�With this transaction, we have received proceeds of slightly more than $100 million in 2003 from the disposition of non-strategic assets, exceeding our initial expectation of $50 to $75 million for the year,� said Michael A. DeNicola, FelCor�s Executive Vice President and Chief Investment Officer. 

The hotels sold in this transaction consist of three Embassy Suites Hotels® that are located in Syracuse, New York; Phoenix, Arizona; and Flagstaff, Arizona; and two Doubletree Guest Suites® hotels that are located in Columbus, Ohio; and Dayton, Ohio.  The portfolio has a total of 894 rooms with the hotels ranging in size from 114 to 229 rooms.  Jones Lang LaSalle Hotels acted as the exclusive advisor in this transaction.

FelCor also reports that consolidated hotel portfolio revenue per available room (RevPAR) decreased 0.5 percent in July, 4.0 percent in August, approximately 2.7 percent in September and 2.4 percent in the third quarter, compared to the same periods of 2002.  The RevPAR for the third quarter 2003 is consistent with the Company�s previous guidance.  FelCor�s RevPAR for the nine months ended September 30, 2003, decreased approximately 4.9 percent, compared to the same period in 2002. 

FelCor is the nation�s second largest lodging REIT and the owner of the largest number of full service, all-suite hotels in the nation.  FelCor�s portfolio is comprised of 163 hotels, located in 34 states and Canada.  FelCor owns 71 full service, all-suite hotels, and is the owner of the greatest number of Embassy Suites Hotels and Doubletree Guest Suites hotels.  FelCor�s portfolio also includes 79 hotels in the upscale and full service segments.  FelCor has a current market capitalization of approximately $3.1 billion. 

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.