FelCor Responds to Land and Buildings and Provides Strategic Update

IRVING, Texas--(BUSINESS WIRE)--

FelCor Lodging Trust Incorporated FCH today responded to an investor presentation announced by investment fund Land and Buildings and provided an update on the execution of its strategic plan.

"We welcome constructive input from shareholders and appreciate what Land and Buildings has put forward. In fact, we began implementing virtually the same plan last fall. We have sold 40 assets since 2010, raising proceeds of close to $1 billion, and are already in the process of selling Morgans, Royalton and some or all of the Knickerbocker, as well as two other hotels, and using the proceeds to reduce debt and repurchase shares under our previously announced $100 million stock buyback program. We also have begun de-staggering our board. FelCor's Board and management are committed to acting in the best interests of all stockholders and to maximizing value creation. We will continue to engage with our stockholders as we execute our previously announced long-term strategic plan."

Strategic Plan Update

In 2015, FelCor announced the next phase of its long-term strategic plan. Since then, the company has focused on opportunistically selling five hotels and using the proceeds to repay debt, to repurchase common stock and to take advantage of future value-creation opportunities. Since that time, the company has made significant progress, including:

• Commenced marketing five hotels, including three New York properties - Morgans, Royalton and The Knickerbocker (in whole or part).
• Received letters of intent for two hotels (Morgans and Royalton) and agreed to sell a third (Holiday Inn Nashville Airport), at compelling valuations. The company is currently in preliminary discussions with potential buyers for the remaining two properties.
• Implemented a $100 million stock repurchase program, which commenced in December. So far, FelCor has purchased 4.3 million shares for $29.0 million. The company intends to continue repurchasing its common stock, which trades at a significant discount to NAV, and may increase its stock repurchase authorization after selling the five hotels.

FelCor has transformed its business to create long-term value for stockholders. During 2015, RevPAR increased 8.1%, significantly higher than the industry. Since 2008, FelCor's RevPAR growth has exceeded the industry and its peers. This next phase of FelCor's strategic plan will continue providing significant incremental value.

FelCor is committed to creating a strong balance sheet with a low cost of capital. Following completion of the asset sales:

• Leverage will be below 4 times (based on 2016 estimates), reduced from 8.2 times in 2010.
• FelCor has the best debt maturity profile of any hotel REIT, with no major debt maturities until 2022.
• FelCor will have significantly enhanced liquidity to deliver even more stockholder value, with more than $700 million available, including its entire $400 million line of credit.

About FelCor

FelCor, a real estate investment trust, owns a diversified portfolio of primarily upper-upscale and luxury hotels that are located in major urban and resort markets throughout the U.S. FelCor partners with top hotel companies that operate its properties under globally renowned names and as premier independent hotels. Additional information can be found on the company's website at www.felcor.com.

Forward Looking Statements

This press release includes "forward-looking statements" within the meaning of the federal securities laws. Numerous risks and uncertainties and other factors may cause actual results to differ materially from those anticipated at the time the forward-looking statements are made. Certain of these risks and uncertainties are described under "Risk Factors" in our Annual Report on Form 10-K or in our other filings with the Securities and Exchange Commission. 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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