FelCor Prices Senior Notes Offering

FelCor Lodging Trust Incorporated (NYSE: FCH) and its subsidiary FelCor Lodging Limited Partnership ("FelCor LP"), today announced that FelCor LP’s wholly-owned subsidiary priced its $525 million senior secured notes offering. The senior secured notes will bear an interest rate of 6.75% and mature in 2019. The proceeds of the offering will be placed in escrow, when the transaction settles, on May 10, 2011, until the pending acquisition of Royalton and Morgans is completed, which is expected to occur prior to June 1. At that time, the notes will be assumed by FelCor LP and the proceeds will be released from escrow.

As previously disclosed, on April 1, 2011, FelCor sold 27.6 million shares of its common stock for aggregate net proceeds of approximately $159.0 million. FelCor intends to use the net proceeds from the $525 million senior notes offering, together with the proceeds from the equity offering for the following purposes:

Fund the $140 million acquisition of Royalton and Morgans;
Redeem up to $144.5 million of the outstanding 10% Notes, which have an effective yield of 12.875% (using proceeds from the equity offering);
Repay borrowings under the line of credit, which had a balance of $145 million as of March 31;
Retire the remaining 9% notes that mature on June 1, 2011, which have a balance of $46 million;
Repay other high interest rate mortgage debt and unencumber hotels; and
Fund future acquisitions in the Company’s target markets.

Pending permanent application of the net proceeds from the offerings, they may be invested in short-term, interest bearing investments.

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. Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties, and the occurrence of future events, may cause actual results to differ materially from those currently anticipated. Certain of these risks and uncertainties are described in greater detail in our filings with the Securities and Exchange Commission. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that actual results will not differ materially. We undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.

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