FelCor Announces Income Tax Status

FelCor Lodging Trust Incorporated , the nation`s second largest hotel real
estate investment trust (REIT), today announced the final federal income
tax status of its preferred stock distributions for 2003. For 2003, FelCor
distributed $1.95 per preferred share on its Series A Cumulative
Convertible Preferred Stock and $2.25 per preferred share on its Series B
Cumulative Redeemable Preferred Stock. The preferred stock dividends for
2003 should be treated as ordinary income for federal income tax purposes.

Registered preferred shareholders holding FelCor Lodging Trust
Incorporated preferred shares at anytime during the year will receive an
Internal Revenue Service Form 1099-DIV from SunTrust Bank, the Company`s
dividend paying agent. The form will report the gross dividends paid with
respect to 2003. If shares were held in “street name” during 2003, the IRS
form will be provided by the bank, brokerage firm, or other nominee
holding such shares.
FelCor also reported that consolidated hotel portfolio revenue per
available room (RevPAR) from continuing operations decreased 1.7 percent
in the fourth quarter 2003, compared to the same period in 2002. For the
quarter, occupancy increased 0.6 percent, while average daily rate
decreased 2.3 percent. The portfolio RevPAR for the fourth quarter 2003 is
consistent with the Company`s previous guidance. FelCor`s RevPAR for the
year ended December 31, 2003, decreased approximately 4.4 percent,
compared to the same period in 2002.

FelCor is the nation`s second largest lodging REIT and the largest owner
of full service, all-suite hotels. FelCor`s portfolio is comprised of 161
hotels, located in 33 states and Canada. FelCor owns 71 upscale, all-
suite hotels, and is the largest owner of Embassy Suites Hotels(R) and
Doubletree Guest Suites(R) hotels. FelCor`s portfolio also includes 77
hotels in the upscale and full service segments. FelCor has a current
market capitalization of approximately $3.1 billion. Additional
information can be found on the Company`s Web site at
http://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.
——-