InterContinental Deal Pushes 'New FelCor'

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. October 14, 2008

LONDON, UK, January 25, 2006. FelCor Lodging Trust has executed an agreement modifying current management agreements with InterContinental that will enable the Company to complete its repositioning program and create the "New FelCor."

Agreement Highlights:

• FelCor will retain 17 IHG-managed Holiday Inn hotels located in highly desirable markets that are primarily in urban locations and mostly located in the Northeast, East Coast and California.

• Non-strategic IHG-managed hotels identified for sale encompass all of FelCor's Holiday Inn(R) hotels that are located in secondary and tertiary markets, as well as 10 hotels in Texas.

• Elimination of any potential liquidated damages and any reinvestment requirement with respect to hotels previously sold, 31 IHG-managed hotels now identified for sale, and one Crowne Plaza(R) hotel to be converted to another brand.

• FelCor will complete special capital plans totaling approximately $50 million at 11 of the 17 retained hotels, designed to maximize the value of these hotels.

• Management agreements on the 17 retained hotels will be extended to 2025, and include a new management performance standard and restructured incentive fees.

• Hospitality Properties Trust ("HPT") purchased seven of the 31 IHG- managed hotels identified for sale for $160 million effective January 20.

"We are pleased that we found a solution with IHG that meets both of our strategic objectives," said Thomas J. Corcoran, Jr., FelCor's President and CEO. "We have now accomplished our two primary strategic objectives outlined at the beginning of 2005: to amend the IHG management agreement and reinstate a common dividend."

The completion of the agreement with IHG enables FelCor to sell its non- strategic hotels and use the proceeds to reduce debt and invest in high return-on-investment capital projects at FelCor's remaining core hotels. The New FelCor will become a lower-levered company with a much stronger and fully renovated portfolio. FelCor's repositioned portfolio will provide a solid platform for future growth in today's strong Revenue Per Available Room environment.

The New FelCor:

• New FelCor will own 90 consolidated hotels, with 81 percent of its Hotel Earnings Before Interest, Taxes, Depreciation and Amortization ("Hotel EBITDA") from hotels in the upper upscale segment, that are located primarily in Top 25 and resort markets.

• The average Hotel EBITDA per room for the 90 core hotels is almost three times higher than the Company's non-strategic hotels for the Trailing Twelve Months ("TTM") ended September 30, 2005.

• Hotel EBITDA growth for the TTM ended September 30, 2005, for the 90 core hotels was 15 percent, as compared to only one percent for the non-strategic hotels.

• Hotel EBITDA margins were 27 percent for the 90 core hotels compared to only 15 percent for the non-strategic hotels. The pro forma TTM ended September 30, 2005, leverage ratio is reduced from 6.5 times to 5.8 times.

• High return capital projects should provide a boost to FelCor's future Hotel EBITDA growth.

Repositioning:

FelCor has now identified 38 non-strategic hotels for sale. These 38 hotels are located primarily in secondary and tertiary markets, including Texas and Atlanta, Georgia, where the Company has an excess concentration of hotels. Certain elements of FelCor's strategy include:

• The sale of 11 hotels previously identified as non-strategic, including seven IHG-managed hotels.

• The sale of 24 additional IHG-managed hotels, including the seven hotels sold to HPT.

• The sale of three additional hotels not managed by IHG.

• Total proceeds from hotel sales are expected to be between $500 and $550 million representing an EBITDA multiple of between 13 and 14 times TTM Hotel EBITDA.

• The Crowne Plaza in San Francisco at Union Square will be converted to another brand by the end of 2006.

• In connection with FelCor's agreement with IHG, seven hotels were sold to HPT. These high-quality hotels, which will continue to be managed by IHG, consist of five Crowne Plaza hotels, one Holiday Inn hotel and one Staybridge Suites(R) hotel. Six of these hotels are located in markets where FelCor has an excess concentration of hotels.

• In connection with this repositioning, FelCor will record an impairment charge of approximately $260 million in the fourth quarter of 2005, associated with the amendment of the IHG agreements and the decision to sell additional non-strategic hotels.

Although the Company is selling 31 percent of its rooms, it is only selling 15 percent of its Hotel EBITDA. The hotels to be sold have significantly lower RevPAR and Hotel EBITDA margins than FelCor's 90 core hotels. Following the sale of the 38 hotels, New FelCor will have significantly lower exposure to markets with low barriers to entry, such as Atlanta, Dallas, Houston and Omaha and will be more geographically diverse with no market contributing more than six percent of EBITDA.

The hotels will be marketed through exclusive broker arrangements that are listed on the Company's Web site at http://www.felcor.com .