |   |   |   | (1,015,822 | ) |   |   | -    |
| Investment in unconsolidated entities                                                                                                                                                                                                                                                                                                                                          |      | 66,968              |                  |   |                       | 13,572              |         |   | 1,500               |   |   |   | -    |   |   |   | 82,040 |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                      |      | 224,526             |                  |   |                       | 36,834              |         |   | 2,171               |   |   |   | -    |   |   |   | 263,531 |
| Restricted cash                                                                                                                                                                                                                                                                                                                                                                |      | -    |                  |   |                       | 2,803               |         |   | 15,905              |   |   |   | -    |   |   |   | 18,708 |
| Accounts receivable                                                                                                                                                                                                                                                                                                                                                            |      | 763                 |                  |   |                       | 27,640              |         |   | 275                 |   |   |   | -    |   |   |   | 28,678 |
| Deferred expenses                                                                                                                                                                                                                                                                                                                                                              |      | 12,280              |                  |   |                       | -    |         |   | 7,697               |   |   |   | -    |   |   |   | 19,977 |
| Other assets                                                                                                                                                                                                                                                                                                                                                                   |      | 6,308               |                  |   |                       | 21,462              |         |   | 4,896               |   |   |   | -    |   |   |   | 32,666 |
|                                                                                                                                                                                                                                                                                                                                                                           |      |                |                  |   |                       |                |         |   |                |   |   |   |   |   |   |   |   |
| Total assets                                                                                                                                                                                                                                                                                                                                                                   | $         | 1,389,358           |                  |   | $                          | 543,357             |         | $      | 1,709,101           |   |   | $ | (1,015,822 | ) |   | $ | 2,625,994 |
|                                                                                                                                                                                                                                                                                                                                                                           |      |                |                  |   |                       |                |         |   |                |   |   |   |   |   |   |   |   |
| Debt                                                                                                                                                                                                                                                                                                                                                                           | $         | 659,105             |                  |   | $                          | 1,734               |         | $      | 1,112,475           |   |   | $ | -    |   |   | $ | 1,773,314 |
| Distributions payable                                                                                                                                                                                                                                                                                                                                                          |      | 37,580              |                  |   |                       | -    |         |   | -    |   |   |   | -    |   |   |   | 37,580 |
| Accrued expenses and other liabilities                                                                                                                                                                                                                                                                                                                                         |      | 31,495              |                  |   |                       | 85,913              |         |   | 13,931              |   |   |   | -    |   |   |   | 131,339 |
|                                                                                                                                                                                                                                                                                                                                                                           |      |                |                  |   |                       |                |         |   |                |   |   |   |   |   |   |   |   |
| Total liabilities                                                                                                                                                                                                                                                                                                                                                              |      | 728,180             |                  |   |                       | 87,647              |         |   | 1,126,406           |   |   |   | -    |   |   |   | 1,942,233 |
|                                                                                                                                                                                                                                                                                                                                                                           |      |                |                  |   |                       |                |         |   |                |   |   |   |   |   |   |   |   |
| Redeemable units, at redemption value                                                                                                                                                                                                                                                                                                                                          |      | 1,062               |                  |   |                       | -    |         |   | -    |   |   |   | -    |   |   |   | 1,062 |
|                                                                                                                                                                                                                                                                                                                                                                           |      |                |                  |   |                       |                |         |   |                |   |   |   |   |   |   |   |   |
| Preferred units                                                                                                                                                                                                                                                                                                                                                                |      | 478,774             |                  |   |                       | -    |         |   | -    |   |   |   | -    |   |   |   | 478,774 |
| Common units                                                                                                                                                                                                                                                                                                                                                                   |      | 181,342             |                  |   |                       | 431,756             |         |   | 560,429             |   |   |   | (1,015,822 | ) |   |   | 157,705 |
| Accumulated other comprehensive income                                                                                                                                                                                                                                                                                                                                         |      | -    |                  |   |                       | 23,637              |         |   | -    |   |   |   | -    |   |   |   | 23,637 |
| Total FelCor LP partners’ capital                                                                                                                                                                                                                                                                                                                                        |      | 660,116             |                  |   |                       | 455,393             |         |   | 560,429             |   |   |   | (1,015,822 | ) |   |   | 660,116 |
| Noncontrolling interests                                                          |      | -    |                  |   |                       | 317                 |         |   | 22,266              |   |   |   | -    |   |   |   | 22,583 |
| Total capital                                                                                                                                                                                                                                                                                                                                                                  |      | 660,116             |                  |   |                       | 455,710             |         |   | 582,695             |   |   |   | (1,015,822 | ) |   |   | 682,699 |
| Total liabilities and capital                                                                                                                                                                                                                                                                                                                                                  | $         | 1,389,358           |                  |   | $                          | 543,357             |         | $      | 1,709,101           |   |   | $ | (1,015,822 | ) |   | $ | 2,625,994 |

----

|                                                                                                                         | FelCor LP |                | Subsidiary Guarantors |   | Non-Guarantor Subsidiaries |                | Eliminations |   | Total Consolidated |
|------------------------------------------------------------------------------------------------------------------------------|-----------|---------------------|-----------------------|--------|----------------------------|---------------------|--------------|--------|--------------------|
| Revenues:                                                                                                                    |      |                |                  |   |                       |                |         |   |               |   |   |   |   |   |   |   |   |   |   |
| Hotel operating revenue                                                                                                      | $         | -    |                  |   | $                          | 249,329             |         |   | $                  | -    |   |   | $ | -    |   |   | $ | 249,329 |   |
| Percentage lease revenue                                                                                                     |      | 2,801               |                  |   |                       | -    |         |   |               | 52,788 |   |   |   | (55,589 | ) |   |   | -    |   |
| Other revenue                                                                                                                |      | -    |                  |   |                       | 912                 |         |   |               | 95 |   |   |   | -    |   |   |   | 1,007 |   |
| Total revenue                                                                                                                |      | 2,801               |                  |   |                       | 250,241             |         |   |               | 52,883 |   |   |   | (55,589 | ) |   |   | 250,336 |   |
|                                                                                                                         |      |                |                  |   |                       |                |         |   |               |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                                                    |      |                |                  |   |                       |                |         |   |               |   |   |   |   |   |   |   |   |   |   |
| Hotel operating expenses                                                                                                     |      | -    |                  |   |                       | 166,324             |         |   |               | -    |   |   |   | -    |   |   |   | 166,324 |   |
| Taxes, insurance and lease expense                                                                                           |      | 612                 |                  |   |                       | 73,277              |         |   |               | 8,621 |   |   |   | (55,589 | ) |   |   | 26,921 |   |
| Corporate expenses                                                                                                           |      | (323                | )                     |   |                       | 3,369               |         |   |               | 3,464 |   |   |   | -    |   |   |   | 6,510 |   |
| Depreciation and amortization                                                                                                |      | 2,043               |                  |   |                       | 8,664               |         |   |               | 26,262 |   |   |   | -    |   |   |   | 36,969 |   |
| Other expenses                                                                                                               |      | 16                  |                  |   |                       | 1,049               |         |   |               | (264 | ) |   |   | -    |   |   |   | 801 |   |
| Total operating expenses                                                                                                     |      | 2,348               |                  |   |                       | 252,683             |         |   |               | 38,083 |   |   |   | (55,589 | ) |   |   | 237,525 |   |
| Operating income (loss)                                                                                                      |      | 453                 |                  |   |                       | (2,442              | )            |   |               | 14,800 |   |   |   | -    |   |   |   | 12,811 |   |
| Interest expense, net                                                                                                        |      | (20,508             | )                     |   |                       | (711                | )            |   |               | (15,955 | ) |   |   | -    |   |   |   | (37,174 | ) |
| Extinguishment of debt                                                                                                       |      | -    |                  |   |                       | -    |         |   |               | 46,060 |   |   |   | -    |   |   |   | 46,060 |   |
| Income (loss) before equity in income (loss) from unconsolidated   entities and noncontrolling interests |      | (20,055             | )                     |   |                       | (3,153              | )            |   |               | 44,905 |   |   |   | -    |   |   |   | 21,697 |   |
| Equity in income (loss) from consolidated entities                                                                           |      | 41,689              |                  |   |                       | -    |         |   |               | -    |   |   |   | (41,689 | ) |   |   | -    |   |
| Equity in income (loss) from unconsolidated entities                                                                         |      | 31                  |                  |   |                       | 33                  |         |   |               | 222 |   |   |   | -    |   |   |   | 286 |   |
| Income (loss) from continuing operations                                                                                     |      | 21,665              |                  |   |                       | (3,120              | )            |   |               | 45,127 |   |   |   | (41,689 | ) |   |   | 21,983 |   |
| Discontinued operations                                                                                                      |      | -    |                  |   |                       | 7                   |         |   |               | -    |   |   |   | -    |   |   |   | 7 |   |
| Net income (loss)                                                                                                            |      | 21,665              |                  |   |                       | (3,113              | )            |   |               | 45,127 |   |   |   | (41,689 | ) |   |   | 21,990 |   |
| Net income attributable to   noncontrolling interests                                                         |      | -    |                  |   |                       | (195                | )            |   |               | (130 | ) |   |   | -    |   |   |   | (325 | ) |
| Net income (loss) attributable to FelCor LP                                                                                  |      | 21,665              |                  |   |                       | (3,308              | )            |   |               | 44,997 |   |   |   | (41,689 | ) |   |   | 21,665 |   |
| Preferred distributions                                                                                                      |      | (9,678              | )                     |   |                       | -    |         |   |               | -    |   |   |   | -    |   |   |   | (9,678 | ) |
| Net income (loss) attributable to FelCor LP common unitholders                                                               | $         | 11,987              |                  |   | $                          | (3,308              | )            |   | $                  | 44,997 |   |   | $ | (41,689 | ) |   | $ | 11,987 |   |

----

|                                                                                                                                                              | FelCor LP |                | Subsidiary Guarantors |   | Non-Guarantor Subsidiaries |                | Eliminations |   | Total Consolidated |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|---------------------|-----------------------|--------|----------------------------|---------------------|--------------|--------|--------------------|
| Revenues:                                                                                                                                                         |      |                |                  |   |                       |                |         |   |               |   |   |   |   |   |   |   |   |   |   |
| Hotel operating revenue                                                                                                                                           | $         | -    |                  |   | $                          | 235,269             |         |   | $                  | -    |   |   | $ | -    |   |   | $ | 235,269 |   |
| Percentage lease revenue                                                                                                                                          |      | 4,625               |                  |   |                       | -    |         |   |               | 46,906 |   |   |   | (51,531 | ) |   |   | -    |   |
| Other revenue                                                                                                                                                     |      | -    |                  |   |                       | 889                 |         |   |               | 99 |   |   |   | -    |   |   |   | 988 |   |
| Total revenue                                                                                                                                                     |      | 4,625               |                  |   |                       | 236,158             |         |   |               | 47,005 |   |   |   | (51,531 | ) |   |   | 236,257 |   |
|                                                                                                                                                              |      |                |                  |   |                       |                |         |   |               |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                                                                                         |      |                |                  |   |                       |                |         |   |               |   |   |   |   |   |   |   |   |   |   |
| Hotel operating expenses                                                                                                                                          |      | -    |                  |   |                       | 156,486             |         |   |               | -    |   |   |   | -    |   |   |   | 156,486 |   |
| Taxes, insurance and lease expense                                                                                                                                |      | 999                 |                  |   |                       | 67,972              |         |   |               | 7,216 |   |   |   | (51,531 | ) |   |   | 24,656 |   |
| Corporate expenses                                                                                                                                                |      | (520                | )                     |   |                       | 3,206               |         |   |               | 2,550 |   |   |   | -    |   |   |   | 5,236 |   |
| Depreciation and amortization                                                                                                                                     |      | 2,698               |                  |   |                       | 8,347               |         |   |               | 24,890 |   |   |   | -    |   |   |   | 35,935 |   |
| Other expenses                                                                                                                                                    |      | 23                  |                  |   |                       | 1,662               |         |   |               | 76 |   |   |   | -    |   |   |   | 1,761 |   |
| Total operating expenses                                                                                                                                          |      | 3,200               |                  |   |                       | 237,673             |         |   |               | 34,732 |   |   |   | (51,531 | ) |   |   | 224,074 |   |
| Operating income (loss)                                                                                                                                           |      | 1,425               |                  |   |                       | (1,515              | )            |   |               | 12,273 |   |   |   | -    |   |   |   | 12,183 |   |
| Interest expense, net                                                                                                                                             |      | (8,940              | )                     |   |                       | (567                | )            |   |               | (13,275 | ) |   |   | -    |   |   |   | (22,782 | ) |
| Extinguishment of debt                                                                                                                                            |      | (594                | )                     |   |                       | -    |         |   |               | -    |   |   |   | -    |   |   |   | (594 | ) |
| Income (loss) before equity in income (loss) from unconsolidated          entities and noncontrolling interests |      | (8,109              | )                     |   |                       | (2,082              | )            |   |               | (1,002 | ) |   |   | -    |   |   |   | (11,193 | ) |
| Equity in income (loss) from consolidated entities                                                                                                                |      | (2,774              | )                     |   |                       | -    |         |   |               | -    |   |   |   | 2,774 |   |   |   | -    |   |
| Equity in income (loss) from unconsolidated entities                                                                                                              |      | (409                | )                     |   |                       | 165                 |         |   |               | (17 | ) |   |   | -    |   |   |   | (261 | ) |
| Loss from continuing operations                                                                                                                                   |      | (11,292             | )                     |   |                       | (1,917              | )            |   |               | (1,019 | ) |   |   | 2,774 |   |   |   | (11,454 | ) |
| Discontinued operations                                                                                                                                           |      | -    |                  |   |                       | 486                 |         |   |               | -    |   |   |   | -    |   |   |   | 486 |   |
| Net loss                                                                                                                                                          |      | (11,292             | )                     |   |                       | (1,431              | )            |   |               | (1,019 | ) |   |   | 2,774 |   |   |   | (10,968 | ) |
| Net loss (income) attributable to noncontrolling interests                                                                                                        |      | -    |                  |   |                       | (511                | )            |   |               | 187 |   |   |   | -    |   |   |   | (324 | ) |
| Net loss attributable to FelCor LP                                                                                                                                |      | (11,292             | )                     |   |                       | (1,942              | )            |   |               | (832 | ) |   |   | 2,774 |   |   |   | (11,292 | ) |
| Preferred distributions                                                                                                                                           |      | (9,678              | )                     |   |                       | -    |         |   |               | -    |   |   |   | -    |   |   |   | (9,678 | ) |
| Net loss attributable to FelCor LP common unitholders                                                                                                             | $         | (20,970             | )                     |   | $                          | (1,942              | )            |   | $                  | (832 | ) |   | $ | 2,774 |   |   | $ | (20,970 | ) |

----

|                                                                                                   | FelCor LP |                | Subsidiary Guarantors |   | Non-Guarantor Subsidiaries |                | Eliminations |   | Total Consolidated |
|--------------------------------------------------------------------------------------------------------|-----------|---------------------|-----------------------|--------|----------------------------|---------------------|--------------|--------|--------------------|
| Revenues:                                                                                              |      |                |                  |   |                       |                |         |   |               |   |   |   |   |   |   |   |   |   |   |
| Hotel operating revenue                                                                                | $         | -    |                  |   | $                          | 475,368             |         |   | $                  | -    |   |   | $ | -    |   |   | $ | 475,368 |   |
| Percentage lease revenue                                                                               |      | 5,105               |                  |   |                       | -    |         |   |               | 104,843 |   |   |   | (109,948 | ) |   |   | -    |   |
| Other revenue                                                                                          |      | -    |                  |   |                       | 1,233               |         |   |               | 139 |   |   |   | -    |   |   |   | 1,372 |   |
| Total revenue                                                                                          |      | 5,105               |                  |   |                       | 476,601             |         |   |               | 104,982 |   |   |   | (109,948 | ) |   |   | 476,740 |   |
|                                                                                                   |      |                |                  |   |                       |                |         |   |               |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                              |      |                |                  |   |                       |                |         |   |               |   |   |   |   |   |   |   |   |   |   |
| Hotel operating expenses                                                                               |      | -    |                  |   |                       | 324,245             |         |   |               | -    |   |   |   | -    |   |   |   | 324,245 |   |
| Taxes, insurance and lease expense                                                                     |      | 1,205               |                  |   |                       | 142,953             |         |   |               | 17,391 |   |   |   | (109,948 | ) |   |   | 51,601 |   |
| Corporate expenses                                                                                     |      | 377                 |                  |   |                       | 7,754               |         |   |               | 8,226 |   |   |   | -    |   |   |   | 16,357 |   |
| Depreciation and amortization                                                                          |      | 4,094               |                  |   |                       | 17,368              |         |   |               | 53,105 |   |   |   | -    |   |   |   | 74,567 |   |
| Impairment loss                                                                                        |      | -    |                  |   |                       | -    |         |   |               | 21,060 |   |   |   | -    |   |   |   | 21,060 |   |
| Other expenses                                                                                         |      | 16                  |                  |   |                       | 1,564               |         |   |               | (218 | ) |   |   | -    |   |   |   | 1,362 |   |
| Total operating expenses                                                                               |      | 5,692               |                  |   |                       | 493,884             |         |   |               | 99,564 |   |   |   | (109,948 | ) |   |   | 489,192 |   |
| Operating income (loss)                                                                                |      | (587                | )                     |   |                       | (17,283             | )            |   |               | 5,418 |   |   |   | -    |   |   |   | (12,452 | ) |
| Interest expense, net                                                                                  |      | (40,838             | )                     |   |                       | (1,415              | )            |   |               | (31,161 | ) |   |   | -    |   |   |   | (73,414 | ) |
| Extinguishment of debt                                                                                 |      | -    |                  |   |                       | -    |         |   |               | 46,060 |   |   |   | -    |   |   |   | 46,060 |   |
| Income (loss) before equity in income (loss) from unconsolidated entities and noncontrolling interests |      | (41,425             | )                     |   |                       | (18,698             | )            |   |               | 20,317 |   |   |   | -    |   |   |   | (39,806 | ) |
| Equity in income (loss) from consolidated entities                                                     |      | 1,344               |                  |   |                       | -    |         |   |               | -    |   |   |   | (1,344 | ) |   |   | -    |   |
| Equity in income (loss) from unconsolidated entities                                                   |      | (967                | )                     |   |                       | (425                | )            |   |               | 204 |   |   |   | -    |   |   |   | (1,188 | ) |
| Loss from continuing operations                                                                        |      | (41,048             | )                     |   |                       | (19,123             | )            |   |               | 20,521 |   |   |   | (1,344 | ) |   |   | (40,994 | ) |
| Discontinued operations                                                                                |      | -    |                  |   |                       | 42                  |         |   |               | -    |   |   |   | -    |   |   |   | 42 |   |
| Net income (loss)                                                                                      |      | (41,048             | )                     |   |                       | (19,081             | )            |   |               | 20,521 |   |   |   | (1,344 | ) |   |   | (40,952 | ) |
| Net loss (income) attributable to noncontrolling interests                                        |      | -    |                  |   |                       | (109                | )            |   |               | 13 |   |   |   | -    |   |   |   | (96 | ) |
| Net income (loss) attributable to FelCor LP                                                       |      | (41,048             | )                     |   |                       | (19,190             | )            |   |               | 20,534 |   |   |   | (1,344 | ) |   |   | (41,048 | ) |
| Preferred distributions                                                                                |      | (19,356             | )                     |   |                       | -    |         |   |               | -    |   |   |   | -    |   |   |   | (19,356 | ) |
| Net income (loss) attributable to FelCor LP common unitholders                                         | $         | (60,404             | )                     |   | $                          | (19,190             | )            |   | $                  | 20,534 |   |   | $ | (1,344 | ) |   | $ | (60,404 | ) |

----

|                                                                                                                          | FelCor LP |                | Subsidiary Guarantors |   | Non-Guarantor Subsidiaries |                | Eliminations |   | Total Consolidated |
|-------------------------------------------------------------------------------------------------------------------------------|-----------|---------------------|-----------------------|--------|----------------------------|---------------------|--------------|--------|--------------------|
| Revenues:                                                                                                                     |      |                |                  |   |                       |                |         |   |               |   |   |   |   |   |   |   |   |   |   |
| Hotel operating revenue                                                                                                       | $         | -    |                  |   | $                          | 463,002             |         |   | $                  | -    |   |   | $ | -    |   |   | $ | 463,002 |   |
| Percentage lease revenue                                                                                                      |      | 9,104               |                  |   |                       | -    |         |   |               | 86,021 |   |   |   | (95,125 | ) |   |   | -    |   |
| Other revenue                                                                                                                 |      | 4                   |                  |   |                       | 1,128               |         |   |               | 142 |   |   |   | -    |   |   |   | 1,274 |   |
| Total revenue                                                                                                                 |      | 9,108               |                  |   |                       | 464,130             |         |   |               | 86,163 |   |   |   | (95,125 | ) |   |   | 464,276 |   |
|                                                                                                                          |      |                |                  |   |                       |                |         |   |               |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                                                     |      |                |                  |   |                       |                |         |   |               |   |   |   |   |   |   |   |   |   |   |
| Hotel operating expenses                                                                                                      |      | -    |                  |   |                       | 312,226             |         |   |               | -    |   |   |   | -    |   |   |   | 312,226 |   |
| Taxes, insurance and lease expense                                                                                            |      | 1,557               |                  |   |                       | 128,787             |         |   |               | 14,099 |   |   |   | (95,125 | ) |   |   | 49,318 |   |
| Corporate expenses                                                                                                            |      | (279                | )                     |   |                       | 7,029               |         |   |               | 4,608 |   |   |   | -    |   |   |   | 11,358 |   |
| Depreciation and amortization                                                                                                 |      | 5,665               |                  |   |                       | 21,959              |         |   |               | 44,962 |   |   |   | -    |   |   |   | 72,586 |   |
| Other expenses                                                                                                                |      | 12                  |                  |   |                       | 2,326               |         |   |               | 119 |   |   |   | -    |   |   |   | 2,457 |   |
| Total operating expenses                                                                                                      |      | 6,955               |                  |   |                       | 472,327             |         |   |               | 63,788 |   |   |   | (95,125 | ) |   |   | 447,945 |   |
| Operating income (loss)                                                                                                       |      | 2,153               |                  |   |                       | (8,197              | )            |   |               | 22,375 |   |   |   | -    |   |   |   | 16,331 |   |
| Interest expense, net                                                                                                         |      | (18,154             | )                     |   |                       | (3,219              | )            |   |               | (22,701 | ) |   |   | -    |   |   |   | (44,074 | ) |
| Extinguishment of debt                                                                                                        |      | (594                | )                     |   |                       | -    |         |   |               | -    |   |   |   | -    |   |   |   | (594 | ) |
| Income (loss) before equity in income (loss) from unconsolidated    entities and noncontrolling interests |      | (16,595             | )                     |   |                       | (11,416             | )            |   |               | (326 | ) |   |   | -    |   |   |   | (28,337 | ) |
| Equity in loss from consolidated entities                                                                                     |      | (14,884             | )                     |   |                       | -    |         |   |               | -    |   |   |   | 14,884 |   |   |   | -    |   |
| Equity in loss from unconsolidated entities                                                                                   |      | (1,019              | )                     |   |                       | (537                | )            |   |               | (2,129 | ) |   |   | -    |   |   |   | (3,685 | ) |
| Loss from continuing op0erations                                                                                              |      | (32,498             | )                     |   |                       | (11,953             | )            |   |               | (2,455 | ) |   |   | 14,884 |   |   |   | (32,022 | ) |
| Discontinued operations                                                                                                       |      | -    |                  |   |                       | (368                | )            |   |               | -    |   |   |   | -    |   |   |   | (368 | ) |
| Net loss                                                                                                                      |      | (32,498             | )                     |   |                       | (12,321             | )            |   |               | (2,455 | ) |   |   | 14,884 |   |   |   | (32,390 | ) |
| Net loss (income) attributable to noncontrolling interests                                                                    |      | -    |                  |   |                       | (333                | )            |   |               | 225 |   |   |   | -    |   |   |   | (108 | ) |
| Net loss attributable to FelCor LP                                                                                            |      | (32,498             | )                     |   |                       | (12,654             | )            |   |               | (2,230 | ) |   |   | 14,884 |   |   |   | (32,498 | ) |
| Preferred distributions                                                                                                       |      | (19,356             | )                     |   |                       | -    |         |   |               | -    |   |   |   | -    |   |   |   | (19,356 | ) |
| Net loss attributable to FelCor LP common unitholders                                                                         | $         | (51,854             | )                     |   | $                          | (12,654             | )            |   | $                  | (2,230 | ) |   | $ | 14,884 |   |   | $ | (51,854 | ) |

----

|                                             | FelCor L.P. |                | Subsidiary Guarantors |   | Non-Guarantor Subsidiaries |   | Total Consolidated |
|--------------------------------------------------|-------------|---------------------|-----------------------|--------|----------------------------|--------|--------------------|
| Cash flows from (used in) operating activities   | $           | (38,153             | )                     |   | $                          | 19,937 |               |   | $ | 59,456 |   |   | $ | 41,240 |   |
| Cash flows from (used in) investing activities   |        | (25,104             | )                     |   |                       | (3,766 | )                  |   |   | (17,894 | ) |   |   | (46,764 | ) |
| Cash flows from (used in) financing activities   |        | 69,049              |                  |   |                       | (3,258 | )                  |   |   | (42,238 | ) |   |   | 23,553 |   |
| Effect of exchange rates changes on cash         |        | -    |                  |   |                       | (86    | )                  |   |   | -    |   |   |   | (86 | ) |
| Change in cash and cash equivalents              |        | 5,792               |                  |   |                       | 12,827 |               |   |   | (676 | ) |   |   | 17,943 |   |
| Cash and cash equivalents at beginning of period |        | 224,526             |                  |   |                       | 36,834 |               |   |   | 2,171 |   |   |   | 263,531 |   |
| Cash and equivalents at end of period            | $           | 230,318             |                  |   | $                          | 49,661 |               |   | $ | 1,495 |   |   | $ | 281,474 |   |

|                                             | FelCor LP |                | Subsidiary Guarantors |   | Non-Guarantor Subsidiaries |    | Total Consolidated |
|--------------------------------------------------|-----------|---------------------|-----------------------|--------|----------------------------|---------|--------------------|
| Cash flows from (used in) operating activities   | $         | (14,448             | )                     |   | $                          | 14,342  |               |   | $ | 46,663 |   |   | $ | 46,557 |   |
| Cash flows from (used in) investing activities   |      | 1,395               |                  |   |                       | (20,266 | )                  |   |   | (24,588 | ) |   |   | (43,459 | ) |
| Cash flows from (used in) financing activities   |      | 76,003              |                  |   |                       | 11,866  |               |   |   | (23,114 | ) |   |   | 64,755 |   |
| Effect of exchange rates changes on cash         |      | -    |                  |   |                       | 468     |               |   |   | -    |   |   |   | 468 |   |
| Change in cash and cash equivalents              |      | 62,950              |                  |   |                       | 6,410   |               |   |   | (1,039 | ) |   |   | 68,321 |   |
| Cash and cash equivalents at beginning of period |      | 7,719               |                  |   |                       | 40,018  |               |   |   | 2,450 |   |   |   | 50,187 |   |
| Cash and equivalents at end of period            | $         | 70,669              |                  |   | $                          | 46,428  |               |   | $ | 1,411 |   |   | $ | 118,508 |   |

----

----

|   | · | Total revenue was $250.3 million, a 6.0% increase compared to the same period in 2009.  The increase in revenue is attributed principally to a 5.6% increase in RevPAR, which reflects a 7.6% increase in occupancy and a 1.9% decrease in ADR. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Hotel departmental expenses increased $5.5 million compared to the same period in 2009 due to higher occupancies.  As a percentage of total revenue, hotel departmental expenses remained essentially flat compared to the same period in 2009.  The increase in occupancy between periods occurred in the face of decreasing ADR, but declining ADR was partially mitigated by lower hotel departmental expenses per occupied room. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other property related costs increased $3.5 million due to higher occupancies.  As a percentage of total revenue, they remained essentially flat compared to the same period in 2009. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Management and franchise fees increased $841,000 compared to the same period in 2009 due to higher revenues. As a percent of total revenue, management and franchise fees remained unchanged. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Taxes, insurance and lease expense increased $2.3 million and increased as a percentage of total revenue from 10.4% to 10.8% compared to the same period in 2009.  This primarily reflects a $1.0 million increase in operating lease expense (computed as a percentage of hotel revenues in excess of base rent) and a $1.2 million increase in real estate and other taxes (primarily as a result of 2009 reductions in property taxes on some of our properties). |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Corporate expenses increased $1.3 million and increased as a percentage of total revenue from 2.2% to 2.6%.  This principally reflects increased corporate bonus accruals that resulted from stronger than anticipated performance. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Depreciation and amortization expense increased $1.0 million compared to the same period in 2009, which reflects increased depreciation related to hotel capital expenditures completed in 2009. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other expenses decreased $1.0 million compared to the same period in 2009, primarily due to the following non-recurring expenses incurred in 2009: hotel-level severance expenses, restaurant lease termination costs, and brand conversion costs at the San Francisco Marriott Union Square. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Net interest expense increased $14.4 million compared to the same period in 2009.  This increase primarily reflects additional interest from our $636 million senior secured notes issued in October 2009. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Extinguishment of debt.  During the quarter ended June 30, 2010, we repaid $177 million of mortgage debt secured by two hotels for $130 million and recorded a related $46.1 million gain on extinguishment of debt. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Total revenue was $476.7 million, a 2.7% increase compared to the same period in 2009.  The increase in revenue is attributed principally to a 2.6% increase in RevPAR, which reflects a 7.8% increase in occupancy and a 4.8% decrease in ADR. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Hotel departmental expenses increased $8.0 million compared to the same period in 2009 due to increased occupancies.  As a percentage of total revenue, hotel departmental expenses increased from 34.6% to 35.4% compared to the same period in 2009.  This increase in expense compared to revenue reflects costs associated with the increased occupancy in the face of decreasing ADR. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other property related costs increased $3.8 million due to increased occupancies.  As a percentage of total revenue they remained unchanged compared to the same period in 2009. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Management and franchise fees increased $235,000 compared to the same period in 2009 due to higher revenues. As a percent of total revenue, management and franchise fees remained essentially unchanged. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Taxes, insurance and lease expense increased $2.3 million and increased as a percentage of total revenue from 10.6% to 10.8% compared to the same period in 2009.  This primarily reflects a $429,000 increase in operating lease expense (computed as a percentage of hotel revenues in excess of base rent) and a $1.7 million increase in real estate and other taxes (primarily as a result 2009 favorable resolutions of assessed values on some of our properties). |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Corporate expenses increased $5.0 million and increased as a percentage of total revenue from 2.4% to 3.4%.  This increase primarily reflects a temporary change in how FelCor’s long term compensation program is implemented and increased corporate bonus accruals.  Because of the impact of the recession on the trading price of FelCor’s common stock, FelCor’s 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 employees could 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 expensed over the normal three-year vesting period.  Another contributing factor is an increase in corporate bonus accruals that resulted from stronger than anticipated performance. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Depreciation and amortization expense increased $2.0 million compared to the same period in 2009, which reflects increased depreciation related to hotel capital expenditures completed in 2009. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Impairment charge.  During the quarter ended March 31, 2010, we determined that we would be unable to negotiate satisfactory modifications or reductions on loans secured by two hotels that make sense for our unitholders.  Therefore, we recorded a $21.1 million impairment charge in connection with our decision to transfer these hotels to the lenders in full satisfaction of the debt secured by that hotel.  These hotels’ cash flows did not cover debt service, and we stopped funding shortfalls in December 2009.  We consider these hotels as part of continuing operations until the hotels are transferred, and the debt satisfied, whereupon we expect to record gains on extinguishment of debt aggregating approximately $12 million. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other expenses decreased $1.1 million compared to the same period in 2009, primarily due to the following non-recurring expenses incurred in 2009: hotel-level severance expenses, restaurant lease termination costs and brand conversion costs at the San Francisco Marriott Union Square. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Net interest expense increased $29.3 million compared to the same period in 2009.  This increase primarily reflects additional interest from our $636 million senior secured notes issued in October 2009. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Extinguishment of debt.  During the quarter ended June 30, 2010, we repaid $177 million of mortgage debt secured by two hotels, for $130 million and recorded a related $46.1 million gain on extinguishment of debt. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Discontinued operations relates to two hotels sold in December 2009.  We recorded a $1.4 million impairment charge in the first quarter of 2009 with respect to one of those hotels. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         | Three Months EndedJune 30, |     | Six Months EndedJune 30, |
|------------------------------|----------------------------|----------|--------------------------|
|                         | 2010                       |     | 2009                     |   | 2010 |   | 2009 |
| Total revenues               | $                          | 250,336  |                     |   | $ | 236,257 |   |   | $ | 476,740 |   |   | $ | 464,276 |   |
| Other revenue                |                       | (1,007   | )                        |   |   | (988 | ) |   |   | (1,372 | ) |   |   | (1,274 | ) |
| Hotel operating revenue      |                       | 249,329  |                     |   |   | 235,269 |   |   |   | 475,368 |   |   |   | 463,002 |   |
| Hotel operating expenses     |                       | (183,342 | )                        |   |   | (172,373 | ) |   |   | (358,337 | ) |   |   | (344,649 | ) |
| Hotel EBITDA                 | $                          | 65,987   |                     |   | $ | 62,896 |   |   | $ | 117,031 |   |   | $ | 118,353 |   |
| Hotel EBITDA margin(a)  |                       | 26.5%    |                     |   |   | 26.7% |   |   |   | 24.6% |   |   |   | 25.6% |   |

| (a) | Hotel EBITDA as a percentage of hotel operating revenue. |
|-----|----------------------------------------------------------|

|                                                                | Three Months Ended |                | Six Months Ended |
|---------------------------------------------------------------------|--------------------|---------------------|------------------|
|                                                                | June 30,           |                | June 30,         |
|                                                                | 2010               |                | 2009             |   | 2010 |   | 2009 |
| Total operating expenses                                            | $                  | 237,525             |             |   | $ | 224,074 |   |   | $ | 489,192 |   |   | $ | 447,945 |   |
|    Unconsolidated taxes, insurance and lease expense |               | 1,866               |             |   |   | 2,084 |   |   |   | 3,754 |   |   |   | 4,018 |   |
|    Consolidated hotel lease expense                  |               | (11,769             | )                |   |   | (10,853 | ) |   |   | (21,263 | ) |   |   | (20,913 | ) |
|    Corporate expenses                                |               | (6,510              | )                |   |   | (5,236 | ) |   |   | (16,357 | ) |   |   | (11,358 | ) |
|    Depreciation and amortization                     |               | (36,969             | )                |   |   | (35,935 | ) |   |   | (74,567 | ) |   |   | (72,586 | ) |
|    Impairment loss                                   |               | -    |             |   |   | -    |   |   |   | (21,060 | ) |   |   | -    |   |
|    Other expenses                                    |               | (801                | )                |   |   | (1,761 | ) |   |   | (1,362 | ) |   |   | (2,457 | ) |
| Hotel operating expenses                                            | $                  | 183,342             |             |   | $ | 172,373 |   |   | $ | 358,337 |   |   | $ | 344,649 |   |

----

|                                                                   | Three Months Ended June 30, |                | Six Months EndedJune 30, |
|------------------------------------------------------------------------|----------------------------------|---------------------|-------------------------------|
|                                                                   | 2010                             |                | 2009                          |   | 2010 |   | 2009 |
| Net income (loss)                                                      | $                                | 21,990              |                          |   | $ | (10,968 | ) |   | $ | (40,952 | ) |   | $ | (32,390 | ) |
|    Discontinued operations                              |                             | (7                  | )                             |   |   | (486 | ) |   |   | (42 | ) |   |   | 368 |   |
|    Equity in loss (income) from unconsolidated entities |                             | (286                | )                             |   |   | 261 |   |   |   | 1,188 |   |   |   | 3,685 |   |
|    Consolidated hotel lease expense                     |                             | 11,769              |                          |   |   | 10,853 |   |   |   | 21,263 |   |   |   | 20,913 |   |
|    Unconsolidated taxes, insurance and lease expense    |                             | (1,866              | )                             |   |   | (2,084 | ) |   |   | (3,754 | ) |   |   | (4,018 | ) |
|    Interest expense, net                                |                             | 37,174              |                          |   |   | 22,782 |   |   |   | 73,414 |   |   |   | 44,074 |   |
|    Extinguishment of debt                               |                             | (46,060             | )                             |   |   | 594 |   |   |   | (46,060 | ) |   |   | 594 |   |
|    Corporate expenses                                   |                             | 6,510               |                          |   |   | 5,236 |   |   |   | 16,357 |   |   |   | 11,358 |   |
|    Depreciation and amortization                        |                             | 36,969              |                          |   |   | 35,935 |   |   |   | 74,567 |   |   |   | 72,586 |   |
|    Impairment loss                                      |                             | -    |                          |   |   | -    |   |   |   | 21,060 |   |   |   | -    |   |
|    Other expenses                                       |                             | 801                 |                          |   |   | 1,761 |   |   |   | 1,362 |   |   |   | 2,457 |   |
|    Other revenue                                        |                             | (1,007              | )                             |   |   | (988 | ) |   |   | (1,372 | ) |   |   | (1,274 | ) |
| Hotel EBITDA                                                           | $                                | 65,987              |                          |   | $ | 62,896 |   |   | $ | 117,031 |   |   | $ | 118,353 |   |

|                                                                | Three Months Ended June 30, |                | Six Months Ended June 30, |
|---------------------------------------------------------------------|----------------------------------|---------------------|--------------------------------|
|                                                                | 2010                             |                | 2009                           |   | 2010 |   | 2009 |
| Ratio of operating income (loss) to total revenues                  |                             | 5.1                 | %                              |   |   | 5.2 | % |   | (2.6 | )% |   | 3.5 | % |
|    Other revenue                                     |                             | (0.4                | )                              |   |   | (0.4 | ) |   | (0.3 | ) |   | (0.3 | ) |
|    Unconsolidated taxes, insurance and lease expense |                             | (0.7                | )                              |   |   | (0.9 | ) |   | (0.8 | ) |   | (0.9 | ) |
|    Consolidated hotel lease expense                  |                             | 4.7                 |                           |   |   | 4.6 |   |   | 4.5 |   |   | 4.5 |   |
|    Other expenses                                    |                             | 0.4                 |                           |   |   | 0.7 |   |   | 0.3 |   |   | 0.6 |   |
|    Corporate expenses                                |                             | 2.6                 |                           |   |   | 2.2 |   |   | 3.4 |   |   | 2.5 |   |
|    Depreciation and amortization                     |                             | 14.8                |                           |   |   | 15.3 |   |   | 15.7 |   |   | 15.7 |   |
|    Impairment loss                                   |                             | -    |                           |   |   | -    |   |   | 4.4 |   |   | -    |   |
| Hotel EBITDA margin                                                 |                             | 26.5                | %                              |   |   | 26.7 | % |   | 24.6 | % |   | 25.6 | % |

----

|                                                |  Hotels |   | Room Count at June 30, 2010 |   |
|-----------------------------------------------------|--------------|--------|---------------------------------------|--------|
| Consolidated Hotels                                 | 83           |   |                                  |   | 23,854 |   |   |
| Unconsolidated hotel operations                     | 1            |   |                                  |   | 171 |   |   |
| Total hotels                                        | 84           |   |                                  |   | 24,025 |   |   |
|                                                |         |   |                                  |   |   |   |   |
|    50% joint ventures                | 14           |   |                                  |   | (1,794 | ) |   |
|    60% joint venture                 | 1            |   |                                  |   | (214 | ) |   |
|    82% joint venture                 | 1            |   |                                  |   | (40 | ) |   |
|    90% joint ventures                | 3            |   |                                  |   | (68 | ) |   |
| Pro rata rooms attributed to joint venture partners |         |   |                                  |   | (2,116 | ) |   |
| Pro rata share of rooms owned                       |         |   |                                  |   | 21,909 |   |   |

----

| Brand                    |   |   |  Hotels |   |  Rooms |   | % ofTotal Rooms |   | % of 2009Hotel EBITDA(a) |   |
|--------------------------|--------|--------|--------------|--------|-------------|--------|-----------------|--------|-------------------------------|--------|
| Embassy Suites Hotels    |   | 47     |         |   | 12,132      |   |            | 51     |                          |   | 60 |   |   |
| Holiday Inn              |   | 15     |         |   | 5,154       |   |            | 22     |                          |   | 18 |   |   |
| Sheraton and Westin      |   | 9      |         |   | 3,217       |   |            | 13     |                          |   | 9 |   |   |
| Doubletree               |   | 7      |         |   | 1,471       |   |            | 6      |                          |   | 7 |   |   |
| Renaissance and Marriott |   | 3      |         |   | 1,321       |   |            | 6      |                          |   | 3 |   |   |
| Hilton                   |   | 2      |         |   | 559         |   |            | 2      |                          |   | 3 |   |   |
|                     |   |   |         |   |        |   |            |   |                          |   |   |   |   |
| Market                   |   |   |         |   |        |   |            |   |                          |   |   |   |   |   |
| South Florida            |   | 5      |         |   | 1,439       |   |            | 6      |                          |   | 8 |   |   |
| Los Angeles area         |   | 4      |         |   | 899         |   |            | 4      |                          |   | 6 |   |   |
| Atlanta                  |   | 5      |         |   | 1,462       |   |            | 6      |                          |   | 6 |   |   |
| Orlando                  |   | 4      |         |   | 1,038       |   |            | 4      |                          |   | 4 |   |   |
| Philadelphia             |   | 2      |         |   | 729         |   |            | 3      |                          |   | 4 |   |   |
| Minneapolis              |   | 3      |         |   | 736         |   |            | 3      |                          |   | 4 |   |   |
| San Francisco area       |   | 6      |         |   | 2,138       |   |            | 9      |                          |   | 4 |   |   |
| Dallas                   |   | 4      |         |   | 1,333       |   |            | 6      |                          |   | 4 |   |   |
| Central California Coast |   | 2      |         |   | 408         |   |            | 2      |                          |   | 4 |   |   |
| San Antonio              |   | 3      |         |   | 874         |   |            | 4      |                          |   | 3 |   |   |
| Myrtle Beach             |   | 2      |         |   | 640         |   |            | 3      |                          |   | 3 |   |   |
| Boston                   |   | 2      |         |   | 532         |   |            | 2      |                          |   | 3 |   |   |
| San Diego                |   | 1      |         |   | 600         |   |            | 3      |                          |   | 3 |   |   |
| Northern New Jersey      |   | 3      |         |   | 756         |   |            | 3      |                          |   | 3 |   |   |
| Other                    |   | 37     |         |   | 10,270      |   |            | 42     |                          |   | 41 |   |   |
|                     |   |   |         |   |        |   |            |   |                          |   |   |   |   |
| Location                 |   |   |         |   |        |   |            |   |                          |   |   |   |   |   |
| Suburban                 |   | 35     |         |   | 8,781       |   |            | 37     |                          |   | 32 |   |   |
| Urban                    |   | 20     |         |   | 6,358       |   |            | 27     |                          |   | 27 |   |   |
| Airport                  |   | 18     |         |   | 5,788       |   |            | 24     |                          |   | 24 |   |   |
| Resort                   |   | 10     |         |   | 2,927       |   |            | 12     |                          |   | 17 |   |   |

| (a) | Hotel EBITDA is a non-GAAP financial measure.  A detailed reconciliation and further discussion of Hotel EBITDA is contained in the “Non-GAAP Financial Measures” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of this Quarterly Report on Form 10-Q. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                     | Occupancy (%)                    |
|--------------------------|----------------------------------|
|                     | Three Months Ended June 30, |   |   |   |   | Six Months Ended June 30, |   |   |
|                     | 2010                             |   | 2009 |   | %Variance |   |   | 2010 |   | 2009 |   | %Variance |
| Embassy Suites Hotels    | 75.1                             |   | 70.1 |   | 7.2 |   |   |   | 72.7 |   | 68.3 |   | 6.4 |   |
| Holiday Inn              | 76.9                             |   | 71.8 |   | 7.0 |   |   |   | 72.3 |   | 67.2 |   | 7.6 |   |
| Sheraton and Westin      | 69.0                             |   | 64.2 |   | 7.5 |   |   |   | 66.2 |   | 59.6 |   | 11.0 |   |
| Doubletree               | 77.0                             |   | 67.5 |   | 14.1 |   |   |   | 73.5 |   | 65.5 |   | 12.2 |   |
| Renaissance and Marriott | 67.8                             |   | 62.0 |   | 9.3 |   |   |   | 66.6 |   | 59.2 |   | 12.5 |   |
| Hilton                   | 73.0                             |   | 70.6 |   | 3.4 |   |   |   | 59.7 |   | 59.0 |   | 1.1 |   |
|                     |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total hotels             | 74.4                             |   | 69.1 |   | 7.6 |   |   |   | 71.1 |   | 66.0 |   | 7.8 |   |
|                     |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     | ADR ($)                          |
|                     | Three Months Ended June 30, |   |   |   |   | Six Months Ended June 30, |   |   |
|                     | 2010                             |   | 2009 |   | %Variance |   |   | 2010 |   | 2009 |   | %Variance |
| Embassy Suites Hotels    | 123.82                           |   | 127.79 |   | (3.1 | ) |   |   | 126.21 |   | 133.05 |   | (5.1 | ) |
| Holiday Inn              | 116.56                           |   | 115.01 |   | 1.4 |   |   |   | 110.86 |   | 112.90 |   | (1.8 | ) |
| Sheraton and Westin      | 108.02                           |   | 110.54 |   | (2.3 | ) |   |   | 106.52 |   | 114.01 |   | (6.6 | ) |
| Doubletree               | 117.30                           |   | 125.47 |   | (6.5 | ) |   |   | 117.99 |   | 132.08 |   | (10.7 | ) |
| Renaissance and Marriott | 168.37                           |   | 168.11 |   | 0.2 |   |   |   | 175.96 |   | 184.08 |   | (4.4 | ) |
| Hilton                   | 123.45                           |   | 119.80 |   | 3.0 |   |   |   | 112.80 |   | 110.95 |   | 1.7 |   |
|                     |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total hotels             | 121.86                           |   | 124.26 |   | (1.9 | ) |   |   | 121.96 |   | 128.10 |   | (4.8 | ) |
|                     |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     | RevPAR ($)                       |
|                     | Three Months Ended June 30, |   |   |   |   | Six Months Ended June 30, |   |   |
|                     | 2010                             |   | 2009 |   | %Variance |   |   | 2010 |   | 2009 |   | %Variance |
| Embassy Suites Hotels    | 93.00                            |   | 89.52 |   | 3.9 |   |   |   | 91.72 |   | 90.86 |   | 0.9 |   |
| Holiday Inn              | 89.64                            |   | 82.63 |   | 8.5 |   |   |   | 80.13 |   | 75.88 |   | 5.6 |   |
| Sheraton and Westin      | 74.53                            |   | 70.98 |   | 5.0 |   |   |   | 70.54 |   | 68.01 |   | 3.7 |   |
| Doubletree               | 90.33                            |   | 84.66 |   | 6.7 |   |   |   | 86.75 |   | 86.55 |   | 0.2 |   |
| Renaissance and Marriott | 114.15                           |   | 104.23 |   | 9.5 |   |   |   | 117.12 |   | 108.89 |   | 7.6 |   |
| Hilton                   | 90.17                            |   | 84.62 |   | 6.6 |   |   |   | 67.32 |   | 65.48 |   | 2.8 |   |
|                     |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total hotels             | 90.62                            |   | 85.85 |   | 5.6 |   |   |   | 86.77 |   | 84.58 |   | 2.6 |   |

----

|                     | Occupancy (%)               |
|--------------------------|-----------------------------|
|                     | Three Months Ended June 30, |   |   |   | Six Months Ended June 30, |   |   |
|                     | 2010                        |   | 2009 |   | % Variance |   | 2010 |   | 2009 |   | %Variance |
| South Florida            | 75.6                        |   | 73.5 |   | 2.9 |   |   | 80.3 |   | 76.4 |   | 5.2 |   |
| Los Angeles area         | 77.7                        |   | 74.2 |   | 4.7 |   |   | 74.1 |   | 71.4 |   | 3.7 |   |
| Atlanta                  | 75.0                        |   | 73.7 |   | 1.7 |   |   | 75.1 |   | 69.7 |   | 7.8 |   |
| Orlando                  | 74.0                        |   | 75.9 |   | (2.5 | ) |   | 77.4 |   | 75.5 |   | 2.6 |   |
| Philadelphia             | 80.4                        |   | 74.5 |   | 7.9 |   |   | 70.5 |   | 62.0 |   | 13.6 |   |
| Minneapolis              | 76.6                        |   | 65.6 |   | 16.7 |   |   | 71.8 |   | 63.2 |   | 13.6 |   |
| San Francisco area       | 78.8                        |   | 70.8 |   | 11.3 |   |   | 72.1 |   | 63.4 |   | 13.7 |   |
| Dallas                   | 66.2                        |   | 60.8 |   | 9.0 |   |   | 65.8 |   | 60.1 |   | 9.5 |   |
| Central California Coast | 80.4                        |   | 76.9 |   | 4.5 |   |   | 75.1 |   | 76.7 |   | (2.2 | ) |
| San Antonio              | 76.7                        |   | 73.9 |   | 3.8 |   |   | 75.7 |   | 71.8 |   | 5.5 |   |
| Myrtle Beach             | 73.4                        |   | 69.8 |   | 5.2 |   |   | 58.9 |   | 59.1 |   | (0.4 | ) |
| Boston                   | 85.2                        |   | 80.0 |   | 6.4 |   |   | 81.2 |   | 75.3 |   | 7.7 |   |
| San Diego                | 78.8                        |   | 74.1 |   | 6.4 |   |   | 75.2 |   | 69.1 |   | 8.8 |   |
| Northern New Jersey      | 76.1                        |   | 62.7 |   | 21.4 |   |   | 68.1 |   | 61.2 |   | 11.3 |   |
|                     | ADR ($)                     |
|                     | Three Months Ended June 30, |   |   |   | Six Months Ended June 30, |   |   |
|                     | 2010                        |   | 2009 |   | % Variance |   | 2010 |   | 2009 |   | %Variance |
| South Florida            | 114.69                      |   | 121.55 |   | (5.6 | ) |   | 140.49 |   | 146.86 |   | (4.3 | ) |
| Los Angeles area         | 136.03                      |   | 133.85 |   | 1.6 |   |   | 134.27 |   | 136.06 |   | (1.3 | ) |
| Atlanta                  | 102.89                      |   | 105.19 |   | (2.2 | ) |   | 104.18 |   | 108.01 |   | (3.6 | ) |
| Orlando                  | 107.18                      |   | 114.20 |   | (6.1 | ) |   | 110.97 |   | 122.78 |   | (9.6 | ) |
| Philadelphia             | 131.80                      |   | 143.10 |   | (7.9 | ) |   | 123.10 |   | 137.76 |   | (10.6 | ) |
| Minneapolis              | 126.25                      |   | 127.91 |   | (1.3 | ) |   | 126.01 |   | 129.45 |   | (2.7 | ) |
| San Francisco area       | 129.18                      |   | 126.45 |   | 2.2 |   |   | 126.28 |   | 123.90 |   | 1.9 |   |
| Dallas                   | 110.87                      |   | 115.04 |   | (3.6 | ) |   | 111.92 |   | 120.89 |   | (7.4 | ) |
| Central California Coast | 157.51                      |   | 154.55 |   | 1.9 |   |   | 148.58 |   | 145.60 |   | 2.0 |   |
| San Antonio              | 98.55                       |   | 106.08 |   | (7.1 | ) |   | 98.44 |   | 105.87 |   | (7.0 | ) |
| Myrtle Beach             | 144.16                      |   | 145.05 |   | (0.6 | ) |   | 126.35 |   | 126.13 |   | 0.2 |   |
| Boston                   | 142.16                      |   | 137.63 |   | 3.3 |   |   | 131.78 |   | 132.21 |   | (0.3 | ) |
| San Diego                | 118.10                      |   | 127.62 |   | (7.5 | ) |   | 116.68 |   | 129.78 |   | (10.1 | ) |
| Northern New Jersey      | 132.81                      |   | 144.27 |   | (7.9 | ) |   | 132.57 |   | 147.86 |   | (10.3 | ) |
|                     | RevPAR ($)                  |
|                     | Three Months Ended June 30, |   |   |   | Six Months Ended June 30, |   |   |
|                     | 2010                        |   | 2009 |   | % Variance |   | 2010 |   | 2009 |   | %Variance |
| South Florida            | 86.68                       |   | 89.30 |   | (2.9 | ) |   | 112.86 |   | 112.15 |   | 0.6 |   |
| Los Angeles area         | 105.64                      |   | 99.26 |   | 6.4 |   |   | 99.47 |   | 97.16 |   | 2.4 |   |
| Atlanta                  | 77.13                       |   | 77.55 |   | (0.5 | ) |   | 78.24 |   | 75.28 |   | 3.9 |   |
| Orlando                  | 79.29                       |   | 86.65 |   | (8.5 | ) |   | 85.93 |   | 92.71 |   | (7.3 | ) |
| Philadelphia             | 105.94                      |   | 106.65 |   | (0.7 | ) |   | 86.74 |   | 85.47 |   | 1.5 |   |
| Minneapolis              | 96.68                       |   | 83.93 |   | 15.2 |   |   | 90.51 |   | 81.88 |   | 10.5 |   |
| San Francisco area       | 101.79                      |   | 89.51 |   | 13.7 |   |   | 91.00 |   | 78.52 |   | 15.9 |   |
| Dallas                   | 73.43                       |   | 69.89 |   | 5.1 |   |   | 73.66 |   | 72.65 |   | 1.4 |   |
| Central California Coast | 126.61                      |   | 118.84 |   | 6.5 |   |   | 111.55 |   | 111.72 |   | (0.2 | ) |
| San Antonio              | 75.62                       |   | 78.43 |   | (3.6 | ) |   | 74.55 |   | 75.97 |   | (1.9 | ) |
| Myrtle Beach             | 105.87                      |   | 101.28 |   | 4.5 |   |   | 74.38 |   | 74.53 |   | (0.2 | ) |
| Boston                   | 121.06                      |   | 110.15 |   | 9.9 |   |   | 106.95 |   | 99.61 |   | 7.4 |   |
| San Diego                | 93.04                       |   | 94.51 |   | (1.6 | ) |   | 87.71 |   | 89.65 |   | (2.2 | ) |
| Northern New Jersey      | 101.13                      |   | 90.50 |   | 11.7 |   |   | 90.24 |   | 90.43 |   | (0.2 | ) |

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|                                                     |                    | Brand  |            |   | State  |   |   | Rooms |   | % Owned(a) |   |
|----------------------------------------------------------|-------------------------|--------|-----------------|--------|--------|--------|--------|-------|--------|------------|--------|
| Consolidated Hotels                                      |                    |   |            |   |   |
| 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 – North Shore/Deerfield                    | Embassy Suites Hotel    | IL     | 237             |   |
| 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             |   |

----

|                                                        |                    | Brand   |   |   | State |   | Rooms |   | % Owned(a) |
|-------------------------------------------------------------|-------------------------|---------|--------|--------|-------|--------|-------|--------|------------|
| New Orleans – Convention Center                       | Embassy Suites Hotel    | LA      | 370    |   |
| New Orleans – French Quarter                          | Holiday Inn             | LA      | 374    |   |
| Boston – at Beacon Hill                               | Holiday Inn             | MA      | 303    |   |
| 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%    |
| Piscataway – Somerset                                 | Embassy Suites Hotel    | NJ      | 221    |   |
| 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    |   |
| Vienna – Premiere at Tysons Corner                    | Sheraton                | VA      | 443    | 50%    |
|                                                        |                    |    |   |   |
| 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%    |

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

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|                                 | Expected Maturity Date |
|--------------------------------------|------------------------|
|                                 | 2010                   |   | 2011 |   | 2012 |   | 2013 |   | 2014 |   | Thereafter |   | Total |   | Fair Value |
| Liabilities                          |                   |
| Fixed-rate:                          |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Debt                     | $                      | 35,992 |   | $ | 105,834 |   | $ | 4,550 |   | $ | 32,696 |   | $ | 804,980 |   | $ | 9,376 |   | $ | 993,428 |   |   | 1,032,666 |
|   Average interest rate    |                   | 8.57% |   |   | 8.62% |   |   | 7.68% |   |   | 8.61% |   |   | 9.61% |   |   | 5.81% |   |   | 9.39% |   |   |   |
| Floating-rate:                       |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Debt                     |                   | 1,000 |   |   | 449,916 |   |   | 1,832 |   |   | 1,986 |   |   | 2,153 |   |   | 204,887 |   |   | 661,774 |   |   | 640,636 |
|   Average interest rate(a) |                   | 5.50% |   |   | 3.57% |   |   | 8.10% |   |   | 8.10% |   |   | 8.17% |   |   | 8.17% |   |   | 5.04% |   |   |   |
| Total debt                           | $                      | 36,992 |   | $ | 555,750 |   | $ | 6,382 |   | $ | 34,682 |   | $ | 807,133 |   | $ | 214,263 |   | $ | 1,655,202 |   |   |   |
|   Average interest rate    |                   | 8.48% |   |   | 4.53% |   |   | 7.80% |   |   | 8.58% |   |   | 9.60% |   |   | 8.07% |   |   | 7.65% |   |   |   |
| Net discount                         |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (58,567 | ) |   |   |
|     Total debt   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 1,596,635 |   |   |   |

|   | (a) | The average floating interest rate represents the implied forward rates in the yield curve at June 30, 2010. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------|

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| Exhibit Number |   | Description of Exhibit                                                                                       |   |
|----------------|--------|--------------------------------------------------------------------------------------------------------------|--------|
| 31.1           |   | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|           |   |                                                                                                         |
| 31.2           |   | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|           |   |                                                                                                         |
| 32.1           |   | Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|           |   |                                                                                                         |
| 32.2           |   | Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

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|                            | FELCOR LODGING LIMITED PARTNERSHIP |
|---------------------------------|------------------------------------|
|                            | a Delaware limited partnership     |
|                            |                               |   |
|                            | By:                                | FelCor Lodging Trust Incorporated |
|                            |                               | Its general partner |
|                            |                               |   |
|                            |                               |   |
| Date:  August 4, 2010 | By:                                | /s/ Lester C. Johnson |
|                            |                               | Name:Title: | Lester C. JohnsonSenior Vice President, Chief Accounting Officer |

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