IRVING, Texas…June 30, 2003 - FelCor Lodging Trust Incorporated (NYSE: FCH), the nation’s second largest hotel real estate investment trust (REIT), today announced its second quarter preferred dividends.

FelCor;
FelCor will pay a dividend of $0.4875 per share on its $1.95 Series A Cumulative Convertible Preferred Stock and $0.5625 per depositary share evidencing its 9% Series B Cumulative Redeemable Preferred Stock. The second quarter dividends will each be payable on July 31, 2003, to preferred stockholders of record on July 15, 2003.

FelCor announced the suspension of its common dividend on February 4, 2003, and does not expect to pay a common dividend in 2003. FelCor’s decision to pay future dividends on its preferred stock will be made quarterly, based on hotel operating results and its then estimates of the minimum distributions required to maintain the Company’s REIT status. The Company has previously indicated that it may be required to pay preferred dividends to maintain REIT status in the event that revenue per available room declined as much as six to eight percent for 2003.

FelCor is the nation’s second largest lodging REIT and the largest owner of full service, all-suite hotels. FelCor’s consolidated portfolio is comprised of 167 hotels, located in 35 states and Canada. FelCor owns 77 full service, all-suite hotels, and is the largest owner of Embassy Suites Hotels ® and Doubletree Guest Suites® hotels. FelCor’s portfolio also includes 83 hotels in the upscale and full service segments. FelCor has a current market capitalization of approximately $2.8 billion.