IRVING, Texas – FelCor Lodging Trust Incorporated (NYSE: FCH) today announced that it has suspended the quarterly dividend payments on its Series A Cumulative Convertible Preferred Stock and its 8% Series C Cumulative Redeemable Preferred Stock.

This decision reflects the company’s continued focus on preserving liquidity. The company does not anticipate that it will be required to pay any further dividends in 2009 to maintain its REIT status. By suspending its preferred dividends, the company will preserve approximately $10 million of liquidity per quarter, and expects to generate positive cash flow during 2009. Operating results through February were in-line with the high-end of our expectations.

“In the face of a difficult operating environment, I am pleased with our operating results so far this year, which reflect the continued expense management at the hotels and market share growth. However, given our focus on preserving liquidity during the recession, we feel that it is prudent to suspend our preferred dividend until conditions improve,” said Richard A. Smith, FelCor’s President and Chief Executive Officer.

FelCor, a real estate investment trust, is the nation’s largest owner of upper upscale, all-suite hotels. FelCor owns interests in 88 hotels and resorts, located in 23 states and Canada. FelCor’s portfolio consists mostly of upper upscale hotels, which are flagged under global brands such as Embassy Suites Hotels®, Doubletree®, Hilton®, Renaissance®, Sheraton®, Westin® and Holiday Inn®. Additional information can be found on the Company’s Web site at .

Stephen A. Schafer
VP Strategic Planning & Investor Relations
972-444-4912
FelCor