Financial Highlights: 

Fourth Quarter 1999 (as compared to fourth quarter 1998):

• Revenues increased 11% from $107 million to $118 million
• EBITDA increased 10% from $94 million to $103 million
• FFO increased 3% from $62 million to $64 million
• FFO per share and unit increased 6% from $0.82 to $0.87
• Total hotel portfolio (188 hotels) RevPAR increased 4.3% 
• Largest quarterly RevPAR growth of the year

• Revenues increased 48% from $340 million to $504 million
• Net income increased 14% from $115 million to $131 million
• EBITDA increased 41% from $306 to $433 million
• FFO increased 32% from $217 million to $287 million
• FFO per share and unit increased 2% from $3.75 to $3.81
• Comparable hotels (104 hotels) RevPAR increased 0.7%
• Non-comparable hotels (84 hotels) RevPAR increased 4.5%
• Total hotel portfolio (188 hotels) RevPAR increased 2.4% 

• Completed renovations at 15 hotels during the quarter, totaling $46 million, and at 44 hotels during the year, totaling $193 million.

• Nineteen additional hotels were undergoing renovation at the end of the quarter.

• Renovation expenditures on the hotel portfolio totaled $19 million during the quarter and $177 million during the year. 

• Room nights out-of-service due to renovation were approximately 1% during the quarter and 2% during the year.

• Twenty-one percent of the portfolio is considered non-comparable for the fourth quarter and 45% for the year.

• On January 1, 2000, two Doubletree Guest Suites^® hotels were rebranded to Embassy Suites^® hotels. These hotels are located in Troy, Michigan and at Baltimore/Washington International Airport in Maryland.

• FelCor repurchased a total of approximately 5.8 million common shares for approximately $98.4 million from October 15, 1999 through December 31, 1999 under a $100 million share repurchase program. This share repurchase program was increased by $200 million on January 4, 2000. Through January 31, 2000, FelCor had repurchased an aggregate of approximately 6.7 million shares under this program for approximately $116 million.

• Declared fourth quarter dividends of $0.55 per share on its Common Stock (current annualized dividend yield of approximately 12.2%), $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. For 1999, dividends of $2.20 per share, $1.95 per share and $2.25 were declared on its Common Stock, Series A Cumulative Convertible Preferred Stock and Series B Cumulative Redeemable Preferred Stock, respectively.

• During 1999, FelCor raised more than $600 million in long term debt, of which $238 million was secured by 16 hotels. Proceeds of the loans were used to prepay a $250 million term loan which was to mature on December 31, 1999, and to reduce outstanding borrowings under its $850 million Line of Credit.

before extraordinary charge

$ 1.59

Net income available to common shareholders went from $0.36 to $0.26 in the quarter and $1.86 to $1.57 for the year.

• Depreciation expense, as a percentage of total revenues, increased from 28% to 34% for the quarter and from 27% to 30% for the year. This increase resulted primarily from $220 million in capital expenditures during 1999, the majority of which consists of short-lived assets.

• Interest expense increased, as a percentage of total revenue, from 25% to 29% for the quarter and from 22% to 25% for the year, over the prior year period. During 1999, FelCor refinanced more than $600 million of its debt to extend maturities which resulted in increased interest expense. In addition, FelCor�s borrowings have increased by approximately $239 million over the past year, primarily to fund its renovation, redevelopment and rebranding program and its share repurchases under its $300 million share repurchase program.

RevPAR Comparison:

FelCor�s conservative financial profile is evidenced by the following:

• Annual interest coverage ratio of 3.3x
• Total debt to annual EBITDA of 4.5x
• Borrowing capacity of $186 million under its Line of Credit
• Consolidated debt equal to 40% of its investment in hotels at cost
• Fixed interest rate debt equal to 52% of total debt
• Weighted average maturity of fixed interest rate debt of approximately six years 
• Mortgage debt-to-total assets of 11%
• Debt of approximately $43 million maturing in 2000
• Annual FFO payout ratio of approximately 58%

FelCor�s hotel portfolio consists of 188 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 $3.2 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.