Land and Buildings Highlights Substantial Undervaluation of FelCor Lodging Trust and Outlines Path to Unlock Shareholder Value

Today Land and Buildings released an investor presentation providing a detailed discussion of the value creation opportunity and need for a change in strategy at FelCor Lodging Trust (NYSE: FCH) (“FCH”, “FelCor”, or the “Company”). Land and Buildings Founder and Chief Investment Officer Jonathan Litt and Co-Founder and Portfolio Manager Craig Melcher will be hosting a conference call today, Thursday, January 28th at 10:30 AM Eastern Time, to discuss the presentation. The presentation is available at www.landandbuildings.com and the dial-in information for the call is below.

“Land and Buildings believes that FelCor Lodging Trust is uniquely positioned in the hotel REIT sector to outperform and close the substantial gap between its share price and net asset value,” said Jonathan Litt. “The Company’s suburban, airport and resort locations are insulated from elevated supply growth in the gateway markets, positioning the Company for superior growth compared to its lodging REIT peers in 2016.”

Litt continued, “However, strategically the Company is at a crossroads, as the stock is down approximately 50 percent from 2015 highs and continues to trade well below current private market real estate value taking into account real-time market conditions. We believe FelCor must pursue a value-enhancing strategy that will significantly lower leverage, increase NAV per share and crystalize value through a sale of all or part of the Company. The status quo of poor capital allocation and poor balance sheet management is unacceptable and has led to sector-worst total shareholder returns over the trailing 10 years1 – demonstrating the urgent need for change at FelCor.”

Highlights of the Land and Buildings strategic plan for FelCor include:

• Selling the Company’s New York City hotels given strong private market valuations to realize significant embedded value not reflected in stock price (including the Knickerbocker Hotel, the Royalton New York, and the Morgans New York properties)
• Selling the bottom ~10% of the Company’s portfolio to improve portfolio quality and generate cash proceeds
• Buying back stock with asset sale proceeds to increase net asset value
• Reducing net debt with asset sale proceeds and retained cash flow to reduce leverage below peers
• Enhancing corporate governance by de-staggering Board immediately and adding new directors

In addition to the strategic initiatives discussed above, Land and Buildings believes a company sale or liquidation should be explored concurrently with other strategic opportunities. The private market for hotels is large and liquid, with Jones Lang LaSalle forecasting $36 billion in US hotel investment sales to transact in 2016. Given the more than 60% upside to NAV, a strong case must be made to justify why shareholder value will be best maximized by remaining a going concern.

Participant Dial-in Information for the call is as follows:

• Domestic: 800 899 2086
• International: +1 212 231 2934

Please email questions for the conference call to litt-landandbuildings@landandbuildings.com.

About Land and Buildings:

Land and Buildings is a registered investment manager specializing in publicly traded real estate and real estate related securities. Land and Buildings seeks to deliver attractive risk adjusted returns by opportunistically investing in securities of global real estate and real estate related companies, leveraging its investment professionals' deep experience, research expertise and industry relationships.

Cautionary Statement Regarding Forward-Looking Statements

This communication contains “forward-looking statements” that involve numerous risks and uncertainties. The statements contained in this communication that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements included in this document are based on information available to Land and Buildings on the date hereof. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “seek,” “should,” "could," “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Such statements are not guarantees of future performance or activities. Due to various risks, uncertainties and assumptions, actual events or results or actual performance may differ materially from those reflected or contemplated in such forward-looking statements. The opinions of Land and Buildings are for general informational purposes only and do not have regard to the specific investment objective, financial situation, suitability or particular need of any specific person, and should not be taken as advice on the merits of any investment decision. This material does not recommend the purchase or sale of any security. Land and Buildings reserves the right to change any of its opinions expressed herein at any time as it deems appropriate. Land and Buildings disclaims any obligation to update the information contained herein. Land and Buildings and/or one or more of the investment funds it manages may purchase additional FelCor Lodging Trust shares or sell all or a portion of their shares or trade in securities relating to such shares.

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