FelCor Posts 4Q, Full-Year Operating Results

IRVING, TX— FelCor Lodging Trust here reported operating results for both the fourth quarter and full fiscal year ended Dec. 31 reflecting softened lodging demand resulting from the nation’s general economic recession and exacerbated by (the aftermath) of the terror attacks of Sept. 11. As noted, FelCor’s fourth quarter 2001 recurring Funds From Operations (FFO) of $13.8 million, or $.21 per share, exceeded consensus analyst estimates of $.20 per share. FFO for the same period a year earlier amounted to $62.4 million, or $.94 per share. Also for the quarter, the REIT reported a net loss of $35.4 million, or $.67 per share, as against earnings for the same period during the prior year of $35.1 million, or $.66 per share. It was pointed out that the fourth quarter has historically been the weakest quarter of the year for the company’s operating results. FelCor further noted its total hotel portfolio RevPAR for the quarter decreased 23% when compared to the same period of 2000, with an October 2001 decline of 25.2%, followed by a November drop-off of 23.6% and a December decrease of 18.8%. For the quarter, occupancy reportedly slumped 9.7 points to 55.2%, and ADR dropped 9.5% to $95.69 (when measured against the same three-month period of 2000). In the course of reviewing results for the entire year, FelCor President/CEO Thomas Corcoran contended: “In 2001, the lodging industry experienced the worst decline in demand seen in the last three decades. It began with the recession in April and was magnified by the events of Sept. 11. In this difficult environment, FelCor continued to generate a strong cash flow with a full-year FFO of $2.75 per share and common shareholder dividends of $1.70 per share. “We also continued to invest in our hotels,” Corcoran said, “completing $64 million of capital expenditures, which represents 4.5% of total hotel revenues.”