The amendment allows for the relaxation of certain financial covenants through September 30, 2002, including the unsecured interest coverage, fixed charge coverage and total leverage tests. Pricing remains on the same floating rate basis with a tiered spread based on FelCor�s leverage ratio, but with added tiers to reflect the higher permitted leverage.  At the maximum permitted leverage under the Facility, the Company would pay LIBOR plus 325 basis points, as compared to 250 basis points today.  LIBOR was 2.02% as of the close of business November 14, 2001.  Commitments remain at $615 million, with $110 million currently outstanding under the Facility.  FelCor currently holds approximately $85 million in cash and cash equivalents as of today.  The outstanding amount under the Facility represents approximately 5% of FelCor�s total debt.

FelCor anticipates that it will meet its financial covenants under the RevPAR guidance provided by it at the time of the third quarter earnings conference call on November 1, 2001.  The guidance provided for RevPAR in the fourth quarter 2001 is a decline of 20% to 25%, and for 2002, a range of flat RevPAR to a decline of 5%.  The Company anticipates a gradual sequential recovery in 2002, by quarter, with easier comparable periods in the second half of the year.  For the first six months of 2002, FelCor anticipates a RevPAR decline of approximately 10% with the first quarter being more challenging than the second quarter.

�We are pleased to have amended the Facility and are appreciative of the strong support provided by our lenders.  Although there are no assurances that we will continue to meet our financial covenants in the future, we are comfortable under the RevPAR guidance provided.  The Company also has  maintained flexibility in working with its lenders, given its $85 million of cash and cash equivalents, its $2.5 billion of unencumbered assets, and a breakeven occupancy, after debt service and preferred equity distributions, of approximately 50%,� said Richard J.  O�Brien, FelCor�s Executive Vice President and Chief Financial Officer.

Unrelated to the amendment, FelCor executed interest rate swaps to create a better balance between fixed and floating rate debt.  The Company effectively converted $100 million of senior unsecured notes with a fixed rate of 7.375% to a floating rate of LIBOR plus a spread of approximately 320 basis points through October 2004.  After the execution of the fixed-for-floating rate swaps, fixed rate debt represented 92% of FelCor�s total debt.

Also unrelated to the amendment, in November, the Company sold the 182-room Doubletree Guest Suites® hotel in Tampa, Florida, near Busch Gardens, realizing net sales proceeds of approximately $3.4 million as part of its continued sale of non-strategic assets.

FelCor�s hotel portfolio consists of 183 hotels with approximately 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 $3.0 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.