EX-99.1 2 a2011q48-kexh991earnings.htm EXHIBIT 99.1 TO 2011 Q4 8-K EARNINGS 2011 Q4 8-K Exh 99.1 Earnings
Exhibit 99.1

 
545 E. JOHN CARPENTER FREEWAY, SUITE 1300
 IRVING, TX 75062
PH: 972-444-4900
F: 972-444-4949
WWW.FELCOR.COM
NYSE: FCH
For Immediate Release:


FELCOR REPORTS FOURTH QUARTER RESULTS
•  Outlines significant progress on strategic plan in 2011
•  Provides update on portfolio repositioning and asset sale program
•  Expects to pay accrued preferred dividends and repay debt with proceeds from asset sales in 2012

IRVING, Texas…February 29, 2012 — FelCor Lodging Trust Incorporated (NYSE: FCH) today reported operating results for the fourth quarter and year ended December 31, 2011.
Summary:
Revenue per available room ("RevPAR") at 43 same-store core hotels increased 4.8% for the quarter and 5.4% for the year.
Hotel EBITDA margin increased 83 basis points for the quarter and 116 basis points for the year.
Adjusted EBITDA was $202.7 million and adjusted funds from operations ("FFO") per share was $0.14 for the year. Net loss was $130.9 million for the year. Fourth quarter results were negatively impacted by four cents, resulting from accelerated renovations at four hotels and softness in Atlanta and Ft. Lauderdale.
Sold eight non-strategic hotels for gross proceeds of $138 million in 2011. Brought additional non-strategic hotels to market in January and currently marketing 16 non-strategic hotels. Net proceeds from asset sales will be used to repay debt and pay accrued preferred dividends.
Completed acquisition and commenced redevelopment of the four-plus star Knickerbocker Hotel in New York's Times Square during the fourth quarter (projecting a late 2013 opening).
Began renovation or redevelopment at 10 hotels during 2011, including four of our largest hotels. We accelerated renovation start dates at four hotels to accommodate seasonal demand.


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FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 2


Commenting on the fourth quarter and full year, Richard A. Smith, President and Chief Executive Officer of FelCor, said, "In the past year, we made significant progress advancing our long-term value creation strategy to strengthen our balance sheet, reposition our portfolio and invest in the future of our business. Of note, we began marketing a significant number of non-strategic hotels and sold nine hotels quicker than anticipated, using a majority of the proceeds to repay debt. We also eliminated all of our near-term debt maturities. Our top priority is to sell non-strategic hotels and reduce debt to reach our long-term goal of 4.5 times leverage. Industry fundamentals are strong. Occupancy is approaching stabilized levels, and ADR growth is accelerating. Looking ahead, we continue to position our portfolio to benefit from the lodging recovery to generate above-average growth in our core markets. This month, we also announced the acquisition of the iconic Knickerbocker Hotel in the heart of Manhattan. This is a rare opportunity, and we are confident this strategic investment will enhance future stockholder value. We expect the Knickerbocker to be our last acquisition in this cycle."
Fourth Quarter Operating Results:

RevPAR for our 43 same-store core hotels was $92.88, a 4.8% increase compared to the same period in 2010. Average daily rate ("ADR") increased 4.5% to $139.11, and occupancy increased 0.4% to 66.8%. RevPAR and ADR for the company's 73 same-store consolidated hotels increased 4.4% (to $85.69) and 3.7% (to $128.00), respectively, compared to the same period in 2010.

The quarter was negatively impacted by accelerated timing of renovations (ongoing renovations impacted RevPAR by 1% more than anticipated) and softness in Atlanta (lower than expected group and transient business) and Fort Lauderdale (lower than expected group business due to weather). Consequently, our results were four cents lower than anticipated.

Hotel EBITDA increased 7.5% to $48.1 million, compared to $44.8 million for the same period in 2010. Hotel EBITDA represents EBITDA for 73 same-store consolidated hotels prior to corporate expenses and joint venture adjustments. Hotel EBITDA margin was 21.6%, an 83 basis point increase compared to the same period in 2010.

Same-store Adjusted EBITDA increased 10.6% to $39.3 million. Same-store Adjusted EBITDA excludes EBITDA from hotels sold or acquired during the year. Adjusted EBITDA (which includes our pro rata share of joint ventures) decreased 6.1% to $42.2 million, compared to $45.0 million for the same period in 2010, due to asset sales.

Adjusted FFO reflects a $3.5 million, or $0.03 per share, loss compared to a $3.6 million, or $0.04 per share, loss for the same period in 2010.

Net loss attributable to common stockholders was $42.8 million, or $0.35 per share, compared to a $103.1 million, or $1.08 per share, loss for the same period in 2010. Our 2010 net loss includes $86.8 million of impairment charges reflecting the reduced book values on ten non-strategic hotels (three hotels comprise the majority of the impairment), as well as a $7.0 million gain on extinguishment of debt related to the disposition of one hotel, a $1.7 million charge related to the repurchase of $40 million of our senior notes maturing 2011 and a $20.5 million gain related to the sale of our interest in a joint venture.

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FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 3


Full Year Operating Results:

RevPAR for our 43 same-store core hotels was $101.29, a 5.4% increase compared to 2010. ADR increased 4.5% to $139.34, compared to 2010 and occupancy increased 0.9% to 72.7%. RevPAR for our 73 same-store consolidated hotels increased 5.2% (to $92.68) compared to 2010.

Hotel EBITDA increased 9.7% to $225.5 million, compared to $205.5 million in 2010. Hotel EBITDA represents EBITDA for 73 same-store consolidated hotels prior to corporate expenses and joint venture adjustments. Hotel EBITDA margin was 24.4%, a 116 basis point increase compared to 2010.
Same-store Adjusted EBITDA increased 12.2% to $187.8 million. Same-store Adjusted EBITDA excludes EBITDA from hotels sold or acquired during the year. Adjusted EBITDA (which includes our pro rata share of joint ventures) increased 7.7% to $202.7 million, compared to $188.1 million in 2010.
Adjusted FFO increased to $16.2 million, or $0.14 per share, compared to a loss of $7.6 million, or $0.09 per share, in 2010.
Net loss attributable to common stockholders was $168.6 million, or $1.44 per share, compared to a $261.8 million, or $3.25 per share, loss in 2010. Our 2011 loss included $13.2 million of impairment charges and $24.4 million of losses from extinguishment of debt, partially offset by $4.7 million of gains from hotel dispositions. Our 2010 loss included $173.7 million of impairment charges, $59.5 million of gains from extinguishment of debt and a $20.5 million gain related to the sale of our interest in an unconsolidated joint venture.
EBITDA, Adjusted EBITDA, Same-store Adjusted EBITDA, Hotel EBITDA, Hotel EBITDA margin, FFO, Adjusted FFO and Adjusted FFO per share are all non-GAAP financial measures. See our discussion of "Non-GAAP Financial Measures" beginning on page 18 for a reconciliation of each of these measures to the most comparable GAAP financial measure and for information regarding the use, limitations and importance of these non-GAAP financial measures.
Balance Sheet:
At December 31, 2011, the company had $1.6 billion of consolidated debt, $93.8 million of cash and cash equivalents and full availability on its $225 million line of credit. The weighted average maturity date for our debt was 4.4 years at December 31, 2011, compared to 3.3 years for the same period in 2010. We lowered our weighted average interest rate to 7.59%, and total interest expense was $8.4 million lower in 2011 than in 2010.
During the fourth quarter, we modified a CMBS loan to extend the loan up to two years beyond the original November 2011 maturity date. The loan balance at December 31, 2011 was $156 million, after we repaid $20 million of principal. The interest rate changed from LIBOR plus 93 basis points to LIBOR plus 220 basis points. This non-recourse loan is pre-payable at any time without penalty or premium and is cross-collateralized by nine mortgaged hotels. The company is currently marketing five of those properties for sale and will repay the mortgage loan securing any sold hotel using sale proceeds without penalty.

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FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 4

In early 2012, we amended and extended the maturity date of a $130 million loan, secured by eight joint venture hotels that would have matured in January 2013 (assuming extension options). The interest rate was reduced from LIBOR plus 375 basis points to LIBOR plus 325 basis points, and the maturity date was extended to 2014. Annual loan amortization also decreased from $5.0 million to $1.3 million.
Andrew J. Welch, FelCor's Executive Vice President and Chief Financial Officer, said, "We made very good first steps this year toward restructuring our balance sheet to lower our leverage, reduce our cost of capital and stagger and extend debt maturities. We issued new senior notes due 2019 at very favorable terms to repay high-cost debt and acquire three hotels, and issued equity to repay $144 million of our 10% notes due 2014. As we execute our hotel sale program, we will embark on the next steps to completely restructure our balance sheet including paying accrued preferred dividends and repaying and refinancing remaining debt to achieve our long-term goal of 4.5 times leverage and lower our cost of borrowing."
Capital Expenditures:
For the quarter and year ended December 31, 2011, we spent $32.2 million and $91.2 million, respectively, on capital improvements at properties (including our pro rata share of joint venture expenditures). Included in the expenditures is $19 million on ROI-redevelopment projects. As part of our long-term capital plan, we anticipate renovating between six and eight hotels each year. In 2011, the company began renovating eight hotels and redeveloping two hotels, including four of our largest properties. Although accelerating this work caused more displacement in the fourth quarter 2011 than originally anticipated, the core portfolio will be better positioned to benefit from current industry growth trends.
During 2012, the company anticipates spending approximately $85 million on improvements and renovations. A majority of that capital will be focused on 11 hotels, including four of our largest properties. Please see page 17 of this release for more detail on renovations. We also expect to spend approximately $35 million on value-enhancing redevelopment projects at three hotels: Morgans (re‑concept food and beverage, relocate lounge and fitness center and add three guest rooms); Embassy Suites Kingston Plantation (transform lobby, food and beverage outlet and entrance); and the Fairmont Copley Plaza.
In 2011, we began redeveloping the historic Fairmont Copley Plaza. All 383 guest rooms will be renovated by mid-2012, including 12 rooms that will be upgraded to Fairmont Gold (for a total of 71 Fairmont Gold rooms). In addition, the project includes a new 3,000 square-foot state-of-the-art rooftop fitness facility and day spa overlooking the Back Bay, as well as extensive redevelopment of the public areas and food and beverage facilities.
Portfolio Repositioning:
With a focus on creating a high-value portfolio of superior hotels, the company intends to sell up to 40 non-strategic hotels, representing 72 percent of our suburban hotels and 44 percent of our airport hotels, as part of the portfolio repositioning plan. Core hotels are located in key high-growth markets, primarily in major urban markets and resort destinations. Our remaining suburban and airport hotels are generally located in gateway cities and benefit from relatively high barriers-to-entry. We have brought 25 non-strategic hotels to market since December 2010 and sold nine for gross proceeds of $222 million, representing approximately 12 times prior year hotel EBITDA. During the fourth quarter, we sold two hotels (Holiday Inn Toronto-Yorkdale and Embassy Suites Dallas-Market Center) for combined gross proceeds of $37 million.

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FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 5


The company is currently marketing 16 non-strategic hotels. We expect to generate approximately $350 million in gross proceeds from selling these hotels. We are committed to using these funds to pay all accrued preferred dividends, reduce debt and strengthen our balance sheet. Nine of the 16 hotels secure approximately $130 million of hotel mortgage debt. We have received strong interest from potential buyers and expect to sell the majority of these hotels in 2012. We will bring the remaining non-strategic hotels to market at the appropriate time in order to maximize proceeds. The proceeds from the sale of these hotels will allow the company to continue to reduce debt, contribute to a sound and flexible balance sheet, and improve long-term FFO and stockholder value.

During the fourth quarter, we acquired the landmark Knickerbocker Hotel in midtown Manhattan for $115 million. Located at Broadway and 42nd Street, the Knickerbocker Hotel boasts one of the world's premier addresses for both business and leisure travelers and will serve as FelCor's flagship upon opening in late 2013. The four-plus star hotel will feature approximately 330 large guest rooms (averaging in excess of 420 square feet), several food and beverage outlets, including a large rooftop sky bar and lounge directly overlooking Times Square, state-of-the-art meeting space and a full-service fitness facility. We own 95% of the joint venture that owns the hotel. Highgate Holdings, Inc., which will manage the hotel upon opening, owns the other 5%. Our joint venture will leverage the development expertise of both companies to realize the full value of this iconic New York building, which was acquired at a significant discount to replacement cost. The design phase is currently in process, and the redevelopment will commence during the third quarter.

Outlook:

Lodging industry fundamentals remain strong, as lodging demand growth continues to improve and new hotel supply growth remains low. Economic indicators that correlate to future lodging demand are strengthening. Additionally, group business pace is currently the strongest since prior to the recession, and group room nights are expected to increase in 2012, after declining in 2011. FelCor's hotels are taking advantage of the growth in corporate and premium segments to remix their customer base and replace the lower rated business with those premium customers. Our hotels are opportunistically increasing rates where appropriate. We expect ADR to increase in every customer segment, including strong rate growth for corporate transient customers, which comprise almost half of our occupancy.

During 2012, the company will be renovating 11 of its hotels, plus ongoing redevelopment of three hotels. A significant portion of the renovations will take place in the first four months of the year, given the seasonally low demand. Therefore, first quarter RevPAR will be impacted by approximately 2%. The displacement from the renovations will impact full year RevPAR growth by approximately 1%, compared to 2011, or $6 million of room revenue.

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FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 6


For 2012, we anticipate:

Same-store RevPAR for 75 hotels (including Morgans and Royalton for both years) to increase from 4% to 6%;
Adjusted EBITDA to be between $205 million and $214 million;
Adjusted FFO per share to be between $0.23 and $0.30;
Hotel operating margins to increase approximately 40 basis points (excluding prior year tax and insurance credits, margins are expected to increase approximately 110 basis points);
Net loss attributable to FelCor to be between $85 million and $76 million; and
Interest expense to be approximately $133 million.

The following table reconciles 2011 Adjusted EBITDA to the mid-point of our 2012 anticipated EBITDA (in millions):

2011 Adjusted EBITDA
 
$
202.7

EBITDA from sold hotels
 
(11.2
)
EBITDA from acquired hotels (prior to ownership)
 
0.1

2011 same-store Adjusted EBITDA(a)
 
191.6

Same store growth
 
17.9

2012 Adjusted EBITDA
 
$
209.5

2012 RevPAR Growth
 
5.0
%
Same-store EBITDA growth
 
9.3
%
(a)
Represents EBITDA for 75 consolidated hotels, including Morgans and Royalton, for the full year prior to our May 2011 acquisition.

The company's 2012 projections are based on 75 consolidated hotels and do not reflect any future hotel sales, acquisitions or other capital transactions. 2012 guidance assumes same-store Adjusted EBITDA growth of 7% to 12%, compared to 2011 (including Morgans and Royalton full year EBITDA for both periods).

FelCor, a real estate investment trust, owns 76 primarily upper-upscale, full-service hotels that are located in major and resort markets throughout 22 states. FelCor partners with leading hotel companies to operate its diversified portfolio of hotels, which are flagged under globally recognized names such as, Doubletree®, Embassy Suites®, Fairmont®, Hilton®, Marriott®, Renaissance®, Sheraton®, Westin® and Holiday Inn®, and premier independent hotels in New York. Additional information can be found on the company's website at www.felcor.com.

We invite you to listen to our fourth quarter earnings Conference Call on Wednesday, February 29, 2012, at 10:00 a.m. (CST). The conference call will be Webcast simultaneously on FelCor's website at www.felcor.com. Interested investors and other parties who wish to access the call can go to FelCor's website and click on the conference call microphone icon on either the "Investor Relations" or "News Releases" page. The conference call replay also will be archived on the company's website.

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FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 7


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. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," "continue" and other similar terms and phrases, including references to assumptions and forecasts of future results. 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 anticipated at the time the forward-looking statements are made. Current economic circumstances or an economic slowdown and the resultant impact on the lodging industry; operating risks associated with the hotel business; relationships with our property managers; risks associated with our level of indebtedness and our ability to meet debt covenants in our debt agreements; our ability to complete acquisitions, dispositions and debt refinancing; the availability of capital; the impact on the travel industry from security precautions; our ability to continue to qualify as a Real Estate Investment Trust for federal income tax purposes; and numerous other factors may affect future results, performance and achievements. 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.

Contact:
Stephen A. Schafer, Vice President Strategic Planning & Investor Relations,
(972) 444-4912 sschafer@felcor.com



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FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 8

SUPPLEMENTAL INFORMATION




INTRODUCTION

The following information is presented in order to help our investors understand FelCor's financial position as of and for the three months and year ended December 31, 2011.



TABLE OF CONTENTS

 
 
PAGE
Consolidated Statements of Operations(a)
 
Consolidated Balance Sheets(a)
 
Hotel Portfolio Composition
 
Detailed Operating Statistics by Brand
 
Operating Statistics for FelCor's Top Markets
 
Consolidated Debt Summary
 
Schedule of Encumbered Hotels
 
Total Enterprise Value
 
Discontinued Operations
 
Capital Expenditures
 
Hotels Under Renovation
 
Non-GAAP Financial Measures
 


(a)
Our consolidated statements of operations and balance sheets have been prepared without audit. Certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP have been omitted. The consolidated statements of operations and balance sheets should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent Annual Report on Form 10-K.


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FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 9


Consolidated Statements of Operations
(in thousands, except per share data)
 
Three Months Ended
December 31,
 
Year Ended
December 31,
 
2011
 
2010
 
2011
 
2010
Revenues:
 
 
 
 
 
 
 
Hotel operating revenue:
 
 
 
 
 
 
 
Room
$
177,983

 
$
162,919

 
$
737,298

 
$
670,939

Food and beverage
41,382

 
39,305

 
151,799

 
134,893

Other operating departments
13,010

 
13,375

 
53,946

 
54,003

Other revenue
319

 
381

 
2,949

 
3,174

Total revenues
232,694

 
215,980

 
945,992

 
863,009

Expenses:
 
 
 
 
 
 
 
Hotel departmental expenses:
 
 
 
 
 
 
 
Room
50,015

 
46,397

 
199,464

 
180,644

Food and beverage
33,172

 
30,835

 
121,151

 
106,653

Other operating departments
6,277

 
6,439

 
25,092

 
24,488

Other property-related costs
66,993

 
63,627

 
265,794

 
244,060

Management and franchise fees
10,391

 
9,569

 
43,155

 
40,154

Taxes, insurance and lease expense
22,732

 
20,844

 
91,012

 
88,327

Corporate expenses
6,375

 
7,826

 
29,080

 
30,747

Depreciation and amortization
33,664

 
33,340

 
133,119

 
133,393

Impairment loss

 
82,294

 
7,003

 
106,421

Other expenses
562

 
587

 
4,017

 
3,280

Total operating expenses
230,181

 
301,758

 
918,887

 
958,167

Operating income (loss)
2,513

 
(85,778
)
 
27,105

 
(95,158
)
Interest expense, net
(32,997
)
 
(34,458
)
 
(134,901
)
 
(139,493
)
Debt extinguishment
(64
)
 
(1,659
)
 
(24,182
)
 
44,313

Gain on involuntary conversion, net

 

 
280

 

Loss before equity in income (loss) from
       unconsolidated entities
(30,548
)
 
(121,895
)
 
(131,698
)
 
(190,338
)
Equity in income (loss) from unconsolidated entities
(765
)
 
17,802

 
(2,068
)
 
16,916

Loss from continuing operations
(31,313
)
 
(104,093
)
 
(133,766
)
 
(173,422
)
Discontinued operations
(2,083
)
 
8,488

 
2,871

 
(52,415
)
Net loss
(33,396
)
 
(95,605
)
 
(130,895
)
 
(225,837
)
Net loss attributable to noncontrolling interests in other
       partnerships
83

 
1,838

 
352

 
1,915

Net loss attributable to redeemable noncontrolling
       interests in FelCor LP
220

 
310

 
689

 
881

Net loss attributable to FelCor
(33,093
)
 
(93,457
)
 
(129,854
)
 
(223,041
)
Preferred dividends
(9,679
)
 
(9,679
)
 
(38,713
)
 
(38,713
)
Net loss attributable to FelCor common stockholders
$
(42,772
)
 
$
(103,136
)
 
$
(168,567
)
 
$
(261,754
)
Basic and diluted per common share data:
 
 
 
 
 
 
 
Loss from continuing operations
$
(0.33
)
 
$
(1.18
)
 
$
(1.46
)
 
$
(2.61
)
Net loss
$
(0.35
)
 
$
(1.08
)
 
$
(1.44
)
 
$
(3.25
)
Basic and diluted weighted average common shares
    outstanding
123,906

 
95,490

 
117,068

 
80,611


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FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 10


Consolidated Balance Sheets
(in thousands)
 
December 31,
 
2011
 
2010
Assets
 
 
 
Investment in hotels, net of accumulated depreciation of $987,895 and
   $982,564 at December 31, 2011 and 2010, respectively
$
1,953,795

 
$
1,985,779

Hotel development
120,163

 

Investment in unconsolidated entities
70,002

 
75,920

Cash and cash equivalents
93,758

 
200,972

Restricted cash
84,240

 
16,702

Accounts receivable, net of allowance for doubtful accounts of $333
   and $696 at December 31, 2011 and 2010, respectively
27,135

 
27,851

Deferred expenses, net of accumulated amortization of $13,119
   and $17,892 at December 31, 2011 and 2010, respectively
29,772

 
19,940

Other assets
24,363

 
32,271

Total assets
$
2,403,228

 
$
2,359,435

Liabilities and Equity
 
 
 
Debt, net of discount of $32,069 and $53,193 at December 31, 2011
   and 2010, respectively
$
1,596,466

 
$
1,548,309

Distributions payable
76,293

 
76,293

Accrued expenses and other liabilities
140,548

 
144,451

Total liabilities
1,813,307

 
1,769,053

Commitments and contingencies
 
 
 
Redeemable noncontrolling interests in FelCor LP, 636 and 285 units
   issued and outstanding at December 31, 2011 and 2010, respectively
3,026

 
2,004

Equity:
 
 
 
Preferred stock, $0.01 par value, 20,000 shares authorized:
 
 
 
Series A Cumulative Convertible Preferred Stock, 12,880 shares,
    liquidation value of $322,011, issued and outstanding at December 31,
    2011 and 2010
309,362

 
309,362

Series C Cumulative Redeemable Preferred Stock, 68 shares,
    liquidation value of $169,950, issued and outstanding at December 31,
    2011 and 2010
169,412

 
169,412

Common stock, $0.01 par value, 200,000 shares authorized and 124,281 shares
   issued and outstanding at December 31, 2011, and 101,038 shares issued
   and outstanding, including shares in treasury, at December 31, 2010
1,243

 
1,010

Additional paid-in capital
2,353,251

 
2,190,308

Accumulated other comprehensive income
25,738

 
26,457

Accumulated deficit
(2,297,468
)
 
(2,054,625
)
Less: Common stock in treasury, at cost, of 4,156 shares at December 31, 2010

 
(73,341
)
Total FelCor stockholders’ equity
561,538

 
568,583

Noncontrolling interests in other partnerships
25,357

 
19,795

Total equity
586,895

 
588,378

Total liabilities and equity
$
2,403,228

 
$
2,359,435


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FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 11

Hotel Portfolio Composition

The following table illustrates the distribution of 75 consolidated hotels by brand, market and location at December 31, 2011.


Brand
 
 
 
Hotels
 
 
Rooms
 
% of
Total Rooms
 
2011
Hotel EBITDA(a)
Embassy Suites Hotels
 
21

 
 
5,742

 
 
27

 
 
$
79,965

 
Holiday Inn
 
9

 
 
3,119

 
 
14

 
 
32,530

 
Doubletree and Hilton
 
5

 
 
1,206

 
 
6

 
 
15,345

 
Sheraton and Westin
 
4

 
 
1,605

 
 
7

 
 
15,196

 
Renaissance and Marriott
 
3

 
 
1,321

 
 
6

 
 
11,352

 
Fairmont
 
1

 
 
383

 
 
2

 
 
5,698

 
Morgans and Royalton
 
2

 
 
282

 
 
1

 
 

 
Total core hotels
 
45

 
 
13,658

 
 
63

 
 
160,086

 
Non-strategic hotels
 
30

 
 
7,920

 
 
37

 
 
65,406

 
Total
 
75

 
 
21,578

 
 
100

 
 
$
225,492

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Market
 
 
 
 
 
 

 

San Francisco area
 
4

 
 
1,637

 
 
8

 
 
$
16,806

 
Boston
 
3

 
 
915

 
 
4

 
 
14,025

 
Los Angeles area
 
3

 
 
677

 
 
3

 
 
13,725

 
South Florida
 
3

 
 
923

 
 
4

 
 
13,111

 
Philadelphia
 
2

 
 
729

 
 
3

 
 
8,804

 
Atlanta
 
3

 
 
952

 
 
4

 
 
8,417

 
Myrtle Beach
 
2

 
 
640

 
 
3

 
 
7,859

 
Dallas
 
2

 
 
784

 
 
4

 
 
7,150

 
San Diego
 
1

 
 
600

 
 
3

 
 
6,141

 
Orlando
 
2

 
 
473

 
 
2

 
 
5,808

 
Other markets
 
20

 
 
5,328

 
 
25

 
 
58,240

 
Total core hotels
 
45

 
 
13,658

 
 
63

 
 
160,086

 
Non-strategic hotels
 
30

 
 
7,920

 
 
37

 
 
65,406

 
Total
 
75

 
 
21,578

 
 
100

 
 
$
225,492

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Location
 
 
 
 
 
 
 
 
 
 
 
 
 
Urban
 
16

 
 
4,931

 
 
23

 
 
$
60,988

 
Airport
 
10

 
 
3,267

 
 
15

 
 
35,564

 
Resort
 
10

 
 
2,927

 
 
14

 
 
35,189

 
Suburban
 
9

 
 
2,533

 
 
11

 
 
28,345

 
Total core hotels
 
45

 
 
13,658

 
 
63

 
 
160,086

 
Non-strategic hotels
 
30

 
 
7,920

 
 
37

 
 
65,406

 
Total
 
75

 
 
21,578

 
 
100

 
 
$
225,492

 

(a)
Hotel EBITDA is more fully described on page 25. We consider Hotel EBITDA as a same-store metric and current year acquisitions (Morgans and Royalton) are excluded from this metric.


-more-


FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 12


The following tables set forth occupancy, ADR and RevPAR for the three months and years ended December 31, 2011 and 2010, and the percentage changes thereto between the periods presented, for 73 same-store consolidated hotels (excludes Morgans and Royalton, which were acquired in May 2011).

Detailed Operating Statistics by Brand
 
Occupancy (%)
 
Three Months Ended
 
 
 
Year Ended
 
 
 
December 31,
 
 
 
December 31,
 
 
 
2011
 
2010
 
%Variance
 
2011
 
2010
 
%Variance
Embassy Suites Hotels
69.8

 
70.2

 
(0.6
)
 
75.8

 
75.0

 
1.1

Holiday Inn
70.3

 
67.1

 
4.8

 
75.0

 
73.9

 
1.5

Doubletree and Hilton
59.0

 
59.0

 
(0.1
)
 
67.9

 
69.8

 
(2.7
)
Sheraton and Westin
59.5

 
62.9

 
(5.5
)
 
65.7

 
66.4

 
(1.1
)
Renaissance and Marriott
63.6

 
60.7

 
4.8

 
67.3

 
63.9

 
5.3

Fairmont
60.5

 
69.2

 
(12.6
)
 
70.2

 
72.3

 
(2.9
)
Same-store core hotels (43)
66.8

 
66.5

 
0.4

 
72.7

 
72.1

 
0.9

Non-strategic hotels (30)
67.3

 
66.4

 
1.3

 
70.9

 
69.0

 
2.7

Total same-store hotels (73)
66.9

 
66.5

 
0.7

 
72.0

 
70.9

 
1.5

 
 
 
 
 
 
 
 
 
 
 
 
 
ADR ($)
 
Three Months Ended
 
 
 
Year Ended
 
 
 
December 31,
 
 
 
December 31,
 
 
 
2011
 
2010
 
%Variance
 
2011
 
2010
 
%Variance
Embassy Suites Hotels
136.46

 
130.46

 
4.6

 
137.61

 
134.33

 
2.4

Holiday Inn
131.83

 
126.06

 
4.6

 
131.27

 
123.38

 
6.4

Doubletree and Hilton
120.42

 
119.32

 
0.9

 
130.20

 
123.31

 
5.6

Sheraton and Westin
111.41

 
104.74

 
6.4

 
111.81

 
106.62

 
4.9

Renaissance and Marriott
175.94

 
167.59

 
5.0

 
177.04

 
165.95

 
6.7

Fairmont
262.93

 
249.18

 
5.5

 
248.97

 
233.32

 
6.7

Same-store core hotels (43)
139.11

 
133.16

 
4.5

 
139.34

 
133.29

 
4.5

Non-strategic hotels (30)
108.97

 
106.56

 
2.3

 
110.23

 
108.26

 
1.8

Total same-store hotels (73)
128.00

 
123.41

 
3.7

 
128.68

 
124.23

 
3.6

 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR ($)
 
Three Months Ended
 
 
 
Year Ended
 
 
 
December 31,
 
 
 
December 31,
 
 
 
2011
 
2010
 
%Variance
 
2011
 
2010
 
%Variance
Embassy Suites Hotels
95.25

 
91.64

 
3.9

 
104.35

 
100.77

 
3.6

Holiday Inn
92.73

 
84.59

 
9.6

 
98.39

 
91.15

 
7.9

Doubletree and Hilton
71.02

 
70.43

 
0.8

 
88.42

 
86.05

 
2.8

Sheraton and Westin
66.29

 
65.93

 
0.5

 
73.47

 
70.82

 
3.7

Renaissance and Marriott
111.90

 
101.73

 
10.0

 
119.12

 
106.00

 
12.4

Fairmont
158.98

 
172.43

 
(7.8
)
 
174.85

 
168.73

 
3.6

Same-store core hotels (43)
92.88

 
88.59

 
4.8

 
101.29

 
96.07

 
5.4

Non-strategic hotels (30)
73.28

 
70.76

 
3.6

 
78.13

 
74.71

 
4.6

Total same-store hotels (73)
85.69

 
82.05

 
4.4

 
92.68

 
88.12

 
5.2


-more-


FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 13


Operating Statistics for FelCor's Top Markets
 
Occupancy (%)
 
Three Months Ended
 
 
 
Year Ended
 
 
 
December 31,
 
 
 
December 31,
 
 
 
2011
 
2010
 
%Variance
 
2011
 
2010
 
%Variance
San Francisco area
76.8

 
72.2

 
6.3

 
79.9

 
77.1

 
3.7

Boston
70.9

 
74.3

 
(4.5
)
 
77.1

 
77.5

 
(0.5
)
Los Angeles area
68.2

 
64.7

 
5.3

 
77.3

 
74.1

 
4.2

South Florida
74.4

 
71.4

 
4.1

 
78.0

 
77.7

 
0.4

Philadelphia
61.6

 
63.5

 
(3.0
)
 
69.4

 
70.9

 
(2.2
)
Atlanta
63.1

 
70.8

 
(10.9
)
 
73.3

 
75.0

 
(2.2
)
Myrtle Beach
44.7

 
43.5

 
2.8

 
59.7

 
61.0

 
(2.0
)
Dallas
61.0

 
58.2

 
4.8

 
64.1

 
61.5

 
4.1

San Diego
72.9

 
70.4

 
3.6

 
78.5

 
75.8

 
3.6

Orlando
79.9

 
83.0

 
(3.7
)
 
83.5

 
82.9

 
0.7

Other markets
64.3

 
64.4

 
(0.2
)
 
69.6

 
69.4

 
0.4

Same-store core hotels (43)
66.8

 
66.5

 
0.4

 
72.7

 
72.1

 
0.9

Non-strategic hotels (30)
67.3

 
66.4

 
1.3

 
70.9

 
69.0

 
2.7

Total same-store hotels (73)
66.9

 
66.5

 
0.7

 
72.0

 
70.9

 
1.5

 
ADR ($)
 
Three Months Ended
 
 
 
Year Ended
 
 
 
December 31,
 
 
 
December 31,
 
 
 
2011
 
2010
 
%Variance
 
2011
 
2010
 
%Variance
San Francisco area
164.26

 
144.16

 
13.9

 
152.75

 
136.30

 
12.1

Boston
192.84

 
183.81

 
4.9

 
187.14

 
175.59

 
6.6

Los Angeles area
141.31

 
141.07

 
0.2

 
149.47

 
144.93

 
3.1

South Florida
137.20

 
137.45

 
(0.2
)
 
141.29

 
141.81

 
(0.4
)
Philadelphia
145.45

 
127.71

 
13.9

 
135.80

 
125.56

 
8.2

Atlanta
104.68

 
105.17

 
(0.5
)
 
104.83

 
104.55

 
0.3

Myrtle Beach
103.53

 
103.29

 
0.2

 
140.62

 
135.78

 
3.6

Dallas
102.97

 
101.54

 
1.4

 
108.32

 
107.11

 
1.1

San Diego
115.01

 
122.89

 
(6.4
)
 
119.70

 
120.13

 
(0.4
)
Orlando
129.10

 
133.38

 
(3.2
)
 
127.53

 
124.23

 
2.7

Other markets
136.67

 
131.39

 
4.0

 
138.46

 
133.28

 
3.9

Same-store core hotels (43)
139.11

 
133.16

 
4.5

 
139.34

 
133.29

 
4.5

Non-strategic hotels (30)
108.97

 
106.56

 
2.3

 
110.23

 
108.26

 
1.8

Total same-store hotels (73)
128.00

 
123.41

 
3.7

 
128.68

 
124.23

 
3.6

 
RevPAR ($)
 
Three Months Ended
 
 
 
Year Ended
 
 
 
December 31,
 
 
 
December 31,
 
 
 
2011
 
2010
 
%Variance
 
2011
 
2010
 
%Variance
San Francisco area
126.11

 
104.12

 
21.1

 
122.05

 
105.04

 
16.2

Boston
136.76

 
136.48

 
0.2

 
144.25

 
136.06

 
6.0

Los Angeles area
96.31

 
91.29

 
5.5

 
115.49

 
107.43

 
7.5

South Florida
102.03

 
98.17

 
3.9

 
110.20

 
110.21

 

Philadelphia
89.63

 
81.13

 
10.5

 
94.21

 
89.03

 
5.8

Atlanta
66.03

 
74.44

 
(11.3
)
 
76.83

 
78.38

 
(2.0
)
Myrtle Beach
46.27

 
44.90

 
3.0

 
84.01

 
82.81

 
1.4

Dallas
62.83

 
59.14

 
6.3

 
69.38

 
65.92

 
5.3

San Diego
83.89

 
86.54

 
(3.1
)
 
94.00

 
91.10

 
3.2

Orlando
103.16

 
110.73

 
(6.8
)
 
106.46

 
102.93

 
3.4

Other markets
87.86

 
84.67

 
3.8

 
96.40

 
92.46

 
4.3

Same-store core hotels (43)
92.88

 
88.59

 
4.8

 
101.29

 
96.07

 
5.4

Non-strategic hotels (30)
73.28

 
70.76

 
3.6

 
78.13

 
74.71

 
4.6

Total same-store hotels (73)
85.69

 
82.05

 
4.4

 
92.68

 
88.12

 
5.2



-more-


FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 14


Consolidated Debt Summary
(dollars in thousands)

 

Encumbered
Hotels
 

Interest Rate
(%)
 
 
 
December 31,
 
 
 
Maturity Date
 
2011
 
2010
Line of credit (a)
 
11

 
 
L + 4.50

 
 
August 2014(b)
 
$

 
$

Hotel mortgage debt
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage debt
 
8

 
 
L + 5.10

(c) 
 
April 2015
 
202,982

 
212,000

Mortgage debt
 
9

 
 
L + 2.20

 
 
May 2013(d)
 
156,398

 
250,000

Mortgage debt
 
7

 
 
9.02

  
 
April 2014
 
109,044

 
113,220

Mortgage debt
 
5

(e) 
 
6.66

 
 
June - August 2014
 
67,375

 
69,206

Mortgage debt
 
1

 
 
5.81

  
 
July 2016
 
10,876

 
11,321

Senior notes
 
 
 
 
 
 
 
 
 


 


Senior secured notes
 
6

 
 
6.75

 
 
June 2019
 
525,000

 

Senior secured notes(f)
 
11

 
 
10.00

 
 
October 2014
 
459,931

 
582,821

Other(g)
 

 
 
L + 1.50

 
 
December 2012
 
64,860

 

Retired debt
 

 
 

 
 
 

 
309,741

Total
 
58

 
 
 
  
 
 
 
$
1,596,466

 
$
1,548,309


(a)
We currently have full availability under our $225 million line of credit.
(b)
The line of credit can be extended for one year (to 2015), subject to satisfying certain conditions.
(c)
LIBOR (for this loan) is subject to a 3% floor.  We purchased an interest rate cap ($212 million notional amount) that caps LIBOR at 5.0% and expires May 2012.
(d)
This loan can be extended for six months, subject to satisfying certain conditions.
(e)
The hotels securing this debt are subject to separate loan agreements and are not cross-collateralized.
(f)
These notes have $492 million in aggregate principal outstanding ($144 million in aggregate principal amount was redeemed in June 2011) and were initially sold at a discount that provided an effective yield of 12.875% before transaction costs.
(g)
This loan is related to our Knickerbocker development project and is fully secured by restricted cash and a mortgage. Because we were able to assume an existing loan when we purchased this hotel, we were not required to pay any local mortgage recording tax. When that loan is transferred to a new lender and made part of our construction loan, we expect to only pay such tax to the extent of the incremental principal amount of the construction loan.


-more-


FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 15


Schedule of Encumbered Hotels
(dollars in millions)

 
 
December 31, 2011
 
 
Consolidated Debt
 
Balance
 
Encumbered Hotels
Line of credit
 
 
$

 
 
Boca Raton - ES, Charlotte SouthPark - DT, Dana Point - DTGS, Houston Medical Center - HI, Myrtle Beach - HLT, Mandalay Beach - ES, Nashville Airport - ES, Philadelphia Independence Mall - HI, Pittsburgh University Center - HI, Santa Barbara Goleta - HI and Santa Monica at the Pier - HI
Mortgage debt
 
 
$
203

 
 
Atlanta Buckhead - ES, Atlanta Galleria - SS, Boston Marlboro - ES, Burlington - SH, Ft. Lauderdale Cypress Creek - SS, Orlando South - ES, Philadelphia Society Hill - SH and South San Francisco - ES
CMBS debt
 
 
$
156

 
 
Anaheim - ES, Bloomington - ES, Charleston Mills House - HI, Deerfield Beach - ES, Jacksonville - ES, Dallas Love Field - ES, Raleigh/Durham - DTGS, San Antonio Airport - HI and Tampa Rocky Point - DTGS
Mortgage debt
 
 
$
109

 
 
Baton Rouge - ES, Birmingham - ES, Ft. Lauderdale - ES, Miami Airport - ES, Milpitas - ES, Minneapolis Airport - ES and Napa Valley - ES
CMBS debt(a)
 
 
$
67

 
 
Atlanta Airport - ES, Austin - DTGS, BWI Airport - ES, Orlando Airport - HI and Phoenix Biltmore - ES
CMBS debt
 
 
$
11

 
 
Indianapolis North - ES
Senior secured notes
 
 
$
525

 
 
Boston Copley - FMT, Los Angeles International Airport - ES, Indian Wells Esmeralda Resort & Spa - REN, St. Petersburg Vinoy Resort & Golf Club - REN, Morgans and Royalton
Senior secured notes
 
 
$
460

 
 
Atlanta Airport - SH, Boston Beacon Hill - HI, Myrtle Beach Resort - ES, Nashville Opryland - Airport - HI, New Orleans French Quarter - HI, Orlando Walt Disney World® - DTGS, San Diego on the Bay - HI, San Francisco Waterfront - ES, San Francisco Fisherman's Wharf - HI, San Francisco Union Square - MAR and Toronto Airport - HI

(a)
The hotels under this debt are subject to separate loan agreements and are not cross-collateralized.




-more-


FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 16

Total Enterprise Value
(in thousands, except per share information)
 
December 31,
 
2011
 
2010
Common shares outstanding
124,281

 
96,882

Units outstanding
636

 
285

Combined shares and units outstanding
124,917

 
97,167

Common stock price
$
3.05

 
$
7.04

Market capitalization
$
380,997

 
$
684,056

Series A preferred stock
309,362

 
309,362

Series C preferred stock
169,412

 
169,412

Consolidated debt
1,596,466

 
1,548,309

Noncontrolling interests of consolidated debt
(2,894
)
 
(3,754
)
Pro rata share of unconsolidated debt
75,178

 
77,295

Cash and cash equivalents
(93,758
)
 
(200,972
)
Total enterprise value (TEV)
$
2,434,763

 
$
2,583,708


Discontinued Operations
(in thousands)
Discontinued operations include the results of operations of eight hotels sold in 2011 and three hotels disposed in 2010. Condensed financial information for the hotels included in discontinued operations is as follows:
 
Three Months Ended
 
Year Ended
 
December 31,
 
December 31,
 
2011
 
2010
 
2011
 
2010
   Operating revenue
$
3,191

 
$
23,379

 
$
42,148

 
$
98,008

   Operating expenses(a)
(2,626
)
 
(21,236
)
 
(42,975
)
 
(160,978
)
Operating income (loss)
565

 
2,143


(827
)

(62,970
)
   Interest expense, net

 
(682
)
 
(817
)
 
(4,596
)
   Debt extinguishment

 
7,027

 
(199
)
 
15,151

   Gain (loss) on sale, net of tax
(2,648
)
 

 
4,714

 

Income (loss) from discontinued operations
(2,083
)
 
8,488


2,871


(52,415
)
   Depreciation and amortization
169

 
2,903

 
5,771

 
14,270

   Interest expense

 
682

 
819

 
4,599

   Noncontrolling interest in other partnerships

 
917

 
13

 
917

   Pro rata EBITDA from sold unconsolidated joint ventures

 
(995
)
 

 
1,559

EBITDA from discontinued operations
(1,914
)
 
11,995


9,474


(31,070
)
   Impairment loss

 
4,510

 
6,247

 
67,292

   Debt extinguishment

 
(7,027
)
 
199

 
(15,151
)
   Loss (gain) on sale, net of tax
2,648

 

 
(4,714
)
 

Adjusted EBITDA from discontinued operations
$
734

 
$
9,478


$
11,206


$
21,071


(a)
Includes impairment charges of $6.2 million and $67.3 million for the years ended December 31, 2011 and 2010, respectively, and $4.5 million for the three months ended December 31, 2010.

-more-


FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 17


Capital Expenditures
(in thousands)
 
Three Months Ended
 
Year Ended
 
December 31,
 
December 31,
 
2011
 
2010
 
2011
 
2010
Improvements and additions to majority-owned hotels
$
31,572

 
$
11,095

 
$
89,042

 
$
38,936

Partners' pro rata share of additions to consolidated
    joint venture hotels
(156
)
 
(55
)
 
(882
)
 
(258
)
Pro rata share of additions to unconsolidated hotels
801

 
521

 
3,051

 
1,741

   Total additions to hotels(a)
$
32,217

 
$
11,561

 
$
91,211

 
$
40,419

(a)    Includes capitalized interest, property taxes, ground leases and certain employee costs.

Hotels Under Renovation
(dollars in millions)
 
Affected Areas
Rooms
Start Date
Project
Amount
Renovations-Started in 2011
 
 
 
 
 
Philadelphia Society Hill-SH
guest rooms, corridors, public areas, meeting space; re-concept F&B
365
Q4-2011
$
12

 
Mandalay Beach-ES
guestrooms, corridors, public areas, exterior
249
Q4-2011
$
10

 
Napa Valley-ES
guestrooms, corridors, public areas
205
Q4-2011
$
8

 
Austin-DTGS
guestrooms corridors, public areas, entrance
189
Q4-2011
$
6

 
Boston Beacon Hill-HI
guestrooms, lobby, F&B
303
Q4-2011
$
5

 
Charlotte SouthPark-DT
guestrooms, corridors, exterior, lobby; upgrade F&B
208
Q4-2011
$
5

 
Pittsburgh University Center-HI
guestrooms, public areas
251
Q4-2011
$
4

 
St Petersburg Vinoy Resort & Golf Club-REN
lobby, lounge area, F&B areas, new bar
361
Q3-2011
$
2

 
Renovations-Scheduled in 2012
 
 
 
 
 
Los Angeles International Airport-ES
guestrooms, corridors, pool area
350
Q3-2012
$
7

 
Orlando Walt Disney World-DTGS
meeting space, public areas, pool upgrades, new pool bar
229
Q2-2012
$
2

 
San Francisco Burlingame-ES
public space, meeting rooms, lobby, F&B
340
Q3-2012
$
2

 

-more-


FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 18


Non-GAAP Financial Measures

We refer in this release to certain "non-GAAP financial measures." These measures, including FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-store Adjusted EBITDA, Hotel EBITDA and Hotel EBITDA margin, are measures of our financial performance that are not calculated and presented in accordance with generally accepted accounting principles ("GAAP"). The following tables reconcile each of these non-GAAP measures to the most comparable GAAP financial measure. Immediately following the reconciliations, we include a discussion of why we believe these measures are useful supplemental measures of our performance and the limitations of such measures.

Reconciliation of Net Loss to FFO and Adjusted FFO
(in thousands, except per share data)
 
Three Months Ended December 31,
 
2011
 
2010
 


Dollars
 


Shares
 
Per
Share
Amount
 


Dollars
 


Shares
 
Per
Share
Amount
Net loss
$
(33,396
)
 
 
 
 
 
$
(95,605
)
 
 
 
 
Noncontrolling interests
303

 
 
 
 
 
2,148

 
 
 
 
Preferred dividends
(9,679
)
 
 
 
 
 
(9,679
)
 
 
 
 
Net loss attributable to FelCor
    common stockholders
(42,772
)
 
123,906

 
$
(0.35
)
 
(103,136
)
 
95,490

 
$
(1.08
)
Depreciation and amortization
33,664

 

 
0.27

 
33,340

 

 
0.35

Depreciation, discontinued
    operations and unconsolidated entities
2,994

 

 
0.02

 
6,371

 

 
0.07

Impairment loss

 

 

 
82,294

 

 
0.86

Impairment loss, discontinued
   operations and unconsolidated entities

 

 

 
3,772

 

 
0.04

Loss on sale of hotels
2,648

 

 
0.02

 

 

 

Gain on sale of unconsolidated entities

 

 

 
(20,544
)
 

 
(0.22
)
Noncontrolling interests in FelCor LP
(220
)
 
636

 
0.01

 
(310
)
 
290

 

Unvested restricted stock

 

 

 

 
654

 

FFO
(3,686
)
 
124,542

 
(0.03
)
 
1,787

 
96,434

 
0.02

Acquisition costs
121

 

 

 
31

 

 

Extinguishment of debt
64

 

 

 
(5,369
)
 

 
(0.06
)
Unvested restricted stock

 

 

 

 
(654
)
 

Adjusted FFO
$
(3,501
)
 
124,542

 
$
(0.03
)
 
$
(3,551
)
 
95,780

 
$
(0.04
)



-more-


FelCor Lodging Trust Incorporated Fourth Quarter 2011
February 29, 2012
Page 19


Reconciliation of Net Loss to FFO and Adjusted FFO
(in thousands, except per share data)

 
Year Ended December 31,
 
2011
 
2010
 

Dollars
 

Shares
 
Per Share
Amount
 

Dollars

Shares
 
Per Share
Amount
Net loss
$
(130,895
)
 
 
 
 
 
$
(225,837
)
 
 
 
 
Noncontrolling interests
1,041

 
 
 
 
 
2,796

 
 
 
 
Preferred dividends
(38,713
)
 
 
 
 
 
(38,713
)
 
 
 
 
Net loss attributable to FelCor
    common stockholders
(168,567
)
 
117,068

 
$
(1.44
)
 
(261,754
)
 
80,611

 
$
(3.25
)
Depreciation and amortization
133,119

 

 
1.14

 
133,393

 

 
1.65

Depreciation, discontinued
    operations and unconsolidated entities
18,249

 

 
0.16

 
28,833

 

 
0.35

Gain on involuntary conversion
(280
)
 

 

 

 

 

Impairment loss
7,003

 

 
0.06

 
106,421

 

 
1.32

Impairment loss, discontinued
    operations and unconsolidated entities
6,247

 

 
0.05

 
66,555

 

 
0.83

Gain on sale of hotels, net
(4,714
)
 

 
(0.04
)
 

 

 

Gain on sale of unconsolidated entities

 

 

 
(21,103
)
 

 
(0.26
)
Noncontrolling interests in
   FelCor LP
(689
)
 
499

 
(0.01
)
 
(881
)
 
294

 
(0.01
)
Unvested restricted stock

 

 

 

 
505

 

FFO
(9,632
)
 
117,567

 
(0.08
)
 
51,464

 
81,410

 
0.63

Acquisition costs
1,479

 

 
0.01

 
449

 

 
0.01

Extinguishment of debt
24,381

 

 
0.21

 
(59,465
)
 

 
(0.73
)
Unvested restricted stock

 
175