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| 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                                           þ (Do not check if a smaller      reporting company) |   | Smaller      reporting company o |

 þ No

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| Page                                       |                                                                                                                                                 |
|--------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| PART      I. – FINANCIAL INFORMATION |                                                                                                                                                 |
|                                       |                                                                                                                                                 |
| Item      I.                               | Financial      Statements                                                                                                                            | 3 |
|                                       | Consolidated      Balance Sheets September 30, 2009 and December 31, 2008      (unaudited)                                                           | 3 |
|                                       | Consolidated      Statements of Operations – For the Three and Nine Months Ended September      30, 2009 and 2008 (unaudited)                  | 4 |
|                                       | Consolidated      Statements of Comprehensive Income (Loss) – For the Three and Nine Months      Ended September 30, 2009 and 2008 (unaudited) | 5 |
|                                       | Consolidated      Statements of Changes in Equity for the Year Ended December 31, 2008 and      the Nine Months Ended September 30, 2009 (unaudited) | 6 |
|                                       | Consolidated      Statements of Cash Flows – For the Nine Months Ended September 30, 2009      and 2008 (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 |
|                                       | Financial      Comparison                                                                                                                            | 26 |
|                                       | Results      of Operations                                                                                                                           | 27 |
|                                       | Non-GAAP      Financial Measures                                                                                                                     | 30 |
|                                       | Pro      Rata Share of Rooms Owned                                                                                                                   | 32 |
|                                       | Hotel      Portfolio Composition                                                                                                                     | 33 |
|                                       | Hotel      Operating Statistics                                                                                                                      | 34 |
|                                       | Hotel      Portfolio                                                                                                                                 | 36 |
|                                       | Liquidity      and Capital Resources                                                                                                                 | 38 |
|                                       | Inflation                                                                                                                                            | 41 |
|                                       | Seasonality                                                                                                                                          | 41 |
|                                       | Disclosure      Regarding Forward-Looking Statements                                                                                                 | 41 |
| Item      3.                               | Quantitative      and Qualitative Disclosures about Market Risk                                                                                      | 42 |
| Item      4.                               | Controls      and Procedures                                                                                                                         | 42 |
|                                       |                                                                                                                                                 |   |
| PART      II - OTHER INFORMATION           |
|                                       |                                                                                                                                                 |   |
| Item      6.                               | Exhibits                                                                                                                                             | 43 |
|                                       |                                                                                                                                                 |
| SIGNATURE                                  | 44                                                                                                                                                   |

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|                                                                                                                                                                  | September      30,2009 |          | December      31, 2008 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|---------------|------------------------|--------|
| ASSETS                                                                                                                                                                |                   |          |                   |   |   |   |   |   |
| Investment      in hotels, net of accumulated depreciation of $921,197 at     September 30,      2009 and $816,271 at December 31, 2008 |  $                | 2,228,839     |                   |   |  $ |  2,279,026 |   |   |
| Investment      in unconsolidated entities                                                                                                                            |                   | 86,690        |                   |   |   | 94,506 |   |   |
| Cash      and cash equivalents                                                                                                                                        |                   | 128,063       |                   |   |   | 50,187 |   |   |
| Restricted      cash                                                                                                                                                  |                   | 19,774        |                   |   |   | 13,213 |   |   |
| Accounts      receivable, net of allowance for doubtful accounts of $274 at     September 30,      2009 and $521 at December 31, 2008   |                   | 30,894        |                   |   |   |  35,240 |   |   |
| Deferred      expenses, net of accumulated amortization of $12,676 at     September 30,      2009 and $13,087 at December 31, 2008      |                   | 9,957         |                   |   |   |  5,556 |   |   |
| Other      assets                                                                                                                                                     |                   | 36,805        |                   |   |   | 34,541 |   |   |
|           Total      assets                                                                                         | $                      | 2,541,022     |                   |   | $ | 2,512,269 |   |   |
|                                                                                                                                                                  |                   |          |                   |   |   |   |   |
| LIABILITIES      AND CAPITAL                                                                                                                                          |                   |          |                   |   |   |   |   |   |
| Debt,      net of discount of $1,140 at September 30, 2009 and $1,544      at     December      31, 2008                                |  $                | 1,632,910     |                   |   |  $ |  1,551,686 |   |   |
| Preferred      distributions payable                                                                                                                                  |                   | 27,902        |                   |   |   | 8,545 |   |   |
| Accrued      expenses and other liabilities                                                                                                                           |                   | 137,419       |                   |   |   | 132,604 |   |   |
|                                                                                                                                                                  |                   |          |                   |   |   |   |   |   |
|           Total      liabilities                                                                                    |                   | 1,798,231     |                   |   |   | 1,692,835 |   |   |
|                                                                                                                                                                  |                   |          |                   |   |   |   |   |   |
| Commitments      and contingencies                                                                                                                                    |                   |          |                   |   |   |   |   |   |
| Redeemable      units at redemption value, 296 units issued and outstandingat   September 30,      2009 and December 31, 2008                |                   | 1,340         |                   |   |   | 545 |   |   |
|                                                                                                                                                                  |                   |          |                   |   |   |   |   |   |
| Capital:                                                                                                                                                              |                   |          |                   |   |   |   |   |   |
| Preferred      units, $0.01 par value, 20,000 units authorized:                                                                                                       |                   |          |                   |   |   |   |   |   |
| Series A      Cumulative Convertible Preferred Units, 12,880 units issued and      outstanding at September 30, 2009 and December 31,      2008        |                   |  309,362 |                   |   |   |  309,362 |   |   |
| Series      C Cumulative Redeemable Preferred Units, 68 units issued and outstanding      at September 30, 2009 and December 31, 2008                       |                   |  169,412 |                   |   |   |  169,412 |   |   |
| Common      units 69,413 units issued and outstanding at September 30, 2009 and      December 31, 2008                                                      |                   | 216,888       |                   |   |   |  300,913 |   |   |
| Accumulated      other comprehensive income                                                                                                                           |                   | 22,575        |                   |   |   | 15,418 |   |   |
|                                                                                                                                                                  |                   |          |                   |   |   |   |   |   |
|           Total      FelCor LP partners’ capital                                                              |                   | 718,237       |                   |   |   | 795,105 |   |   |
|                                                                                                                                                                  |                   |          |                   |   |   |   |   |   |
| Noncontrolling      interests                                                                                                                                         |                   | 23,214        |                   |   |   | 23,784 |   |   |
|           Total      capital                                                                                        |                   | 741,451       |                   |   |   | 818,889 |   |   |
|                                                                                                                                                                  |                   |          |                   |   |   |   |   |   |
|           Total      liabilities and capital                                                                        | $                      | 2,541,022     |                   |   | $ | 2,512,269 |   |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Three      Months EndedSeptember      30, |                | Nine      Months EndedSeptember      30, |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|---------------------|------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2009                                      |                | 2008                                     |   | 2009 |   | 2008 |
| Revenues:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                      |                |                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|    Hotel      operating      revenue                                                                                                           | $                                         | 228,929             |                                     |   | $ | 276,333 |   |   | $ | 704,511 |   |   | $ | 873,117 |   |
|    Other      revenue                                                                                                 |                                      | 1,280               |                                     |   |   | 1,396 |   |   |   | 2,554 |   |   |   | 2,655 |   |
| Total      revenues                                                                                                                  |                                      | 230,209             |                                     |   |   | 277,729 |   |   |   | 707,065 |   |   |   | 875,772 |   |
| Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                      |                |                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|    Hotel      departmental      expenses                                                                              |                                      | 83,695              |                                     |   |   | 93,502 |   |   |   | 249,131 |   |   |   | 290,765 |   |
|    Other      property related      costs                                                                             |                                      | 66,492              |                                     |   |   | 76,947 |   |   |   | 199,711 |   |   |   | 230,646 |   |
|    Management      and franchise      fees                                                                            |                                      | 11,361              |                                     |   |   | 13,573 |   |   |   | 34,278 |   |   |   | 45,448 |   |
|    Taxes,      insurance and lease      expense                                                                       |                                      | 25,355              |                                     |   |   | 29,718 |   |   |   | 75,411 |   |   |   | 87,884 |   |
|    Corporate      expenses                                                                                            |                                      | 4,471               |                                     |   |   | 5,388 |   |   |   | 15,829 |   |   |   | 17,079 |   |
|    Depreciation      and      amortization                                                                            |                                      | 37,982              |                                     |   |   | 36,069 |   |   |   | 112,024 |   |   |   | 104,909 |   |
|    Impairment      loss                                                                                               |                                      | 2,080               |                                     |   |   | 36,692 |   |   |   | 3,448 |   |   |   | 53,823 |   |
|    Hurricane      loss                                                                                                |                                      | -    |                                     |   |   | 1,669 |   |   |   | -    |   |   |   | 1,669 |   |
|    Other      expenses                                                                                                |                                      | 1,031               |                                     |   |   | 1,046 |   |   |   | 3,528 |   |   |   | 2,879 |   |
| Total      operating      expenses                                                                                                   |                                      | 232,467             |                                     |   |   | 294,604 |   |   |   | 693,360 |   |   |   | 835,102 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                      |                |                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income      (loss)                                                                                                    |                                      | (2,258              | )                                        |   |   | (16,875 | ) |   |   | 13,705 |   |   |   | 40,670 |   |
|    Interest      expense,      net                                                                                    |                                      | (24,427             | )                                        |   |   | (24,114 | ) |   |   | (68,501 | ) |   |   | (74,886 | ) |
|   Charges      related to debt extinguishment                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                      | -    |                                     |   |   | -    |   |   |   | (594 | ) |   |   | -    |   |
| Loss      before equity in income (loss) from unconsolidatedentities                                                                                                                                                                                                                                                                                                                                                                                                                               |                                      |  (26,685       |  )                                  |   |   |  (40,989 |  ) |   |   |  (55,390 |  ) |   |   |  (34,216 |  ) |
|    Equity      in income (loss) from unconsolidated entities                                                                                                                                                                                                                                                                                                                                                                                                                        |                                      | 488                 |                                     |   |   | (2,773 | ) |   |   | (3,197 | ) |   |   | (1,064 | ) |
|    Gain      on sale of      assets                                                                                   |                                      | 723                 |                                     |   |   | -    |   |   |   | 723 |   |   |   | -    |   |
|    Gain      on involuntary      conversion                                                                           |                                      | -    |                                     |   |   | -    |   |   |   | -    |   |   |   | 3,095 |   |
| Loss      from continuing      operations                                                                                            |                                      | (25,474             | )                                        |   |   | (43,762 | ) |   |   | (57,864 | ) |   |   | (32,185 | ) |
|    Discontinued      operations                                                                                       |                                      | -    |                                     |   |   | 1,193 |   |   |   | -    |   |   |   | 1,180 |   |
| Net      loss                                                                                                                        |                                      | (25,474             | )                                        |   |   | (42,569 | ) |   |   | (57,864 | ) |   |   | (31,005 | ) |
| Net      loss (income) attributable to noncontrolling interests                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                      | 174                 |                                     |   |   | (165 | ) |   |   | 66 |   |   |   | (1,126 | ) |
| Net      loss attributable to FelCor      LP                                                                                         |                                      | (25,300             | )                                        |   |   | (42,734 | ) |   |   | (57,798 | ) |   |   | (32,131 | ) |
|    Preferred      distributions                                                                                       |                                      | (9,678              | )                                        |   |   | (9,678 | ) |   |   | (29,034 | ) |   |   | (29,034 | ) |
| Net      loss attributable to FelCor LP common unitholders                                                                                                                                                                                                                                                                                                                                                                                                                                         | $                                         | (34,978             | )                                        |   | $ | (52,412 | ) |   | $ | (86,832 | ) |   | $ | (61,165 | ) |
| Basic      and diluted per common unit data:                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                      |                |                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net      loss from continuing operations attributable to FelCor common      unitholders                                                                                                                                                                                                                                                                                                                                                                                          |  $                                   |  (0.55         |  )                                  |   |  $ |  (0.85 |  ) |   |  $ |  (1.37 |  ) |   |  $ |  (1.00 |  ) |
|    Net      loss attributable to FelCor LP common unitholders                                                                                                                                                                                                                                                                                                                                                                                                                       | $                                         | (0.55               | )                                        |   | $ | (0.83 | ) |   | $ | (1.37 | ) |   | $ | (0.98 | ) |
|    Basic      and diluted weighted average common units outstanding                                                                                                                                                                                                                                                                                                                                                                                                                 |                                      |  63,382        |                                     |   |   |  63,174 |   |   |   | 63,417 |   |   |   | 63,178 |   |
| Cash      distributions declared on common units                                                                                                                                                                                                                                                                                                                                                                                                                                                   | $                                         | -    |                                     |   | $ | 0.15 |   |   | $ | -    |   |   | $ | 0.85 |   |

----

|                                                                     | Three      Months Ended September 30, |    | Nine      Months Ended September 30, |
|--------------------------------------------------------------------------|--------------------------------------------|---------|-------------------------------------------|
|                                                                     | 2009                                       |    | 2008                                      |   | 2009 |   | 2008 |
| Net      loss                                                            | $                                          | (25,474 | )                                         |   | $ | (42,569 | ) |   | $ | (57,864 | ) |   | $ | (31,005 | ) |
| Foreign      currency translation adjustment                             |                                       | 4,707   |                                      |   |   | (2,681 | ) |   |   | 7,157 |   |   |   | (4,169 | ) |
| Comprehensive loss                                                       |                                       | (20,767 | )                                         |   |   | (45,250 | ) |   |   | (50,707 | ) |   |   | (35,174 | ) |
| Comprehensive loss (income)      attributable tononcontrolling interests |                                       | 174     |                                      |   |   | (165 | ) |   |   | 66 |   |   |   | (1,126 | ) |
| Comprehensive      loss attributable to FelCor LP                        | $                                          | (20,593 | )                                         |   | $ | (45,415 | ) |   | $ | (50,641 | ) |   | $ | (36,300 | ) |

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CONSOLIDATED STATEMENTS OFCAPITAL

|                                                    | Preferred      Units |                | Partnership      Units |   | Accumulated      Other Comprehensive Income (Loss) |                |   | Noncontrolling      Interests |   |  Comprehensive      Income (Loss) | Total      Capital |
|---------------------------------------------------------|----------------------|---------------------|------------------------|--------|----------------------------------------------------|---------------------|--------|-------------------------------|--------|----------------------------------------|--------------------|
| Balance      at December 31, 2007                       | $                    | 478,774             |                   |   | $                                                  | 490,979             |   |                          | $      | 27,450                                 |               |   |   | $ | 25,264 |   |   |   |   |   | $ | 1,022,467 |   |
| FelCor      restricted stock compensation               |                 | -    |                   |   |                                               | 4,956               |   |                          |   | -                       |               |   |   |   | -    |   |   |   |   |   |   | 4,956 |   |
| Contributions                                           |                 | -    |                   |   |                                               | -    |   |                          |   | -                       |               |   |   |   | 565 |   |   |   |   |   |   | 565 |   |
| Distributions                                           |                 | -    |                   |   |                                               | (93,868             | )      |                          |   | -                       |               |   |   |   | (3,236 | ) |   |   |   |   |   | (97,104 | ) |
| Allocation      to redeemable units                     |                 | -    |                   |   |                                               | 20,562              |   |                          |   | -                       |               |   |   |   | -    |   |   |   |   |   |   | 20,562 |   |
| Costs      related to FelCor’s shelf registration |                 | -    |                   |   |                                               | (38                 | )      |                          |   | -                       |               |   |   |   | -    |   |   |   |   |   |   | (38 | ) |
| Comprehensive      loss:                                |                 |                |                   |   |                                               |                |   |                          |   |                                   |               |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign exchange      translation                       |                 | -    |                   |   |                                               | -    |   |                          |   | (12,032                                | )                  |   |   |   | -    |   |   | $ | (12,032 | ) |   |   |   |
| Net income    (loss)                                    |                 | -    |                   |   |                                               | (121,678            | )      |                          |   | -                       |               |   |   |   | 1,191 |   |   |   | (120,487 | ) |   |   |   |
| Comprehensive      loss                                 |                 |                |                   |   |                                               |                |   |                          |   |                                   |               |   |   |   |   |   |   | $ | (132,519 | ) |   | (132,519 | ) |
| Balance      at December 31, 2008                       |                 | 478,774             |                   |   |                                               | 300,913             |   |                          |   | 15,418                                 |               |   |   |   | 23,784 |   |   |   |   |   |   | 818,889 |   |
| FelCor      restricted stock compensation               |                 | -    |                   |   |                                               | 3,810               |   |                          |   | -                       |               |   |   |   | -    |   |   |   |   |   |   | 3,810 |   |
| Contributions                                           |                 | -    |                   |   |                                               | -    |   |                          |   | -                       |               |   |   |   | 469 |   |   |   |   |   |   | 469 |   |
| Distributions                                           |                 | -    |                   |   |                                               | (29,034             | )      |                          |   | -                       |               |   |   |   | (1,141 | ) |   |   |   |   |   | (30,175 | ) |
| Allocation      to redeemable units                     |                 | -    |                   |   |                                               | (795                | )      |                          |   | -                       |               |   |   |   | -    |   |   |   |   |   |   | (795 | ) |
| Other                                                   |                 | -    |                   |   |                                               | (208                | )      |                          |   | -                       |               |   |   |   | 168 |   |   |   |   |   |   | (40 | ) |
| Comprehensive      loss:                                |                 |                |                   |   |                                               |                |   |                          |   |                                   |               |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign exchange      translation                       |                 | -    |                   |   |                                               | -    |   |                          |   | 7,157                                  |               |   |   |   | -    |   |   | $ | 7,157 |   |   |   |   |
| Net loss                                                |                 | -    |                   |   |                                               | (57,798             | )      |                          |   | -                       |               |   |   |   | (66 | ) |   |   | (57,864 | ) |   |   |   |
| Comprehensive      loss                                 |                 |                |                   |   |                                               |                |   |                          |   |                                   |               |   |   |   |   |   |   | $ | (50,707 | ) |   | (50,707 | ) |
| Balance      at September 30, 2009                 | $                    | 478,774             |                   |   | $                                                  | 216,888             |   |                          | $      | 22,575                                 |               |   |   | $ | 23,214 |   |   |   |   |   | $ | 741,451 |   |

----

|                                                                                                                                                                                                          | Nine      Months EndedSeptember      30, |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|
|                                                                                                                                                                                                          | 2009                                     |   | 2008 |
| Cash      flows from operating activities:                                                                                                                                                                    |                                     |   |   |   |   |   |   |
|   Net      loss                                                                                                                                                                                     | $                                        | (57,864 | ) |   | $ | (31,005 | ) |
|   Adjustments      to reconcile net loss to net cash provided by operating      activities:                                                                                                         |                                     |   |   |   |   |   |   |
|               Depreciation      and amortization                                                                                        |                                     | 112,024 |   |   |   | 104,909 |   |
|               Gain      on involuntary conversion                                                                                       |                                     | -    |   |   |   | (3,095 | ) |
|               Gain      on sale of assets                                                                                               |                                     | (723 | ) |   |   | (1,193 | ) |
|               Amortization      of deferred financing fees and debt discount                                                            |                                     | 3,089 |   |   |   | 2,221 |   |
|               Amortization      of unearned officers’ and directors’ compensation                                           |                                     | 3,924 |   |   |   | 3,795 |   |
|               Equity      in loss from unconsolidated entities                                                                          |                                     | 3,197 |   |   |   | 1,064 |   |
|               Distributions      of income from unconsolidated entities                                                                 |                                     | 2,256 |   |   |   | 2,044 |   |
|               Charges      related to debt extinguishment                                                                               |                                     | 594 |   |   |   | -    |   |
|               Impairment      loss                                                                                                      |                                     | 3,448 |   |   |   | 53,823 |   |
|         Changes      in assets and liabilities:                                                                                                                       |                                     |   |   |   |   |   |   |
|               Accounts      receivable                                                                                                  |                                     | 1,214 |   |   |   | (2,859 | ) |
|               Restricted      cash – operations                                                                                   |                                     | (1,587 | ) |   |   | (1,786 | ) |
|               Other      assets                                                                                                         |                                     | (4,827 | ) |   |   | (3,726 | ) |
|               Accrued      expenses and other liabilities                                                                               |                                     | 11,664 |   |   |   | 17,928 |   |
|                         Net      cash flow provided by operating activities           |                                     | 76,409 |   |   |   | 142,120 |   |
|                                                                                                                                                                                                          |                                     |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                                                                                                                                    |                                     |   |   |   |   |   |   |
|     Improvements      and additions to hotels                                                                                                                                             |                                     | (62,465 | ) |   |   | (108,899 | ) |
|     Additions      to condominium project                                                                                                                                                 |                                     | (115 | ) |   |   | (666 | ) |
|     Proceeds      received from property insurance                                                                                                                                        |                                     | -    |   |   |   | 2,005 |   |
|     Change      in restricted cash – investing                                                                                                                                      |                                     | (2,507 | ) |   |   | 1,519 |   |
|     Redemption      of investment securities                                                                                                                                              |                                     | 1,719 |   |   |   | 4,738 |   |
|     Distributions      from unconsolidated entities                                                                                                                                       |                                     | 3,700 |   |   |   | 22,108 |   |
|     Contributions      to unconsolidated entities                                                                                                                                         |                                     | (444 | ) |   |   | (5,995 | ) |
|                         Net      cash flow used in investing activities               |                                     | (60,112 | ) |   |   | (85,190 | ) |
|                                                                                                                                                                                                          |                                     |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                                                                                                                                    |                                     |   |   |   |   |   |   |
|     Proceeds      from borrowings                                                                                                                                                         |                                     | 418,390 |   |   |   | 141,267 |   |
|     Repayment      of borrowings                                                                                                                                                          |                                     | (340,037 | ) |   |   | (97,210 | ) |
|     Payment      of deferred financing fees                                                                                                                                               |                                     | (7,785 | ) |   |   | (16 | ) |
|     Distributions      paid to noncontrolling interests                                                                                                                                   |                                     | (1,141 | ) |   |   | (2,858 | ) |
|     Contributions      from noncontrolling interests                                                                                                                                      |                                     | 469 |   |   |   | 565 |   |
|     Distributions      paid to preferred unitholders                                                                                                                                      |                                     | (9,678 | ) |   |   | (29,034 | ) |
|     Distributions      paid to common unitholders                                                                                                                                         |                                     | -    |   |   |   | (67,571 | ) |
|                         Net      cash flow provided by (used in) financing activities |                                     | 60,218 |   |   |   | (54,857 | ) |
|                                                                                                                                                                                                          |                                     |   |   |   |   |   |   |
| Effect      of exchange rate changes on cash                                                                                                                                                                  |                                     | 1,361 |   |   |   | (629 | ) |
| Net      change in cash and cash equivalents                                                                                                                                                                  |                                     | 77,876 |   |   |   | 1,444 |   |
| Cash      and cash equivalents at beginning of periods                                                                                                                                                        |                                     | 50,187 |   |   |   | 57,609 |   |
| Cash      and cash equivalents at end of periods                                                                                                                                                              | $                                        | 128,063 |   |   | $ | 59,053 |   |
|                                                                                                                                                                                                          |                                     |   |   |   |   |   |   |
| Supplemental      cash flow information – interest paid                                                                                                                                                 | $                                        | 87,395 |   |   | $ | 67,441 |   |

----

| Brand                                           |   | Hotels |   | Rooms  |   |
|-------------------------------------------------|--------|--------|--------|--------|--------|
| Embassy      Suites Hotels®           |   | 47     |   |   | 12,132 |   |   |
| Holiday      Inn®                     |   | 17     |   |   | 6,306  |   |   |
| Sheraton®      and Westin®       |   | 9      |   |   | 3,217  |   |   |
| Doubletree®                           |   | 7      |   |   | 1,471  |   |   |
| Marriott®      and Renaissance®  |   | 3      |   |   | 1,321  |   |   |
| Hilton®                               |   | 2      |   |   | 559    |   |   |
| Total      hotels                               |   | 85     |   |   |   |   |   |

----

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

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

|                                                                                     | September 30,2009 |    | December 31,2008 |   |
|------------------------------------------------------------------------------------------|------------------------|---------|-----------------------|--------|
| Balance      sheet information:                                                          |                   |    |                  |   |   |   |
|      Investment      in hotels, net of accumulated depreciation | $                      | 268,918 |                  | $      | 290,504 |   |
|      Total      assets                                          | $                      | 290,655 |                  | $      | 317,672 |   |
|      Debt                                                       | $                      | 216,206 |                  | $      | 224,440 |   |
|      Total      liabilities                                     | $                      | 223,062 |                  | $      | 233,296 |   |
|      Equity                                                     | $                      | 67,593  |                  | $      | 84,376 |   |

----

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

|                                                      | Three      Months EndedSeptember 30, |                | Nine      Months Ended September 30, |
|-----------------------------------------------------------|-------------------------------------------|---------------------|-------------------------------------------|
|                                                      | 2009                                      |                | 2008                                      |   | 2009 |   | 2008 |
| Total      revenues                                       | $                                         | 20,925              |                                      |   | $ | 27,041 |   |   | $ | 53,845 |   |   | $ | 72,994 |   |
| Net  income      (loss)                         | $                                         | 1,905               |                                      |   | $ | (428 | )(a) |   | $ | (2,683 | )(a) |   | $ | 4,858 | (a) |
|                                                      |                                      |                |                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss) attributable to FelCor LP          | $                                         | 953                 |                                      |   | $ | (214 | ) |   | $ | (1,342 | ) |   | $ | 2,429 |   |
| Impairment      charge                                    |                                      | -    |                                      |   |   | (2,092 | )(b) |   |   | (476 | )(c) |   |   | (2,092 | )(b) |
| Depreciation      of cost in excess of book value         |                                      | (465                | )                                         |   |   | (467 | ) |   |   | (1,379 | ) |   |   | (1,401 | ) |
| Equity      in income (loss) from unconsolidated entities | $                                         | 488                 |                                      |   | $ | (2,773 | ) |   | $ | (3,197 | ) |   | $ | (1,064 | ) |

|   | (a) | Net      income (loss) includes impairment charges of $3.2 million for the      nine months ended September 30, 2009, and $3.3 million for the      three and nine months ended September 30, 2008.  These      impairments were based on sales contracts (a Level 2 input) for two hotels      owned by one of our joint ventures. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Impairment      charge in 2008 reflects a $2.1 million impairment charge related to      an unrecoverable investment in an unconsolidated  entity. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|                                                   | September 30,2009 |   | December      31, 2008 |
|--------------------------------------------------------|------------------------|--------|------------------------|
| Hotel-related      investments                         | $                      | 22,618 |                   |   | $ | 28,762 |   |
| Cost      in excess of book value of hotel investments |                   | 52,894 |                   |   |   | 54,273 |   |
| Land      and condominium investments                  |                   | 11,178 |                   |   |   | 11,471 |   |
|                                                   | $                      | 86,690 |                   |   | $ | 94,506 |   |

|                                                      | Three      Months EndedSeptember 30, |   | Nine      Months EndedSeptember 30, |
|-----------------------------------------------------------|-------------------------------------------|--------|------------------------------------------|
|                                                      | 2009                                      |   | 2008                                     |   | 2009 |   | 2008 |
| Hotel      investments                                    | $                                         | (8     | )                                        |   | $ | (954 | ) |   | $ | (3,204 | ) |   | $ | 1,401 |   |
| Other      investments                                    |                                      | 496    |                                     |   |   | (1,819 | ) |   |   | 7 |   |   |   | (2,465 | ) |
| Equity      in income (loss) from unconsolidated entities | $                                         | 488    |                                     |   | $ | (2,773 | ) |   | $ | (3,197 | ) |   | $ | (1,064 | ) |

----

|                                                                                           |                           |   |                    |   |               |   | Balance      Outstanding |
|------------------------------------------------------------------------------------------------|--------------------------------|--------|-------------------------|--------|--------------------|--------|--------------------------|
|                                                                                           | Encumbered                     |   | Interest      Rate at   |   |               |   | September      30,       |   | December      31, |
|                                                                                           | Hotels                         |   | September      30, 2009 |   | Maturity      Date |   | 2009                     |   | 2008 |
| Senior      term notes(a)                                                                      | none                           |   |                    | 9.00   | %(b)               |   | June      2011           |   | $ | 299,602 |   | $ | 299,414 |
| Senior      term notes(a)                                                                      | none                           |   | L      +                | 1.875  |               |   | December      2011       |   |   | 215,000 |   |   | 215,000 |
| Line      of credit(c)                                                                         | none                           |   |                    | -      |               |   | -                        |   |   | -    |   |   | 113,000 |
|   Total      line of credit       and      senior debt |                           |   |                    | 6.29   | (d)                |   |                     |   |   |  514,602 |   |   |  627,414 |
|                                                                                           |                           |   |                    |   |               |   |                     |   |   |   |   |   |   |
| Mortgage      debt                                                                             | 12      hotels                 |   | L      +                | 0.93   | (e)                |   | November      2011(f)    |   |   | 250,000 |   |   | 250,000 |
| Mortgage      debt(g)                                                                          | 9      hotels                  |   | L      +                | 3.50   | (h)                |   | August      2011(i)      |   |   | 200,800 |   |   | -    |
| Mortgage      debt                                                                             | 2      hotels                  |   | L      +                | 1.55   | (j)                |   | May      2012(k)         |   |   | 176,483 |   |   | 176,267 |
| Mortgage      debt(l)                                                                          | 8      hotels                  |   |                    | 8.70   |               |   | May      2010            |   |   | 159,205 |   |   | 162,250 |
| Mortgage      debt(m)                                                                          | 7      hotels                  |   |                    | 9.02   |               |   | April      2014          |   |   | 118,415 |   |   | 117,131 |
| Mortgage      debt                                                                             | 6      hotels                  |   |                    | 8.73   |               |   | May      2010            |   |   | 113,628 |   |   | 116,285 |
| Mortgage      debt                                                                             | 5      hotels                  |   |                    | 6.66   |               |   | June      - August 2014  |   |   | 71,331 |   |   | 72,517 |
| Mortgage      debt                                                                             | 2      hotels                  |   |                    | 6.15   |               |   | June      2009(n)        |   |   | 14,277 |   |   | 14,641 |
| Mortgage      debt                                                                             | 1      hotel                   |   |                    | 5.81   |               |   | July      2016           |   |   | 11,843 |   |   | 12,137 |
| Capital      lease and other                                                                   | 1      hotel    |   |                    | 9.58   |               |   | various                  |   |   | 2,326 |   |   | 3,044 |
|   Total      mortgage debt                                                           | 53      hotels                 |   |                    | 5.20   | (d)                |   |                     |   |   | 1,118,308 |   |   | 924,272 |
|      Total                                                            |                           |   |                    | 5.54   | %(d)               |   |                     |   | $ | 1,632,910 |   | $ | 1,551,686 |

|   | (a) | In      October 2009, we issued $636 million in aggregate principal amount of      our 10% senior notes due 2014.  The new notes are secured by      mortgages and related security interests on up to 14 hotels.  A      portion of the net proceeds from the sale of these notes was used to      repurchase $214 million of our floating-rate senior notes and      $213 million of our 81⁄2% seniornotes. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | As a result of a rating      down-grade in February 2009, the interest rate on our 81⁄2% fixed-rate      senior notes due 2011 increased by 50 basis points to      9.0%. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | We      terminated and repaid all outstanding obligations under our line of credit      in the second quarter of 2009. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Interest      rates are calculated based on the weighted average debt outstanding at      September 30, 2009. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------|

|   | (e) | We      have purchased an interest rate cap that caps LIBOR at 7.8% and expires in      November 2010 for this notionalamount. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | 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. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | In      June 2009, we obtained a $201 million non-recourse term loan secured      by nine hotels. |
|--------|-----|--------------------------------------------------------------------------------------------------------|

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

|   | (i) | This      loan can be extended for as many as two years, subject to satisfying      certain conditions that we expect tosatisfy. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | We      have purchased interest rate caps that cap LIBOR at 6.5% and expire in May      2010 for aggregate notional amounts of  $177 million. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | We      have exercised the first of three successive one-year extension options      that extend, at our sole discretion, maturity to  2012. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (m) | This      debt was refinanced in March 2009. |
|--------|-----|----------------------------------------------|

|   | (n) | We allowed these loans to go into      default when they matured in June 2009.  We have received term      sheets from the special servicer to extend the maturity of these loans for      two years, which we are currently  evaluating. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                             | Three      Months EndedSeptember      30, |    | Nine      Months EndedSeptember      30, |
|------------------------------------------------------------------|-------------------------------------------|---------|------------------------------------------|
|                                                             | 2009                                      |    | 2008                                     |   | 2009 |   | 2008 |
| Room      revenue                                                | $                                         | 184,103 |                                     |   | $ | 223,968 |   |   | $ | 557,491 |   |   | $ | 693,789 |   |
| Food      and beverage revenue                                   |                                      | 30,370  |                                     |   |   | 36,357 |   |   |   | 103,786 |   |   |   | 131,875 |   |
| Other      operating departments                                 |                                      | 14,456  |                                     |   |   | 16,008 |   |   |   | 43,234 |   |   |   | 47,453 |   |
|      Total      hotel operating revenue | $                                         | 228,929 |                                     |   | $ | 276,333 |   |   | $ | 704,511 |   |   | $ | 873,117 |   |

----

| 4. | Hotel      Operating Revenue, Departmental Expenses and Other Property Operating      Costs – (continued) |
|----|-----------------------------------------------------------------------------------------------------------------|

|                                   | Three      Months Ended September 30, |
|----------------------------------------|--------------------------------------------|
|                                   | 2009                                       |   | 2008 |
|                                   | Amount                                     |   | %      of Total HotelOperating      Revenue |   | Amount |   | %      of Total HotelOperating      Revenue |
| Room                                   | $                                          | 50,202 |   |   | 21.9 | % |   | $ | 55,563 |   |   | 20.1 | % |
| Food      and beverage                 |                                       | 26,728 |   |   | 11.7 |   |   |   | 30,747 |   |   | 11.1 |   |
| Other      operating departments       |                                       | 6,765 |   |   | 3.0 |   |   |   | 7,192 |   |   | 2.6 |   |
| Total      hotel departmental expenses | $                                          | 83,695 |   |   | 36.6 | % |   | $ | 93,502 |   |   | 33.8 | % |

|                                   | Nine      Months Ended September 30, |
|----------------------------------------|--------------------------------------|
|                                   | 2009                                 |   | 2008 |
|                                   | Amount                               |   | %      of Total HotelOperating      Revenue |   | Amount |   | %      of Total HotelOperating      Revenue |
| Room                                   | $                                    | 145,741 |   |   | 20.7 | % |   | $ | 167,085 |   |   | 19.1 | % |
| Food      and beverage                 |                                 | 84,133 |   |   | 11.9 |   |   |   | 102,289 |   |   | 11.7 |   |
| Other      operating departments       |                                 | 19,257 |   |   | 2.8 |   |   |   | 21,391 |   |   | 2.5 |   |
| Total      hotel departmental expenses | $                                    | 249,131 |   |   | 35.4 | % |   | $ | 290,765 |   |   | 33.3 | % |

|                                          | Three      Months Ended September 30, |
|-----------------------------------------------|--------------------------------------------|
|                                          | 2009                                       |   | 2008 |
|                                          |   Amount                         |   | %      of Total HotelOperating      Revenue |   |  Amount |   | %      of Total HotelOperating      Revenue |
| Hotel      general and administrative expense | $                                          | 20,694 |   |   | 9.0 | % |   | $ | 24,378 |   |   | 8.8 | % |
| Marketing                                     |                                       | 18,835 |   |   | 8.2 |   |   |   | 22,340 |   |   | 8.1 |   |
| Repair      and maintenance                   |                                       | 12,700 |   |   | 5.5 |   |   |   | 14,173 |   |   | 5.1 |   |
| Utilities                                     |                                       | 14,263 |   |   | 6.3 |   |   |   | 16,056 |   |   | 5.8 |   |
| Total other property operating      costs     | $                                          | 66,492 |   |   | 29.0 | % |   | $ | 76,947 |   |   | 27.8 | % |

----

| 4. | Hotel      Operating Revenue, Departmental Expenses and Other Property Operating      Costs – (continued) |
|----|-----------------------------------------------------------------------------------------------------------------|

|                                          | Nine      Months Ended September 30, |
|-----------------------------------------------|-------------------------------------------|
|                                          | 2009                                      |   | 2008 |
|                                          |   Amount                        |   | %      of Total HotelOperating      Revenue |   |  Amount |   | %      of Total HotelOperating      Revenue |
| Hotel      general and administrative expense | $                                         | 63,310 |   |   | 9.0 | % |   | $ | 74,526 |   |   | 8.5 | % |
| Marketing                                     |                                      | 58,792 |   |   | 8.3 |   |   |   | 70,330 |   |   | 8.0 |   |
| Repair      and maintenance                   |                                      | 38,168 |   |   | 5.4 |   |   |   | 43,324 |   |   | 5.0 |   |
| Utilities                                     |                                      | 39,441 |   |   | 5.6 |   |   |   | 42,466 |   |   | 4.9 |   |
| Total other property operating      costs     | $                                         | 199,711 |   |   | 28.3 | % |   | $ | 230,646 |   |   | 26.4 | % |

|                                                                        | Three      Months EndedSeptember 30, |   | Nine      Months EndedSeptember 30, |
|-----------------------------------------------------------------------------|-------------------------------------------|--------|------------------------------------------|
|                                                                        | 2009                                      |   | 2008                                     |   | 2009 |   | 2008 |
| Hotel      lease expense(a)                                            | $                                         | 10,892 |                                     |   | $ | 14,511 |   |   | $ | 31,805 |   |   | $ | 42,444 |   |
| Ground      lease expense(b)                                           |                                      | 2,590  |                                     |   |   | 3,402 |   |   |   | 7,215 |   |   |   | 9,022 |   |
| Real      estate and other taxes                                            |                                      | 9,326  |                                     |   |   | 8,426 |   |   |   | 27,213 |   |   |   | 25,434 |   |
| Property      insurance, general liability insurance                        |                                      | 2,547  |                                     |   |   | 3,379 |   |   |   | 9,178 |   |   |   | 10,984 |   |
|      Total      taxes, insurance and lease expense | $                                         | 25,355 |                                     |   | $ | 29,718 |   |   | $ | 75,411 |   |   | $ | 87,884 |   |

|   | (a) | Hotel      lease expense represents 100% of the lease expense related to 13 of our      50% owned unconsolidated hotels (because we own majority ownership      interests in their operating lessees) and paid to 13 of our      unconsolidated, 50%-owned ventures.  Hotel lease expense      includes percentage rent (based on operating results) of $3.8 million      and $7.4 million for the three months ended September 30, 2009      and 2008, respectively, and $10.7 million and $21.2 million,      respectively, for the nine months ended September 30, 2009 and      2008. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Ground      lease expense includes percentage rent (based on operating results) of      $1.9 million and $2.5 million for the three months ended      September 30, 2009 and 2008, respectively, and $4.9 million and      $6.4 million, respectively, for the nine months ended      September 30, 2009 and 2008. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                             | September      30, 2008 |
|------------------------------------------------------------------|-------------------------|
|                                                             | Three      Months Ended |   | Nine      Months Ended |
|    Operating      expenses                        | $                       | -    |   |   | $ | (13 | ) |
|    Gain      on sale of hotels, net of income tax |                    | 1,193 |   |   |   | 1,193 |   |
| Income      from discontinued operations                         | $                       | 1,193 |   |   | $ | 1,180 |   |

----

|                                                                                                                                            | Three      Months EndedSeptember      30, |                | Nine      Months EndedSeptember 30, |
|-------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|---------------------|------------------------------------------|
|                                                                                                                                            | 2009                                      |                | 2008                                     |   | 2009 |   | 2008 |
| Numerator:                                                                                                                                      |                                      |                |                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loss      from continuing operations                                                                                          | $                                         | (25,474             | )                                        |   | $ | (43,762 | ) |   | $ | (57,864 | ) |   | $ | (32,185 | ) |
|    Net      loss (income) attributable to noncontrolling      interests      in other partnerships |                                      | 174                 |                                     |   |   | (165 | ) |   |   | 66 |   |   |   | (1,126 | ) |
|    Loss      from continuing operations attributable to FelCor LP                                                                |                                      | (25,300             | )                                        |   |   | (43,927 | ) |   |   | (57,798 | ) |   |   | (33,311 | ) |
|       Less:      Preferred distributions                                                                          |                                      | (9,678              | )                                        |   |   | (9,678 | ) |   |   | (29,034 | ) |   |   | (29,034 | ) |
|    Loss      from continuing operations attributable to FelCor LP     common      unitholders           |                                      | (34,978             | )                                        |   |   | (53,605 | ) |   |   | (86,832 | ) |   |   | (62,345 | ) |
|    Discontinued      operations                                                                                                  |                                      | -    |                                     |   |   | 1,193 |   |   |   | -    |   |   |   | 1,180 |   |
|    Loss      attributable to FelCor LP common unitholders                                                                        |                                      | (34,978             | )                                        |   |   | (52,412 | ) |   |   | (86,832 | ) |   |   | (61,165 | ) |
|    Less:      Dividends declared on FelCor’s unvested restricted stock      compensation                                   |                                      | -    |                                     |   |   | (98 | ) |   |   | -    |   |   |   | (1,041 | ) |
| Numerator      for basic and diluted loss attributable to FelCor LP common      unitholders                                                     | $                                         | (34,978             | )                                        |   | $ | (52,510 | ) |   | $ | (86,832 | ) |   | $ | (62,206 | ) |
|                                                                                                                                            |                                      |                |                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                                                                    |                                      |                |                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Denominator      for basic and diluted loss                                                                                                     |                                      | 63,382              |                                     |   |   | 63,174 |   |   |   | 63,417 |   |   |   | 63,178 |   |
|                                                                                                                                            |                                      |                |                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and diluted loss per unit data:                                                                                                      |                                      |                |                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|    Loss      from continuing operations                                                                                          | $                                         | (0.55               | )                                        |   | $ | (0.85 | ) |   | $ | (1.37 | ) |   | $ | (1.00 | ) |
|    Discontinued      operations                                                                                                  | $                                         | -    |                                     |   | $ | 0.02 |   |   | $ | -    |   |   | $ | 0.02 |   |
|    Net      loss                                                                                                                 | $                                         | (0.55               | )                                        |   | $ | (0.83 | ) |   | $ | (1.37 | ) |   | $ | (0.98 | ) |

|                                      | Three      Months Ended |   | Nine      Months Ended |
|-------------------------------------------|-------------------------|--------|------------------------|
|                                      | September      30,      |   | September 30,     |
|                                      | 2009                    |   | 2008                   |   | 2009 |   | 2008 |
| Series      A convertible preferred units | 9,985                   |   |                   | 9,985 |   |   |   | 9,985 |   |   |   | 9,985 |   |

----

----

| ASSETS                                          |
|-------------------------------------------------|
|                                            | FelCor      LP |   | Subsidiary      Guarantors |   | Non-Guarantor      Subsidiaries |   | Eliminations |   | Total      Consolidated |   |
| Net      investment in hotel properties         | $ | 64,351 |   |   | $ | 492,335 |   | $ | 1,672,153 |   |   | $ | -    |   |   | $ | 2,228,839 |   |
| Equity      investment in consolidated entities |   | 1,057,735 |   |   |   | -    |   |   | -    |   |   |   | (1,057,735 | ) |   |   | -    |   |
| Investment      in unconsolidated entities      |   | 71,050 |   |   |   | 15,640 |   |   | -    |   |   |   | -    |   |   |   | 86,690 |   |
| Cash      and cash equivalents                  |   | 80,124 |   |   |   | 46,509 |   |   | 1,430 |   |   |   | -    |   |   |   | 128,063 |   |
| Restricted      cash                            |   | -    |   |   |   | 2,692 |   |   | 17,082 |   |   |   | -    |   |   |   | 19,774 |   |
| Accounts      receivable                        |   | 1,331 |   |   |   | 29,563 |   |   | -    |   |   |   | -    |   |   |   | 30,894 |   |
| Deferred      expenses                          |   | 1,265 |   |   |   | -    |   |   | 8,692 |   |   |   | -    |   |   |   | 9,957 |   |
| Other      assets                               |   | 8,245 |   |   |   | 26,787 |   |   | 1,773 |   |   |   | -    |   |   |   | 36,805 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                               | $ | 1,284,101 |   |   | $ | 613,526 |   | $ | 1,701,130 |   |   | $ | (1,057,735 | ) |   | $ | 2,541,022 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITES      AND CAPITAL                     |
| Debt                                            | $ | 514,602 |   |   | $ | 2,327 |   | $ | 1,115,981 |   |   | $ | -    |   |   | $ | 1,632,910 |   |
| Distributions      payable                      |   | 27,902 |   |   |   | -    |   |   | -    |   |   |   | -    |   |   |   | 27,902 |   |
| Accrued      expenses and other liabilities     |   | 22,020 |   |   |   | 95,848 |   |   | 19,551 |   |   |   | -    |   |   |   | 137,419 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      liabilities                          |   | 564,524 |   |   |   | 98,175 |   |   | 1,135,532 |   |   |   | -    |   |   |   | 1,798,231 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Redeemable      units, at redemption value      |   | 1,340 |   |   |   | -    |   |   | -    |   |   |   | -    |   |   |   | 1,340 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred      units                            |   | 478,774 |   |   |   | -    |   |   | -    |   |   |   | -    |   |   |   | 478,774 |   |
| Common      units                               |   | 239,463 |   |   |   | 492,187 |   |   | 542,973 |   |   |   | (1,057,735 | ) |   |   | 216,888 |   |
| Accumulated      other comprehensive income     |   | -    |   |   |   | 22,575 |   |   | -    |   |   |   | -    |   |   |   | 22,575 |   |
| Total      FelCor LP partners’ capital    |   | 718,237 |   |   |   | 514,762 |   |   | 542,973 |   |   |   | (1,057,735 | ) |   |   | 718,237 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noncontrolling      interests                   |   | -    |   |   |   | 589 |   |   | 22,625 |   |   |   | -    |   |   |   | 23,214 |   |
| Total      capital                              |   | 718,237 |   |   |   | 515,351 |   |   | 565,598 |   |   |   | (1,057,735 | ) |   |   | 741,451 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      liabilities and capital              | $ | 1,284,101 |   |   | $ | 613,526 |   | $ | 1,701,130 |   |   | $ | (1,057,735 | ) |   | $ | 2,541,022 |   |

----

|   | December      31, 2008 |
|--------|------------------------|

| ASSETS                                          |
|-------------------------------------------------|
|                                            | FelCor      LP |   | Subsidiary      Guarantors |   | Non-Guarantor      Subsidiaries |   | Eliminations |   | Total      Consolidated |   |
| Net      investment in hotel properties         | $ | 124,752 |   |   | $ | 888,925 |   | $ | 1,265,349 |   |   | $ | -    |   |   | $ | 2,279,026 |   |
| Equity      investment in consolidated entities |   | 1,230,038 |   |   |   | -    |   |   | -    |   |   |   | (1,230,038 | ) |   |   | -    |   |
| Investment      in unconsolidated entities      |   | 77,106 |   |   |   | 17,400 |   |   | -    |   |   |   | -    |   |   |   | 94,506 |   |
| Cash      and cash equivalents                  |   | 7,719 |   |   |   | 40,018 |   |   | 2,450 |   |   |   | -    |   |   |   | 50,187 |   |
| Restricted      cash                            |   | -    |   |   |   | 2,104 |   |   | 11,109 |   |   |   | -    |   |   |   | 13,213 |   |
| Accounts      receivable                        |   | 4,576 |   |   |   | 30,664 |   |   | -    |   |   |   | -    |   |   |   | 35,240 |   |
| Deferred      expenses                          |   | 2,660 |   |   |   | 49 |   |   | 2,847 |   |   |   | -    |   |   |   | 5,556 |   |
| Other      assets                               |   | 9,061 |   |   |   | 24,588 |   |   | 892 |   |   |   | -    |   |   |   | 34,541 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                               | $ | 1,455,912 |   |   | $ | 1,003,748 |   | $ | 1,282,647 |   |   | $ | (1,230,038 | ) |   | $ | 2,512,269 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITES      AND CAPITAL                     |
| Debt                                            | $ | 627,414 |   |   | $ | 120,175 |   | $ | 804,097 |   |   | $ | -    |   |   | $ | 1,551,686 |   |
| Distributions      payable                      |   | 8,545 |   |   |   | -    |   |   | -    |   |   |   | -    |   |   |   | 8,545 |   |
| Accrued      expenses and other liabilities     |   | 24,303 |   |   |   | 95,221 |   |   | 13,080 |   |   |   | -    |   |   |   | 132,604 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      liabilities                          |   | 660,262 |   |   |   | 215,396 |   |   | 817,177 |   |   |   | -    |   |   |   | 1,692,835 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Redeemable      units, at redemption value      |   | 545 |   |   |   | -    |   |   | -    |   |   |   | -    |   |   |   | 545 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred      units                            |   | 478,774 |   |   |   | -    |   |   | -    |   |   |   | -    |   |   |   | 478,774 |   |
| Common      units                               |   | 316,331 |   |   |   | 772,383 |   |   | 442,237 |   |   |   | (1,230,038 | ) |   |   | 300,913 |   |
| Accumulated      other comprehensive income     |   | -    |   |   |   | 15,418 |   |   | -    |   |   |   | -    |   |   |   | 15,418 |   |
| Total      FelCor LP partners’ capital    |   | 795,105 |   |   |   | 787,801 |   |   | 442,237 |   |   |   | (1,230,038 | ) |   |   | 795,105 |   |
| Noncontrolling      interests                   |   | -    |   |   |   | 551 |   |   | 23,233 |   |   |   | -    |   |   |   | 23,784 |   |
| Total      capital                              |   | 795,105 |   |   |   | 788,352 |   |   | 465,470 |   |   |   | (1,230,038 | ) |   |   | 818,889 |   |
| Total      liabilities and capital              | $ | 1,455,912 |   |   | $ | 1,003,748 |   | $ | 1,282,647 |   |   | $ | (1,230,038 | ) |   | $ | 2,512,269 |   |

----

|                                                                                                                                    | FelCor      LP |                | Subsidiary      Guarantors |   | Non-Guarantor      Subsidiaries |                | Eliminations |   | Total      Consolidated |
|-----------------------------------------------------------------------------------------------------------------------------------------|----------------|---------------------|----------------------------|--------|---------------------------------|---------------------|--------------|--------|-------------------------|
| Revenues:                                                                                                                               |           |                |                       |   |                            |                |         |   |                    |   |   |   |   |   |   |   |   |   |   |
| Hotel      operating revenue                                                                                                            | $              | -    |                       |   | $                               | 228,929             |         |   | $                       | -    |   |   | $ | -    |   |   | $ | 228,929 |   |
| Percentage      lease revenue                                                                                                           |           | 3,772               |                       |   |                            | -    |         |   |                    | 47,285 |   |   |   | (51,057 | ) |   |   | -    |   |
| Other      revenue                                                                                                                      |           | 1                   |                       |   |                            | 1,262               |         |   |                    | 17 |   |   |   | -    |   |   |   | 1,280 |   |
| Total      revenue                                                                                                                      |           | 3,773               |                       |   |                            | 230,191             |         |   |                    | 47,302 |   |   |   | (51,057 | ) |   |   | 230,209 |   |
|                                                                                                                                    |           |                |                       |   |                            |                |         |   |                    |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                                                               |           |                |                       |   |                            |                |         |   |                    |   |   |   |   |   |   |   |   |   |   |
| Hotel      operating expenses                                                                                                           |           | -    |                       |   |                            | 161,548             |         |   |                    | -    |   |   |   | -    |   |   |   | 161,548 |   |
| Taxes,      insurance and lease expense                                                                                                 |           | 430                 |                       |   |                            | 66,422              |         |   |                    | 9,560 |   |   |   | (51,057 | ) |   |   | 25,355 |   |
| Corporate      expenses                                                                                                                 |           | 162                 |                       |   |                            | 2,298               |         |   |                    | 2,011 |   |   |   | -    |   |   |   | 4,471 |   |
| Depreciation      and amortization                                                                                                      |           | 2,067               |                       |   |                            | 9,465               |         |   |                    | 26,450 |   |   |   | -    |   |   |   | 37,982 |   |
| Impairment      loss                                                                                                                    |           | -    |                       |   |                            | 2,080               |         |   |                    | -    |   |   |   | -    |   |   |   | 2,080 |   |
| Other      expenses                                                                                                                     |           | 63                  |                       |   |                            | 1,023               |         |   |                    | (55 | ) |   |   | -    |   |   |   | 1,031 |   |
| Total      operating expenses                                                                                                           |           | 2,722               |                       |   |                            | 242,836             |         |   |                    | 37,966 |   |   |   | (51,057 | ) |   |   | 232,467 |   |
| Operating      income                                                                                                                   |           | 1,051               |                       |   |                            | (12,645             | )            |   |                    | 9,336 |   |   |   | -    |   |   |   | (2,258 | ) |
| Interest      expense, net                                                                                                              |           | (8,524              | )                          |   |                            | (94                 | )            |   |                    | (15,809 | ) |   |   | -    |   |   |   | (24,427 | ) |
| Loss      before equity in income from   unconsolidated      entities and   noncontrolling      interests |           | (7,473              | )                          |   |                            | (12,739             | )            |   |                    | (6,473 | ) |   |   | -    |   |   |   | (26,685 | ) |
| Equity      in loss from consolidated entities                                                                                          |           | (18,002             | )                          |   |                            | -    |         |   |                    | -    |   |   |   | 18,002 |   |   |   | -    |   |
| Equity      in income from unconsolidated   entities                                                                     |           | 175                 |                       |   |                            | 313                 |         |   |                    | -    |   |   |   | -    |   |   |   | 488 |   |
| Gain      on sale of assets                                                                                                             |           | -    |                       |   |                            | -    |         |   |                    | 723 |   |   |   | -    |   |   |   | 723 |   |
| Net      loss                                                                                                                           |           | (25,300             | )                          |   |                            | (12,426             | )            |   |                    | (5,750 | ) |   |   | 18,002 |   |   |   | (25,474 | ) |
| Net      income attributable to noncontrolling interests                                                                                |           | -    |                       |   |                            | 81                  |         |   |                    | 93 |   |   |   | -    |   |   |   | 174 |   |
| Net      loss attributable to FelCor LP                                                                                                 |           | (25,300             | )                          |   |                            | (12,345             | )            |   |                    | (5,657 | ) |   |   | 18,002 |   |   |   | (25,300 | ) |
| Preferred      distributions                                                                                                            |           | (9,678              | )                          |   |                            | -    |         |   |                    | -    |   |   |   | -    |   |   |   | (9,678 | ) |
| Net      loss applicable to FelCor LP unitholders                                                                                       | $              | (34,978             | )                          |   | $                               | (12,345             | )            |   | $                       | (5,657 | ) |   | $ | 18,002 |   |   | $ | (34,978 | ) |

----

|                                                                                                                                        | FelCor      L.P. |                | Subsidiary      Guarantors |   | Non-Guarantor      Subsidiaries |                | Eliminations |   | Total      Consolidated |
|---------------------------------------------------------------------------------------------------------------------------------------------|------------------|---------------------|----------------------------|--------|---------------------------------|---------------------|--------------|--------|-------------------------|
| Revenues:                                                                                                                                   |             |                |                       |   |                            |                |         |   |                    |   |   |   |   |   |   |   |   |   |   |
| Hotel      operating revenue                                                                                                                | $                | -    |                       |   | $                               | 276,333             |         |   | $                       | -    |   |   | $ | -    |   |   | $ | 276,333 |   |
| Percentage      lease revenue                                                                                                               |             | 7,482               |                       |   |                            | -    |         |   |                    | 38,083 |   |   |   | (45,565 | ) |   |   | -    |   |
| Other      revenue                                                                                                                          |             | 9                   |                       |   |                            | 1,371               |         |   |                    | 16 |   |   |   | -    |   |   |   | 1,396 |   |
| Total      revenue                                                                                                                          |             | 7,491               |                       |   |                            | 277,704             |         |   |                    | 38,099 |   |   |   | (45,565 | ) |   |   | 277,729 |   |
|                                                                                                                                        |             |                |                       |   |                            |                |         |   |                    |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                                                                   |             |                |                       |   |                            |                |         |   |                    |   |   |   |   |   |   |   |   |   |   |
| Hotel      operating expenses                                                                                                               |             | -    |                       |   |                            | 184,022             |         |   |                    | -    |   |   |   | -    |   |   |   | 184,022 |   |
| Taxes,      insurance and lease expense                                                                                                     |             | 139                 |                       |   |                            | 69,126              |         |   |                    | 6,018 |   |   |   | (45,565 | ) |   |   | 29,718 |   |
| Corporate      expenses                                                                                                                     |             | 328                 |                       |   |                            | 3,372               |         |   |                    | 1,688 |   |   |   | -    |   |   |   | 5,388 |   |
| Depreciation      and amortization                                                                                                          |             | 2,803               |                       |   |                            | 15,587              |         |   |                    | 17,679 |   |   |   | -    |   |   |   | 36,069 |   |
| Impairment      loss                                                                                                                        |             | -    |                       |   |                            | 36,692              |         |   |                    | -    |   |   |   | -    |   |   |   | 36,692 |   |
| Hurricane      loss                                                                                                                         |             | 29                  |                       |   |                            | 1,575               |         |   |                    | 65 |   |   |   | -    |   |   |   | 1,669 |   |
| Other      expenses                                                                                                                         |             | 1                   |                       |   |                            | 1,027               |         |   |                    | 18 |   |   |   | -    |   |   |   | 1,046 |   |
| Total      operating expenses                                                                                                               |             | 3,300               |                       |   |                            | 311,401             |         |   |                    | 25,468 |   |   |   | (45,565 | ) |   |   | 294,604 |   |
| Operating      income                                                                                                                       |             | 4,191               |                       |   |                            | (33,697             | )            |   |                    | 12,631 |   |   |   | -    |   |   |   | (16,875 | ) |
| Interest      expense, net                                                                                                                  |             | (9,431              | )                          |   |                            | (2,258              | )            |   |                    | (12,425 | ) |   |   | -    |   |   |   | (24,114 | ) |
| Income      (loss) before equity in income from   unconsolidated      entities and noncontrolling   interests |             | (5,240              | )                          |   |                            | (35,955             | )            |   |                    | 206 |   |   |   | -    |   |   |   | (40,989 | ) |
| Equity      in loss from consolidated entities                                                                                              |             | (37,203             | )                          |   |                            | -    |         |   |                    | -    |   |   |   | 37,203 |   |   |   | -    |   |
| Equity      in loss from unconsolidated entities                                                                                            |             | (1,139              | )                          |   |                            | (1,634              | )            |   |                    | -    |   |   |   | -    |   |   |   | (2,773 | ) |
| Income      (loss) from continuing operations                                                                                               |             | (43,582             | )                          |   |                            | (37,589             | )            |   |                    | 206 |   |   |   | 37,203 |   |   |   | (43,762 | ) |
| Discontinued      operations from consolidated entities                                                                                     |             | 848                 |                       |   |                            | 345                 |         |   |                    | -    |   |   |   | -    |   |   |   | 1,193 |   |
| Net      income (loss)                                                                                                                      |             | (42,734             | )                          |   |                            | (37,244             | )            |   |                    | 206 |   |   |   | 37,203 |   |   |   | (42,569 | ) |
| Net      (income) loss attributable to noncontrolling interests                                                                             |             | -    |                       |   |                            | (192                | )            |   |                    | 27 |   |   |   | -    |   |   |   | (165 | ) |
| Net      income (loss) attributable to FelCor LP                                                                                            |             | (42,734             | )                          |   |                            | (37,436             | )            |   |                    | 233 |   |   |   | 37,203 |   |   |   | (42,734 | ) |
| Preferred      distributions                                                                                                                |             | (9,678              | )                          |   |                            | -    |         |   |                    | -    |   |   |   | -    |   |   |   | (9,678 | ) |
| Net      income (loss) applicable to FelCor LP unitholders                                                                                  | $                | (52,412             | )                          |   | $                               | (37,436             | )            |   | $                       | 233 |   |   | $ | 37,203 |   |   | $ | (52,412 | ) |

----

|                                                                                                                               | FelCor      LP |                | Subsidiary      Guarantors |   | Non-Guarantor      Subsidiaries |                | Eliminations |   | Total      Consolidated |
|------------------------------------------------------------------------------------------------------------------------------------|----------------|---------------------|----------------------------|--------|---------------------------------|---------------------|--------------|--------|-------------------------|
| Revenues:                                                                                                                          |           |                |                       |   |                            |                |         |   |                    |   |   |   |   |   |   |   |   |   |   |
| Hotel      operating revenue                                                                                                       | $              | -    |                       |   | $                               | 704,511             |         |   | $                       | -    |   |   | $ | -    |   |   | $ | 704,511 |   |
| Percentage      lease revenue                                                                                                      |           | 12,876              |                       |   |                            | -    |         |   |                    | 131,273 |   |   |   | (144,149 | ) |   |   | -    |   |
| Other      revenue                                                                                                                 |           | 5                   |                       |   |                            | 2,527               |         |   |                    | 22 |   |   |   | -    |   |   |   | 2,554 |   |
| Total      revenue                                                                                                                 |           | 12,881              |                       |   |                            | 707,038             |         |   |                    | 131,295 |   |   |   | (144,149 | ) |   |   | 707,065 |   |
|                                                                                                                               |           |                |                       |   |                            |                |         |   |                    |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                                                          |           |                |                       |   |                            |                |         |   |                    |   |   |   |   |   |   |   |   |   |   |
| Hotel      operating expenses                                                                                                      |           | -    |                       |   |                            | 483,120             |         |   |                    | -    |   |   |   | -    |   |   |   | 483,120 |   |
| Taxes,      insurance and lease expense                                                                                            |           | 1,987               |                       |   |                            | 194,609             |         |   |                    | 22,964 |   |   |   | (144,149 | ) |   |   | 75,411 |   |
| Corporate      expenses                                                                                                            |           | 603                 |                       |   |                            | 9,224               |         |   |                    | 6,002 |   |   |   | -    |   |   |   | 15,829 |   |
| Depreciation      and amortization                                                                                                 |           | 7,732               |                       |   |                            | 35,502              |         |   |                    | 68,790 |   |   |   | -    |   |   |   | 112,024 |   |
| Impairment      loss                                                                                                               |           | -    |                       |   |                            | 3,448               |         |   |                    | -    |   |   |   | -    |   |   |   | 3,448 |   |
| Other      expenses                                                                                                                |           | 75                  |                       |   |                            | 3,481               |         |   |                    | (28 | ) |   |   | -    |   |   |   | 3,528 |   |
| Total      operating expenses                                                                                                      |           | 10,397              |                       |   |                            | 729,384             |         |   |                    | 97,728 |   |   |   | (144,149 | ) |   |   | 693,360 |   |
| Operating      income                                                                                                              |           | 2,484               |                       |   |                            | (22,346             | )            |   |                    | 33,567 |   |   |   | -    |   |   |   | 13,705 |   |
| Interest      expense, net                                                                                                         |           | (26,648             | )                          |   |                            | (2,579              | )            |   |                    | (39,274 | ) |   |   | -    |   |   |   | (68,501 | ) |
| Charges      related to debt extinguishment                                                                                        |           | (594                | )                          |   |                            | -    |         |   |                    | -    |   |   |   | -    |   |   |   | (594 | ) |
| Loss      before equity in income from   unconsolidated      entities and noncontrolling   interests |           | (24,758             | )                          |   |                            | (24,925             | )            |   |                    | (5,707 | ) |   |   | -    |   |   |   | (55,390 | ) |
| Equity      in loss from consolidated entities                                                                                     |           | (32,196             | )                          |   |                            | -    |         |   |                    | -    |   |   |   | 32,196 |   |   |   | -    |   |
| Equity      in loss from unconsolidated entities                                                                                   |           | (844                | )                          |   |                            | (2,353              | )            |   |                    | -    |   |   |   | -    |   |   |   | (3,197 | ) |
| Gain      on sale of assets                                                                                                        |           | -    |                       |   |                            | -    |         |   |                    | 723 |   |   |   | -    |   |   |   | 723 |   |
| Net      loss                                                                                                                      |           | (57,798             | )                          |   |                            | (27,278             | )            |   |                    | (4,984 | ) |   |   | 32,196 |   |   |   | (57,864 | ) |
| Net      (income) loss attributable to   noncontrolling      interests                                              |           | -    |                       |   |                            | (252                | )            |   |                    | 318 |   |   |   | -    |   |   |   | 66 |   |
| Net      loss attributable to FelCor LP                                                                                            |           | (57,798             | )                          |   |                            | (27,530             | )            |   |                    | (4,666 | ) |   |   | 32,196 |   |   |   | (57,798 | ) |
| Preferred      distributions                                                                                                       |           | (29,034             | )                          |   |                            | -    |         |   |                    | -    |   |   |   | -    |   |   |   | (29,034 | ) |
| Net      loss applicable to unitholders                                                                                            | $              | (86,832             | )                          |   | $                               | (27,530             | )            |   | $                       | (4,666 | ) |   | $ | 32,196 |   |   | $ | (86,832 | ) |

----

|                                                                                                                                        | FelCor      L.P. |                | Subsidiary      Guarantors |   | Non-Guarantor      Subsidiaries |                | Eliminations |   | Total      Consolidated |
|---------------------------------------------------------------------------------------------------------------------------------------------|------------------|---------------------|----------------------------|--------|---------------------------------|---------------------|--------------|--------|-------------------------|
| Revenues:                                                                                                                                   |             |                |                       |   |                            |                |         |   |                    |   |   |   |   |   |   |   |   |   |   |
| Hotel      operating revenue                                                                                                                | $                | -    |                       |   | $                               | 873,117             |         |   | $                       | -    |   |   | $ | -    |   |   | $ | 873,117 |   |
| Percentage      lease revenue                                                                                                               |             | 20,794              |                       |   |                            | -    |         |   |                    | 138,371 |   |   |   | (159,165 | ) |   |   | -    |   |
| Other      revenue                                                                                                                          |             | 9                   |                       |   |                            | 1,375               |         |   |                    | 1,271 |   |   |   | -    |   |   |   | 2,655 |   |
| Total      revenue                                                                                                                          |             | 20,803              |                       |   |                            | 874,492             |         |   |                    | 139,642 |   |   |   | (159,165 | ) |   |   | 875,772 |   |
|                                                                                                                                        |             |                |                       |   |                            |                |         |   |                    |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                                                                   |             |                |                       |   |                            |                |         |   |                    |   |   |   |   |   |   |   |   |   |   |
| Hotel      operating expenses                                                                                                               |             | -    |                       |   |                            | 566,859             |         |   |                    | -    |   |   |   | -    |   |   |   | 566,859 |   |
| Taxes,      insurance and lease expense                                                                                                     |             | 2,627               |                       |   |                            | 224,645             |         |   |                    | 19,777 |   |   |   | (159,165 | ) |   |   | 87,884 |   |
| Corporate      expenses                                                                                                                     |             | 895                 |                       |   |                            | 10,225              |         |   |                    | 5,959 |   |   |   | -    |   |   |   | 17,079 |   |
| Depreciation      and amortization                                                                                                          |             | 8,022               |                       |   |                            | 45,172              |         |   |                    | 51,715 |   |   |   | -    |   |   |   | 104,909 |   |
| Impairment      loss                                                                                                                        |             | -    |                       |   |                            | 36,692              |         |   |                    | 17,131 |   |   |   | -    |   |   |   | 53,823 |   |
| Hurricane      loss                                                                                                                         |             | 29                  |                       |   |                            | 1,575               |         |   |                    | 65 |   |   |   | -    |   |   |   | 1,669 |   |
| Other      expenses                                                                                                                         |             | 2                   |                       |   |                            | 1,395               |         |   |                    | 1,482 |   |   |   | -    |   |   |   | 2,879 |   |
| Total      operating expenses                                                                                                               |             | 11,575              |                       |   |                            | 886,563             |         |   |                    | 96,129 |   |   |   | (159,165 | ) |   |   | 835,102 |   |
| Operating      income                                                                                                                       |             | 9,228               |                       |   |                            | (12,071             | )            |   |                    | 43,513 |   |   |   | -    |   |   |   | 40,670 |   |
| Interest      expense, net                                                                                                                  |             | (29,061             | )                          |   |                            | (7,832)             |         |   |                    | (37,993 | ) |   |   | -    |   |   |   | (74,886) |   |
| Income      (loss) before equity in income from   unconsolidated      entities and noncontrolling   interests |             | (19,833             | )                          |   |                            | (19,903             | )            |   |                    | 5,520 |   |   |   | -    |   |   |   | (34,216 | ) |
| Equity      in loss from consolidated entities                                                                                              |             | (16,174             | )                          |   |                            | -    |         |   |                    | -    |   |   |   | 16,174 |   |   |   | -    |   |
| Equity      in income (loss) from unconsolidated   entities                                                                  |             | 1,023               |                       |   |                            | (2,051              | )            |   |                    | (36 | ) |   |   | -    |   |   |   | (1,064 | ) |
| Gain      on involuntary conversion                                                                                                         |             | 2,005               |                       |   |                            | 145                 |         |   |                    | 945 |   |   |   | -    |   |   |   | 3,095 |   |
| Income      (loss) from continuing operations                                                                                               |             | (32,979             | )                          |   |                            | (21,809             | )            |   |                    | 6,429 |   |   |   | 16,174 |   |   |   | (32,185 | ) |
| Discontinued      operations from consolidated   entities                                                                    |             | 848                 |                       |   |                            | 332                 |         |   |                    | -    |   |   |   | -    |   |   |   | 1,180 |   |
| Net      income (loss)                                                                                                                      |             | (32,131             | )                          |   |                            | (21,477             | )            |   |                    | 6,429 |   |   |   | 16,174 |   |   |   | (31,005 | ) |
| Net      loss attributable to noncontrolling interests                                                                                      |             | -    |                       |   |                            | (675                | )            |   |                    | (451 | ) |   |   | -    |   |   |   | (1,126 | ) |
| Net      income (loss) attributable to FelCor LP                                                                                            |             | (32,131             | )                          |   |                            | (22,152             | )            |   |                    | 5,978 |   |   |   | 16,174 |   |   |   | (32,131 | ) |
| Preferred      distributions                                                                                                                |             | (29,034             | )                          |   |                            | -    |         |   |                    | -    |   |   |   | -    |   |   |   | (29,034 | ) |
| Net      income (loss) applicable to FelCor LP unitholders                                                                                  | $                | (61,165             | )                          |   | $                               | (22,152             | )            |   | $                       | 5,978 |   |   | $ | 16,174 |   |   | $ | (61,165 | ) |

----

|                                                  | FelCor      LP |                | Subsidiary      Guarantors |   | Non-Guarantor      Subsidiaries |    | Total      Consolidated |
|-------------------------------------------------------|----------------|---------------------|----------------------------|--------|---------------------------------|---------|-------------------------|
| Cash      flows from operating activities             | $              | (10,830             | )                          |   | $                               | 12,827  |                    |   | $ | 74,412 |   |   | $ | 76,409 |   |
| Cash      flows from investing activities             |           | 2,299               |                       |   |                            | (33,479 | )                       |   |   | (28,932 | ) |   |   | (60,112 | ) |
| Cash      flows from financing activities             |           | 80,936              |                       |   |                            | 25,782  |                    |   |   | (46,500 | ) |   |   | 60,218 |   |
| Effect      of exchange rates changes on cash         |           | -    |                       |   |                            | 1,361   |                    |   |   | -    |   |   |   | 1,361 |   |
| Change      in cash and cash equivalents              |           | 72,405              |                       |   |                            | 6,491   |                    |   |   | (1,020 | ) |   |   | 77,876 |   |
| Cash      and cash equivalents at beginning of period |           | 7,719               |                       |   |                            | 40,018  |                    |   |   | 2,450 |   |   |   | 50,187 |   |
| Cash      and equivalents at end of period            | $              | 80,124              |                       |   | $                               | 46,509  |                    |   | $ | 1,430 |   |   | $ | 128,063 |   |

|                                                  | FelCor      L.P. |                | Subsidiary      Guarantors |   | Non-Guarantor      Subsidiaries |    | Total      Consolidated |
|-------------------------------------------------------|------------------|---------------------|----------------------------|--------|---------------------------------|---------|-------------------------|
| Cash      flows from operating activities             | $                | (9,328              | )                          |   | $                               | 68,150  |                    |   | $ | 83,298 |   |   | $ | 142,120 |   |
| Cash      flows from investing activities             |             | 17,989              |                       |   |                            | (55,861 | )                       |   |   | (47,318 | ) |   |   | (85,190 | ) |
| Cash      flows from financing activities             |             | (13,698             | )                          |   |                            | 375     |                    |   |   | (41,534 | ) |   |   | (54,857 | ) |
| Effect      of exchange rates changes on cash         |             | -    |                       |   |                            | (629    | )                       |   |   | -    |   |   |   | (629 | ) |
| Change      in cash and cash equivalents              |             | (5,037              | )                          |   |                            | 12,035  |                    |   |   | (5,554 | ) |   |   | 1,444 |   |
| Cash      and cash equivalents at beginning of period |             | 7,889               |                       |   |                            | 43,305  |                    |   |   | 6,415 |   |   |   | 57,609 |   |
| Cash      and equivalents at end of period            | $                | 2,852               |                       |   | $                               | 55,340  |                    |   | $ | 861 |   |   | $ | 59,053 |   |

----

|   | · | In      October 2009, we completed the private placement of $636 million in      aggregate principal amount of our 10% senior secured notes due      2014.  Our net proceeds from these notes were approximately      $558 million after original issue discount and other fees and      expenses related to the offering.  The proceeds of these notes      were used to repurchase approximately $427 million in aggregate      principal amount of our existing senior notes due in 2011 and for general      corporate purposes. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

|   | · | We      are continuing our discussions with current and potential lenders to      modify and/or refinance all of our remaining debt scheduled to mature in      2010. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                   | Three      Months EndedSeptember      30, |    |  %      Change |   | Nine      Months EndedSeptember      30, |    | %      Change |
|------------------------------------------------------------------------|-------------------------------------------|---------|---------------------|--------|------------------------------------------|---------|---------------|
|                                                                   | 2009                                      |    | 2008                |   | 2009-2008                                |    | 2009          |   | 2008 |   | 2009-2008 |
| RevPAR                                                                 | $                                         | 80.39   |                |   | $                                        | 97.80   |          |   |   | (17.8 | ) | % |   | $ | 82.00 |   |   | $ | 101.69 |   |   |   | (19.4 | ) | % |
| Hotel      EBITDA(a)                                              | $                                         | 50,895  |                |   | $                                        | 74,972  |          |   |   | (32.1 | ) | % |   | $ | 171,744 |   |   | $ | 254,490 |   |   |   | (32.5 | ) | % |
| Hotel      EBITDA margin(a)                                       |                                      | 22.2    | %                   |   |                                     | 27.1    | %             |   |   | (18.1 | ) | % |   |   | 24.4 | % |   |   | 29.1 | % |   |   | (16.2 | ) | % |
| Net      loss attributable to   FelCor      LP(b)  |  $                                   | (25,300 | )                   |   |  $                                  | (42,734 | )             |   |   | 40.8 |   | % |   | $ | (57,798 | ) |   | $ |  (32,131 | ) |   |   | (79.9 | ) | % |

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

|   | (b) | The      following amounts are included in net loss attributable to FelCor LP (in      thousands): |
|--------|-----|----------------------------------------------------------------------------------------------------|

|                                          | Three      Months Ended |                | Nine      Months Ended |
|-----------------------------------------------|-------------------------|---------------------|------------------------|
|                                          | September      30,      |                | September      30,     |
|                                          | 2009                    |                | 2008                   |   | 2009 |   | 2008 |
| Impairment      loss                          | $                       | (2,080              | )                      |   | $ | (36,692 | ) |   | $ | (3,448 | ) |   | $ | (53,823 | ) |
| Impairment      loss on unconsolidated hotels |                    | -    |                   |   |   | (3,750 | ) |   |   | (2,068 | ) |   |   | (3,750 | ) |
| Hurricane      loss                           |                    | -    |                   |   |   | (1,669 | ) |   |   | -    |   |   |   | (1,669 | ) |
| Hurricane      loss on unconsolidated hotels  |                    | -    |                   |   |   | (50 | ) |   |   | -    |   |   |   | (50 | ) |
| Charges      related to debt extinguishment   |                    | -    |                   |   |   |   |   |   |   | (594 | ) |   |   | -    |   |
| Gain      on sale of assets                   |                    | 723                 |                   |   |   | -    |   |   |   | 723 |   |   |   | -    |   |
| Gain      on involuntary conversion           |                    | -    |                   |   |   | -    |   |   |   | -    |   |   |   | 3,095 |   |
| Conversion      costs                         |                    | (117                | )                      |   |   | (118 | ) |   |   | (447 | ) |   |   | (481 | ) |
| Severance      costs                          |                    | (46                 | )                      |   |   | -    |   |   |   | (572 | ) |   |   | -    |   |
| Lease      termination costs                  |                    | (117                | )                      |   |   | -    |   |   |   | (469 | ) |   |   | -    |   |

----

|   | · | Total revenue was      $230.2 million, a 17.1% decrease compared to the same period in      2008.  The decrease in revenue is attributed principally to a      17.8% decrease in RevPAR, which was driven by a 6.0% decrease in occupancy      and a 12.5% decrease in ADR. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Hotel departmental      expenses decreased $9.8 million (10.5%) compared to the same      period in 2008.  As a percentage of total revenue, hotel      departmental expenses increased from 33.7% to 36.4% compared to the same      period in 2008.  This expense reduction reflects: (i) the 6.0%      decrease in occupancy; (ii) a $5.4 million decrease in labor      costs, which included permanent reductions related to a decrease in hotel      employees; (iii) a decrease in non-critical room expenses, such as guest      transportation, in-room amenities, bath linen quantities, and newspaper      service; and (iv) menu modifications in food and  beverage. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other property related      costs decreased $10.5 million (13.6%) compared to the same      period in 2008.  As a percentage of total revenue, other      property related costs increased from 27.7% to 28.9% compared to the same      period in 2008.  This expense reduction reflects: (i) a      $3.5 million decrease in labor costs; (ii) a $2.4 million      decrease in marketing assessments, credit card commissions and frequent      guest expense (all of which reflect the decrease in revenue); (iii) a      $1.5 million decrease in repairs and maintenance, partially      attributable to our recently completed renovation program; and (iv)      reductions in other non-criticalexpenses. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Management and franchise      fees decreased $2.2 million compared to the same period in      2008, due to the decrease in revenues. As a percent of total revenue,      management and franchise fees remained essentially    unchanged. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Taxes, insurance and lease      expense decreased $4.4 million compared to the same period in      2008.  This decrease relates primarily to: (i) a      $3.6 million decrease in percentage rent, attributable to decreased      revenue; (ii) an $832,000 decrease in property and general liability      insurance, attributable to improved claims experience; and (iii) an      $812,000 decrease in land leases, attributable to decreased      revenue.  The decrease in the period was partially offset by a      $900,000 increase in real estate and other taxes, attributable to      decreases in estimated accruals recorded in the third quarter of      2008.  As a percentage of total revenue, taxes, insurance and      lease expense increased from 10.7% to 11.0% compared to the same period in      2008. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Depreciation and amortization      expense increased $1.9 million, compared to the same period in      2008, which is attributable to increased depreciation due to the      $142.9 million of consolidated hotel capital expenditures completed      in 2008. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Impairment      charge.  In 2008 we identified eight hotels as candidates      to be sold.  We recorded impairment charges of $2.1 million      for one of these hotels in the third quarter of 2009 and      $36.7 million for two of these hotels in the third quarter of      2008. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Hurricane      loss.  In the third quarter of 2008, we recorded      $1.7 million in hurricane-related expenses, all of which related to      remediation at 14 of our hotels affected by four hurricanes in      2008. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Net interest expense      increased $313,000 compared to the same period in 2008.  This      increase is primarily attributable to a $116 million increase in our      average debt outstanding, which was partially offset by a 44 basis      point decrease in the average interest rate applicable to our      floating-rate debt. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Equity in income of      unconsolidated entities was $488,000, compared to $2.8 million      of equity in loss from unconsolidated entities from the third quarter of      2008.  The 2008 loss included $3.8 million of impairment      charges related to our equity method  investments. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Total revenue was      $707.1 million, a 19.3% decrease compared to the same period in      2008.  The decrease in revenue is attributed principally to a      19.4% decrease in RevPAR, which was driven by a 9.2% decrease in occupancy      and an 11.2% decrease in ADR. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Hotel departmental      expenses decreased $41.6 million (14.3%) compared to the same      period in 2008.  As a percentage of total revenue, hotel      departmental expenses increased from 33.2% to 35.2% compared to the same      period in 2008.  This expense reduction reflects: (i) the 9.2%      decrease in occupancy; (ii) a $21.9 million decrease in labor costs,      which included permanent reductions related to a decrease in hotel      employees; (iii) a decrease in non-critical room expenses, such as guest      transportation, in-room amenities, bath linen quantities, and newspaper      service; and (iv) menu modifications in food and  beverage. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other property related      costs decreased $30.9 million (13.4%) compared to the same      period in 2008, due to the decrease in revenues.  As a      percentage of total revenue, other property related costs increased from      26.3% to 28.2% compared to the same period in 2008.  This      expense reduction reflects: (i) a $10.0 million decrease in      labor costs; (ii) a $8.5 million decrease in marketing assessments,      credit card commissions and frequent guest expense (all of which reflect      the decrease in revenue); (iii) a $5.2 million decrease in repairs      and maintenance, partially attributable to our recently completed      renovation program; and (iv) reductions in other non-critical      expenses. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Management and franchise fees      decreased $11.2 million compared to the same period in      2008.  As a percent of total revenue, franchise fees and base      management fees remained essentially unchanged from 2008 to 2009 (both      fees are based on a percentage of revenue).  Incentive      management fees, which are based on the profitability of the hotels,      decreased $3.6 million. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Taxes, insurance and lease      expense decreased $12.5 million compared to the same period in      2008.  This decrease relates primarily to: (i) a      $10.6 million decrease in hotel lease expense, attributable to      decreased revenue at our consolidated hotel lessees; (ii) a $1.8 million      decrease in property and general liability insurance, attributable to      improved insurance rates and liability claims experience; and (iii) a      $1.8 million decrease in land leases, attributable to decreases in      revenue.  This was partially offset by a $1.8 million      increase in real estate and other taxes, attributable to decreases in      estimated accruals recorded in the first nine months of      2008.  As a percentage of total revenue, taxes, insurance and      lease expense increased from 10.0% to 10.7% compared to the same period in      2008. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Depreciation and amortization      expense increased $7.1 million, compared to the same period in      2008, which is attributable to increased depreciation due to the      $142.9 million of consolidated hotel capital expenditures completed      in 2008. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Impairment      charge.  In 2008, we identified eight hotels as      candidates to be sold.  We recorded impairment charges of      $3.4 million for two of these hotels in the first nine months of 2009      and $53.8 million for two of these hotels in the first nine months of      2008. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Hurricane      loss.  In the third quarter of 2008, we recorded      $1.7 million in hurricane-related expenses, all of which related to      remediation at 14 of our hotels affected by four hurricanes in      2008. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other expenses      increased $649,000, compared to the same period in 2008, primarily      due to $572,000 of severance expenses (from a reduction in the number of      employees at our hotels) and lease termination costs of $469,000      associated with the termination of one of our third-party restaurant      lessees, this was partially offset by a decrease in condominium management      fee expenses. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Net interest expense      decreased $6.4 million compared to the same period in      2008.  This decrease is primarily attributable to a 104 basis      point decrease in our average interest rate for our floating-rate debt,      which was partially offset by a $96 million increase in our average      debt outstanding. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Charges related to debt      extinguishment.  In the second quarter of 2009, we      terminated our line of credit and wrote off deferred loan costs of      $594,000 associated with thisfacility. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Equity in loss of      unconsolidated entities was $3.2 million compared to      $1.1 million of equity in loss from unconsolidated entities for the      same period in 2008.  We recorded impairment charges of      $2.1 million and $3.8 million on our equity method investments      in the first nine months of 2009 and the first nine months of 2008,      respectively.  The remainder of the change is attributable to      decreases in current year revenue at our unconsolidated      hotels. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Discontinued operations      in 2008 consisted of a $1.2 million adjustment to gain on      sales resulting from a revision in the tax liability associated with gains      of $71.2 million from hotel sales in 2006 and  2007. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                              | Three      Months EndedSeptember      30, |         | Nine      Months EndedSeptember      30, |   |
|-----------------------------------|-------------------------------------------|--------------|------------------------------------------|--------|
|                              | 2009                                      |         | 2008                                     |   | 2009 |   | 2008 |   |
| Total      revenues               | $                                         | 230,209      |                                     |   | $ | 277,729 |   |   | $ | 707,065 |   |   | $ | 875,772 |   |
| Other      revenue                |                                      | (1,280  | )                                        |   |   | (1,396 | ) |   |   | (2,554 | ) |   |   | (2,655 | ) |
| Hotel      operating revenue      |                                      | 228,929      |                                     |   |   | 276,333 |   |   |   | 704,511 |   |   |   | 873,117 |   |
| Hotel      operating expenses     |                                      | (178,034     | )                                        |   |   | (201,361 | ) |   |   | (532,767 | ) |   |   | (618,627 | ) |
| Hotel      EBITDA                 | $                                         | 50,895       |                                     |   | $ | 74,972 |   |   | $ | 171,744 |   |   | $ | 254,490 |   |
| Hotel      EBITDA margin(a)  |                                      | 22.2%        |                                     |   |   | 27.1% |   |   |   | 24.4% |   |   |   | 29.1% |   |

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

|                                                                                                        | Three      Months Ended |                | Nine      Months Ended |
|-------------------------------------------------------------------------------------------------------------|-------------------------|---------------------|------------------------|
|                                                                                                        | September      30,      |                | September      30,     |
|                                                                                                        | 2009                    |                | 2008                   |   | 2009 |   | 2008 |
| Total      operating expenses                                                                               | $                       | 232,467             |                   |   | $ | 294,604 |   |   | $ | 693,360 |   |   | $ | 835,102 |   |
|    Unconsolidated      taxes, insurance and lease      expense |                    | 2,023               |                   |   |   |  2,132 |   |   |   | 6,041 |   |   |   |  6,328 |   |
|    Consolidated      hotel lease expense                                                     |                    | (10,892             | )                      |   |   | (14,511 | ) |   |   | (31,805 | ) |   |   | (42,444 | ) |
|    Corporate      expenses                                                                   |                    | (4,471              | )                      |   |   | (5,388 | ) |   |   | (15,829 | ) |   |   | (17,079 | ) |
|    Depreciation      and amortization                                                        |                    | (37,982             | )                      |   |   | (36,069 | ) |   |   | (112,024 | ) |   |   | (104,909 | ) |
|    Impairment      loss                                                                      |                    | (2,080              | )                      |   |   | (36,692 | ) |   |   | (3,448 | ) |   |   | (53,823 | ) |
|    Hurricane      loss                                                                       |                    | -    |                   |   |   | (1,669 | ) |   |   | -    |   |   |   | (1,669 | ) |
|    Other      expenses                                                                       |                    | (1,031              | )                      |   |   | (1,046 | ) |   |   | (3,528 | ) |   |   | (2,879 | ) |
| Hotel      operating expenses                                                                               | $                       | 178,034             |                   |   | $ | 201,361 |   |   | $ | 532,767 |   |   | $ | 618,627 |   |

----

|                                                                        | Three      Months EndedSeptember      30, |                | Nine      Months EndedSeptember      30, |
|-----------------------------------------------------------------------------|-------------------------------------------|---------------------|------------------------------------------|
|                                                                        | 2009                                      |                | 2008                                     |   | 2009 |   | 2008 |
| Net      loss                                                               | $                                         | (25,474             | )                                        |   | $ | (42,569 | ) |   | $ | (57,864 | ) |   | $ | (31,005 | ) |
|    Discontinued      operations                              |                                      | -    |                                     |   |   | (1,193 | ) |   |   | -    |   |   |   | (1,180 | ) |
|    Equity      in loss (income) from unconsolidated entities |                                      | (488                | )                                        |   |   | 2,773 |   |   |   | 3,197 |   |   |   | 1,064 |   |
|    Consolidated      hotel lease expense                     |                                      | 10,892              |                                     |   |   | 14,511 |   |   |   | 31,805 |   |   |   | 42,444 |   |
|    Unconsolidated      taxes, insurance and lease expense    |                                      | (2,023              | )                                        |   |   | (2,132 | ) |   |   | (6,041 | ) |   |   | (6,328 | ) |
|    Interest      expense, net                                |                                      | 24,427              |                                     |   |   | 24,114 |   |   |   | 68,501 |   |   |   | 74,886 |   |
|    Charges      related to debt extinguishment               |                                      | -    |                                     |   |   | -    |   |   |   | 594 |   |   |   | -    |   |
|    Corporate      expenses                                   |                                      | 4,471               |                                     |   |   | 5,388 |   |   |   | 15,829 |   |   |   | 17,079 |   |
|    Depreciation      and amortization                        |                                      | 37,982              |                                     |   |   | 36,069 |   |   |   | 112,024 |   |   |   | 104,909 |   |
|    Impairment      loss                                      |                                      | 2,080               |                                     |   |   | 36,692 |   |   |   | 3,448 |   |   |   | 53,823 |   |
|    Hurricane      loss                                       |                                      | -    |                                     |   |   | 1,669 |   |   |   | -    |   |   |   | 1,669 |   |
|    Gain      on sale of assets                               |                                      | (723                | )                                        |   |   | -    |   |   |   | (723 | ) |   |   | -    |   |
|    Gain      on involuntary conversion                       |                                      | -    |                                     |   |   | -    |   |   |   | -    |   |   |   | (3,095 | ) |
|    Other      expenses                                       |                                      | 1,031               |                                     |   |   | 1,046 |   |   |   | 3,528 |   |   |   | 2,879 |   |
|    Other      revenue                                        |                                      | (1,280              | )                                        |   |   | (1,396 | ) |   |   | (2,554 | ) |   |   | (2,655 | ) |
| Hotel      EBITDA                                                           | $                                         | 50,895              |                                     |   | $ | 74,972 |   |   | $ | 171,744 |   |   | $ | 254,490 |   |

|                                                                     | Three      Months Ended September 30, |                | Nine      Months EndedSeptember      30, |
|--------------------------------------------------------------------------|---------------------------------------|---------------------|------------------------------------------|
|                                                                     | 2009                                  |                | 2008                                     |   | 2009 |   | 2008 |
| Ratio      of operating income (loss) to total revenues                  |                                  | (1.0                | )%                                       |   |   | (6.1 | )% |   | 1.9 | % |   | 4.6 | % |
|    Other      revenue                                     |                                  | (0.6                | )                                        |   |   | (0.5 | ) |   | (0.4 | ) |   | (0.3 | ) |
|    Unconsolidated      taxes, insurance and lease expense |                                  | (0.9                | )                                        |   |   | (0.7 | ) |   | (0.8 | ) |   | (0.7 | ) |
|    Consolidated      hotel lease expense                  |                                  | 4.8                 |                                     |   |   | 5.2 |   |   | 4.5 |   |   | 4.9 |   |
|    Other      expenses                                    |                                  | 0.4                 |                                     |   |   | 0.4 |   |   | 0.5 |   |   | 0.3 |   |
|    Corporate      expenses                                |                                  | 2.0                 |                                     |   |   | 2.0 |   |   | 2.3 |   |   | 2.0 |   |
|    Depreciation      and amortization                     |                                  | 16.6                |                                     |   |   | 13.0 |   |   | 15.9 |   |   | 12.0 |   |
|    Impairment      loss                                   |                                  | 0.9                 |                                     |   |   | 13.2 |   |   | 0.5 |   |   | 6.1 |   |
|    Hurricane      loss                                    |                                  | -    |                                     |   |   | 0.6 |   |   | -    |   |   | 0.2 |   |
| Hotel      EBITDA margin                                                 |                                  | 22.2                | %                                        |   |   | 27.1 | % |   | 24.4 | % |   | 29.1 | % |

----

|                                             |  Hotels |   | Room      Count atSeptember      30, 2009 |
|--------------------------------------------------|--------------|--------|------------------------------------------------|
| Consolidated      Hotels                         | 85           |   |                                           |   | 25,006 |   |
| Unconsolidated      hotel operations             | 2            |   |                                           |   | 264 |   |
| Total      hotels                                | 87           |   |                                           |   | 25,270 |   |
|                                             |         |   |                                           |   |   |   |
|    50%      joint ventures        | 15           |   |                                           |   | (1,842 | ) |
|    60%      joint venture         | 1            |   |                                           |   | (214 | ) |
|    81%      joint venture         | 1            |   |                                           |   | (42 | ) |
|    90%      joint ventures        | 3            |   |                                           |   | (68 | ) |
|    97%      joint venture         | 1            |   |                                           |   | (10 | ) |
| Total      rooms owned by joint venture partners |         |   |                                           |   | (2,176 | ) |
| Pro      rata share of rooms owned               |         |   |                                           |   | 23,094 |   |

----

| Brand                         |   |  Hotels |   |  Rooms |   | %      ofTotal      Rooms |   | %      of 2008Hotel EBITDA(a) |
|-------------------------------|--------|--------------|--------|-------------|--------|---------------------------|--------|------------------------------------|
| Embassy      Suites Hotels    | 47     |         | 12,132 |        | 49     |                      | 55     |                               |
| Holiday      Inn              | 17     |         | 6,306  |        | 25     |                      | 19     |                               |
| Sheraton      and Westin      | 9      |         | 3,217  |        | 13     |                      | 12     |                               |
| Doubletree                    | 7      |         | 1,471  |        | 6      |                      | 7      |                               |
| Renaissance      and Marriott | 3      |         | 1,321  |        | 5      |                      | 5      |                               |
| Hilton                        | 2      |         | 559    |        | 2      |                      | 2      |                               |
|                          |   |         |   |        |   |                      |   |                               |
| Top      Markets              |   |         |   |        |   |                      |   |                               |   |
| South      Florida            | 5      |         | 1,439  |        | 6      |                      | 7      |                               |
| San      Francisco area       | 6      |         | 2,138  |        | 8      |                      | 6      |                               |
| Atlanta                       | 5      |         | 1,462  |        | 6      |                      | 6      |                               |
| Los      Angeles area         | 4      |         | 899    |        | 4      |                      | 6      |                               |
| Orlando                       | 5      |         | 1,690  |        | 7      |                      | 5      |                               |
| Dallas                        | 4      |         | 1,333  |        | 5      |                      | 4      |                               |
| Philadelphia                  | 2      |         | 729    |        | 3      |                      | 4      |                               |
| Northern      New Jersey      | 3      |         | 756    |        | 3      |                      | 4      |                               |
| Minneapolis                   | 3      |         | 736    |        | 3      |                      | 4      |                               |
| San      Diego                | 1      |         | 600    |        | 2      |                      | 4      |                               |
| Phoenix                       | 3      |         | 798    |        | 3      |                      | 3      |                               |
| San      Antonio              | 3      |         | 874    |        | 4      |                      | 3      |                               |
| Chicago                       | 3      |         | 795    |        | 3      |                      | 3      |                               |
| Boston                        | 2      |         | 532    |        | 2      |                      | 3      |                               |
| Washington,      D.C.         | 1      |         | 443    |        | 2      |                      | 2      |                               |
|                          |   |         |   |        |   |                      |   |                               |
| Location                      |   |         |   |        |   |                      |   |                               |   |
| Suburban                      | 35     |         | 8,781  |        | 35     |                      | 34     |                               |
| Urban                         | 20     |         | 6,358  |        | 25     |                      | 26     |                               |
| Airport                       | 18     |         | 5,788  |        | 24     |                      | 24     |                               |
| Resort                        | 12     |         | 4,079  |        | 16     |                      | 16     |                               |

|   | (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 September 30, |   |   |   |   | Nine      Months Ended September 30, |   |   |   |
|                          | 2009                                  |   | 2008 |   | %Variance |   |   | 2009 |   | 2008 |   | %Variance |
| Embassy      Suites Hotels    | 69.8                                  |   | 74.5 |   | (6.4 | ) |   |   | 68.8 |   | 75.2 |   | (8.5 | ) |
| Holiday      Inn              | 70.4                                  |   | 76.3 |   | (7.8 | ) |   |   | 67.4 |   | 74.8 |   | (9.8 | ) |
| Sheraton      and Westin      | 63.6                                  |   | 68.1 |   | (6.7 | ) |   |   | 61.0 |   | 68.1 |   | (10.5 | ) |
| Doubletree                    | 67.5                                  |   | 73.5 |   | (8.2 | ) |   |   | 66.2 |   | 76.3 |   | (13.3 | ) |
| Renaissance      and Marriott | 66.9                                  |   | 62.2 |   | 7.5 |   |   |   | 61.7 |   | 67.0 |   | (7.9 | ) |
| Hilton                        | 77.1                                  |   | 71.5 |   | 7.8 |   |   |   | 65.1 |   | 64.8 |   | 0.5 |   |
|                          |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      hotels             | 69.0                                  |   | 73.4 |   | (6.0 | ) |   |   | 66.9 |   | 73.6 |   | (9.2 | ) |
|                          |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          | ADR      ($)                          |
|                          | Three      Months Ended September 30, |   |   |   |   | Nine      Months Ended September 30, |   |   |   |
|                          | 2009                                  |   | 2008 |   | %Variance |   |   | 2009 |   | 2008 |   | %Variance |
| Embassy      Suites Hotels    | 123.51                                |   | 142.26 |   | (13.2 | ) |   |   | 129.79 |   | 145.69 |   | (10.9 | ) |
| Holiday      Inn              | 107.10                                |   | 122.98 |   | (12.9 | ) |   |   | 106.93 |   | 121.64 |   | (12.1 | ) |
| Sheraton      and Westin      | 100.86                                |   | 117.54 |   | (14.2 | ) |   |   | 109.39 |   | 125.19 |   | (12.6 | ) |
| Doubletree                    | 114.00                                |   | 133.42 |   | (14.5 | ) |   |   | 125.87 |   | 144.39 |   | (12.8 | ) |
| Renaissance      and Marriott | 130.99                                |   | 131.20 |   | (0.2 | ) |   |   | 164.91 |   | 178.25 |   | (7.5 | ) |
| Hilton                        | 128.93                                |   | 141.20 |   | (8.7 | ) |   |   | 118.12 |   | 131.33 |   | (10.1 | ) |
|                          |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      hotels             | 116.51                                |   | 133.21 |   | (12.5 | ) |   |   | 122.65 |   | 138.14 |   | (11.2 | ) |
|                          |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          | RevPAR      ($)                       |
|                          | Three      Months Ended September 30, |   |   |   |   | Nine      Months Ended September 30, |   |   |   |
|                          | 2009                                  |   | 2008 |   | %Variance |   |   | 2009 |   | 2008 |   | %Variance |
| Embassy      Suites Hotels    | 86.16                                 |   | 105.98 |   | (18.7 | ) |   |   | 89.28 |   | 109.58 |   | (18.5 | ) |
| Holiday      Inn              | 75.36                                 |   | 93.86 |   | (19.7 | ) |   |   | 72.11 |   | 90.94 |   | (20.7 | ) |
| Sheraton      and Westin      | 64.11                                 |   | 80.08 |   | (19.9 | ) |   |   | 66.70 |   | 85.28 |   | (21.8 | ) |
| Doubletree                    | 76.95                                 |   | 98.12 |   | (21.6 | ) |   |   | 83.32 |   | 110.21 |   | (24.4 | ) |
| Renaissance      and Marriott | 87.58                                 |   | 81.60 |   | 7.3 |   |   |   | 101.79 |   | 119.44 |   | (14.8 | ) |
| Hilton                        | 99.34                                 |   | 100.95 |   | (1.6 | ) |   |   | 76.89 |   | 85.04 |   | (9.6 | ) |
|                          |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      hotels             | 80.39                                 |   | 97.80 |   | (17.8 | ) |   |   | 82.00 |   | 101.69 |   | (19.4 | ) |

----

|                     | Occupancy      (%)                    |
|--------------------------|---------------------------------------|
|                     | Three      Months Ended September 30, |   |   |   | Nine      Months Ended September 30, |   |   |
|                     | 2009                                  |   | 2008 |   | %      Variance |   | 2009 |   | 2008 |   | %Variance |
| South      Florida       | 67.2                                  |   | 70.9 |   | (5.3 | ) |   | 73.3 |   | 78.7 |   | (6.9 | ) |
| San      Francisco area  | 81.6                                  |   | 83.5 |   | (2.3 | ) |   | 69.5 |   | 78.1 |   | (11.0 | ) |
| Atlanta                  | 72.9                                  |   | 74.0 |   | (1.6 | ) |   | 70.8 |   | 75.4 |   | (6.1 | ) |
| Los      Angeles area    | 75.7                                  |   | 81.3 |   | (6.8 | ) |   | 72.9 |   | 77.7 |   | (6.2 | ) |
| Orlando                  | 65.4                                  |   | 72.6 |   | (10.0 | ) |   | 68.1 |   | 78.4 |   | (13.2 | ) |
| Dallas                   | 58.2                                  |   | 67.5 |   | (13.7 | ) |   | 59.5 |   | 68.6 |   | (13.4 | ) |
| Philadelphia             | 72.5                                  |   | 79.6 |   | (8.9 | ) |   | 65.6 |   | 74.7 |   | (12.2 | ) |
| Northern      New Jersey | 64.7                                  |   | 75.6 |   | (14.4 | ) |   | 62.4 |   | 72.5 |   | (14.0 | ) |
| Minneapolis              | 77.8                                  |   | 78.6 |   | (0.9 | ) |   | 68.2 |   | 73.9 |   | (7.7 | ) |
| San      Diego           | 76.9                                  |   | 80.4 |   | (4.3 | ) |   | 71.7 |   | 81.3 |   | (11.8 | ) |
| Phoenix                  | 45.8                                  |   | 55.3 |   | (17.1 | ) |   | 54.1 |   | 66.0 |   | (18.0 | ) |
| San      Antonio         | 74.7                                  |   | 85.9 |   | (13.0 | ) |   | 72.8 |   | 82.1 |   | (11.3 | ) |
| Chicago                  | 72.7                                  |   | 76.4 |   | (4.8 | ) |   | 65.0 |   | 74.4 |   | (12.6 | ) |
| Boston                   | 84.4                                  |   | 85.0 |   | (0.8 | ) |   | 78.4 |   | 79.8 |   | (1.8 | ) |
| Washington,      D.C.    | 67.5                                  |   | 62.1 |   | 8.6 |   |   | 59.1 |   | 58.9 |   | 0.4 |   |
|                     | ADR      ($)                          |
|                     | Three      Months Ended September 30, |   |   |   | Nine      Months Ended September 30, |   |   |
|                     | 2009                                  |   | 2008 |   | %      Variance |   | 2009 |   | 2008 |   | %Variance |
| South      Florida       | 100.94                                |   | 112.91 |   | (10.6 | ) |   | 132.67 |   | 152.82 |   | (13.2 | ) |
| San      Francisco area  | 132.57                                |   | 153.86 |   | (13.8 | ) |   | 127.32 |   | 144.74 |   | (12.0 | ) |
| Atlanta                  | 102.90                                |   | 119.91 |   | (14.2 | ) |   | 106.24 |   | 122.57 |   | (13.3 | ) |
| Los      Angeles area    | 141.69                                |   | 167.55 |   | (15.4 | ) |   | 138.03 |   | 161.27 |   | (14.4 | ) |
| Orlando                  | 81.21                                 |   | 91.33 |   | (11.1 | ) |   | 97.31 |   | 107.41 |   | (9.4 | ) |
| Dallas                   | 108.58                                |   | 119.72 |   | (9.3 | ) |   | 116.83 |   | 124.75 |   | (6.4 | ) |
| Philadelphia             | 127.29                                |   | 148.20 |   | (14.1 | ) |   | 133.86 |   | 148.84 |   | (10.1 | ) |
| Northern      New Jersey | 132.09                                |   | 163.52 |   | (19.2 | ) |   | 142.35 |   | 163.89 |   | (13.1 | ) |
| Minneapolis              | 128.35                                |   | 154.63 |   | (17.0 | ) |   | 129.03 |   | 147.34 |   | (12.4 | ) |
| San      Diego           | 123.11                                |   | 160.07 |   | (23.1 | ) |   | 127.37 |   | 160.83 |   | (20.8 | ) |
| Phoenix                  | 95.82                                 |   | 114.52 |   | (16.3 | ) |   | 126.23 |   | 148.71 |   | (15.1 | ) |
| San      Antonio         | 102.64                                |   | 112.59 |   | (8.8 | ) |   | 104.75 |   | 114.04 |   | (8.1 | ) |
| Chicago                  | 107.30                                |   | 129.37 |   | (17.1 | ) |   | 108.66 |   | 127.88 |   | (15.0 | ) |
| Boston                   | 138.86                                |   | 161.05 |   | (13.8 | ) |   | 134.62 |   | 156.12 |   | (13.8 | ) |
| Washington,      D.C.    | 114.73                                |   | 141.53 |   | (18.9 | ) |   | 132.89 |   | 155.11 |   | (14.3 | ) |
|                     | RevPAR      ($)                       |
|                     | Three      Months Ended September 30, |   |   |   | Nine      Months Ended September 30, |   |   |
|                     | 2009                                  |   | 2008 |   | %      Variance |   | 2009 |   | 2008 |   | %Variance |
| South      Florida       | 67.82                                 |   | 80.07 |   | (15.3 | ) |   | 97.21 |   | 120.33 |   | (19.2 | ) |
| San      Francisco area  | 108.24                                |   | 128.52 |   | (15.8 | ) |   | 88.52 |   | 113.02 |   | (21.7 | ) |
| Atlanta                  | 74.98                                 |   | 88.77 |   | (15.5 | ) |   | 75.18 |   | 92.41 |   | (18.6 | ) |
| Los      Angeles area    | 107.26                                |   | 136.15 |   | (21.2 | ) |   | 100.57 |   | 125.24 |   | (19.7 | ) |
| Orlando                  | 53.12                                 |   | 66.34 |   | (19.9 | ) |   | 66.25 |   | 84.25 |   | (21.4 | ) |
| Dallas                   | 63.25                                 |   | 80.79 |   | (21.7 | ) |   | 69.48 |   | 85.64 |   | (18.9 | ) |
| Philadelphia             | 92.26                                 |   | 117.90 |   | (21.7 | ) |   | 87.76 |   | 111.19 |   | (21.1 | ) |
| Northern      New Jersey | 85.48                                 |   | 123.62 |   | (30.9 | ) |   | 88.77 |   | 118.88 |   | (25.3 | ) |
| Minneapolis              | 99.92                                 |   | 121.49 |   | (17.8 | ) |   | 87.96 |   | 108.87 |   | (19.2 | ) |
| San      Diego           | 94.72                                 |   | 128.66 |   | (26.4 | ) |   | 91.36 |   | 130.75 |   | (30.1 | ) |
| Phoenix                  | 43.93                                 |   | 63.31 |   | (30.6 | ) |   | 68.31 |   | 98.09 |   | (30.4 | ) |
| San      Antonio         | 76.70                                 |   | 96.71 |   | (20.7 | ) |   | 76.22 |   | 93.58 |   | (18.6 | ) |
| Chicago                  | 78.01                                 |   | 98.81 |   | (21.1 | ) |   | 70.61 |   | 95.10 |   | (25.7 | ) |
| Boston                   | 117.14                                |   | 136.92 |   | (14.4 | ) |   | 105.51 |   | 124.59 |   | (15.3 | ) |
| Washington,      D.C.    | 77.41                                 |   | 87.95 |   | (12.0 | ) |   | 78.60 |   | 91.34 |   | (13.9 | ) |

----

|                                                             |                         | Brand  |            |   | State  |   |   | Rooms |   | %      Owned(a) |   |
|------------------------------------------------------------------|------------------------------|--------|-----------------|--------|--------|--------|--------|-------|--------|-----------------|--------|
| Consolidated      Hotels                                         |                         |   |            |   |   |
| Birmingham(b)                                                    | Embassy      Suites Hotel    | AL     |   242 |   |
| Phoenix      – Biltmore(b)                                 | Embassy      Suites Hotel    | AZ     |   232 |   |
| Phoenix      – Crescent(b)                                 | Sheraton                     | AZ     |   342 |   |
| Phoenix      – Tempe(b)                                    | Embassy      Suites Hotel    | AZ     |   224 |   |
| Anaheim      – North(b)                                    | Embassy      Suites Hotel    | CA     |   222 |   |
| Dana      Point – Doheny Beach                             | Doubletree      Guest Suites | CA     |   196 |   |
| Indian      Wells – Esmeralda Resort & Spa(b)          | Renaissance      Resort      | CA     | 560             |   |
| Los      Angeles – International Airport –South      | Embassy      Suites Hotel    | CA     |   349 | 97%    |
| Milpitas      – Silicon Valley(b)                          | Embassy      Suites Hotel    | CA     |   266 |   |
| Napa      Valley(b)                                              | Embassy      Suites Hotel    | CA     |   205 |   |
| Oxnard      – Mandalay Beach – Hotel & Resort(b) | Embassy      Suites Hotel    | CA     |   248 |   |
| San      Diego – On the Bay(d)                             | Holiday      Inn             | CA     |   600 |   |
| San      Francisco – Airport/Burlingame(d)                 | Embassy      Suites Hotel    | CA     |   340 |   |
| San      Francisco – Airport/South San Francisco (b)       | Embassy      Suites Hotel    | CA     |   312 |   |
| San      Francisco – Fisherman’s Wharf(d)            | Holiday      Inn             | CA     |   585 |   |
| San      Francisco Union Square(d)                               | Marriott(c)                  | CA     |   400 |   |
| San      Rafael – Marin County(b)                          | Embassy      Suites Hotel    | CA     |   235 | 50%    |
| Santa      Barbara – Goleta(b)                             | Holiday      Inn             | CA     |   160 |   |
| Santa      Monica Beach – at the Pier(b)                   | Holiday      Inn             | CA     | 132             |   |
| Wilmington(b)                                                    | Doubletree                   | DE     |   244 | 90%    |
| Boca      Raton(b)                                               | Embassy      Suites Hotel    | FL     |   263 |   |
| Cocoa      Beach – Oceanfront(e)                           | Holiday      Inn             | FL     |   500 |   |
| Deerfield      Beach – Resort & Spa(b)                 | Embassy      Suites Hotel    | FL     |   244 |   |
| Ft.      Lauderdale – 17th Street(b)                       | Embassy      Suites Hotel    | FL     |   361 |   |
| Ft.      Lauderdale – Cypress Creek(b)                     | Sheraton      Suites         | FL     |   253 |   |
| Jacksonville      – Baymeadows(b)                          | Embassy      Suites Hotel    | FL     |   277 |   |
| Miami      – International Airport(b)                      | Embassy      Suites Hotel    | FL     |   318 |   |
| Orlando      – International Airport(b)                    | Holiday      Inn             | FL     |   288 |   |
| Orlando      – International Drive Resort(e)               | Holiday      Inn             | FL     |   652 |   |
| Orlando      – International Drive South/Convention(b)     | Embassy      Suites Hotel    | FL     |   244 |   |
| Orlando–      North(d)                                     | Embassy      Suites Hotel    | FL     |   277 |   |
| Orlando      – Walt Disney World Resort(d)                 | Doubletree      Guest Suites | FL     |   229 |   |
| St.      Petersburg – Vinoy Resort & Golf Club(b)      | Renaissance      Resort      | FL     | 361             |   |
| Tampa      – Tampa Bay(b)                                  | Doubletree      Guest Suites | FL     |   203 |   |
| Atlanta      – Airport(b)                                  | Embassy      Suites Hotel    | GA     |   232 |   |
| Atlanta      – Buckhead(b)                                 | Embassy      Suites Hotel    | GA     |   316 |   |
| Atlanta      – Galleria(b)                                 | Sheraton      Suites         | GA     |   278 |   |
| Atlanta      – Gateway – Atlanta Airport(d)          | Sheraton                     | GA     |   395 |   |
| Atlanta      – Perimeter Center(b)                         | Embassy      Suites Hotel    | GA     |   241 | 50%    |
| Chicago      – Lombard/Oak Brook(b)                        | Embassy      Suites Hotel    | IL     | 262             | 50%    |
| Chicago      – North Shore/Deerfield (Northbrook)      (b) | Embassy      Suites Hotel    | IL     | 237             |   |
| Chicago      – Gateway – O’Hare(b)             | Sheraton      Suites         | IL     | 296             |   |
| Indianapolis      – North(b)                               | Embassy      Suites Hotel    | IN     | 221             | 81%    |
| Kansas      City – Overland Park(b)                        | Embassy      Suites Hotel    | KS     | 199             | 50%    |
| Lexington      – Lexington Green(b)                        | Hilton      Suites           | KY     | 174             |   |
| Baton      Rouge(b)                                              | Embassy      Suites Hotel    | LA     | 223             |   |

----

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

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

|   | (b) | This      hotel was encumbered by mortgage debt or a capital lease obligation at      September 30, 2009. |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | (c) | On      April 1, 2009, this hotel was rebranded as a  Marriott. |
|--------|-----|-----------------------------------------------------------------|

|   | (d) | In      the fourth quarter of 2009, this hotel was encumbered by a mortgage or      other restriction to secure our 10% senior notes due  2014. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | In      the fourth quarter of 2009, we entered into an agreement to sell this      hotel. |
|--------|-----|-------------------------------------------------------------------------------------------|

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|   | · | In      October 2009, we completed a private placement of $636 million of senior      secured notes.  The new senior secured notes bear a fixed      interest rate of 10%, mature in October 2014, and are secured by a pledge      of FelCor’s limited partner interests in us, first mortgages and related      security interests on up to 14 hotels and pledges of equity interests in      certain wholly owned subsidiaries. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | · | In      March 2009, we entered into a $120 million loan agreement with The      Prudential Insurance Company of America secured by seven hotels.  The      proceeds of the loan were used to repay the balance of an existing loan      secured by the same properties that would have matured on April 1,      2009.  The new loan matures in 2014 and bears interest at      9.02%.  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                            | Expected      Maturity Date |
|-------------------------------------------------|-----------------------------|
|                                            | 2009                        |   | 2010 |   | 2011 |   | 2012 |   | 2013 |   | Thereafter |   | Total |   | Fair      Value |
| Liabilities                                     |                        |
| Fixed-rate:                                     |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Debt                          | $                           | 17,985 |   | $ | 277,987 |   | $ | 306,695 |   | $ | 4,533 |   | $ | 4,907 |   | $ | 178,576 |   | $ | 790,683 |   |   | 783,500 |
|    Average      interest rate    |                        | 6.65% |   |   | 8.71% |   |   | 8.99% |   |   | 7.67% |   |   | 7.69% |   |   | 8.00% |   |   | 8.60% |   |   |   |
| Floating-rate:                                  |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Debt                          |                        | 750 |   |   | 2,092 |   |   | 663,300 |   |   | 177,225 |   |   | -    |   |   | -    |   |   | 843,367 |   |   | 764,530 |
|    Average      interest rate(a) |                        | 5.50% |   |   | 5.30% |   |   | 3.94% |   |   | 4.83% |   |   | -    |   |   | -    |   |   | 4.13% |   |   |   |
| Total      debt                                 | $                           | 18,735 |   | $ | 280,079 |   | $ | 969,995 |   | $ | 181,758 |   | $ | 4,907 |   | $ | 178,576 |   | $ | 1,634,050 |   |   |   |
|    Average      interest rate    |                        | 6.61% |   |   | 8.68% |   |   | 5.54% |   |   | 4.90% |   |   | 7.69% |   |   | 8.00% |   |   | 6.29% |   |   |   |
| Net      discount                               |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,140 | ) |   |   |
|      Total      debt   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 1,632,910 |   |   |   |

|   | (a) | The      average floating interest rate represents the implied forward rates in the      yield curve at September 30,2009. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------|

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| Exhibit      Number |   | Description      of Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|---------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 4.1                 |   | Sixth      Supplemental Indenture, dated as of September 30, 2009, by and among the      FelCor Lodging Trust Incorporated, FelCor Lodging Limited Partnership,      certain of their subsidiaries, as guarantors, and U.S. Bank National      Association, as successor to SunTrust Bank, as trustee, relating to the      81⁄2% Notes (filed as Exhibit 4.2 to FelCor’s Current Report on Form 8-K      dated October 1, 2009, and incorporated herein by    reference). |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.2                 |   | Third      Supplemental Indenture, dated as of September 30, 2009, by and among the      FelCor Lodging Trust Incorporated, FelCor Lodging Limited Partnership,      certain of their subsidiaries, as guarantors, and U.S. Bank National      Association, as trustee, relating to the Floating Rate Notes (filed as      Exhibit 4.3 to FelCor’s Current Report on Form 8-K dated October 1, 2009,      and incorporated herein by reference).                              |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 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:  November      4, 2009 | By:                                     | /s/      Lester C. Johnson |
|                                   |                                    | Name:         Lester      C. JohnsonTitle:           Senior      Vice President, Chief AccountingOfficer |

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