Under the original management agreements, the net proceeds of a hotel sold by FelCor were to be reinvested in a replacement hotel to be managed by IHG, or liquidated damages for the termination of the management agreement were to be paid to IHG, within one year of sale.  The new amendment results in the division of FelCor�s IHG-managed portfolio into three groups. 

One group, consisting of 27 hotels, will have its management agreement terms extended from 2013 until 2018.  In exchange, FelCor will receive a credit of approximately $25 million, subject to increase under certain circumstances, to apply to the satisfaction of the liquidated damages otherwise payable upon FelCor�s sale of hotels in a second group.

The second group of 31 hotels includes the 17 remaining IHG-managed hotels that FelCor has previously announced its intention to sell.  FelCor has agreed to use the net proceeds from the future disposition of second group hotels, to which the credit is applied, to pay down its outstanding debt.  FelCor may also terminate IHG�s management of three non-IHG branded hotels included in the second group in the event they are converted to a different brand, and apply the credit to satisfy any liquidated damages resulting from such termination.

The management agreement terms applicable to the remaining 16 hotels managed by IHG for FelCor continue unaffected by the amendment.  The transaction is value-neutral to both parties. 

Under the amendment, any unused balance of the credit will expire at the end of five years.  In addition, under certain circumstances FelCor may elect to defer, until the fifth anniversary of the amendment, the payment of liquidated damages with respect to the disposition of second group hotels if the credit provided by the amendment has been exhausted. 

�We�re pleased that we�ve been able to work together for our mutual benefit,� said Thomas J. Corcoran, Jr., FelCor�s President and CEO.  �The new agreement will allow FelCor to reposition its portfolio and to use sale proceeds to pay down debt, while extending and strengthening our long-term relationship with InterContinental Hotels Group.�

�This agreement will allow us to focus our long-term management efforts on core FelCor-owned hotels in the larger and better markets,� said Steve Porter, IHG�s President, The Americas.  �We expect the smaller FelCor hotels located in secondary and tertiary markets to retain their IHG-brand affiliations following sale, since most are likely to be sold to individual owner/operators.�

FelCor is the nation�s second largest lodging REIT and the largest owner of full service, all-suite hotels.  FelCor�s consolidated portfolio is comprised of 168 hotels, located in 35 states and Canada.  FelCor owns 76 full service, all-suite hotels, and is the owner of the largest number of Embassy Suites Hotels® and Doubletree Guest Suites® hotels.  FelCor�s portfolio also includes 81 hotels in the upscale and full service segments.  FelCor has a current market capitalization of approximately $3.1 billion.  

InterContinental Hotels Group PLC of the United Kingdom [LON:IHG, NYSE:IHG (ADRs)], owns, manages, leases or franchises, through various subsidiaries, more than 3,300 hotels and 515,000 guest rooms in nearly 100 countries and territories around the world (www.ichotelsgroup.com). The Group owns a portfolio of well-recognized and respected hotel brands, including InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn, Holiday Inn Express, and Staybridge Suites, and also has a controlling interest in Britvic, the second largest soft drinks manufacturer in the UK.

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.  

InterContinental Hotels Group
Francie Schulwolf
Vice President of Communications
(770) 604-2906
[email protected]