IRVING, TX— FelCor Lodging Trust reported operating results for the first quarter ended Mar. 31, that included revenue from continuing operations of $311 million, reflecting an increase of $24 million, or 8.5%, compared to the first quarter in 2003. It was claimed the increase in revenue was related to a 4.4% increase in the hotel portfolio’s RevPAR and the inclusion of $7 million of revenue from the consolidation of FelCor’s joint venture with Interstate Hotels & Resorts, accounted for under the equity method until June 2003. For the quarter, it was similarly noted occupancy increased 5.2%, improving to 64.4%, and ADR decreased 0.7%, to $97.16, compared to the same quarter of 2003. The operating margin from continuing operations of FelCor’s hotels during the first quarter 2004 was 28.6%, which reflected a 100-basis-point decrease compared to the same period in 2003. The deterioration in operating margin was said to be principally the result of increased occupancy during the quarter and the decrease in ADR. FelCor’s net loss applicable to common stockholders for the first quarter of 2004 was $27 million, or ($0.47) per share. This is compared to the prior year’s first-quarter net loss of $28 million, or ($0.48) per share. The first quarter 2004 loss included a non-recurring $4.9-million expense, representing $0.08 per share, associated with an anticipated settlement that is expected to include an early termination of the lease on one hotel and a release of claims relating to that hotel. The early termination of this lease is expected to result in an improvement of $0.01 per share in second-half 2004 earnings. Also included in the prior year loss was a gain of $1 million, or $0.02 per share, from the early extinguishment of debt.
