FelCor Announces $200 Million Increase in Stock Buyback Program

Company Press Release: FelCor Lodging Trust Incorporated

January 6, 2000
IRVING, TX -- FelCor Lodging Trust Incorporated (NYSE: FCH), one of the nation's largest hotel real estate investment trusts (REITs), announced a $100 million stock buyback program on September 3, 1999, and today announced that its Board of Directors has approved a $200 million increase to that program. Through December 31, 1999, FelCor had repurchased approximately 5.8 million shares of its common stock for approximately $98.4 million under the initial authorization. The newly authorized repurchases may be made, from time to time at the discretion of FelCor's management, at prevailing prices in the open market, through privately negotiated transactions or otherwise. FelCor's management will base its purchase decisions on market conditions, the market price of FelCor's capital stock and other factors.

FelCor expects to fund the additional stock repurchases from additional long term fixed-rate debt, existing credit facilities, the sale of assets and/or cash. The current policy of FelCor is to maintain a flexible and conservative capital structure, with debt not exceeding 50% of its investment in hotel assets, at cost.

FelCor's hotel portfolio consists of 188 hotels with nearly 50,000 rooms and suites located in 35 states and Canada. Its hotels are concentrated primarily in the upscale and full-service segments. FelCor is the owner of the largest number of Embassy Suites®, Crowne Plaza®, Holiday Inn® and independently owned Doubletree®-branded hotels. Other leading hotel brands under which FelCor's hotels are operated include Sheraton Suites®, Sheraton® and Westin®. FelCor has a current market capitalization of approximately $3.2 billion. Additional information can be found on FelCor's website at www.felcor.com.

With the exception of historical information, the matters discussed in this news release include ``forward looking statements'' within the meaning of the federal securities laws that are qualified by cautionary statements contained herein and in FelCor's filings with the Securities and Exchange Commission.

SOURCE: FelCor Lodging Trust Incorporated