Press Release: FelCor Lodging Trust Incorporated
December 4, 2001
IRVING, TX -- FelCor Lodging Trust Incorporated (NYSE: FCH), one of the nation's largest hotel real estate investment
trusts (REITs), and its subsidiary, FelCor Lodging Limited Partnership (FelCor LP), yesterday announced it has
closed on the private placement of $100 million of Senior Unsecured Notes. The 9 1/2 percent Senior Notes are an
add-on to the Company's existing $500 million in Senior Notes Due 2008. The proceeds were used primarily to reduce
FelCor's outstanding line of credit balance.
``We are pleased to have completed this offering, which is the first note issuance by a lodging REIT since the
events of September 11. The net proceeds will provide FelCor greater financial flexibility and better position
the Company during the current uncertain political and economic conditions,'' said Richard J. O'Brien, FelCor's
Executive Vice President and Chief Financial Officer.
After the terrorist attacks on September 11, the Company embarked on a two-pronged strategy to strengthen its capital
structure in anticipation of the continued challenging operating environment. On November 15, 2001, FelCor announced
that it had amended certain terms of its $615 million unsecured line of credit allowing for the relaxation of certain
financial covenants through September 30, 2002. The note issuance completes the second phase of this strategy,
and provides further flexibility, which benefits FelCor's shareholders.
Net proceeds from the issuance of the notes were approximately $96 million. Deutsche Banc Alex. Brown and JP Morgan
acted as joint book- running managers. Banc of America Securities LLC, Morgan Stanley and Salomon Smith Barney
acted as co-managers.
FelCor also reported that its total hotel portfolio RevPAR decreased approximately 23% during the month of November,
occupancy declined 10.0 points to approximately 57%, and average daily rate (``ADR'') declined 10% to $95.00, compared
to the same period in the prior year. FelCor's RevPAR improved slightly from the October decline in RevPAR of 25%.
FelCor's hotel portfolio consists of 183 hotels with approximately 50,000 rooms and suites and is 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 $3.1 billion. Additional information can be found on the Company'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