923603--2/27/2009--FelCor_Lodging_Trust

related topics

{debt, indebtedness, cash}

{investment, property, distribution}

{provision, law, control}

{capital, credit, financial}

{condition, economic, financial}

{regulation, change, law}

{operation, natural, condition}

{loan, real, estate}

{personnel, key, retain}

{interest, director, officer}

Recent disruptions in the financial markets may affect our ability to obtain financing or obtain financing on reasonable and acceptable terms. The current global recession has had an adverse effect on our revenue per available room, or RevPAR, performance and results of operations. The effects of a continued or deepening recession on our financial condition could be material. Compliance with, or failure to comply with, our financial covenants may adversely affect our financial position and results of operations. We depend on external sources of capital for future growth, and we may be unable to access capital when necessary. We have substantial financial leverage. Our debt agreements will allow us to incur additional debt that, if incurred, could exacerbate the other risks described herein. We have substantial variable rate debt. We are subject to the risks of real estate ownership, which could increase our costs of operations. Lodging industry-related risks may adversely affect our business. Future terrorist activities may adversely affect, and create uncertainty in, our business. As a REIT, we are subject to specific tax laws and regulations, the violation of which could subject us to significant tax liabilities. Complying with REIT requirements may cause us to forego attractive opportunities that could otherwise generate strong risk-adjusted returns and instead pursue less attractive opportunities, or none at all. Complying with REIT requirements may force us to liquidate otherwise attractive investments, which could result in an overall loss on our investments. We own, and may acquire, interests in hotel joint ventures with third parties that expose us to some risk of additional liabilities or capital requirements. Our directors may have interests that may conflict with our interests. Departure of key personnel would deprive us of the institutional knowledge, expertise and leadership they provide. Our charter contains limitations on ownership and transfer of shares of our stock that could adversely affect attempted transfers of our capital stock. Some provisions in our charter and bylaws and Maryland law make a takeover more difficult.

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923603--2/27/2009--FelCor_Lodging_Trust_Inc