FelCor Announces Acquisition of Lease Interests From Bass Hotels & Resorts

Apr 02, 2001, 01:00 ET from FelCor Lodging Trust Incorporated

    IRVING, Texas, April 2 /PRNewswire/ -- FelCor Lodging Trust Incorporated
 (NYSE:   FCH), the nation's second largest hotel real estate investment trust
 (REIT), today announced the completion of a deal, subject only to certain
 lender consents, to acquire the lessee interests in 88 of its hotels from Bass
 Hotels & Resorts, Inc.  The transaction will be effective July 1, 2001.
     In April 2000, Bass Hotels & Resorts acquired the interests as a result of
 its acquisition of Bristol Hotels & Resorts.  As permitted by the REIT
 Modernization Act, which became effective January 1, 2001, FelCor will acquire
 the lessee interests held by Bass and contribute them to a taxable REIT
 subsidiary of FelCor.  Bass will continue to manage the properties under long
 term management contracts.  For financial reporting purposes, a portion of the
 future management fees to be paid under the long term management agreements
 (having a present value of approximately $125 million) will be considered by
 FelCor as lease termination costs and will be expensed in the third quarter of
 2001.  A corresponding liability will be set up on FelCor's books and
 amortized over the term of the management agreements.
     "The completion of this transaction allows us to better align our
 interests with those of our trusted brand owner/manager, Bass Hotels &
 Resorts," said Thomas J. Corcoran, Jr., FelCor's President & CEO.
     In February 2001, FelCor announced the completion, subject to certain
 lender consents, of its acquisition of all the equity interests in DJONT,
 which lease its Hilton and Starwood-branded hotels, effective January 1, 2001.
 DJONT also was contributed to a taxable REIT subsidiary.  The cost of
 acquiring DJONT, together with assumed liabilities, will be expensed in the
 first quarter 2001.
     FelCor's hotel portfolio consists of 186 hotels with nearly 50,000 rooms
 and suites and is concentrated primarily in the upscale and full-service
 segments.  FelCor is the owner of the largest number of Embassy Suites(R),
 Crowne Plaza(R), Holiday Inn(R) and independently owned Doubletree(R)-branded
 hotels.  Other leading hotel brands under which FelCor's hotels are operated
 include Sheraton Suites(R), Sheraton(R) and Westin(R).  FelCor has a current
 market capitalization of approximately $3.5 billion.  Additional information
 can be found on the Company's web site at www.felcor.com.
     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 that are qualified by cautionary statements
 contained herein and in FelCor's filings with the Securities and Exchange
 Commission.
 
 

SOURCE FelCor Lodging Trust Incorporated
    IRVING, Texas, April 2 /PRNewswire/ -- FelCor Lodging Trust Incorporated
 (NYSE:   FCH), the nation's second largest hotel real estate investment trust
 (REIT), today announced the completion of a deal, subject only to certain
 lender consents, to acquire the lessee interests in 88 of its hotels from Bass
 Hotels & Resorts, Inc.  The transaction will be effective July 1, 2001.
     In April 2000, Bass Hotels & Resorts acquired the interests as a result of
 its acquisition of Bristol Hotels & Resorts.  As permitted by the REIT
 Modernization Act, which became effective January 1, 2001, FelCor will acquire
 the lessee interests held by Bass and contribute them to a taxable REIT
 subsidiary of FelCor.  Bass will continue to manage the properties under long
 term management contracts.  For financial reporting purposes, a portion of the
 future management fees to be paid under the long term management agreements
 (having a present value of approximately $125 million) will be considered by
 FelCor as lease termination costs and will be expensed in the third quarter of
 2001.  A corresponding liability will be set up on FelCor's books and
 amortized over the term of the management agreements.
     "The completion of this transaction allows us to better align our
 interests with those of our trusted brand owner/manager, Bass Hotels &
 Resorts," said Thomas J. Corcoran, Jr., FelCor's President & CEO.
     In February 2001, FelCor announced the completion, subject to certain
 lender consents, of its acquisition of all the equity interests in DJONT,
 which lease its Hilton and Starwood-branded hotels, effective January 1, 2001.
 DJONT also was contributed to a taxable REIT subsidiary.  The cost of
 acquiring DJONT, together with assumed liabilities, will be expensed in the
 first quarter 2001.
     FelCor's hotel portfolio consists of 186 hotels with nearly 50,000 rooms
 and suites and is concentrated primarily in the upscale and full-service
 segments.  FelCor is the owner of the largest number of Embassy Suites(R),
 Crowne Plaza(R), Holiday Inn(R) and independently owned Doubletree(R)-branded
 hotels.  Other leading hotel brands under which FelCor's hotels are operated
 include Sheraton Suites(R), Sheraton(R) and Westin(R).  FelCor has a current
 market capitalization of approximately $3.5 billion.  Additional information
 can be found on the Company's web site at www.felcor.com.
     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 that are qualified by cautionary statements
 contained herein and in FelCor's filings with the Securities and Exchange
 Commission.
 
 SOURCE  FelCor Lodging Trust Incorporated