IRVING, TX-FelCor Lodging Trust Inc.’s third quarter operatingresults were strong enough for the REIT’s executive team to expressconfidence not only in the future of the hospitality sector, butalso the future performance of its own portfolio.

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“Our confidence in a sustained recovery is growing,” said AndrewJ. Welch, FelCor's executive vice president and CFO, during theREIT’s earnings conference call. FelCor owns interests in 84 hotelsand resorts located in 23 states and Canada.

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The REIT’s revenues certainly indicate the recovery is wellunderway: same-store revenue per available room (RevPAR) atFelCor’s 82 consolidated hotels increased 6.3% for the quartercompared to the same period in 2009. The RevPAR increase for thequarter was driven by a 4.2% occupancy increase to 72.7% and a 2.1%ADR increase to $120.85, compared to the same period in 2009.

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“ADR growth accelerated through the quarter – the firstquarterly increase in ADR in two years,” Welch commented. “Weexpect four quarter RevPAR to be stronger than it has been thisyear. ADR should account for more than 50% of RevPAR growth.”

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During the call, Welch pointed out that RevPAR grew during thethird quarter increased at 61 of the REITs hotels and in everymajor market, except for Orlando, which has seen a great deal ofnew supply. He attributed much of the improvement to the lack ofnew hotel rooms across the US; only four of the REIT’s top 20markets have rooms under construction.

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“We expect trends to continue to improve,” Welch said. Moreover,he noted that hotel cash flows and values are recovering, as wellas the capital markets.

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