Yes it's true. Lily Rabe is returning for season 5 of American Horror Story!
According to the show's twitter page, the four season vet is in talks to take on a role in Hotel. It is also said that she will play a famous murderer who has stayed at the unnamed hotel in season 5.
Lily Rabe appeared in one episode of Freakshow as the reprised role of Sister Mary Eunice in a flashback. Before that she has played the roles of Nora Montgomery in season 1 and the Stevie Nicks obsessed witch, Misty Day, in Coven.
During San Diego comic con, the shows creator Ryan Murphy mentioned he would continue with connecting the seasons like he did with "Sister Mary Eunice Mckee" and "Pepper" from the asylum.
"Characters from previous seasons will come back and check into the hotel. It's part of a connected universe with a pretty cool thesis statement at the end of the run."
explained Ryan Murphy at San Diego Comic-Con recently. Who knows, maybe Jessica Lange could return to hotel as "Fiona Goode".
Lily Rabe will be working with the other all-too-familiar American Horror Story: Hotel cast such as Sarah Paulson, Kathy Bates, Evan Peters, Denis O'Hare, Chloë Savigny and many new actors such as Lady Gaga, Cheyenne Jackson, and Max Greenfield.
American Horror Story: Hotel is set to premiere this fall on FX.