Financial Highlights: 

Fourth Quarter 2000 (compared to fourth quarter 1999):

• Revenues increased 9.7% to $129.3 million from $117.8 million after subtracting approximately $22.3 million in rent deferred from previous quarters 
• Total hotel portfolio RevPAR increased 5.5% (162 hotels), excluding hotels held for sale 
• EBITDA increased 5.5% to $109.1 million from $103.5 million
• EBITDA per share increased 17.0% to $1.65 from $1.41
• FFO per share increased 8.0% to $0.94 from $0.87
• Net income per share increased to $0.29 from $0.26 before non-recurring items and after subtracting $22.3 million in rent deferred from previous quarters 
• Comparable hotels RevPAR increased 5.4% (147 hotels), excluding hotels held for sale 
• Non-comparable hotels RevPAR increased 7.0% (15 hotels), excluding hotels held for sale 

• Revenues increased 10.5% to $556.7 million from $504.0 million 
• Total hotel portfolio RevPAR increased 7.4% (162 hotels), excluding hotels held for sale 
• EBITDA increased 8.8% to $470.9 million from $432.7 million 
• EBITDA per share increased 21.9% to $7.01 from $5.75
• FFO per share increased 12.6% to $4.29 from $3.81 
• Net income per share, before non-recurring items and the reserve for hotels held for sale, increased to $1.67 from $1.59
• Comparable hotels RevPAR increased 6.2% (103 hotels) 
• Non-comparable hotels RevPAR increased 10.1% (59 hotels) 

• Completed sale of the Four Points^® hotel � Leominster, Mass., (187 rooms) for a gross price of approximately $10.5 million which resulted in a fourth quarter gain on sale of approximately $135,000.
• Currently negotiating the finalization of a joint venture agreement with Interstate Hotels Corporation (Interstate) for the ownership of seven Marriott^®-branded hotels (two Courtyard by Marriott^® and five Fairfield Inn^® hotels) and one Hampton Inn^® hotel, to be effective January 1, 2001. Interstate assumed management of these hotels effective January 1, 2001.
• Completed renovations at four hotels during the quarter and 19 hotels during the year with seven hotels undergoing renovation at the end of the year.
• Renovation expenditures on the Company�s hotel portfolio totaled $20.0 million during the quarter and $55.8 million during the year. An additional $11.8 million was spent on maintenance capital expenditures during the quarter, and $45.6 million for such expenditures during the year.

Acquisition of Tenants:

• Completed the acquisition of DJONT (which leases 85 hotels) effective January 1, 2001, subject to the consents of certain lenders. In consideration for the acquisition, FelCor issued approximately 417,000 units of limited partnership interest in FelCor Lodging Limited Partnership, valued at approximately $10 million which, together with DJONT�s accumulated deficit of approximately $25 million will be expensed in the first quarter of 2001. 
• Acquired from Bass Hotels & Resorts leases on 12 of the hotels held for sale for approximately 414,000 shares of common stock valued at approximately $10 million. Of these hotels, one has been sold, eight are being contributed to the Interstate joint venture and three remain with FelCor.
• FelCor and Bass continue to make progress toward finalizing the terms on which FelCor will acquire the remaining 88 hotel leases held by Bristol. Upon finalization and execution of definitive documents, FelCor expects to obtain the leases primarily in exchange for long-term management agreements. The transaction is expected to be effective as of January 1, 2001.

• On January 11, 2001, FelCor completed the private placement of $100 million in Senior Unsecured Notes that mature in December, 2008 and bear interest at an effective rate of 9¹/8%. The proceeds were used initially to pay down the Company�s Line of Credit.
• During the fourth quarter 2000, FelCor repurchased approximately 753,000 shares of common stock for approximately $16.8 million. For the year 2000, FelCor repurchased 4.5 million common shares for approximately $86.7 million. 
• FelCor declared fourth quarter dividends of $0.55 per share on its Common Stock (an annualized dividend yield of approximately 9.0% based on FelCor�s closing price of $24.42 on February 5, 2001), $0.4875 per share on its $1.95 Series A Cumulative Convertible Preferred Stock and $0.5625 per depositary share evidencing its 9% Series B Cumulative Redeemable Preferred Stock. 

The Company recorded net income applicable to common shareholders, before non-recurring items and deferred rent, of $15.3 million in the fourth quarter of 2000, as compared to $17.1 million in 1999.

• The Company recognized deferred income, under SAB 101, of $22.3 million for the quarter ended December 31, 2000. In accordance with SAB 101, this deferred rent was fully earned and recognized as percentage lease revenue in the fourth quarter of 2000, but was recorded as deferred income from the first three quarters of 2000. For the year, SAB 101 had no financial impact to FelCor.
• Interest expense (as a percentage of total revenue before deferred rent) increased from 29% to 32% for the quarter and from 25% to 29% for the year. FelCor�s average borrowings in 2000 increased by approximately $197 million over 1999, primarily to fund its stock repurchase and renovation and rebranding programs. The average interest rate on the Company�s debt has increased approximately 100 basis points since the end of 1999.

FelCor�s conservative financial profile is evidenced by the following at December 31, 2000 and 1999:

December 31, December 31, 2000 1999

• Annual interest coverage ratio 2.8x 3.3x
• Total debt to annual EBITDA 4.1x 4.5x
• Consolidated debt to investment in hotels at cost 39.9% 40.0%
• Annual FFO payout ratio 51% 58%
• Borrowing capacity under its Line of Credit $238 million $186 million
• Fixed interest rate debt to total debt 91% 52%
• Weighted average maturity of fixed interest rate debt 7 years 6 years
• Mortgage debt to total assets 19% 11%
• Debt maturing in the next 12 months $24 million $43 million

Company Information:

FelCor�s hotel portfolio consists of 186 hotels with nearly 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 $3.6 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.