FelCor Lodging Trust Acquires Second Resort Hotel in Myrtle Beach, S.C.

IRVING, Texas�July 23, 2002 - FelCor Lodging Trust Incorporated (NYSE: FCH), one of the nation�s largest hotel real estate investment trusts (REITs), today announced the acquisition of the 385-room Wyndham Myrtle Beach Resort� and Arcadian Shores Golf Club in Myrtle Beach, South Carolina. The hotel, a leasehold interest in the golf course, and adjacent land were purchased for $35.3 million. FelCor will convert the hotel to a Hilton� hotel in Spring 2003, and will upgrade the guestrooms and the public space as part of a $10 million renovation plan. FelCor has executed a 15-year management agreement with Hilton Hotels Corporation concurrent with the acquisition closing. To acquire the hotel, FelCor utilized excess cash held on its balance sheet, and maintains no outstanding balance on its line of credit. �The Wyndham Myrtle Beach Resort is located at one of America�s premiere oceanfront destinations. We are extremely pleased to add this Resort to our portfolio,� said Michael A. DeNicola, FelCor�s Executive Vice President and Chief Investment Officer. �The Resort�s proximity to our Embassy Suites Hotel� - Kingston Plantation provides the added-value opportunity to complex the management of both properties with Hilton Hotels.� The Resort is located near the Embassy Suites - Kingston Plantation, which is owned by FelCor and managed by Hilton. The Embassy Suites hotel is part of the 145-acre Kingston Plantation master planned oceanfront resort community that includes freshwater lakes, a rolling wooded terrain, water activity park, and more than 1,600 feet of oceanfront property. FelCor and Hilton Hotels, through a joint venture arrangement, developed and continue to manage rentals for Brighton condominiums, a 200-unit residential condominium development with 20,000 square feet of meeting space as part of Kingston Plantation. This project was completed and sold in the summer of 2000. This same joint venture holds land for the development of up to an additional 400 residential condominium units. The Wyndham Myrtle Beach Resort features 385 rooms, which includes nine suites, and is located on premiere oceanfront property known as South Carolina�s famous Grand Strand. Each room offers spectacular ocean views. The 16-story building features a restaurant, beach bar and casual dining restaurant, mezzanine lounge, heated outdoor pool, exercise room and four lighted tennis courts. Additional amenities include approximately 16,000 square feet of meeting space and an exhibit hall in the hotel. There is a total of approximately 100,000 square feet of meeting space available through Kingston Plantation and the Wyndham Myrtle Beach Resort. For recreation, the Resort offers the Arcadian Golf Shores Club, an 18-hole Rees Jones championship golf course. The Arcadian is located adjacent to the Wyndham Myrtle Beach Resort and offers scenic lakes, challenging bunkers, tree-lined fairways and greens with distinctive contouring. The Arcadian also features a clubhouse and a fully-stocked pro shop. The Resort is located nine miles from the Myrtle Beach Convention Center and is within 20 minutes of the Myrtle Beach International Airport. The Myrtle Beach area, with 60 miles of pristine shoreline, boasts more than 100 golf courses, fishing, surfing, retail outlets, special boutiques and outdoor malls, historic gardens and amusement parks. FelCor is the only lodging REIT that owns a diversified portfolio of nationally branded, upscale and full-service hotels managed by strategic brand managers such as Hilton Hotels, Six Continents Hotels, and Starwood Hotels & Resorts. FelCor is competitively positioned to deliver superior shareholder returns through its strong management team, strategic brand manager alliances, diversified upscale and full-service hotels, value creation expertise, and financial strength. FelCor�s hotel portfolio consists of 184 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, Crowne Plaza�, Holiday Inn� and independently owned Doubletree�-branded hotels. Other leading hotel brands under which FelCor's hotels are operated include Sheraton Suites�, Sheraton� and Westin�. FelCor has a current market capitalization of approximately $3.1 billion.