----

|            |                                                     |
|------------|-----------------------------------------------------|
| (Mark One) |                                                |
| x          | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF |

|   |                                                      |
|---|------------------------------------------------------|
| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF |

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

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

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

----

----

|                 |                                                                                                   |                                                                                                                                                                     |        |
|-----------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|            |                                                                                              |                                                                                                                                                                | Page   |
|            |                                                                                              |   PART I − FINANCIAL INFORMATION                                                                                                                         |   |
|            |                                                                                              |                                                                                                                                                                |   |
|  Item 1.   |  Financial Statements                                                                        | 3                                                                                                                                                                   |
|            |                                                                                              |  Consolidated Balance Sheets September 30, 2010 and December 31, 2009    (unaudited)                                             | 3      |
|            |                                                                                              |  Consolidated Statements of Operations – For the Three and Nine Months Ended    September 30, 2010 and 2009 (unaudited)         | 4      |
|            |                                                                                              |  Consolidated Statements of Comprehensive Loss – For the Three and Nine Months    Ended September 30, 2010 and 2009 (unaudited) | 5      |
|            |                                                                                              |  Consolidated Statements of Partners' Capital – For the Nine Months Ended    September 30, 2010 and 2009 (unaudited)            | 6      |
|            |                                                                                              |  Consolidated Statements of Cash Flows – For the Nine Months Ended    September 30, 2010 and 2009 (unaudited)                   | 7      |
|            |                                                                                              |  Notes to Consolidated Financial Statements                                                                                                                    | 8      |
|  Item 2.   |  Management’s Discussion and Analysis of Financial Condition and Results of Operations | 27                                                                                                                                                                  |
|            |                                                                                              |  General                                                                                                                                                       | 27     |
|            |                                                                                              |  Results of Operations                                                                                                                                         | 28     |
|            |                                                                                              |  Non-GAAP Financial Measures                                                                                                                                   | 30     |
|            |                                                                                              |  Pro Rata Share of Rooms Owned                                                                                                                                 | 33     |
|            |                                                                                              |  Hotel Portfolio Composition                                                                                                                                   | 34     |
|            |                                                                                              |  Hotel Operating Statistics                                                                                                                                    | 35     |
|            |                                                                                              |  Hotel Portfolio                                                                                                                                               | 37     |
|            |                                                                                              |  Liquidity and Capital Resources                                                                                                                               | 39     |
|            |                                                                                              |  Inflation                                                                                                                                                     | 41     |
|            |                                                                                              |  Seasonality                                                                                                                                                   | 41     |
|            |                                                                                              |  Disclosure Regarding Forward-Looking Statements                                                                                                               | 42     |
|  Item 3.   |  Quantitative and Qualitative Disclosures about Market Risk                                  | 42                                                                                                                                                                  |
|  Item 4.   |  Controls and Procedures                                                                     | 43                                                                                                                                                                  |
|            |                                                                                              |                                                                                                                                                                |   |
|            |                                                                                              |   PART II − OTHER INFORMATION                                                                                                                            |   |
|            |                                                                                              |                                                                                                                                                                |   |
|  Item 3.   |  Defaults Upon Senior Securities                                                             | 44                                                                                                                                                                  |
|  Item 6.   |  Exhibits                                                                                    | 44                                                                                                                                                                  |
|            |                                                                                              |                                                                                                                                                                |   |
|  SIGNATURE |                                                                                              | 45                                                                                                                                                                  |

----

|                                   |                       |
|-----------------------------------|-----------------------|
| Item   1.     | Financial Statements. |

|                                                                                                                                                    |                         |           |                        |           |        |           |        |
|----------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|-----------|------------------------|-----------|--------|-----------|--------|
|                                                                                                                                               | September 30, 2010 |      | December 31, 2009 |
| Assets                                                                                                                                             |                    |      |                   |
| Investment in hotels, net of accumulated depreciation of $970,730 at     September 30, 2010 and $916,604 at December 31, 2009                 | $                       | 2,101,244 |                   |      | $      | 2,180,394 |   |
| Investment in unconsolidated entities                                                                                                              | 102,957                 |      |                   | 82,040    |   |
| Cash and cash equivalents                                                                                                                          | 192,478                 |      |                   | 263,531   |   |
| Restricted cash                                                                                                                                    | 20,586                  |      |                   | 18,708    |   |
| Accounts receivable, net of allowance for doubtful accounts of $326 at     September 30, 2010 and $406 at December 31, 2009                   | 36,628                  |      |                   | 28,678    |   |
| Deferred expenses, net of accumulated amortization of $15,811 at     September 30, 2010 and $14,502 at December 31, 2009                      | 21,701                  |      |                   | 19,977    |   |
| Other assets                                                                                                                                       | 37,599                  |      |                   | 32,666    |   |
| Total assets                                                                                                                                       | $                       | 2,513,193 |                   |      | $      | 2,625,994 |   |
| Liabilities and Partners' Capital                                                                                                                  |                    |      |                   |
| Debt, net of discount of $55,972 at September 30, 2010 and $64,267 at     December 31, 2009                                              | $                       | 1,573,402 |                   |      | $      | 1,773,314 |   |
| Distributions payable                                                                                                                              | 66,615                  |      |                   | 37,580    |   |
| Accrued expenses and other liabilities                                                                                                             | 180,560                 |      |                   | 131,339   |   |
| Total liabilities                                                                                                                                  | 1,820,577               |      |                   | 1,942,233 |   |
| Commitments and contingencies                                                                                                                      |                    |      |                   |
| Redeemable units at redemption value, 295 units issued and outstanding at   September 30, 2010 and December 31, 2009                               | 1,357                   |      |                   | 1,062     |   |
| Capital:                                                                                                                                           |                    |      |                   |
| Preferred units, $0.01 par value, 20,000 units authorized:                                                                                         |                    |      |                   |
| Series A Cumulative Convertible Preferred Units, 12,880 units issued    and outstanding at September 30, 2010 and December 31, 2009 | 309,362                 |      |                   | 309,362   |   |
| Series C Cumulative Redeemable Preferred Units, 68 units issued    and outstanding at September 30, 2010 and December 31, 2009      | 169,412                 |      |                   | 169,412   |   |
| Common units, 101,038 and 69,413 units issued at September 30, 2010    and December 31, 2009, respectively                     | 166,620                 |      |                   | 157,705   |   |
| Accumulated other comprehensive income                                                                                                             | 24,912                  |      |                   | 23,637    |   |
| Total FelCor LP partners' capital                                                                                                                  | 670,306                 |      |                   | 660,116   |   |
| Noncontrolling interests                                                                                                                           | 20,953                  |      |                   | 22,583    |   |
| Total partners' capital                                                                                                                            | 691,259                 |      |                   | 682,699   |   |
| Total liabilities and partners' capital                                                                                                            | $                       | 2,513,193 |                   |      | $      | 2,625,994 |   |

----

|                                                                                                     |                                       |         |                                      |         |        |         |          |        |        |          |        |        |   |         |        |
|-----------------------------------------------------------------------------------------------------|---------------------------------------|---------|--------------------------------------|---------|--------|---------|----------|--------|--------|----------|--------|--------|---|---------|--------|
|                                                                                                | Three Months Ended September 30, |    | Nine Months Ended September 30, |
|                                                                                                | 2010                                  |    | 2009                                 |    | 2010   |    | 2009     |
| Revenues:                                                                                           |                                  |    |                                 |    |   |    |     |
| Hotel operating revenue                                                                             | $                                     | 241,944 |                                 |    | $      | 222,260 |     |   | $      | 713,937  |   |   | $ | 682,016 |   |
| Other revenue                                                                                       | 1,421                                 |    |                                 | 1,280   |   |    | 2,793    |   |   | 2,554    |   |
| Total revenues                                                                                      | 243,365                               |    |                                 | 223,540 |   |    | 716,730  |   |   | 684,570  |   |
| Expenses:                                                                                           |                                  |    |                                 |    |   |    |     |
| Hotel departmental expenses                                                                         | 87,001                                |    |                                 | 80,791  |   |    | 254,469  |   |   | 240,275  |   |
| Other property related costs                                                                        | 69,894                                |    |                                 | 63,778  |   |    | 201,701  |   |   | 191,961  |   |
| Management and franchise fees                                                                       | 11,545                                |    |                                 | 10,975  |   |    | 33,796   |   |   | 32,990   |   |
| Taxes, insurance and lease expense                                                                  | 26,511                                |    |                                 | 24,872  |   |    | 77,913   |   |   | 74,199   |   |
| Corporate expenses                                                                                  | 6,564                                 |    |                                 | 4,471   |   |    | 22,921   |   |   | 15,829   |   |
| Depreciation and amortization                                                                       | 36,564                                |    |                                 | 36,866  |   |    | 110,454  |   |   | 108,668  |   |
| Impairment loss                                                                                     | 65,849                                |    |                                 | — |   |    | 79,245   |   |   | —  |   |
| Other expenses                                                                                      | 1,331                                 |    |                                 | 1,031   |   |    | 2,693    |   |   | 3,486    |   |
| Total operating expenses                                                                            | 305,259                               |    |                                 | 222,784 |   |    | 783,192  |   |   | 667,408  |   |
|                                                                                                |                                  |    |                                 |    |   |    |     |
| Operating income (loss)                                                                             | (61,894                               | )       |                                 | 756     |   |    | (66,462  | )      |   | 17,162   |   |
| Interest expense, net                                                                               | (35,147                               | )       |                                 | (24,015 | )      |    | (107,678 | )      |   | (67,301  | )      |
| Extinguishment of debt                                                                              | (225                                  | )       |                                 | — |   |    | 45,853   |   |   | (594     | )      |
| Loss before equity in income (loss) from unconsolidated      entities | (97,266                               | )       |                                 | (23,259 | )      |    | (128,287 | )      |   | (50,733  | )      |
| Equity in income (loss) from unconsolidated entities                                                | 302                                   |    |                                 | 488     |   |    | (886     | )      |   | (3,197   | )      |
| Gain on sale of assets                                                                              | —                               |    |                                 | 723     |   |    | —  |   |   | 723      |   |
| Loss from continuing operations                                                                     | (96,964                               | )       |                                 | (22,048 | )      |    | (129,173 | )      |   | (53,207  | )      |
| Discontinued operations                                                                             | 7,684                                 |    |                                 | (3,426  | )      |    | (1,059   | )      |   | (4,657   | )      |
| Net loss                                                                                            | (89,280                               | )       |                                 | (25,474 | )      |    | (130,232 | )      |   | (57,864  | )      |
| Net loss attributable to noncontrolling interests                                                   | 173                                   |    |                                 | 174     |   |    | 77       |   |   | 66       |   |
| Net loss attributable to FelCor LP                                                                  | (89,107                               | )       |                                 | (25,300 | )      |    | (130,155 | )      |   | (57,798  | )      |
| Preferred distributions                                                                             | (9,678                                | )       |                                 | (9,678  | )      |    | (29,034  | )      |   | (29,034  | )      |
| Net loss attributable to FelCor LP common unitholders                                               | $                                     | (98,785 | )                                    |    | $      | (34,978 | )        |   | $      | (159,189 | )      |   | $ | (86,832 | )      |
| Basic and diluted per common unit data:                                                             |                                  |    |                                 |    |   |    |     |
| Loss from continuing operations                                                                     | $                                     | (1.12   | )                                    |    | $      | (0.50   | )        |   | $      | (2.10    | )      |   | $ | (1.30   | )      |
| Net loss                                                                                            | $                                     | (1.04   | )                                    |    | $      | (0.55   | )        |   | $      | (2.11    | )      |   | $ | (1.37   | )      |
| Basic and diluted weighted average common units    outstanding                  | 95,329                                |    |                                 | 63,382  |   |    | 75,430   |   |   | 63,417   |   |

----

|                                                                              |                                       |         |                                      |         |        |         |          |        |        |          |        |        |   |         |   |
|------------------------------------------------------------------------------|---------------------------------------|---------|--------------------------------------|---------|--------|---------|----------|--------|--------|----------|--------|--------|---|---------|---|
|                                                                         | Three Months Ended September 30, |    | Nine Months Ended September 30, |
|                                                                         |                                  |
|                                                                         | 2010                                  |    | 2009                                 |    | 2010   |    | 2009     |
| Net loss                                                                | $                                     | (89,280 | )                                    |    | $      | (25,474 | )        |   | $      | (130,232 | )      |   | $ | (57,864 | ) |
| Foreign currency translation adjustment                                      | 1,927                                 |    |                                 | 4,707   |   |    | 1,275    |   |   | 7,157    |   |
| Comprehensive loss                                                      | (87,353                               | )       |                                 | (20,767 | )      |    | (128,957 | )      |   | (50,707  | )      |
| Comprehensive loss attributable to noncontrolling   interests | 173                                   |    |                                 | 174     |   |    | 77       |   |   | 66       |   |
| Comprehensive loss attributable to FelCor LP                                 | $                                     | (87,180 | )                                    |    | $      | (20,593 | )        |   | $      | (128,880 | )      |   | $ | (50,641 | ) |

----

|                                                             |        |                 |         |                   |          |                                        |         |                          |        |                               |         |        |        |          |        |        |        |   |         |        |
|-------------------------------------------------------------|--------|-----------------|---------|-------------------|----------|----------------------------------------|---------|--------------------------|--------|-------------------------------|---------|--------|--------|----------|--------|--------|--------|---|---------|--------|
|                                                        |   | Preferred Units |    | Partnership Units |     | Accumulated Other Comprehensive Income |    | Noncontrolling Interests |   | Total Partners’ Capital |
| Balance at December 31,    2008         |   | $               | 478,774 |              |     | $                                      | 300,913 |                     |   | $                             | 15,418  |   |   | $        | 23,784 |   |   | $ | 818,889 |   |
| Foreign exchange   translation               |   | —         |    |              | —  |                                   |    | 7,157                    |   |                          | — |   |   | 7,157    |   |
| 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      | )      |
| Net loss                                                    |   | —         |    |              | (57,798  | )                                      |    | —                  |   |                          | (66     | )      |   | (57,864  | )      |
| Balance at September 30,    2009        |   | $               | 478,774 |              |     | $                                      | 216,888 |                     |   | $                             | 22,575  |   |   | $        | 23,214 |   |   | $ | 741,451 |   |
|                                                        |   |            |    |              |     |                                   |    |                     |   |                          |
| Balance at December 31,    2009         |   | $               | 478,774 |              |     | $                                      | 157,705 |                     |   | $                             | 23,637  |   |   | $        | 22,583 |   |   | $ | 682,699 |   |
| Foreign exchange    translation         |   | —         |    |              | —  |                                   |    | 1,275                    |   |                          | — |   |   | 1,275    |   |
| Issuance of common units                                    |   | —         |    |              | 166,327  |                                   |    | —                  |   |                          | — |   |   | 166,327  |   |
| FelCor restricted stock    compensation |   | —         |    |              | 3,199    |                                   |    | —                  |   |                          | — |   |   | 3,199    |   |
| Contributions                                               |   | —         |    |              | —  |                                   |    | —                  |   |                          | 20      |   |   | 20       |   |
| Distributions                                               |   | —         |    |              | (29,034  | )                                      |    | —                  |   |                          | (1,689  | )      |   | (30,723  | )      |
| Allocation to redeemable    units       |   | —         |    |              | (295     | )                                      |    | —                  |   |                          | — |   |   | (295     | )      |
| Other                                                       |   | —         |    |              | (1,127   | )                                      |    | —                  |   |                          | 116     |   |   | (1,011   | )      |
| Net loss                                                    |   | —         |    |              | (130,155 | )                                      |    | —                  |   |                          | (77     | )      |   | (130,232 | )      |
| Balance at September 30,    2010        |   | $               | 478,774 |              |     | $                                      | 166,620 |                     |   | $                             | 24,912  |   |   | $        | 20,953 |   |   | $ | 691,259 |   |

----

|                                                                                 |                                      |          |        |          |        |         |        |
|---------------------------------------------------------------------------------|--------------------------------------|----------|--------|----------|--------|---------|--------|
|                                                                            | Nine Months Ended September 30, |
|                                                                            | 2010                                 |     | 2009   |
| Cash flows from operating activities:                                           |                                 |     |   |
| Net loss                                                                        | $                                    | (130,232 | )      |     | $      | (57,864 | )      |
| Adjustments to reconcile net loss to net cash provided by operating activities: |                                 |     |   |
| Depreciation and amortization                                                   | 111,420                              |     |   | 112,024  |   |
| Gain on sale of assets                                                          | —                              |     |   | (723     | )      |
| Amortization of deferred financing fees and debt discount                       | 13,050                               |     |   | 3,089    |   |
| Amortization of unearned officers’ and directors’ compensation      | 4,901                                |     |   | 3,924    |   |
| Equity in loss from unconsolidated entities                                     | 886                                  |     |   | 3,197    |   |
| Distributions of income from unconsolidated entities                            | 1,869                                |     |   | 2,256    |   |
| Extinguishment of debt                                                          | (54,096                              | )        |   | 594      |   |
| Impairment loss                                                                 | 86,909                               |     |   | 3,448    |   |
| Changes in assets and liabilities:                                              |                                 |     |   |
|  Accounts receivable                                                       | (8,516                               | )        |   | 1,214    |   |
|  Restricted cash – operations                                        | 239                                  |     |   | (1,587   | )      |
|  Other assets                                                              | (6,321                               | )        |   | (4,827   | )      |
|  Accrued expenses and other liabilities                                    | 47,952                               |     |   | 11,664   |   |
| Net cash flow provided by operating activities                                  | 68,061                               |     |   | 76,409   |   |
|  Cash flows from investing activities:                                     |                                 |     |   |
| Acquisition of hotels                                                           | (97,513                              | )        |   | —  |   |
| Improvements and additions to hotels                                            | (27,841                              | )        |   | (62,465  | )      |
| Additions to condominium project                                                | (216                                 | )        |   | (115     | )      |
| Change in restricted cash – investing                                     | (3,983                               | )        |   | (2,507   | )      |
| Proceeds received from property damage insurance                                | 417                                  |     |   | —  |   |
| Redemption of investment securities                                             | —                              |     |   | 1,719    |   |
| Distributions from unconsolidated entities                                      | 1,566                                |     |   | 3,700    |   |
| Contributions to unconsolidated entities                                        | (25,172                              | )        |   | (444     | )      |
| Net cash flow used in investing activities                                      | (152,742                             | )        |   | (60,112  | )      |
|  Cash flows from financing activities:                                     |                                 |     |   |
| Proceeds from borrowings                                                        | 212,149                              |     |   | 418,390  |   |
| Repayment of borrowings                                                         | (355,832                             | )        |   | (340,037 | )      |
| Payment of deferred financing fees                                              | (7,507                               | )        |   | (7,785   | )      |
| Change in restricted cash – financing                                     | 1,016                                |     |   | —  |   |
| Acquisition of noncontrolling interest                                          | (1,000                               | )        |   | —  |   |
| Distributions paid to noncontrolling interests                                  | (1,689                               | )        |   | (1,141   | )      |
| Contributions from noncontrolling interests                                     | 20                                   |     |   | 469      |   |
| Distributions paid to preferred unitholders                                     | —                              |     |   | (9,678   | )      |
| Net proceeds from common unit issuance                                          | 166,327                              |     |   | —  |   |
| Net cash flow provided by financing activities                                  | 13,484                               |     |   | 60,218   |   |
|  Effect of exchange rate changes on cash                                   | 144                                  |     |   | 1,361    |   |
|  Net change in cash and cash equivalents                                   | (71,053                              | )        |   | 77,876   |   |
|  Cash and cash equivalents at beginning of periods                         | 263,531                              |     |   | 50,187   |   |
|  Cash and cash equivalents at end of periods                               | $                                    | 192,478  |   |     | $      | 128,063 |   |
|                                                                            |                                 |     |   |
|  Supplemental cash flow information – interest paid                  | $                                    | 78,603   |   |     | $      | 87,395  |   |

----

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

|                                                |        |        |        |        |        |        |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Brand                                          |   | Hotels |   | Rooms  |
|  Embassy Suites Hotels®          |   | 46     |   |   | 11,911 |   |
|  Holiday Inn®                    |   | 15     |   |   | 5,154  |   |
|  Sheraton® and Westin®       |   | 9      |   |   | 3,217  |   |
|  Doubletree® and Hilton®          |   | 9      |   |   | 2,030  |   |
|  Marriott® and Renaissance®  |   | 3      |   |   | 1,321  |   |
|  Fairmont®                       |   | 1      |   |   | 383    |   |
|  Total                                    |   | 83     |   |   | 24,016 |   |

----

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

|                            |                   |
|----------------------------|-------------------|
| 2.     | Hotel Acquisition |

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

----

|                            |                                       |
|----------------------------|---------------------------------------|
| 2.     | Hotel Acquisition — (continued) |

|                                       |                                       |         |                                      |        |      |         |        |        |   |          |        |        |   |         |        |
|---------------------------------------|---------------------------------------|---------|--------------------------------------|--------|------|---------|--------|--------|---|----------|--------|--------|---|---------|--------|
|                                  | Three Months Ended September 30, |    | Nine Months Ended September 30, |
|                                  | 2010                                  |    | 2009                                 |   | 2010 |    | 2009   |
| Total revenues                        | $                                     | 248,585 |                                 |   | $    | 233,327 |   |   | $ | 739,839  |   |   | $ | 713,488 |   |
| Net loss                              | $                                     | (89,737 | )                                    |   | $    | (25,018 | )      |   | $ | (131,753 | )      |   | $ | (57,097 | )      |
| Earnings per unit - basic and diluted | $                                     | (1.04   | )                                    |   | $    | (0.54   | )      |   | $ | (2.13    | )      |   | $ | (1.36   | )      |

|                                                                                           |                         |         |                        |        |   |         |        |
|-------------------------------------------------------------------------------------------|-------------------------|---------|------------------------|--------|---|---------|--------|
|                                                                                      | September 30, 2010 |    | December 31, 2009 |
|  Balance sheet information:                                                          |                    |    |                   |
|       Investment in hotels, net of accumulated depreciation | $                       | 239,805 |                   |   | $ | 259,977 |   |
|       Total assets                                          | $                       | 265,361 |                   |   | $ | 279,611 |   |
|       Debt                                                  | $                       | 156,398 |                   |   | $ | 214,963 |   |
|       Total liabilities                                     | $                       | 161,647 |                   |   | $ | 220,389 |   |
|       Equity                                                | $                       | 103,714 |                   |   | $ | 59,222  |   |

----

|                                                      |                                       |        |                                      |         |        |        |         |        |           |        |         |        |           |   |        |        |           |
|------------------------------------------------------|---------------------------------------|--------|--------------------------------------|---------|--------|--------|---------|--------|-----------|--------|---------|--------|-----------|---|--------|--------|-----------|
|                                                 | Three Months Ended September 30, |   | Nine Months Ended September 30, |    |
|                                                 | 2010                                  |   | 2009                                 |    | 2010   |   |    | 2009   |      |
| Total revenues                                       | $                                     | 21,810 |                                 |    | $      | 20,925 |    |   | $         | 54,197 |    |   |      | $ | 53,845 |   |      |
| Net income (loss)                                    | $                                     | 1,531  |                                 |    | $      | 1,905  |    |   | $         | (582   | )       |   |      | $ | (2,683 | )      | (a)  |
|                                                 |                                  |   |                                 |    |   |   |    |   |      |
| Net income (loss) attributable to FelCor LP          | $                                     | 767    |                                 |    | $      | 953    |    |   | $         | (50    | )       |   |      | $ | (1,342 | )      |      |
| Impairment loss                                      | —                               |   |                                 | — |   |   | — |   |      |   | (476    | )      | (b)  |
| Gain on joint venture liquidation                    | —                               |   |                                 | — |   |   | 559     |   | (b)  |   | — |   |      |
| Depreciation of cost in excess of book value         | (465                                  | )      |                                 | (465    | )      |   | (1,395  | )      |      |   | (1,379  | )      |      |
| Equity in income (loss) from unconsolidated entities | $                                     | 302    |                                 |    | $      | 488    |    |   | $         | (886   | )       |   |      | $ | (3,197 | )      |      |

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

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

|                                                   |                         |         |                        |        |        |        |        |
|---------------------------------------------------|-------------------------|---------|------------------------|--------|--------|--------|--------|
|                                              | September 30, 2010 |    | December 31, 2009 |
| Hotel-related investments                         | $                       | 41,788  |                   |   | $      | 18,969 |   |
| Cost in excess of book value of hotel investments | 51,100                  |    |                   | 52,429 |   |
| Land and condominium investments                  | 10,069                  |    |                   | 10,642 |   |
|                                              | $                       | 102,957 |                   |   | $      | 82,040 |   |

|                                                      |                                       |        |                                      |        |        |        |        |        |        |      |        |        |   |        |   |
|------------------------------------------------------|---------------------------------------|--------|--------------------------------------|--------|--------|--------|--------|--------|--------|------|--------|--------|---|--------|---|
|                                                 | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                 | 2010                                  |   | 2009                                 |   | 2010   |   | 2009   |
| Hotel investments                                    | $                                     | (200   | )                                    |   | $      | (8     | )      |   | $      | (813 | )      |   | $ | (3,204 | ) |
| Other investments                                    | 502                                   |   |                                 | 496    |   |   | (73    | )      |   | 7    |   |
| Equity in income (loss) from unconsolidated entities | $                                     | 302    |                                 |   | $      | 488    |   |   | $      | (886 | )      |   | $ | (3,197 | ) |

----

|                         |                         |        |                         |              |                     |        |                          |        |                        |         |        |         |           |         |        |
|-------------------------|-------------------------|--------|-------------------------|--------------|---------------------|--------|--------------------------|--------|------------------------|---------|--------|---------|-----------|---------|--------|
|                    |  Encumbered Hotels |   |  Interest Rate (%) |         |  Maturity Date |   | September 30, 2010  |   | December 31, 2009 |
| Mortgage debt           |                    |   |                    |         |                |   |                     |   |                   |    |
| Mortgage debt           | 12 hotels               |   | L + 0.93                |         | (a)            |   |  November 2011      |   | $                      | 250,000 |   |    | $         | 250,000 |   |
| Mortgage debt           |  9 hotels          |   | L + 5.10                |         | (b)            |   |  April 2015         |   | 212,000                |    |   | — |      |
| Mortgage debt           |  9 hotels          |   | L + 3.50                |         | (c)            |   |  August 2011(d)     |   | 198,800                |    |   | 200,425 |      |
| Mortgage debt           |  7 hotels          |   | 9.02                    |         |           |   |  April 2014         |   | 114,306                |    |   | 117,422 |      |
| Mortgage debt(e)        |  5 hotels          |   | 6.66                    |         |                |   |  June - August 2014 |   | 69,606                 |    |   | 70,917  |      |
| Mortgage debt           |  1 hotel           |   | 8.77                    |         |                |   |  May 2013           |   | 27,770                 |    |   | 27,829  |      |
| Mortgage debt(f)        |  1 hotel           |   | 8.62                    |         |           |   | May 2010                 |   | 14,103                 |    |   | 14,103  |      |
| Mortgage debt           |  1 hotel           |   | 5.81                    |         |           |   |  July 2016          |   | 11,429                 |    |   | 11,741  |      |
| Mortgage debt           |  1 hotel           |   | 6.15                    |         |           |   | June 2011                |   | 8,157                  |    |   | 9,228   |      |
| Other                   |  —           |   | 4.25                    |         |           |   | May 2011                 |   | 502                    |    |   | 354     |      |
| Senior notes            |                    |   |                    |         |                |   |                     |   |                   |    |   |    |
| Senior secured notes(g) |  14 hotels         |   | 10.00                   |         |                |   |  October 2014       |   | 580,070                |    |   | 572,500 |      |
| Senior notes            |  —           |   | 8.50                    |         | (h)            |   |  June 2011          |   | 86,659                 |    |   | 86,604  |      |
| Retired debt            |  —           |   | —                 |         |                |   | —                  |   | —                |    |   | 412,191 |      |
| Total                   | 60 hotels               |   |                    |    |                |   |                     | $      | 1,573,402              |    |   | $       | 1,773,314 |    |

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

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

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

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

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

|                             |                                                                                                  |
|-----------------------------|--------------------------------------------------------------------------------------------------|
| (f)     | We are in the process of transferring this hotel to the lender in full satisfaction of the debt. |

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

|                             |                                                                                                                        |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------|
| (h)     | As a result of a rating down-grade in February 2009, the interest rate on the 81⁄2% senior notes increased to 9%. |

----

|                               |                                       |         |                                      |        |        |         |         |        |        |         |        |        |   |         |        |
|-------------------------------|---------------------------------------|---------|--------------------------------------|--------|--------|---------|---------|--------|--------|---------|--------|--------|---|---------|--------|
|                          | Three Months Ended September 30, |    | Nine Months Ended September 30, |
|                          | 2010                                  |    | 2009                                 |   | 2010   |    | 2009    |
| Room revenue                  | $                                     | 193,641 |                                 |   | $      | 178,795 |    |   | $      | 564,086 |   |   | $ | 539,949 |   |
| Food and beverage revenue     | 33,076                                |    |                                 | 29,207 |   |    | 106,796 |   |   | 99,583  |   |
| Other operating departments   | 15,227                                |    |                                 | 14,258 |   |    | 43,055  |   |   | 42,484  |   |
| Total hotel operating revenue | $                                     | 241,944 |                                 |   | $      | 222,260 |    |   | $      | 713,937 |   |   | $ | 682,016 |   |

----

|                                   |                                       |        |                                          |        |              |        |                                          |        |        |        |        |      |   |
|-----------------------------------|---------------------------------------|--------|------------------------------------------|--------|--------------|--------|------------------------------------------|--------|--------|--------|--------|------|---|
|                              | Three Months Ended September 30, |
|                              | 2010                                  |   | 2009                                     |
|                              |  Amount                          |   |  % of Total Hotel Operating Revenue |   |  Amount |   |  % of Total Hotel Operating Revenue |
| Room                              | $                                     | 52,636 |                                     |   | 21.8         | %      |                                     | $      | 48,473 |   |   | 21.8 | % |
| Food and beverage                 | 27,830                                |   |                                     | 11.5   |         |   | 25,657                                   |   |   | 11.5   |   |
| Other operating departments       | 6,535                                 |   |                                     | 2.7    |         |   | 6,661                                    |   |   | 3.0    |   |
| Total hotel departmental expenses | $                                     | 87,001 |                                     |   | 36.0         | %      |                                     | $      | 80,791 |   |   | 36.3 | % |

|                                   |                                      |         |                                          |        |              |        |                                          |        |         |        |        |      |   |
|-----------------------------------|--------------------------------------|---------|------------------------------------------|--------|--------------|--------|------------------------------------------|--------|---------|--------|--------|------|---|
|                              | Nine Months Ended September 30, |
|                              | 2010                                 |    | 2009                                     |
|                              |  Amount                         |    |  % of Total Hotel Operating Revenue |   |  Amount |   |  % of Total Hotel Operating Revenue |
| Room                              | $                                    | 150,793 |                                     |   | 21.1         | %      |                                     | $      | 140,671 |   |   | 20.6 | % |
| Food and beverage                 | 84,623                               |    |                                     | 11.9   |         |   | 80,647                                   |   |    | 11.8   |   |
| Other operating departments       | 19,053                               |    |                                     | 2.6    |         |   | 18,957                                   |   |    | 2.8    |   |
| Total hotel departmental expenses | $                                    | 254,469 |                                     |   | 35.6         | %      |                                     | $      | 240,275 |   |   | 35.2 | % |

|                                          |                                       |        |                                          |        |              |        |                                          |        |        |        |        |      |   |
|------------------------------------------|---------------------------------------|--------|------------------------------------------|--------|--------------|--------|------------------------------------------|--------|--------|--------|--------|------|---|
|                                     | Three Months Ended September 30, |
|                                     | 2010                                  |   | 2009                                     |
|                                     |  Amount                          |   |  % of Total Hotel Operating Revenue |   |  Amount |   |  % of Total Hotel Operating Revenue |
| Hotel general and administrative expense | $                                     | 22,321 |                                     |   | 9.2          | %      |                                     | $      | 19,901 |   |   | 9.0  | % |
| Marketing                                | 20,514                                |   |                                     | 8.5    |         |   | 18,288                                   |   |   | 8.2    |   |
| Repair and maintenance                   | 12,978                                |   |                                     | 5.4    |         |   | 12,117                                   |   |   | 5.5    |   |
| Utilities                                | 14,081                                |   |                                     | 5.8    |         |   | 13,472                                   |   |   | 6.0    |   |
| Total other property operating costs     | $                                     | 69,894 |                                     |   | 28.9         | %      |                                     | $      | 63,778 |   |   | 28.7 | % |

----

|                                          |                                      |         |                                          |        |                            |        |                                          |        |         |        |        |      |   |
|------------------------------------------|--------------------------------------|---------|------------------------------------------|--------|----------------------------|--------|------------------------------------------|--------|---------|--------|--------|------|---|
|                                     | Nine Months Ended September 30, |
|                                     | 2010                                 |    | 2009                                     |
|                                     |      Amount           |    |  % of Total Hotel Operating Revenue |   |      Amount |   |  % of Total Hotel Operating Revenue |
| Hotel general and administrative expense | $                                    | 64,897  |                                     |   | 9.1                        | %      |                                     | $      | 60,819  |   |   | 8.9  | % |
| Marketing                                | 60,785                               |    |                                     | 8.5    |                       |   | 57,140                                   |   |    | 8.4    |   |
| Repair and maintenance                   | 38,493                               |    |                                     | 5.4    |                       |   | 36,451                                   |   |    | 5.3    |   |
| Utilities                                | 37,526                               |    |                                     | 5.3    |                       |   | 37,551                                   |   |    | 5.5    |   |
| Total other property operating costs     | $                                    | 201,701 |                                     |   | 28.3                       | %      |                                     | $      | 191,961 |   |   | 28.1 | % |

|                                                                      |                                       |        |                                      |        |        |        |        |        |        |        |        |        |   |        |        |
|----------------------------------------------------------------------|---------------------------------------|--------|--------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---|--------|--------|
|                                                                 | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                                 | 2010                                  |   | 2009                                 |   | 2010   |   | 2009   |
| Hotel lease expense(a)                                          | $                                     | 11,827 |                                 |   | $      | 10,893 |   |   | $      | 33,090 |   |   | $ | 31,805 |   |
| Land lease expense(b)                                           | 3,044                                 |   |                                 | 2,590  |   |   | 7,749  |   |   | 7,215  |   |
| Real estate and other taxes                                          | 8,669                                 |   |                                 | 9,049  |   |   | 27,705 |   |   | 26,604 |   |
| Property insurance, general liability  insurance and other | 2,971                                 |   |                                 | 2,340  |   |   | 9,369  |   |   | 8,575  |   |
|   Total taxes, insurance and lease expense                 | $                                     | 26,511 |                                 |   | $      | 24,872 |   |   | $      | 77,913 |   |   | $ | 74,199 |   |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | Hotel lease expense is recorded by the consolidated operating lessees of 13 hotels owned by unconsolidated entities, and is partially offset through noncontrolling interests in other partnerships.  Our 50% share of the corresponding lease income is recorded through equity in income from unconsolidated entities.  Hotel lease expense includes percentage rent of $4.7 million and $3.9 million for the three months ended September 30, 2010 and 2009, respectively, and $11.8 million and $10.7 million for the nine months ended September 30, 2010 and 2009, respectively. |

|                             |                                                                                                                                                                                                                                                                                         |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)     | Land lease expense includes percentage rent of $1.6 million and $1.3 million for the three months ended September 30, 2010 and 2009, respectively, and $3.2 million and $3.0 million for the nine months ended September 30, 2010 and 2009, respectively. |

----

----

|                                            |                                       |        |                                      |         |        |           |        |         |        |           |        |         |        |           |   |        |        |        |
|--------------------------------------------|---------------------------------------|--------|--------------------------------------|---------|--------|-----------|--------|---------|--------|-----------|--------|---------|--------|-----------|---|--------|--------|--------|
|                                       | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                       | 2010                                  |   | 2009                                 |    | 2010   |      | 2009   |
| Hotel operating revenue                    | $                                     | 1,538  |                                 |    | $      | 6,668     |   |    |   | $         | 4,929  |    |   |      | $ | 22,495 |   |   |
| Operating expenses                         | (1,727                                | )      |                                 | (9,682  | )      | (a)  |   | (12,960 | )      | (b)  |   | (25,952 | )      | (c)  |
| Loss from discontinued operations          | $                                     | (189   | )                                    |    | $      | (3,014    | )      |    |   | $         | (8,031 | )       |   |      | $ | (3,457 | )      |   |
| Interest expense, net                      | (388                                  | )      |                                 | (412    | )      |      |   | (1,271  | )      |      |   | (1,200  | )      |      |
| Extinguishment of debt                     | 8,261                                 |   |                                 | — |   |      |   | 8,243   |   |      |   | — |   |      |
| Income (loss) from discontinued operations | $                                     | 7,684  |                                 |    | $      | (3,426    | )      |    |   | $         | (1,059 | )       |   |      | $ | (4,657 | )      |   |

|                             |                                                  |
|-----------------------------|--------------------------------------------------|
| (a)     | Includes impairment charge of $2.1 million. |

|                             |                                                  |
|-----------------------------|--------------------------------------------------|
| (b)     | Includes impairment charge of $7.7 million. |

|                             |                                                  |
|-----------------------------|--------------------------------------------------|
| (c)     | Includes impairment charge of $3.4 million. |

|                                                                                                                |                                       |         |                                      |        |         |        |         |          |        |           |          |         |        |        |   |         |   |
|----------------------------------------------------------------------------------------------------------------|---------------------------------------|---------|--------------------------------------|--------|---------|--------|---------|----------|--------|-----------|----------|---------|--------|--------|---|---------|---|
|                                                                                                           | Three Months Ended September 30, |    | Nine Months Ended September 30, |
|                                                                                                           | 2010                                  |    |                                 | 2009   |    | 2010   |    |     | 2009   |
| Numerator:                                                                                                     |                                  |    |                                 |   |    |   |    |     |   |
| Net loss attributable to FelCor LP                                                                             | $                                     | (89,107 | )                                    |   |    | $      | (25,300 | )        |   | $         | (130,155 | )       |   |   | $ | (57,798 | ) |
| Discontinued operations attributable to FelCor LP                                                              | (7,684                                | )       |                                 |   | 3,426   |   |    | 1,059    |   |      |     | 4,657   |   |
| Loss from continuing operations   attributable to FelCor LP                                                    | (96,791                               | )       |                                 |   | (21,874 | )      |    | (129,096 | )      |      |     | (53,141 | )      |
|  Less: Preferred distributions                                                                            | (9,678                                | )       |                                 |   | (9,678  | )      |    | (29,034  | )      |      |     | (29,034 | )      |
| Numerator for continuing operations    attributable to FelCor LP common unitholders                            | (106,469                              | )       |                                 |   | (31,552 | )      |    | (158,130 | )      |      |     | (82,175 | )      |
| Discontinued operations attributable to FelCor LP                                                              | 7,684                                 |    |                                 |   | (3,426  | )      |    | (1,059   | )      |      |     | (4,657  | )      |
| Numerator for basic and diluted loss attributable     to FelCor LP common unitholders | $                                     | (98,785 | )                                    |   |    | $      | (34,978 | )        |   | $         | (159,189 | )       |   |   | $ | (86,832 | ) |
| Denominator:                                                                                                   |                                  |    |                                 |   |    |   |    |     |   |
| Denominator for basic and diluted loss per unit                                                                | 95,329                                |    | (a)                             |   | 63,382  |   |    | 75,430   |   | (a)  |     | 63,417  |   |
| Basic and diluted loss per unit data:                                                                          |                                  |    |                                 |   |    |   |    |     |   |
| Loss from continuing operations                                                                                | $                                     | (1.12   | )                                    |   |    | $      | (0.50   | )        |   | $         | (2.10    | )       |   |   | $ | (1.30   | ) |
| Discontinued operations                                                                                        | $                                     | 0.08    |                                 |   |    | $      | (0.05   | )        |   | $         | (0.01    | )       |   |   | $ | (0.07   | ) |
| Net loss                                                                                                       | $                                     | (1.04   | )                                    |   |    | $      | (0.55   | )        |   | $         | (2.11    | )       |   |   | $ | (1.37   | ) |

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

----

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

----

----

|                                                                   |        |           |           |                       |         |                            |         |              |        |                    |            |        |        |           |            |        |        |   |           |        |
|-------------------------------------------------------------------|--------|-----------|-----------|-----------------------|---------|----------------------------|---------|--------------|--------|--------------------|------------|--------|--------|-----------|------------|--------|--------|---|-----------|--------|
|                                                              |   | FelCor LP |      | Subsidiary Guarantors |    | Non-Guarantor Subsidiaries |    | Eliminations |   | Total Consolidated |
| Net investment in hotel properties                                |   | $         | 81,433    |                  |    | $                          | 407,256 |         |   | $                  | 1,612,555  |   |   | $         | —    |   |   | $ | 2,101,244 |   |
| Equity investment in consolidated    entities |   | 1,113,009 |      |                  | — |                       |    | —      |   |               | (1,113,009 | )      |   | —   |       |
| Investment in unconsolidated    entities      |   | 88,357    |      |                  | 13,153  |                       |    | 1,447        |   |               | —    |   |   | 102,957   |       |
| Cash and cash equivalents                                         |   | 146,547   |      |                  | 45,109  |                       |    | 822          |   |               | —    |   |   | 192,478   |       |
| Restricted cash                                                   |   | —   |      |                  | 5,559   |                       |    | 15,027       |   |               | —    |   |   | 20,586    |       |
| Accounts receivable                                               |   | 511       |      |                  | 36,031  |                       |    | 86           |   |               | —    |   |   | 36,628    |       |
| Deferred expenses                                                 |   | 11,685    |      |                  | — |                       |    | 10,016       |   |               | —    |   |   | 21,701    |       |
| Other assets                                                      |   | 9,777     |      |                  | 22,523  |                       |    | 5,299        |   |               | —    |   |   | 37,599    |       |
|                                                              |   |      |      |                  |    |                       |    |         |   |               |
| Total assets                                                      |   | $         | 1,451,319 |                  |    | $                          | 529,631 |         |   | $                  | 1,645,252  |   |   | $         | (1,113,009 | )      |   | $ | 2,513,193 |   |
|                                                              |   |      |      |                  |    |                       |    |         |   |               |
| Debt                                                              |   | $         | 666,728   |                  |    | $                          | — |         |   | $                  | 906,674    |   |   | $         | —    |   |   | $ | 1,573,402 |   |
| Distributions payable                                             |   | 66,615    |      |                  | — |                       |    | —      |   |               | —    |   |   | 66,615    |       |
| Accrued expenses and other    liabilities     |   | 46,313    |      |                  | 112,892 |                       |    | 21,355       |   |               | —    |   |   | 180,560   |       |
|                                                              |   |      |      |                  |    |                       |    |         |   |               |
| Total liabilities                                                 |   | 779,656   |      |                  | 112,892 |                       |    | 928,029      |   |               | —    |   |   | 1,820,577 |       |
|                                                              |   |      |      |                  |    |                       |    |         |   |               |
| Redeemable units, at redemption    value      |   | 1,357     |      |                  | — |                       |    | —      |   |               | —    |   |   | 1,357     |       |
|                                                              |   |      |      |                  |    |                       |    |         |   |               |
| Preferred units                                                   |   | 478,774   |      |                  | — |                       |    | —      |   |               | —    |   |   | 478,774   |       |
| Common units                                                      |   | 191,532   |      |                  | 392,062 |                       |    | 696,035      |   |               | (1,113,009 | )      |   | 166,620   |       |
| Accumulated other comprehensive    income     |   | —   |      |                  | 24,912  |                       |    | —      |   |               | —    |   |   | 24,912    |       |
| Total FelCor LP partners’    capital    |   | 670,306   |      |                  | 416,974 |                       |    | 696,035      |   |               | (1,113,009 | )      |   | 670,306   |       |
| Noncontrolling interests                                          |   | —   |      |                  | (235    | )                          |    | 21,188       |   |               | —    |   |   | 20,953    |       |
| Total capital                                                     |   | 670,306   |      |                  | 416,739 |                       |    | 717,223      |   |               | (1,113,009 | )      |   | 691,259   |       |
| Total liabilities and capital                                     |   | $         | 1,451,319 |                  |    | $                          | 529,631 |         |   | $                  | 1,645,252  |   |   | $         | (1,113,009 | )      |   | $ | 2,513,193 |   |

----

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

----

|                                                                                                                                                                     |        |           |         |                       |         |                            |         |              |        |                    |         |        |        |         |         |        |        |   |         |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------|-----------------------|---------|----------------------------|---------|--------------|--------|--------------------|---------|--------|--------|---------|---------|--------|--------|---|---------|--------|
|                                                                                                                                                                |   | FelCor LP |    | Subsidiary Guarantors |    | Non-Guarantor Subsidiaries |    | Eliminations |   | Total Consolidated |
| Revenues:                                                                                                                                                           |   |      |    |                  |    |                       |    |         |   |               |
| Hotel operating revenue                                                                                                                                             |   | $         | — |                  |    | $                          | 241,944 |         |   | $                  | — |   |   | $       | — |   |   | $ | 241,944 |   |
| Percentage lease revenue                                                                                                                                            |   | 3,715     |    |                  | — |                       |    | 53,361       |   |               | (57,076 | )      |   | — |    |
| Other revenue                                                                                                                                                       |   | —   |    |                  | 1,286   |                       |    | 135          |   |               | — |   |   | 1,421   |    |
| Total revenue                                                                                                                                                       |   | 3,715     |    |                  | 243,230 |                       |    | 53,496       |   |               | (57,076 | )      |   | 243,365 |    |
|                                                                                                                                                                |   |      |    |                  |    |                       |    |         |   |               |
| Expenses:                                                                                                                                                           |   |      |    |                  |    |                       |    |         |   |               |
| Hotel operating expenses                                                                                                                                            |   | —   |    |                  | 168,440 |                       |    | —      |   |               | — |   |   | 168,440 |    |
| Taxes, insurance and lease expense                                                                                                                                  |   | 284       |    |                  | 74,946  |                       |    | 8,357        |   |               | (57,076 | )      |   | 26,511  |    |
| Corporate expenses                                                                                                                                                  |   | 234       |    |                  | 3,091   |                       |    | 3,239        |   |               | — |   |   | 6,564   |    |
| Depreciation and amortization                                                                                                                                       |   | 1,880     |    |                  | 8,649   |                       |    | 26,035       |   |               | — |   |   | 36,564  |    |
| Impairment loss                                                                                                                                                     |   | 1,173     |    |                  | 15,156  |                       |    | 49,520       |   |               | — |   |   | 65,849  |    |
| Other expenses                                                                                                                                                      |   | (9        | )       |                  | 835     |                       |    | 505          |   |               | — |   |   | 1,331   |    |
| Total operating expenses                                                                                                                                            |   | 3,562     |    |                  | 271,117 |                       |    | 87,656       |   |               | (57,076 | )      |   | 305,259 |    |
| Operating income (loss)                                                                                                                                             |   | 153       |    |                  | (27,887 | )                          |    | (34,160      | )      |               | — |   |   | (61,894 | )       |
| Interest expense, net                                                                                                                                               |   | (20,433   | )       |                  | (711    | )                          |    | (14,003      | )      |               | — |   |   | (35,147 | )       |
| Extinguishment of debt                                                                                                                                              |   | —   |    |                  | (137    | )                          |    | (88          | )      |               | — |   |   | (225    | )       |
| Income (loss) before equity    in income (loss) from      unconsolidated entities and    noncontrolling interests |   | (20,280   | )       |                  | (28,735 | )                          |    | (48,251      | )      |               | — |   |   | (97,266 | )       |
| Equity in income (loss) from    consolidated entities                                                                                                |   | (68,780   | )       |                  | — |                       |    | —      |   |               | 68,780  |   |   | — |    |
| Equity in income (loss) from   unconsolidated entities                                                                                               |   | (47       | )       |                  | 366     |                       |    | (17          | )      |               | — |   |   | 302     |    |
| Income (loss) from continuing   operations                                                                                                           |   | (89,107   | )       |                  | (28,369 | )                          |    | (48,268      | )      |               | 68,780  |   |   | (96,964 | )       |
| Discontinued operations                                                                                                                                             |   | —   |    |                  | (172    | )                          |    | 7,856        |   |               | — |   |   | 7,684   |    |
| Net income (loss)                                                                                                                                                   |   | (89,107   | )       |                  | (28,541 | )                          |    | (40,412      | )      |               | 68,780  |   |   | (89,280 | )       |
| Net income attributable to   noncontrolling interests                                                                                                |   | —   |    |                  | 147     |                       |    | 26           |   |               | — |   |   | 173     |    |
| Net income (loss) attributable to   FelCor LP                                                                                                        |   | (89,107   | )       |                  | (28,394 | )                          |    | (40,386      | )      |               | 68,780  |   |   | (89,107 | )       |
| Preferred distributions                                                                                                                                             |   | (9,678    | )       |                  | — |                       |    | —      |   |               | — |   |   | (9,678  | )       |
| Net income (loss) attributable to   FelCor LP common unitholders                                                                                     |   | $         | (98,785 | )                     |    | $                          | (28,394 | )            |   | $                  | (40,386 | )      |   | $       | 68,780  |   |   | $ | (98,785 | )      |

----

|                                                                                                                                                                                       |        |           |         |                       |         |                            |         |              |        |                    |         |        |        |         |         |        |        |   |         |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------|-----------------------|---------|----------------------------|---------|--------------|--------|--------------------|---------|--------|--------|---------|---------|--------|--------|---|---------|--------|
|                                                                                                                                                                                  |   | FelCor LP |    | Subsidiary Guarantors |    | Non-Guarantor Subsidiaries |    | Eliminations |   | Total Consolidated |
| Revenues:                                                                                                                                                                             |   |      |    |                  |    |                       |    |         |   |               |
| Hotel operating revenue                                                                                                                                                               |   | $         | — |                  |    | $                          | 222,260 |         |   | $                  | — |   |   | $       | — |   |   | $ | 222,260 |   |
| Percentage lease revenue                                                                                                                                                              |   | 3,772     |    |                  | — |                       |    | 46,825       |   |               | (50,597 | )      |   | — |    |
| Other revenue                                                                                                                                                                         |   | 1         |    |                  | 1,157   |                       |    | 122          |   |               | — |   |   | 1,280   |    |
| Total revenue                                                                                                                                                                         |   | 3,773     |    |                  | 223,417 |                       |    | 46,947       |   |               | (50,597 | )      |   | 223,540 |    |
|                                                                                                                                                                                  |   |      |    |                  |    |                       |    |         |   |               |
| Expenses:                                                                                                                                                                             |   |      |    |                  |    |                       |    |         |   |               |
| Hotel operating expenses                                                                                                                                                              |   | —   |    |                  | 155,544 |                       |    | —      |   |               | — |   |   | 155,544 |    |
| Taxes, insurance and lease expense                                                                                                                                                    |   | 430       |    |                  | 65,515  |                       |    | 9,524        |   |               | (50,597 | )      |   | 24,872  |    |
| Corporate expenses                                                                                                                                                                    |   | 162       |    |                  | 2,310   |                       |    | 1,999        |   |               | — |   |   | 4,471   |    |
| Depreciation and amortization                                                                                                                                                         |   | 2,067     |    |                  | 8,428   |                       |    | 26,371       |   |               | — |   |   | 36,866  |    |
| Other expenses                                                                                                                                                                        |   | 63        |    |                  | 949     |                       |    | 19           |   |               | — |   |   | 1,031   |    |
| Total operating expenses                                                                                                                                                              |   | 2,722     |    |                  | 232,746 |                       |    | 37,913       |   |               | (50,597 | )      |   | 222,784 |    |
| Operating income (loss)                                                                                                                                                               |   | 1,051     |    |                  | (9,329  | )                          |    | 9,034        |   |               | — |   |   | 756     |    |
| Interest expense, net                                                                                                                                                                 |   | (8,524    | )       |                  | (505    | )                          |    | (14,986      | )      |               | — |   |   | (24,015 | )       |
| Extinguishment of debt                                                                                                                                                                |   | —   |    |                  | — |                       |    | —      |   |               | — |   |   | — |    |
| Income (loss) before equity    in income (loss) from    unconsolidated entities and    noncontrolling interests |   | (7,473    | )       |                  | (9,834  | )                          |    | (5,952       | )      |               | — |   |   | (23,259 | )       |
| Equity in income (loss) from    consolidated entities                                                                                                             |   | (18,002   | )       |                  | — |                       |    | —      |   |               | 18,002  |   |   | — |    |
| Equity in income (loss) from    unconsolidated entities                                                                                                           |   | 175       |    |                  | 331     |                       |    | (18          | )      |               | — |   |   | 488     |    |
| Gain on sale of asset                                                                                                                                                                 |   | —   |    |                  | — |                       |    | 723          |   |               | — |   |   | 723     |    |
| Loss from continuing operations                                                                                                                                                       |   | (25,300   | )       |                  | (9,503  | )                          |    | (5,247       | )      |               | 18,002  |   |   | (22,048 | )       |
| Discontinued operations                                                                                                                                                               |   | —   |    |                  | (3,012  | )                          |    | (414         | )      |               | — |   |   | (3,426  | )       |
| Net loss                                                                                                                                                                              |   | (25,300   | )       |                  | (12,515 | )                          |    | (5,661       | )      |               | 18,002  |   |   | (25,474 | )       |
| Net loss (income) attributable to    noncontrolling interests                                                                                                     |   | —   |    |                  | 81      |                       |    | 93           |   |               | — |   |   | 174     |    |
| Net loss attributable to FelCor LP                                                                                                                                                    |   | (25,300   | )       |                  | (12,434 | )                          |    | (5,568       | )      |               | 18,002  |   |   | (25,300 | )       |
| Preferred distributions                                                                                                                                                               |   | (9,678    | )       |                  | — |                       |    | —      |   |               | — |   |   | (9,678  | )       |
| Net loss attributable to FelCor LP    common unitholders                                                                                                          |   | $         | (34,978 | )                     |    | $                          | (12,434 | )            |   | $                  | (5,568  | )      |   | $       | 18,002  |   |   | $ | (34,978 | )      |

----

|                                                                                                                                                           |        |           |          |                       |         |                            |         |              |        |                    |          |        |        |          |         |        |        |   |          |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|----------|-----------------------|---------|----------------------------|---------|--------------|--------|--------------------|----------|--------|--------|----------|---------|--------|--------|---|----------|--------|
|                                                                                                                                                      |   | FelCor LP |     | Subsidiary Guarantors |    | Non-Guarantor Subsidiaries |    | Eliminations |   | Total Consolidated |
| Revenues:                                                                                                                                                 |   |      |     |                  |    |                       |    |         |   |               |
| Hotel operating revenue                                                                                                                                   |   | $         | —  |                  |    | $                          | 713,937 |         |   | $                  | —  |   |   | $        | — |   |   | $ | 713,937  |   |
| Percentage lease revenue                                                                                                                                  |   | 8,820     |     |                  | — |                       |    | 157,336      |   |               | (166,156 | )      |   | —  |    |
| Other revenue                                                                                                                                             |   | 1         |     |                  | 2,517   |                       |    | 275          |   |               | —  |   |   | 2,793    |    |
| Total revenue                                                                                                                                             |   | 8,821     |     |                  | 716,454 |                       |    | 157,611      |   |               | (166,156 | )      |   | 716,730  |    |
|                                                                                                                                                      |   |      |     |                  |    |                       |    |         |   |               |
| Expenses:                                                                                                                                                 |   |      |     |                  |    |                       |    |         |   |               |
| Hotel operating expenses                                                                                                                                  |   | —   |     |                  | 489,966 |                       |    | —      |   |               | —  |   |   | 489,966  |    |
| Taxes, insurance and lease expense                                                                                                                        |   | 1,489     |     |                  | 217,011 |                       |    | 25,569       |   |               | (166,156 | )      |   | 77,913   |    |
| Corporate expenses                                                                                                                                        |   | 611       |     |                  | 10,845  |                       |    | 11,465       |   |               | —  |   |   | 22,921   |    |
| Depreciation and amortization                                                                                                                             |   | 5,974     |     |                  | 26,016  |                       |    | 78,464       |   |               | —  |   |   | 110,454  |    |
| Impairment loss                                                                                                                                           |   | 1,173     |     |                  | 15,156  |                       |    | 62,916       |   |               | —  |   |   | 79,245   |    |
| Other expenses                                                                                                                                            |   | 6         |     |                  | 2,400   |                       |    | 287          |   |               | —  |   |   | 2,693    |    |
| Total operating expenses                                                                                                                                  |   | 9,253     |     |                  | 761,394 |                       |    | 178,701      |   |               | (166,156 | )      |   | 783,192  |    |
| Operating income (loss)                                                                                                                                   |   | (432      | )        |                  | (44,940 | )                          |    | (21,090      | )      |               | —  |   |   | (66,462  | )       |
| Interest expense, net                                                                                                                                     |   | (61,271   | )        |                  | (2,126  | )                          |    | (44,281      | )      |               | —  |   |   | (107,678 | )       |
| Extinguishment of debt                                                                                                                                    |   | —   |     |                  | (137    | )                          |    | 45,990       |   |               | —  |   |   | 45,853   |    |
| Income (loss) before equity   in income (loss) from   unconsolidated entities and   noncontrolling interests |   | (61,703   | )        |                  | (47,203 | )                          |    | (19,381      | )      |               | —  |   |   | (128,287 | )       |
| Equity in income (loss) from   consolidated entities                                                                                       |   | (67,438   | )        |                  | — |                       |    | —      |   |               | 67,438   |   |   | —  |    |
| Equity in income (loss) from   unconsolidated entities                                                                                     |   | (1,014    | )        |                  | (59     | )                          |    | 187          |   |               | —  |   |   | (886     | )       |
| Loss from continuing operations                                                                                                                           |   | (130,155  | )        |                  | (47,262 | )                          |    | (19,194      | )      |               | 67,438   |   |   | (129,173 | )       |
| Discontinued operations                                                                                                                                   |   | —   |     |                  | (361    | )                          |    | (698         | )      |               | —  |   |   | (1,059   | )       |
| Net income (loss)                                                                                                                                         |   | (130,155  | )        |                  | (47,623 | )                          |    | (19,892      | )      |               | 67,438   |   |   | (130,232 | )       |
| Net loss (income) attributable   to noncontrolling interests                                                                          |   | —   |     |                  | 38      |                       |    | 39           |   |               | —  |   |   | 77       |    |
| Net loss attributable   to FelCor LP                                                                                                  |   | (130,155  | )        |                  | (47,585 | )                          |    | (19,853      | )      |               | 67,438   |   |   | (130,155 | )       |
| Preferred distributions                                                                                                                                   |   | (29,034   | )        |                  | — |                       |    | —      |   |               | —  |   |   | (29,034  | )       |
| Net loss attributable to   FelCor LP common unitholders                                                                                    |   | $         | (159,189 | )                     |    | $                          | (47,585 | )            |   | $                  | (19,853  | )      |   | $        | 67,438  |   |   | $ | (159,189 | )      |

----

|                                                                                                                                                                     |        |           |         |                       |         |                            |         |              |        |                    |          |        |        |         |         |        |        |   |         |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------|-----------------------|---------|----------------------------|---------|--------------|--------|--------------------|----------|--------|--------|---------|---------|--------|--------|---|---------|--------|
|                                                                                                                                                                |   | FelCor LP |    | Subsidiary Guarantors |    | Non-Guarantor Subsidiaries |    | Eliminations |   | Total Consolidated |
| Revenues:                                                                                                                                                           |   |      |    |                  |    |                       |    |         |   |               |
| Hotel operating revenue                                                                                                                                             |   | $         | — |                  |    | $                          | 682,016 |         |   | $                  | —  |   |   | $       | — |   |   | $ | 682,016 |   |
| Percentage lease revenue                                                                                                                                            |   | 12,876    |    |                  | — |                       |    | 132,038      |   |               | (144,914 | )      |   | — |    |
| Other revenue                                                                                                                                                       |   | 5         |    |                  | 2,285   |                       |    | 264          |   |               | —  |   |   | 2,554   |    |
| Total revenue                                                                                                                                                       |   | 12,881    |    |                  | 684,301 |                       |    | 132,302      |   |               | (144,914 | )      |   | 684,570 |    |
|                                                                                                                                                                |   |      |    |                  |    |                       |    |         |   |               |
| Expenses:                                                                                                                                                           |   |      |    |                  |    |                       |    |         |   |               |
| Hotel operating expenses                                                                                                                                            |   | —   |    |                  | 465,226 |                       |    | —      |   |               | —  |   |   | 465,226 |    |
| Taxes, insurance and lease expense                                                                                                                                  |   | 1,987     |    |                  | 193,472 |                       |    | 23,654       |   |               | (144,914 | )      |   | 74,199  |    |
| Corporate expenses                                                                                                                                                  |   | 603       |    |                  | 9,124   |                       |    | 6,102        |   |               | —  |   |   | 15,829  |    |
| Depreciation and amortization                                                                                                                                       |   | 7,732     |    |                  | 30,389  |                       |    | 70,547       |   |               | —  |   |   | 108,668 |    |
| Other expenses                                                                                                                                                      |   | 75        |    |                  | 3,274   |                       |    | 137          |   |               | —  |   |   | 3,486   |    |
| Total operating expenses                                                                                                                                            |   | 10,397    |    |                  | 701,485 |                       |    | 100,440      |   |               | (144,914 | )      |   | 667,408 |    |
| Operating income (loss)                                                                                                                                             |   | 2,484     |    |                  | (17,184 | )                          |    | 31,862       |   |               | —  |   |   | 17,162  |    |
| Interest expense, net                                                                                                                                               |   | (26,648   | )       |                  | (3,725  | )                          |    | (36,928      | )      |               | —  |   |   | (67,301 | )       |
| Extinguishment of debt                                                                                                                                              |   | (594      | )       |                  | — |                       |    | —      |   |               | —  |   |   | (594    | )       |
| Income (loss) before equity   in income (loss) from   unconsolidated entities   and noncontrolling interests |   | (24,758   | )       |                  | (20,909 | )                          |    | (5,066       | )      |               | —  |   |   | (50,733 | )       |
| Equity in loss from consolidated    entities                                                                                                    |   | (32,196   | )       |                  | — |                       |    | —      |   |               | 32,196   |   |   | — |    |
| Equity in loss from unconsolidated    entities                                                                                                  |   | (844      | )       |                  | (206    | )                          |    | (2,147       | )      |               | —  |   |   | (3,197  | )       |
| Gain on sale of asset                                                                                                                                               |   | —   |    |                  | — |                       |    | 723          |   |               | —  |   |   | 723     |    |
| Loss from continuing operations                                                                                                                                     |   | (57,798   | )       |                  | (21,115 | )                          |    | (6,490       | )      |               | 32,196   |   |   | (53,207 | )       |
| Discontinued operations                                                                                                                                             |   | —   |    |                  | (3,507  | )                          |    | (1,150       | )      |               | —  |   |   | (4,657  | )       |
| Net loss                                                                                                                                                            |   | (57,798   | )       |                  | (24,622 | )                          |    | (7,640       | )      |               | 32,196   |   |   | (57,864 | )       |
| Net loss (income) attributable to    noncontrolling interests                                                                                   |   | —   |    |                  | (252    | )                          |    | 318          |   |               | —  |   |   | 66      |    |
| Net loss attributable to FelCor LP                                                                                                                                  |   | (57,798   | )       |                  | (24,874 | )                          |    | (7,322       | )      |               | 32,196   |   |   | (57,798 | )       |
| Preferred distributions                                                                                                                                             |   | (29,034   | )       |                  | — |                       |    | —      |   |               | —  |   |   | (29,034 | )       |
| Net loss attributable to FelCor LP    common unitholders                                                                                        |   | $         | (86,832 | )                     |    | $                          | (24,874 | )            |   | $                  | (7,322   | )      |   | $       | 32,196  |   |   | $ | (86,832 | )      |

----

|                                                  |        |             |         |                       |        |                            |        |                    |        |        |          |        |        |   |         |        |
|--------------------------------------------------|--------|-------------|---------|-----------------------|--------|----------------------------|--------|--------------------|--------|--------|----------|--------|--------|---|---------|--------|
|                                             |   | FelCor L.P. |    | Subsidiary Guarantors |   | Non-Guarantor Subsidiaries |   | Total Consolidated |
| Cash flows from (used in) operating activities   |   | $           | (34,924 | )                     |   | $                          | 8,939  |               |   | $      | 94,046   |   |   | $ | 68,061  |   |
| Cash flows from (used in) investing activities   |   | (23,987     | )       |                  | (7,092 | )                          |   | (121,663           | )      |   | (152,742 | )      |
| Cash flows from (used in) financing activities   |   | (19,068     | )       |                  | 6,284  |                       |   | 26,268             |   |   | 13,484   |   |
| Effect of exchange rates changes on cash         |   | —     |    |                  | 144    |                       |   | —            |   |   | 144      |   |
| Change in cash and cash equivalents              |   | (77,979     | )       |                  | 8,275  |                       |   | (1,349             | )      |   | (71,053  | )      |
| Cash and cash equivalents at beginning of period |   | 224,526     |    |                  | 36,834 |                       |   | 2,171              |   |   | 263,531  |   |
| Cash and equivalents at end of period            |   | $           | 146,547 |                  |   | $                          | 45,109 |               |   | $      | 822      |   |   | $ | 192,478 |   |

|                                                  |        |           |         |                       |         |                            |        |                    |        |        |         |        |        |   |         |        |
|--------------------------------------------------|--------|-----------|---------|-----------------------|---------|----------------------------|--------|--------------------|--------|--------|---------|--------|--------|---|---------|--------|
|                                             |   | FelCor LP |    | Subsidiary Guarantors |    | Non-Guarantor Subsidiaries |   | Total Consolidated |
| Cash flows from (used in) operating activities   |   | $         | (10,512 | )                     |    | $                          | 10,857 |               |   | $      | 76,064  |   |   | $ | 76,409  |   |
| Cash flows from (used in) investing activities   |   | 2,693     |    |                  | (27,589 | )                          |   | (35,216            | )      |   | (60,112 | )      |
| Cash flows from (used in) financing activities   |   | 80,224    |    |                  | 21,862  |                       |   | (41,868            | )      |   | 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 |   |

----

|                                 |                                                                                              |
|---------------------------------|----------------------------------------------------------------------------------------------|
| Item 2.     | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |

----

|                                |                                                                                                                                                                                                                                                                                                                                                                               |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Total revenue was $243.4 million, an increase of $19.8 million, or 8.9%, compared to the same period in 2009.  The increase in revenue is attributed principally to a 6.3% increase in same-store RevPAR, which reflects a 4.2% increase in occupancy and a 2.1% increase in ADR.  The hotel acquired in August 2010 contributed $5.7 million to the increase. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Hotel departmental expenses increased $6.2 million compared to the same period in 2009 due to higher occupancies and $2.4 million of hotel departmental expenses from the hotel acquired in August 2010.  As a percentage of total revenue, hotel departmental expenses decreased from 36.1% to 35.7%, compared to the same period in 2009.  The improvement as a percentage of revenue was achieved by holding hotel departmental expenses per occupied room flat to prior year while increasing ADR. |

|                                |                                                                                                                                                                                                                                                                                              |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Other property related costs increased $6.1 million due to higher occupancies and $1.2 million of other property related costs from the hotel acquired in August 2010.  As a percentage of total revenue, they remained essentially flat compared to the same period in 2009. |

|                                |                                                                                                                                                                                                                                                                                                                                                      |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Management and franchise fees increased $570,000, compared to the same period in 2009 due to higher revenues (which serve as the basis for determining such fees) and $170,000 of management and franchise fees from the hotel acquired in August 2010. As a percent of total revenue, management and franchise fees remained essentially unchanged. |

|                                |                                                                                                                                                                                                                                                                              |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Taxes, insurance and lease expense increased $1.6 million, compared to the same period in 2009.  This increase includes $392,000 from the hotel acquired in August 2010 and is essentially flat compared to the same period in 2009 as a percent of total revenue. |

|                                |                                                                                                                                                                                                                                                                                       |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Corporate expenses increased $2.1 million and increased as a percentage of total revenue from 2.0% to 2.7%.  This principally reflects increased corporate bonus accruals that resulted from stronger than anticipated performance in 2010 compared to modest 2009 bonuses. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | We recorded a $65.8 million impairment loss in the third quarter of 2010.  These charges relate to our third quarter 2010 decision to market and sell 14 hotels.  Eight of the 14 hotels were impaired in light of the reduced estimated hold periods.  For our 2010 impairment charges, we estimated the hotels’ fair value by using estimated future cash flows, terminal values based on the projected cash flows and capitalization rates in the range of what is reported in industry publications for operationally similar assets and other available market information.  The cash flows used for determining the fair values were discounted using market-based discounts generally used for operationally and geographically similar assets.   |

|                                |                                                                                                                                                                                                          |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Net interest expense increased $11.1 million, compared to the same period in 2009.  This increase primarily reflects additional interest from our senior secured notes issued in October 2009. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Discontinued operations reflects two hotels sold in December 2009 and one hotel transferred to a lender in satisfaction of debt in September 2010.  We recorded an $8.3 million gain from debt extinguishment related to the hotel disposed of in September 2010.  We recorded a $2.1 million impairment charge in the third quarter of 2009 with respect to one of the hotels sold in December 2009. |

----

|                                |                                                                                                                                                                                                                                                                                                                                                                               |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Total revenue was $716.7 million, an increase of $32.2 million, or 4.7%, compared to the same period in 2009.  The increase in revenue is attributed principally to a 3.8% increase in same-store RevPAR, which reflects a 6.5% increase in occupancy and a 2.5% decrease in ADR.  The hotel acquired in August 2010 contributed $5.7 million to the increase. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Hotel departmental expenses increased $14.2 million, compared to the same period in 2009 due to increased occupancies and $2.4 million of hotel departmental expenses from the hotel acquired in August 2010.  As a percentage of total revenue, hotel departmental expenses increased from 35.1% to 35.5%, compared to the same period in 2009.  This increase in expense as a percentage of revenue reflects costs associated with  increased occupancy in the face of decreasing ADR. |

|                                |                                                                                                                                                                                                                                                                                         |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Other property related costs increased $9.7 million due to increased occupancies and $1.2 million of other property related costs from the hotel acquired in August 2010.  As a percentage of total revenue they remained unchanged compared to the same period in 2009. |

|                                |                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Management and franchise fees increased $806,000, compared to the same period in 2009 due to higher revenues (which serve as the basis for determining such fees) and $170,000 of management and franchise fees from the hotel acquired in August 2010.  As a percent of total revenue, management and franchise fees remained essentially unchanged. |

|                                |                                                                                                                                                                                                                                                                    |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Taxes, insurance and lease expense increased $3.7 million, compared to the same period in 2009.  This increase includes $392,000 from the hotel acquired in August 2010 and is essentially flat compared to the same period in 2009 as a percent of total revenue. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Corporate expenses increased $7.1 million and increased as a percentage of total revenue from 2.3% to 3.2%.  This increase primarily reflects a temporary change in how FelCor's long term compensation program is implemented and increased corporate bonus accruals.  Because of the impact of the recession on the trading price of FelCor's common stock, FelCor's Board of Directors determined that issuing restricted stock at exceptionally low trading prices would be unduly dilutive to its stockholders.  In lieu of issuing restricted stock, restricted cash, with which employees could purchase stock, was granted.  Because those grants were subject to payroll tax withholding, amounts withheld were recognized as an expense in the first quarter of 2010, rather than expensed over the normal three-year vesting period.  Another contributing factor is an increase in corporate bonus accruals that resulted from stronger than anticipated performance in 2010 compared to modest 2009 bonuses. |

|                                |                                                                                                                                                                                                  |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Depreciation and amortization expense increased $1.8 million compared to the same period in 2009, which reflects increased depreciation related to hotel capital expenditures completed in 2009. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | We recorded a $65.8 million impairment loss in the third quarter of 2010.  These charges relate to our third quarter decision to market and sell 14 hotels.  Eight of the 14 hotels were impaired in light of the reduced estimated hold periods.  In addition, during the first quarter of 2010, we determined that we would be unable to negotiate satisfactory modifications or reductions on loans secured by two hotels that make sense for our unitholders.  The disposition of one of these hotels was completed in September 2010, and that hotel is now included in discontinued operations.  We recorded a $13.4 million impairment charge in connection with our decision to transfer the remaining hotel to the lender in full satisfaction of the debt secured by that hotel.  For our 2010 impairment charges, we estimated the hotels’ fair value by using estimated future cash flows, terminal values based on the projected cash flows and capitalization rates in the range of what is |

----

|                                |                                                                                                                                                                                                                                                                                                  |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Other expenses decreased $793,000 compared to the same period in 2009, primarily due to the following non-recurring expenses incurred in 2009: hotel-level severance expenses, restaurant lease termination costs and brand conversion costs in 2009 at the San Francisco Marriott Union Square. |

|                                |                                                                                                                                                                                                                           |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Net interest expense increased $40.4 million compared to the same period in 2009.  This increase primarily reflects additional interest from our $636 million senior secured notes issued in October 2009. |

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

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Discontinued operations reflects two hotels sold in December 2009 and one hotel transferred to a lender in satisfaction of debt in September 2010.  We recorded a $7.7 million impairment charge and an $8.2 million gain from debt extinguishment related to a hotel disposed of in September 2010.  We recorded a $3.4 million impairment charge during the nine months ended September 30, 2009 with respect to the hotels sold in December 2009. |

|                                     |                                       |         |                                      |          |        |         |          |        |        |          |        |        |   |         |        |
|-------------------------------------|---------------------------------------|---------|--------------------------------------|----------|--------|---------|----------|--------|--------|----------|--------|--------|---|---------|--------|
|                                | Three Months Ended September 30, |    | Nine Months Ended September 30, |
|                                | 2010                                  |    | 2009                                 |     | 2010   |    | 2009     |
| Total revenues                      | $                                     | 243,365 |                                 |     | $      | 223,540 |     |   | $      | 716,730  |   |   | $ | 684,570 |   |
| Other revenue                       | (1,421                                | )       |                                 | (1,280   | )      |    | (2,793   | )      |   | (2,554   | )      |
| Hotel operating revenue             | 241,944                               |    |                                 | 222,260  |   |    | 713,937  |   |   | 682,016  |   |
| Less: revenue from acquired hotels  | (5,673                                | )       |                                 | —  |   |    | (5,673   | )      |   | —  |   |
| Same-store hotel operating revenue  | 236,271                               |    |                                 | 222,260  |   |    | 708,264  |   |   | 682,016  |   |
| Same-store hotel operating expenses | (180,772                              | )       |                                 | (171,547 | )      |    | (536,191 | )      |   | (513,661 | )      |
| Hotel EBITDA                        | $                                     | 55,499  |                                 |     | $      | 50,713  |     |   | $      | 172,073  |   |   | $ | 168,355 |   |
| Hotel EBITDA margin(a)         | 23.5                                  | %       |                                 | 22.8     | %      |    | 24.3     | %      |   | 24.7     | %      |

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

----

|                                                   |                                       |         |                                      |         |        |         |          |        |        |          |        |        |   |         |        |
|---------------------------------------------------|---------------------------------------|---------|--------------------------------------|---------|--------|---------|----------|--------|--------|----------|--------|--------|---|---------|--------|
|                                              | Three Months Ended September 30, |    | Nine Months Ended September 30, |
|                                              | 2010                                  |    | 2009                                 |    | 2010   |    | 2009     |
| Total operating expenses                          | $                                     | 305,259 |                                 |    | $      | 222,784 |     |   | $      | 783,192  |   |   | $ | 667,408 |   |
| Unconsolidated taxes, insurance and lease expense | 1,801                                 |    |                                 | 2,024   |   |    | 5,555    |   |   | 6,041    |   |
| Consolidated hotel lease expense                  | (11,827                               | )       |                                 | (10,893 | )      |    | (33,090  | )      |   | (31,805  | )      |
| Corporate expenses                                | (6,564                                | )       |                                 | (4,471  | )      |    | (22,921  | )      |   | (15,829  | )      |
| Depreciation and amortization                     | (36,564                               | )       |                                 | (36,866 | )      |    | (110,454 | )      |   | (108,668 | )      |
| Impairment loss                                   | (65,849                               | )       |                                 | — |   |    | (79,245  | )      |   | —  |   |
| Acquired hotel expenses                           | (4,153                                | )       |                                 | — |   |    | (4,153   | )      |   | —  |   |
| Other expenses                                    | (1,331                                | )       |                                 | (1,031  | )      |    | (2,693   | )      |   | (3,486   | )      |
| Same-store hotel operating expenses               | $                                     | 180,772 |                                 |    | $      | 171,547 |     |   | $      | 536,191  |   |   | $ | 513,661 |   |

|                                                      |                                       |         |                                      |         |        |         |         |        |        |          |        |        |   |         |        |
|------------------------------------------------------|---------------------------------------|---------|--------------------------------------|---------|--------|---------|---------|--------|--------|----------|--------|--------|---|---------|--------|
|                                                 | Three Months Ended September 30, |    | Nine Months Ended September 30, |
|                                                 | 2010                                  |    | 2009                                 |    | 2010   |    | 2009    |
| Net loss                                             | $                                     | (89,280 | )                                    |    | $      | (25,474 | )       |   | $      | (130,232 | )      |   | $ | (57,864 | )      |
| Discontinued operations                              | (7,684                                | )       |                                 | 3,426   |   |    | 1,059   |   |   | 4,657    |   |
| EBITDA from acquired hotels                          | (1,520                                | )       |                                 | — |   |    | (1,520  | )      |   | —  |   |
| Equity in loss (income) from unconsolidated entities | (302                                  | )       |                                 | (488    | )      |    | 886     |   |   | 3,197    |   |
| Consolidated hotel lease expense                     | 11,827                                |    |                                 | 10,893  |   |    | 33,090  |   |   | 31,805   |   |
| Unconsolidated taxes, insurance and lease expense    | (1,801                                | )       |                                 | (2,024  | )      |    | (5,555  | )      |   | (6,041   | )      |
| Interest expense, net                                | 35,147                                |    |                                 | 24,015  |   |    | 107,678 |   |   | 67,301   |   |
| Extinguishment of debt                               | 225                                   |    |                                 | — |   |    | (45,853 | )      |   | 594      |   |
| Corporate expenses                                   | 6,564                                 |    |                                 | 4,471   |   |    | 22,921  |   |   | 15,829   |   |
| Depreciation and amortization                        | 36,564                                |    |                                 | 36,866  |   |    | 110,454 |   |   | 108,668  |   |
| Impairment loss                                      | 65,849                                |    |                                 | — |   |    | 79,245  |   |   | —  |   |
| Gain on sale of assets                               | —                               |    |                                 | (723    | )      |    | — |   |   | (723     | )      |
| Other expenses                                       | 1,331                                 |    |                                 | 1,031   |   |    | 2,693   |   |   | 3,486    |   |
| Other revenue                                        | (1,421                                | )       |                                 | (1,280  | )      |    | (2,793  | )      |   | (2,554   | )      |
| Hotel EBITDA                                         | $                                     | 55,499  |                                 |    | $      | 50,713  |    |   | $      | 172,073  |   |   | $ | 168,355 |   |

----

|                                                    |                                       |         |                                      |         |         |        |      |         |        |         |         |
|----------------------------------------------------|---------------------------------------|---------|--------------------------------------|---------|---------|--------|------|---------|--------|---------|---------|
|                                               | Three Months Ended September 30, |    | Nine Months Ended September 30, |
|                                               | 2010                                  |    | 2009                                 |    | 2010    |   | 2009 |
| Ratio of operating income (loss) to total revenues | (25.4                                 | )%      |                                 | 0.3     |  % |   | (9.3 | )%      |   | 2.5     |  % |
| Other revenue                                      | (0.6                                  | )       |                                 | (0.6    | )       |   | (0.4 | )       |   | (0.4    | )       |
| Revenue from acquired hotel                        | (2.9                                  | )       |                                 | — |    |   | (0.7 | )       |   | — |    |
| Unconsolidated taxes, insurance and lease expense  | (0.8                                  | )       |                                 | (0.9    | )       |   | (0.8 | )       |   | (0.9    | )       |
| Consolidated hotel lease expense                   | 5.0                                   |    |                                 | 4.9     |    |   | 4.7  |    |   | 4.6     |    |
| Other expenses                                     | 0.6                                   |    |                                 | 0.6     |    |   | 0.4  |    |   | 0.7     |    |
| Corporate expenses                                 | 2.8                                   |    |                                 | 2.0     |    |   | 3.2  |    |   | 2.3     |    |
| Depreciation and amortization                      | 15.4                                  |    |                                 | 16.5    |    |   | 15.5 |    |   | 15.9    |    |
| Impairment loss                                    | 27.7                                  |    |                                 | — |    |   | 11.1 |    |   | — |    |
| Expenses from acquired hotel                       | 1.7                                   |    |                                 | — |    |   | 0.6  |    |   | — |    |
| Hotel EBITDA margin                                | 23.5                                  |  % |                                 | 22.8    |  % |   | 24.3 |  % |   | 24.7    |  % |

----

|                                                     |                     |        |                                                  |        |        |
|-----------------------------------------------------|---------------------|--------|--------------------------------------------------|--------|--------|
|                                                |    Hotels |   |  Room Count at September 30, 2010 |
| Consolidated Hotels                                 | 83                  |   |                                             | 24,016 |   |
| Unconsolidated hotel operations                     | 1                   |   |                                             | 171    |   |
| Total hotels                                        | 84                  |   |                                             | 24,187 |   |
|                                                |                |   |                                             |
|     50% joint ventures          | 14                  |   |                                             | (1,794 | )      |
|     60% joint venture           | 1                   |   |                                             | (214   | )      |
|     82% joint venture           | 1                   |   |                                             | (40    | )      |
|     90% joint ventures          | 3                   |   |                                             | (68    | )      |
| Pro rata rooms attributed to joint venture partners |                |   | (2,116                                           | )      |
| Pro rata share of rooms owned                       |                |   | 22,071                                           |   |

----

|                          |        |        |        |        |        |        |                        |        |                                      |    |  |
|--------------------------|--------|--------|--------|--------|--------|--------|------------------------|--------|--------------------------------------|----|--|
| Brand                    |   |   | Hotels |   | Rooms  |   |  % of Total Rooms |   |  % of 2009 Hotel EBITDA(a) |
| Embassy Suites Hotels    |   | 46     |   |   | 11,911 |   |                   | 50     |                                 | 60 |
| Holiday Inn              |   | 15     |   |   | 5,154  |   |                   | 22     |                                 | 18 |
| Sheraton and Westin      |   | 9      |   |   | 3,217  |   |                   | 14     |                                 | 9  |
| Doubletree               |   | 7      |   |   | 1,471  |   |                   | 6      |                                 | 7  |
| Renaissance and Marriott |   | 3      |   |   | 1,321  |   |                   | 6      |                                 | 3  |
| Hilton                   |   | 2      |   |   | 559    |   |                   | 2      |                                 | 3  |
|                     |   |   |   |   |   |   |                   |   |                                 |
| Market                   |   |   |   |   |   |   |                   |   |                                 |
| South Florida            |   | 5      |   |   | 1,439  |   |                   | 6      |                                 | 8  |
| Los Angeles area         |   | 4      |   |   | 899    |   |                   | 4      |                                 | 6  |
| Atlanta                  |   | 5      |   |   | 1,462  |   |                   | 6      |                                 | 6  |
| Orlando                  |   | 4      |   |   | 1,038  |   |                   | 4      |                                 | 4  |
| Philadelphia             |   | 2      |   |   | 729    |   |                   | 3      |                                 | 4  |
| Minneapolis              |   | 3      |   |   | 736    |   |                   | 3      |                                 | 4  |
| San Francisco area       |   | 6      |   |   | 2,138  |   |                   | 9      |                                 | 4  |
| Dallas                   |   | 4      |   |   | 1,333  |   |                   | 6      |                                 | 4  |
| Central California Coast |   | 2      |   |   | 408    |   |                   | 2      |                                 | 4  |
| San Antonio              |   | 3      |   |   | 874    |   |                   | 4      |                                 | 3  |
| Myrtle Beach             |   | 2      |   |   | 640    |   |                   | 3      |                                 | 3  |
| Boston                   |   | 2      |   |   | 532    |   |                   | 2      |                                 | 3  |
| San Diego                |   | 1      |   |   | 600    |   |                   | 3      |                                 | 3  |
| Other                    |   | 39     |   |   | 10,805 |   |                   | 45     |                                 | 44 |
|                     |   |   |   |   |   |   |                   |   |                                 |
| Location                 |   |   |   |   |   |   |                   |   |                                 |
| Suburban                 |   | 34     |   |   | 8,560  |   |                   | 36     |                                 | 32 |
| Urban                    |   | 20     |   |   | 6,358  |   |                   | 27     |                                 | 27 |
| Airport                  |   | 18     |   |   | 5,788  |   |                   | 25     |                                 | 24 |
| Resort                   |   | 10     |   |   | 2,927  |   |                   | 12     |                                 | 17 |

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

----

|                          |                                       |        |        |        |                                      |        |         |        |        |        |           |        |        |        |        |      |        |
|--------------------------|---------------------------------------|--------|--------|--------|--------------------------------------|--------|---------|--------|--------|--------|-----------|--------|--------|--------|--------|------|--------|
|                     |  Occupancy (%)                   |
|                     | Three Months Ended September 30, |   |   |   | Nine Months Ended September 30, |   |    |
|                     | 2010                                  |   | 2009   |   | %Variance                            |   | 2010    |   | 2009   |   | %Variance |
| Embassy Suites Hotels    | 73.6                                  |   |   | 70.0   |                                 |   | 5.2     |   |   | 73.2   |      |   | 69.1   |   |   | 5.9  |   |
| Holiday Inn              | 75.3                                  |   |   | 73.8   |                                 |   | 2.1     |   |   | 73.3   |      |   | 69.4   |   |   | 5.6  |   |
| Sheraton and Westin      | 66.3                                  |   |   | 63.6   |                                 |   | 4.4     |   |   | 66.3   |      |   | 61.0   |   |   | 8.7  |   |
| Doubletree               | 74.8                                  |   |   | 67.5   |                                 |   | 10.8    |   |   | 74.0   |      |   | 66.2   |   |   | 11.7 |   |
| Renaissance and Marriott | 62.7                                  |   |   | 66.9   |                                 |   | (6.2    | )      |   | 65.3   |      |   | 61.7   |   |   | 5.8  |   |
| Hilton                   | 80.3                                  |   |   | 77.1   |                                 |   | 4.2     |   |   | 66.6   |      |   | 65.1   |   |   | 2.3  |   |
|                     |                                  |   |   |   |                                 |   |    |   |   |   |      |
| Total hotels             | 72.7                                  |   |   | 69.8   |                                 |   | 4.2     |   |   | 71.7   |      |   | 67.4   |   |   | 6.5  |   |
|                     |                                  |   |   |   |                                 |   |    |   |   |   |      |
|                     |  ADR ($)                         |
|                     | Three Months Ended September 30, |   |   |   | Nine Months Ended September 30, |   |    |
|                     | 2010                                  |   | 2009   |   | %Variance                            |   | 2010    |   | 2009   |   | %Variance |
| Embassy Suites Hotels    | 123.56                                |   |   | 123.60 |                                 |   | — |   |   | 125.40 |      |   | 129.86 |   |   | (3.4 | )      |
| Holiday Inn              | 119.41                                |   |   | 113.79 |                                 |   | 4.9     |   |   | 113.82 |      |   | 113.22 |   |   | 0.5  |   |
| Sheraton and Westin      | 104.07                                |   |   | 100.86 |                                 |   | 3.2     |   |   | 105.69 |      |   | 109.39 |   |   | (3.4 | )      |
| Doubletree               | 113.11                                |   |   | 114.00 |                                 |   | (0.8    | )      |   | 116.33 |      |   | 125.87 |   |   | (7.6 | )      |
| Renaissance and Marriott | 142.59                                |   |   | 130.99 |                                 |   | 8.9     |   |   | 165.27 |      |   | 164.91 |   |   | 0.2  |   |
| Hilton                   | 142.27                                |   |   | 128.93 |                                 |   | 10.4    |   |   | 124.76 |      |   | 118.12 |   |   | 5.6  |   |
|                     |                                  |   |   |   |                                 |   |    |   |   |   |      |
| Total hotels             | 120.85                                |   |   | 118.42 |                                 |   | 2.1     |   |   | 121.60 |      |   | 124.72 |   |   | (2.5 | )      |
|                     |                                  |   |   |   |                                 |   |    |   |   |   |      |
|                     |  RevPAR ($)                      |
|                     | Three Months Ended September 30, |   |   |   | Nine Months Ended September 30, |   |    |
|                     | 2010                                  |   | 2009   |   | %Variance                            |   | 2010    |   | 2009   |   | %Variance |
| Embassy Suites Hotels    | 90.98                                 |   |   | 86.49  |                                 |   | 5.2     |   |   | 91.77  |      |   | 89.71  |   |   | 2.3  |   |
| Holiday Inn              | 89.98                                 |   |   | 83.95  |                                 |   | 7.2     |   |   | 83.45  |      |   | 78.60  |   |   | 6.2  |   |
| Sheraton and Westin      | 69.05                                 |   |   | 64.11  |                                 |   | 7.7     |   |   | 70.04  |      |   | 66.70  |   |   | 5.0  |   |
| Doubletree               | 84.60                                 |   |   | 76.95  |                                 |   | 9.9     |   |   | 86.02  |      |   | 83.32  |   |   | 3.2  |   |
| Renaissance and Marriott | 89.47                                 |   |   | 87.58  |                                 |   | 2.2     |   |   | 107.90 |      |   | 101.79 |   |   | 6.0  |   |
| Hilton                   | 114.20                                |   |   | 99.34  |                                 |   | 15.0    |   |   | 83.12  |      |   | 76.89  |   |   | 8.1  |   |
|                     |                                  |   |   |   |                                 |   |    |   |   |   |      |
| Total hotels             | 87.83                                 |   |   | 82.64  |                                 |   | 6.3     |   |   | 87.25  |      |   | 84.05  |   |   | 3.8  |   |

----

|                          |                                       |        |        |        |                                      |        |         |        |        |        |           |        |        |        |        |      |        |
|--------------------------|---------------------------------------|--------|--------|--------|--------------------------------------|--------|---------|--------|--------|--------|-----------|--------|--------|--------|--------|------|--------|
|                     |  Occupancy (%)                   |
|                     | Three Months Ended September 30, |   |   |   | Nine Months Ended September 30, |   |    |
|                     | 2010                                  |   | 2009   |   | %Variance                            |   | 2010    |   | 2009   |   | %Variance |
| South Florida            | 72.4                                  |   |   | 67.2   |                                 |   | 7.8     |   |   | 77.7   |      |   | 73.3   |   |   | 6.0  |   |
| Los Angeles area         | 79.5                                  |   |   | 75.7   |                                 |   | 5.1     |   |   | 75.9   |      |   | 72.9   |   |   | 4.2  |   |
| Atlanta                  | 74.7                                  |   |   | 72.9   |                                 |   | 2.5     |   |   | 75.0   |      |   | 70.8   |   |   | 5.9  |   |
| Orlando                  | 66.5                                  |   |   | 69.8   |                                 |   | (4.7    | )      |   | 73.7   |      |   | 73.6   |   |   | 0.2  |   |
| Philadelphia             | 79.2                                  |   |   | 72.5   |                                 |   | 9.2     |   |   | 73.4   |      |   | 65.6   |   |   | 11.9 |   |
| Minneapolis              | 82.9                                  |   |   | 77.8   |                                 |   | 6.4     |   |   | 75.5   |      |   | 68.2   |   |   | 10.8 |   |
| San Francisco area       | 83.2                                  |   |   | 81.6   |                                 |   | 1.9     |   |   | 75.8   |      |   | 69.5   |   |   | 9.1  |   |
| Dallas                   | 64.2                                  |   |   | 58.2   |                                 |   | 10.2    |   |   | 65.3   |      |   | 59.5   |   |   | 9.8  |   |
| Central California Coast | 83.1                                  |   |   | 81.0   |                                 |   | 2.6     |   |   | 77.8   |      |   | 78.2   |   |   | (0.5 | )      |
| San Antonio              | 77.9                                  |   |   | 74.7   |                                 |   | 4.3     |   |   | 76.5   |      |   | 72.8   |   |   | 5.1  |   |
| Myrtle Beach             | 82.7                                  |   |   | 80.0   |                                 |   | 3.4     |   |   | 66.9   |      |   | 66.1   |   |   | 1.2  |   |
| Boston                   | 84.6                                  |   |   | 84.4   |                                 |   | 0.3     |   |   | 82.3   |      |   | 78.4   |   |   | 5.0  |   |
| San Diego                | 82.6                                  |   |   | 76.9   |                                 |   | 7.3     |   |   | 77.7   |      |   | 71.7   |   |   | 8.3  |   |
|                     |  ADR ($)                         |
|                     | Three Months Ended September 30, |   |   |   | Nine Months Ended September 30, |   |    |
|                     | 2010                                  |   | 2009   |   | %Variance                            |   | 2010    |   | 2009   |   | %Variance |
| South Florida            | 100.25                                |   |   | 100.94 |                                 |   | (0.7    | )      |   | 127.84 |      |   | 132.67 |   |   | (3.6 | )      |
| Los Angeles area         | 146.10                                |   |   | 141.69 |                                 |   | 3.1     |   |   | 138.45 |      |   | 138.03 |   |   | 0.3  |   |
| Atlanta                  | 104.34                                |   |   | 102.90 |                                 |   | 1.4     |   |   | 104.23 |      |   | 106.24 |   |   | (1.9 | )      |
| Orlando                  | 95.50                                 |   |   | 94.42  |                                 |   | 1.1     |   |   | 106.27 |      |   | 113.72 |   |   | (6.6 | )      |
| Philadelphia             | 128.12                                |   |   | 127.29 |                                 |   | 0.7     |   |   | 124.93 |      |   | 133.86 |   |   | (6.7 | )      |
| Minneapolis              | 126.95                                |   |   | 128.35 |                                 |   | (1.1    | )      |   | 126.36 |      |   | 129.03 |   |   | (2.1 | )      |
| San Francisco area       | 144.56                                |   |   | 132.57 |                                 |   | 9.0     |   |   | 133.03 |      |   | 127.32 |   |   | 4.5  |   |
| Dallas                   | 106.94                                |   |   | 108.58 |                                 |   | (1.5    | )      |   | 110.27 |      |   | 116.83 |   |   | (5.6 | )      |
| Central California Coast | 189.59                                |   |   | 188.12 |                                 |   | 0.8     |   |   | 163.34 |      |   | 160.45 |   |   | 1.8  |   |
| San Antonio              | 98.46                                 |   |   | 102.64 |                                 |   | (4.1    | )      |   | 98.45  |      |   | 104.75 |   |   | (6.0 | )      |
| Myrtle Beach             | 166.08                                |   |   | 159.11 |                                 |   | 4.4     |   |   | 142.90 |      |   | 139.57 |   |   | 2.4  |   |
| Boston                   | 148.27                                |   |   | 138.86 |                                 |   | 6.8     |   |   | 137.49 |      |   | 134.62 |   |   | 2.1  |   |
| San Diego                | 123.95                                |   |   | 123.11 |                                 |   | 0.7     |   |   | 119.28 |      |   | 127.37 |   |   | (6.4 | )      |
|                     |  RevPAR ($)                      |
|                     | Three Months Ended September 30, |   |   |   | Nine Months Ended September 30, |   |    |
|                     | 2010                                  |   | 2009   |   | %Variance                            |   | 2010    |   | 2009   |   | %Variance |
| South Florida            | 72.61                                 |   |   | 67.82  |                                 |   | 7.1     |   |   | 99.29  |      |   | 97.21  |   |   | 2.1  |   |
| Los Angeles area         | 116.19                                |   |   | 107.26 |                                 |   | 8.3     |   |   | 105.10 |      |   | 100.57 |   |   | 4.5  |   |
| Atlanta                  | 77.89                                 |   |   | 74.98  |                                 |   | 3.9     |   |   | 78.12  |      |   | 75.18  |   |   | 3.9  |   |
| Orlando                  | 63.50                                 |   |   | 65.87  |                                 |   | (3.6    | )      |   | 78.37  |      |   | 83.67  |   |   | (6.3 | )      |
| Philadelphia             | 101.42                                |   |   | 92.26  |                                 |   | 9.9     |   |   | 91.69  |      |   | 87.76  |   |   | 4.5  |   |
| Minneapolis              | 105.20                                |   |   | 99.92  |                                 |   | 5.3     |   |   | 95.46  |      |   | 87.96  |   |   | 8.5  |   |
| San Francisco area       | 120.31                                |   |   | 108.24 |                                 |   | 11.2    |   |   | 100.86 |      |   | 88.52  |   |   | 13.9 |   |
| Dallas                   | 68.67                                 |   |   | 63.25  |                                 |   | 8.6     |   |   | 71.98  |      |   | 69.48  |   |   | 3.6  |   |
| Central California Coast | 157.51                                |   |   | 152.39 |                                 |   | 3.4     |   |   | 127.04 |      |   | 125.43 |   |   | 1.3  |   |
| San Antonio              | 76.72                                 |   |   | 76.70  |                                 |   | — |   |   | 75.28  |      |   | 76.22  |   |   | (1.2 | )      |
| Myrtle Beach             | 137.31                                |   |   | 127.24 |                                 |   | 7.9     |   |   | 95.58  |      |   | 92.29  |   |   | 3.6  |   |
| Boston                   | 125.51                                |   |   | 117.14 |                                 |   | 7.1     |   |   | 113.20 |      |   | 105.51 |   |   | 7.3  |   |
| San Diego                | 102.33                                |   |   | 94.72  |                                 |   | 8.0     |   |   | 92.64  |      |   | 91.36  |   |   | 1.4  |   |

----

|                                                          |                               |             |          |             |        |        |        |                  |  |
|----------------------------------------------------------|-------------------------------|-------------|----------|-------------|--------|--------|--------|------------------|--|
| Consolidated Hotels                                      |                          |  Brand |     |  State |   | Rooms  |   |  % Owned(a) |
| Birmingham                                               |  Embassy Suites Hotel    |        |  AL |        | 242    |   |   |
| Phoenix – Biltmore                                 |  Embassy Suites Hotel    |        |  AZ |        | 232    |   |   |
| Phoenix – Crescent                                 |  Sheraton                |        |  AZ |        | 342    |   |   |
| Phoenix – Tempe                                    |  Embassy Suites Hotel    |        |  AZ |        | 224    |   |   |
| Anaheim – North                                    |  Embassy Suites Hotel    |        |  CA |        | 222    |   |   |
| Dana Point – Doheny Beach                          |  Doubletree Guest Suites |        |  CA |        | 196    |   |   |
| Indian Wells – Esmeralda Resort & Spa          |  Renaissance Resort      |        |  CA |        | 560    |   |   |
| Los Angeles – International Airport/South          |  Embassy Suites Hotel    |        |  CA |        | 349    |   |   |
| Milpitas – Silicon Valley                          |  Embassy Suites Hotel    |        |  CA |        | 266    |   |   |
| Napa Valley                                              |  Embassy Suites Hotel    |        |  CA |        | 205    |   |   |
| Oxnard – Mandalay Beach – Hotel & Resort |  Embassy Suites Hotel    |        |  CA |        | 248    |   |   |
| San Diego – On the Bay                             |  Holiday Inn             |        |  CA |        | 600    |   |   |
| San Francisco – Airport/Burlingame                 |  Embassy Suites Hotel    |        |  CA |        | 340    |   |   |
| San Francisco – Airport/South San Francisco        |  Embassy Suites Hotel    |        |  CA |        | 312    |   |   |
| San Francisco – Fisherman’s Wharf            |  Holiday Inn             |        |  CA |        | 585    |   |   |
| San Francisco – Union Square                       |  Marriott                |        |  CA |        | 400    |   |   |
| San Rafael – Marin County                          |  Embassy Suites Hotel    |        |  CA |        | 235    |   | 50     | %                |
| Santa Barbara – Goleta                             |  Holiday Inn             |        |  CA |        | 160    |   |   |
| Santa Monica Beach – at the Pier                   |  Holiday Inn             |        |  CA |        | 132    |   |   |
| Wilmington                                               |  Doubletree              |        |  DE |        | 244    |   | 90     | %                |
| Boca Raton                                               |  Embassy Suites Hotel    |        |  FL |        | 263    |   |   |
| Deerfield Beach – Resort & Spa                 |  Embassy Suites Hotel    |        |  FL |        | 244    |   |   |
| Ft. Lauderdale – 17th Street                       |  Embassy Suites Hotel    |        |  FL |        | 361    |   |   |
| Ft. Lauderdale – Cypress Creek                     |  Sheraton Suites         |        |  FL |        | 253    |   |   |
| Jacksonville – Baymeadows                          |  Embassy Suites Hotel    |        |  FL |        | 277    |   |   |
| Miami – International Airport                      |  Embassy Suites Hotel    |        |  FL |        | 318    |   |   |
| Orlando – International Airport                    |  Holiday Inn             |        |  FL |        | 288    |   |   |
| Orlando – International Drive South/Convention     |  Embassy Suites Hotel    |        |  FL |        | 244    |   |   |
| Orlando– North                                     |  Embassy Suites Hotel    |        |  FL |        | 277    |   |   |
| Orlando – Walt Disney World Resort                 |  Doubletree Guest Suites |        |  FL |        | 229    |   |   |
| St. Petersburg – Vinoy Resort & Golf Club      |  Renaissance Resort      |        |  FL |        | 361    |   |   |
| Tampa – Tampa Bay                                  |  Doubletree Guest Suites |        |  FL |        | 203    |   |   |
| Atlanta – Airport                                  |  Embassy Suites Hotel    |        |  GA |        | 232    |   |   |
| Atlanta – Buckhead                                 |  Embassy Suites Hotel    |        |  GA |        | 316    |   |   |
| Atlanta – Galleria                                 |  Sheraton Suites         |        |  GA |        | 278    |   |   |
| Atlanta – Gateway – Atlanta Airport          |  Sheraton                |        |  GA |        | 395    |   |   |
| Atlanta – Perimeter Center                         |  Embassy Suites Hotel    |        |  GA |        | 241    |   | 50     | %                |
| Chicago – Lombard/Oak Brook                        |  Embassy Suites Hotel    |        |  IL |        | 262    |   | 50     | %                |
| Chicago – North Shore/Deerfield                    |  Embassy Suites Hotel    |        |  IL |        | 237    |   |   |
| Chicago – Gateway – O’Hare             |  Sheraton Suites         |        |  IL |        | 296    |   |   |
| Indianapolis – North                               |  Embassy Suites Hotel    |        |  IN |        | 221    |   | 82     | %                |
| Kansas City – Overland Park                        |  Embassy Suites Hotel    |        |  KS |        | 199    |   | 50     | %                |
| Lexington – Lexington Green                        |  Hilton Suites           |        |  KY |        | 174    |   |   |
| Baton Rouge                                              |  Embassy Suites Hotel    |        |  LA |        | 223    |   |   |

----

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

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

----

----

----

----

|                                 |                                                             |
|---------------------------------|-------------------------------------------------------------|
| Item 3.     | Quantitative and Qualitative Disclosures about Market Risk. |

|                                                 |                              |        |        |         |        |         |        |        |        |        |                  |        |             |        |                  |           |        |         |         |        |        |         |         |        |   |           |        |        |        |           |        |
|-------------------------------------------------|------------------------------|--------|--------|---------|--------|---------|--------|--------|--------|--------|------------------|--------|-------------|--------|------------------|-----------|--------|---------|---------|--------|--------|---------|---------|--------|---|-----------|--------|--------|--------|-----------|--------|
|                                            |  Expected Maturity Date |
|                                            | 2010                         |   | 2011   |    | 2012   |    | 2013   |   | 2014   |   |  Thereafter |   |  Total |   |  Fair Value |
| Liabilities                                     |                         |
| Fixed-rate:                                     |                         |   |   |    |   |    |   |   |   |   |             |   |        |   |             |
| Debt                                            | $                            | 15,935 |   |    | $      | 100,635 |   |   | $      | 4,555  |             |   | $           | 32,702 |             |      | $      | 804,869 |    |   | $      | 9,376   |    |   | $ | 968,072   |   |   | $      | 1,038,720 |   |
| Average interest     rate   | 8.53                         | %      |   | 8.72    | %      |    | 7.68   | %      |   | 8.61   | %                |   | 9.61        | %      |             | 5.81      | %      |    | 9.42    | %      |   |    |    |
| Floating-rate:                                  |                         |   |   |    |   |    |   |   |   |   |             |   |        |   |             |      |   |    |    |   |   |    |    |
| Debt                                            | 500                          |   |   | 449,943 |   |    | 1,833  |   |   | 1,986  |             |   | 2,153       |   |             | 204,887   |   |    | 661,302 |   |   | $       | 643,686 |   |
| Average interest    rate(a) | 5.50                         | %      |   | 3.24    | %      |    | 8.10   | %      |   | 8.10   | %                |   | 8.10        | %      |             | 8.10      | %      |    | 4.79    | %      |   |    |    |
|   Total debt                          | $                            | 16,435 |   |    | $      | 550,578 |   |   | $      | 6,388  |             |   | $           | 34,688 |             |      | $      | 807,022 |    |   | $      | 214,263 |    |   | $ | 1,629,374 |   |   |   |      |
| Average interest    rate    | 8.44                         | %      |   | 4.24    | %      |    | 7.80   | %      |   | 8.58   | %                |   | 9.60        | %      |             | 8.00      | %      |    | 7.54    | %      |   |    |    |
| Net discount                                    |                         |   |   |    |   |    |   |   |   |   |             |   |        |   | (55,972          | )         |   |    |    |
|   Total debt                          |                         |   |   |    |   |    |   |   |   |   |             |   |        |   | $                | 1,573,402 |   |    |    |   |

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

----

|                                 |                          |
|---------------------------------|--------------------------|
| Item 4.     | Controls and Procedures. |

----

|                                 |                                  |
|---------------------------------|----------------------------------|
| Item 3.     | Defaults Upon Senior Securities. |

|                                 |           |
|---------------------------------|-----------|
| Item 6.     | Exhibits. |

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

----

|                         |                                    |                                   |                                                                   |
|-------------------------|------------------------------------|-----------------------------------|-------------------------------------------------------------------|
|                    | FELCOR LODGING LIMITED PARTNERSHIP |
|                    | a Delaware limited partnership     |
|                    |                               |                              |
|                    | By:                                | FelCor Lodging Trust Incorporated |
|                    |                               | Its general partner               |
|                    |                               |                              |
|                    |                               |                              |
| Date:  November 3, 2010 | By:                                | /s/ Lester C. Johnson             |
|                    |                               | Name:Title:                       | Lester C. Johnson Senior Vice President, Chief Accounting Officer |