Meristar Hospitality Operating Partnership 10-Q 2004 Q3 Quarterly report

Exhibit 99.1

MeriStar Hospitality Operating Partnership, L.P.

Condensed Consolidating Balance Sheet

September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Hospitality OP, L.P.		Non- Guarantor Subsidiaries		MeriStar Sub 7C, LLC	AGH Upreit, LLC	MeriStar Sub 5N, LLC		MeriStar Sub 8A, LLC	MeriStar Sub 8F, L.P.		MeriStar Sub 8G, LLC	MeriStar Sub 6H, L.P.		MeriStar Sub 8B, LLC
Assets
Property and equipment	20,670		1,448,950		—	—	3,671		—	12,369		—	10,867		88,656
Accumulated depreciation	(15,956	)	(274,941	)	—	—	(637	)	—	(3,013	)	—	(626	)	(14,073	)
	4,714		1,174,009		—	—	3,034		—	9,356		—	10,241		74,583
Assets held for sale	—		1		—	—	—		—	—		—	—		—
Investments in affiliate	2,440,576		7,993		32	2,989	—		—	—		72	—		—
Due to/from subsidiaries	(993,038	)	518,596		—	73	4,749		—	7,441		9	7,643		30,201
Note receivable from subsidiaries	190,537		—		—	—	—		—	—		—	—		—
Prepaid expenses and other assets	40,161		(2,179	)	—	—	(39	)	—	(69	)	—	(8	)	(86	)
Insurance claim receivable	3,071		19,991		—	—	422		—	—		—	—		—
Accounts receivable, net of allowance for doubtful accounts	30,071		1,000		—	—	—		—	—		—	—		—
Restricted cash	56,904		1,860		—	—	—		—	115		—	—		—
Cash and cash equivalents - unrestricted	97,317		—		—	—	—		—	—		—	—		—
	1,870,313		1,721,271		32	3,062	8,166		—	16,843		81	17,876		104,698
Liabilities and Partners’ capital
Long-term debt	844,128		474,263		—	—	—		—	—		—	—		—
Notes payable to MeriStar Hospitality Corporation	207,658		—		—	—	—		—	—		—	—		—
Accounts payable and accrued expenses	14,983		8,721		—	—	56		—	(9	)	—	65		(198	)
Accrued interest	33,830		2,283		—	—	—		—	—		—	—		—
Due to Interstate Hotels & Resorts	15,727		—		—	—	—		—	—		—	—		—
Other liabilities	3,426		—		—	—	—		—	—		—	—		—
Total liabilities	1,119,752		485,267		—	—	56		—	(9	)	—	65		(198	)
Minority interests	2,432		—		—	—	—		—	—		—	—		—
Redeemable OP units at redemption value	12,523		—		—	—	—		—	—		—	—		—
Partners’ capital	735,606		1,236,004		32	3,062	8,110		—	16,852		81	17,811		104,896
	1,870,313		1,721,271		32	3,062	8,166		—	16,843		81	17,876		104,698

MeriStar Hospitality Operating Partnership, L.P.

Condensed Consolidating Balance Sheet

September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 1C, LLC		MeriStar Sub 8E, LLC		MeriStar Sub 7F, LLC		MeriStar Sub 5L, LLC		MeriStar Sub 3C, LLC		MeriStar Sub 5R, LLC		MeriStar Sub 6D, LLC		MeriStar Sub 6E, LLC		MeriStar Sub 4E, L.P.		MeriStar Sub 1B, LLC
Assets
Property and equipment	27,204		15,814		9,181		11,534		17,537		—		18,177		48,613		3,782		19,890
Accumulated depreciation	(6,942	)	(3,471	)	(339	)	(615	)	(4,222	)	—		(3,272	)	(11,171	)	—		(4,432	)
	20,262		12,343		8,842		10,919		13,315		—		14,905		37,442		3,782		15,458
Assets held for sale	—		—		—		—		—		—		—		—		—		—
Investments in affiliate	—		—		—		—		—		43		—		—		—		—
Due to/from subsidiaries	(4,014	)	7,353		3,871		4,605		6,315		(43	)	9,046		22,762		4,119		15,750
Note receivable from subsidiaries	—		—		—		—		—		—		—		—		—		—
Prepaid expenses and other assets	(183	)	(22	)	(9	)	(65	)	9		—		(17	)	(78	)	(46	)	(71	)
Insurance claim receivable	—		—		—		543		—		—		—		—		—		—
Accounts receivable, net of allowance for doubtful accounts	—		—		—		—		—		—		96		—		—		96
Restricted cash	—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents - unrestricted	—		—		—		—		—		—		—		—		—		—
	16,065		19,674		12,704		16,002		19,639		—		24,030		60,126		7,855		31,233
Liabilities and Partners’ capital
Long-term debt	—		—		—		—		—		—		—		—		—		33
Notes payable to MeriStar Hospitality Corporation	—		—		—		—		—		—		—		—		—		—
Accounts payable and accrued expenses	68		(59	)	178		72		309		—		(14	)	(106	)	184		23
Accrued interest	—		—		—		—		—		—		—		—		—		—
Due to Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—		—
Other liabilities	—		—		—		—		—		—		—		—		—		—
Total liabilities	68		(59	)	178		72		309		—		(14	)	(106	)	184		56
Minority interests	—		—		—		—		—		—��		—		—		—		—
Redeemable OP units at redemption value	—		—		—		—		—		—		—		—		—		—
Partners’ capital	15,997		19,733		12,526		15,930		19,330		—		24,044		60,232		7,671		31,177
	16,065		19,674		12,704		16,002		19,639		—		24,030		60,126		7,855		31,233

2

MeriStar Hospitality Operating Partnership, L.P.

Condensed Consolidating Balance Sheet

September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 5F, L.P.		MeriStar Sub 6G, LLC		MeriStar Sub 8C, LLC	MeriStar Sub 4C, L.P.	MeriStar Sub 4H, L.P.	MeriStar Sub 7E, LLC		MeriStar Sub 3D, LLC		MeriStar Sub 1A, LLC		MeriStar Sub 7A Joint Venture		MeriStar Sub 2B, LLC
Assets
Property and equipment	19,337		23,521		—	—	—	20,350		22,933		6,984		—		—
Accumulated depreciation	(633	)	(5,558	)	—	—	—	(3,801	)	(7,579	)	—		—		—
	18,704		17,963		—	—	—	16,549		15,354		6,984		—		—
Assets held for sale	—		—		—	—	1	—		—		—		—		—
Investments in affiliate	—		—		—	—	—	—		—		—		—		—
Due to/from subsidiaries	9,731		8,502		11,439	—	3,413	5,448		9,316		8,269		9,944		—
Note receivable from subsidiaries	—		—		—	—	—	—		—		—		—		—
Prepaid expenses and other assets	(152	)	(29	)	—	—	—	(19	)	(37	)	(99	)	—		—
Insurance claim receivable	2,308		—		—	—	—	—		—		—		—		—
Accounts receivable, net of allowance for doubtful accounts	—		—		—	—	—	—		—		—		(44	)	—
Restricted cash	—		—		—	—	—	—		—		—		—		—
Cash and cash equivalents - unrestricted	—		—		—	—	—	—		—		—		—		—
	30,591		26,436		11,439	—	3,414	21,978		24,633		15,154		9,900		—
Liabilities and Partners’ capital
Long-term debt	—		—		—	—	—	—		—		—		—		—
Notes payable to MeriStar Hospitality Corporation	—		—		—	—	—	—		—		—		—		—
Accounts payable and accrued expenses	183		(12	)	—	—	—	42		136		35		—		—
Accrued interest	—		—		—	—	—	—		—		—		—		—
Due to Interstate Hotels & Resorts	—		—		—	—	—	—		—		—		—		—
Other liabilities	—		—		—	—	—	—		—		—		—		—
Total liabilities	183		(12	)	—	—	—	42		136		35		—		—
Minority interests	—		—		—	—	—	—		—		—		—		—
Redeemable OP units at redemption value	—		—		—	—	—	—		—		—		—		—
Partners’ capital	30,408		26,448		11,439	—	3,414	21,936		24,497		15,119		9,900		—
	30,591		26,436		11,439	—	3,414	21,978		24,633		15,154		9,900		—

3

MeriStar Hospitality Operating Partnership, L.P.

Condensed Consolidating Balance Sheet

September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 3A, LLC	MeriStar Sub 4A, LLC	MeriStar Sub 4D, LLC	MeriStar Sub 2A, LLC	MeriStar Sub 6L, LLC	MDV Limited Partnership		MeriStar Sub 5C, LLC	MeriStar Sub 6J, LLC		MeriStar Sub 1D, LLC		MeriStar Sub 7B, L.P.
Assets
Property and equipment	—	—	—	—	—	3,916		—	19,891		69,212		—
Accumulated depreciation	—	—	—	—	—	(791	)	—	(4,185	)	(13,740	)	—
	—	—	—	—	—	3,125		—	15,706		55,472		—
Assets held for sale	—	—	—	—	—	—		—	—		—		—
Investments in affiliate	—	—	—	—	—	—		—	—		—		—
Due to/from subsidiaries	4,976	7,612	—	—	20,297	2,799		—	9,236		22,406		(262	)
Note receivable from subsidiaries	—	—	—	—	—	—		—	—		—		—
Prepaid expenses and other assets	—	—	—	—	—	(19	)	—	2		(471	)	—
Insurance claim receivable	—	—	—	—	—	—		—	—		—		—
Accounts receivable, net of allowance for doubtful accounts	—	—	—	—	178	—		—	—		—		—
Restricted cash	—	—	—	—	—	—		—	—		—		—
Cash and cash equivalents - unrestricted	—	—	—	—	—	—		—	—		—		—
	4,976	7,612	—	—	20,475	5,905		—	24,944		77,407		(262	)
Liabilities and Partners’ capital
Long-term debt	—	—	—	—	—	—		—	—		—		—
Notes payable to MeriStar Hospitality Corporation	—	—	—	—	—	—		—	—		—		—
Accounts payable and accrued expenses	—	—	—	—	—	120		—	(10	)	244		—
Accrued interest	—	—	—	—	—	—		—	—		—		—
Due to Interstate Hotels & Resorts	—	—	—	—	—	—		—	—		—		—
Other liabilities	—	—	—	—	—	—		—	—		—		—
Total liabilities	—	—	—	—	—	120		—	(10	)	244		—
Minority interests	—	—	—	—	—	—		—	—		—		—
Redeemable OP units at redemption value	—	—	—	—	—	—		—	—		—		—
Partners’ capital	4,976	7,612	—	—	20,475	5,785		—	24,954		77,163		(262	)
	4,976	7,612	—	—	20,475	5,905		—	24,944		77,407		(262	)

4

MeriStar Hospitality Operating Partnership, L.P.

Condensed Consolidating Balance Sheet

September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 7D, LLC		MeriStar Sub 7G, LLC	MeriStar Sub 6B, LLC		MeriStar Sub 4I, L.P.	MeriStar Sub 5D, LLC		MeriStar Sub 5H, LLC	MeriStar Sub 7H, LLC	AGH PSS I, Inc.	MeriStar Sub 2D, LLC	MeriStar Sub 4F, L.P.
Assets
Property and equipment	54,737		—	11,688		—	42,307		—	—	—	—	34,628
Accumulated depreciation	(10,922	)	—	(2,523	)	—	(9,190	)	—	—	—	—	(6,637	)
	43,815		—	9,165		—	33,117		—	—	—	—	27,991
Assets held for sale	—		—	—		—	—		—	—	—	—	—
Investments in affiliate	—		—	—		—	51,368		—	—	—	—	—
Due to/from subsidiaries	27,628		2,370	2,908		—	(5,849	)	—	—	—	—	4,328
Note receivable from subsidiaries	—		—	—		—	—		—	—	—	—	—
Prepaid expenses and other assets	82		—	(12	)	—	(63	)	—	—	—	—	(5	)
Insurance claim receivable	—		—	—		—	—		—	—	—	—	—
Accounts receivable, net of allowance for doubtful accounts	1,043		—	—		—	—		—	—	—	—	—
Restricted cash	—		—	—		—	—		—	—	—	—	—
Cash and cash equivalents - unrestricted	—		—	—		—	—		—	—	—	—	—
	72,568		2,370	12,061		—	78,573		—	—	—	—	32,314
Liabilities and Partners’ capital
Long-term debt	—		—	—		—	24,000		—	—	—	—	—
Notes payable to MeriStar Hospitality Corporation	—		—	—		—	—		—	—	—	—	—
Accounts payable and accrued expenses	4,253		—	(177	)	—	405		—	—	—	—	254
Accrued interest	—		—	—		—	—		—	—	—	—	—
Due to Interstate Hotels & Resorts	(200	)	—	—		—	—		—	—	—	—	—
Other liabilities	—		—	—		—	—		—	—	—	—	—
Total liabilities	4,053		—	(177	)	—	24,405		—	—	—	—	254
Minority interests	—		—	—		—	—		—	—	—	—	—
Redeemable OP units at redemption value	—		—	—		—	—		—	—	—	—	—
Partners’ capital	68,515		2,370	12,238		—	54,168		—	—	—	—	32,060
	72,568		2,370	12,061		—	78,573		—	—	—	—	32,314

5

MeriStar Hospitality Operating Partnership, L.P.

Condensed Consolidating Balance Sheet

September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 5K, LLC		MeriStar Sub 5M, LLC		MeriStar Sub 1E, LLC	MeriStar Sub 5O, LLC		MeriStar Sub 4B, L.P.	MeriStar Sub 2C, LLC		MeriStar Sub 4G, L.P.		MeriStar Sub 3B, LLC	MeriStar Sub 5G, L.P.		MeriStar Sub 5P, LLC
Assets
Property and equipment	24,488		20,214		—	7,888		—	—		—		—	146,241		39
Accumulated depreciation	(4,828	)	(2,223	)	—	(1,092	)	—	—		—		—	(28,258	)	(26	)
	19,660		17,991		—	6,796		—	—		—		—	117,983		13
Assets held for sale	—		—		—	—		—	—		7,784		—	—		—
Investments in affiliate	—		—		—	—		—	—		—		—	—		—
Due to/from subsidiaries	(804	)	8,830		—	3,461		1,728	(7,581	)	9,814		—	43,814		3,674
Note receivable from subsidiaries	—		—		—	—		—	—		—		—	—		—
Prepaid expenses and other assets	(166	)	(102	)	—	(34	)	—	(8	)	(204	)	—	(302	)	(9	)
Insurance claim receivable	3,065		1,523		—	795		—	—		—		—	16,726		—
Accounts receivable, net of allowance for doubtful accounts	—		—		—	—		—	6		—		—	—		38
Restricted cash	—		—		—	—		—	—		—		—	—		—
Cash and cash equivalents - unrestricted	—		—		—	—		—	—		—		—	—		—
	21,755		28,242		—	11,018		1,728	(7,583	)	17,394		—	178,221		3,716
Liabilities and Partners’ capital
Long-term debt	—		—		—	—		—	—		—		—	—		—
Notes payable to MeriStar Hospitality Corporation	—		—		—	—		—	—		—		—	—		—
Accounts payable and accrued expenses	1,609		147		—	57		—	(36	)	259		—	864		—
Accrued interest	—		—		—	—		—	—		—		—	—		—
Due to Interstate Hotels & Resorts	—		—		—	—		—	—		—		—	—		—
Other liabilities	—		—		—	—		—	—		—		—	—		—
Total liabilities	1,609		147		—	57		—	(36	)	259		—	864		—
Minority interests	—		—		—	—		—	—		—		—	—		—
Redeemable OP units at redemption value	—		—		—	—		—	—		—		—	—		—
Partners’ capital	20,146		28,095		—	10,961		1,728	(7,547	)	17,135		—	177,357		3,716
	21,755		28,242		—	11,018		1,728	(7,583	)	17,394		—	178,221		3,716

6

MeriStar Hospitality Operating Partnership, L.P.

Condensed Consolidating Balance Sheet

September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 5J, LLC		MeriStar Sub 5Q, LLC		MeriStar Sub 5A, LLC		MeriStar Sub 8D, LLC	MeriStar Sub 4J, LLC		MeriStar Pentagon City, LLC		MeriStar Hotel Lessee, Inc.		Guarantor Subsidiaries Total		Eliminations		Total Consolidated
Assets
Property and equipment	98,905		14,659		36,695		—	40,258		93,112		3,316		1,102,614		—		2,572,234
Accumulated depreciation	(17,379	)	(2,243	)	(11,484	)	—	(8,075	)	(2,174	)	(3,384	)	(199,538	)	—		(490,435	)
	81,526		12,416		25,211		—	32,183		90,938		(68	)	903,076		—		2,081,799
Assets held for sale	—		—		—		—	—		—		—		7,785		—		7,786
Investments in affiliate	—		—		4,627		—	—		—		1,629		60,760		(2,494,329	)	15,000
Due to/from subsidiaries	23,385		5,629		8,231		16,379	7,521		58,047		7,923		474,442		—		—
Note receivable from subsidiaries	—		—		—		—	—		—		—		—		(190,537	)	—
Prepaid expenses and other assets	(648	)	(118	)	(67	)	—	(43	)	512		8,729		6,034		—		44,016
Insurance claim receivable	12,576		2,051		—		—	—		—		—		40,009		—		63,071
Accounts receivable, net of allowance for doubtful accounts	—		—		—		359	(8	)	(611	)	38,792		39,945		(6,612	)	64,404
Restricted cash	—		—		—		—	—		—		831		946		—		59,710
Cash and cash equivalents - unrestricted	—		—		—		—	—		—		20,470		20,470		—		117,787
	116,839		19,978		38,002		16,738	39,653		148,886		78,306		1,553,467		(2,691,478	)	2,453,573
Liabilities and Partners’ capital
Long-term debt	—		—		23,609		—	—		55,684		142,928		246,254		(190,537	)	1,374,108
Notes payable to MeriStar Hospitality Corporation	—		—		—		—	—		—		—		—		—		207,658
Accounts payable and accrued expenses	892		71		545		—	225		15		53,202		63,892		—		87,596
Accrued interest	—		—		—		—	—		269		6,612		6,881		(6,612	)	36,382
Due to Interstate Hotels & Resorts	—		—		—		—	—		—		3,835		3,635		—		19,362
Other liabilities	—		—		—		—	—		—		6,147		6,147		—		9,573
Total liabilities	892		71		24,154		—	225		55,968		212,724		326,809		(197,149	)	1,734,679
Minority interests	—		—		—		—	—		—		—		—		—		2,432
Redeemable OP units at redemption value	—		—		—		—	—		—		—		—		—		12,523
Partners’ capital	115,947		19,907		13,848		16,738	39,428		92,918		(134,418	)	1,226,658		(2,494,329	)	703,939
	116,839		19,978		38,002		16,738	39,653		148,886		78,306		1,553,467		(2,691,478	)	2,453,573

7

MeriStar Hospitality Operating Partnership, L.P.

Condensed Consolidating Balance Sheet

December 31, 2003

(Dollars in thousands)

	MeriStar Hospitality OP, L.P.		Non- Guarantor Subsidiaries		MeriStar Sub 7C, LLC	AGH Upreit, LLC	MeriStar Sub 5N, LLC		MeriStar Sub 8A, LLC	MeriStar Sub 8F, L.P.		MeriStar Sub 8G, LLC	MeriStar Sub 6H, L.P.		MeriStar Sub 8B, LLC
Assets
Property and equipment	18,987		1,407,432		—	—	4,146		—	11,502		—	10,862		83,215
Accumulated depreciation	(13,219	)	(246,091	)	—	—	(679	)	—	(2,521	)	—	(157	)	(12,270	)
	5,768		1,161,341		—	—	3,467		—	8,981		—	10,705		70,945
Assets held for sale	—		4,273		—	—	—		—	—		—	—		—
Investments in affiliate	2,208,641		8,200		32	2,989	—		—	—		72	—		—
Due to/from subsidiaries	(838,258	)	397,837		—	133	4,243		—	7,012		10	6,814		30,981
Note receivable from subsidiaries	120,855		—		—	—	—		—	—		—	—		—
Prepaid expenses and other assets	34,658		(1,612	)	—	—	(18	)	—	(28	)	—	1		(26	)
Insurance claim receivable	—		—		—	—	—		—	—		—	—		—
Accounts receivable, net of allowance for doubtful accounts	18,220		956		—	—	—		—	—		—	—		—
Restricted cash	39,932		2,476		—	—	—		—	115		—	—		—
Cash and cash equivalents - unrestricted	218,646		—		—	—	—		—	—		—	—		—
	1,808,462		1,573,471		32	3,122	7,692		—	16,080		82	17,520		101,900
Liabilities and Partners’ capital
Long-term debt	917,232		436,778		—	—	—		—	—		—	—		—
Notes payable to MeriStar Hospitality Corporation	256,473		—		—	—	—		—	—		—	—		—
Accounts payable and accrued expenses	14,806		5,517		—	—	(11	)	—	67		—	161		2,502
Accrued interest	43,396		2,639		—	—	—		—	—		—	—		—
Due to Interstate Hotels & Resorts	6,923		—		—	—	—		—	—		—	—		—
Other liabilities	1,750		(304	)	—	—	—		—	—		—	—		—
Total liabilities	1,240,580		444,630		—	—	(11	)	—	67		—	161		2,502
Minority interests	2,496		—		—	—	—		—	—		—	—		—
Redeemable OP units at redemption value	35,926		—		—	—	—		—	—		—	—		—
Partners’ capital	529,460		1,128,841		32	3,122	7,703		—	16,013		82	17,359		99,398
	1,808,462		1,573,471		32	3,122	7,692		—	16,080		82	17,520		101,900

8

MeriStar Hospitality Operating Partnership, L.P.

Condensed Consolidating Balance Sheet

December 31, 2003

(Dollars in thousands)

	MeriStar Sub 1C, L.P.		MeriStar Sub 8E, LLC		MeriStar Sub 7F, LLC		MeriStar Sub 5L, LLC		MeriStar Sub 3C, LLC		MeriStar Sub 5R, LLC		MeriStar Sub 6D, LLC		MeriStar Sub 6E, LLC		MeriStar Sub 4E, L.P.		MeriStar Sub 1B, LLC
Assets
Property and equipment	26,641		15,493		7,293		11,841		17,498		—		17,449		45,155		5,047		18,656
Accumulated depreciation	(5,900	)	(3,024	)	(97	)	(645	)	(3,696	)	—		(2,893	)	(9,963	)	(76	)	(4,064	)
	20,741		12,469		7,196		11,196		13,802		—		14,556		35,192		4,971		14,592
Assets held for sale	—		—		—		—		—		—		—		—		—		—
Investments in affiliate	—		—		—		—		—		43		—		—		—		—
Due to/from subsidiaries	(3,881	)	6,688		5,122		4,239		5,062		(43	)	8,445		21,931		3,545		15,375
Note receivable from subsidiaries	—		—		—		—		—		—		—		—		—		—
Prepaid expenses and other assets	(88	)	(10	)	(1	)	(24	)	28		—		(7	)	(33	)	(17	)	(32	)
Insurance claim receivable	—		—		—		—		—		—		—		—		—		—
Accounts receivable, net of allowance for doubtful accounts	—		—		—		—		—		—		103		—		—		96
Restricted cash	—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents - unrestricted	—		—		—		—		—		—		—		—		—		—
	16,772		19,147		12,317		15,411		18,892		—		23,097		57,090		8,499		30,031
Liabilities and Partners’ capital
Long-term debt	—		—		—		—		—		—		—		—		—		33
Notes payable to MeriStar Hospitality Corporation	—		—		—		—		—		—		—		—		—		—
Accounts payable and accrued expenses	88		(32	)	208		(15	)	140		—		38		(208	)	351		39
Accrued interest	—		—		—		—		—		—		—		—		—		—
Due to Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—		—
Other liabilities	—		—		—		—		—		—		—		—		—		—
Total liabilities	88		(32	)	208		(15	)	140		—		38		(208	)	351		72
Minority interests	—		—		—		—		—		—		—		—		—		—
Redeemable OP units at redemption value	—		—		—		—		—		—		—		—		—		—
Partners’ capital	16,684		19,179		12,109		15,426		18,752		—		23,059		57,298		8,148		29,959
	16,772		19,147		12,317		15,411		18,892		—		23,097		57,090		8,499		30,031

9

MeriStar Hospitality Operating Partnership, L.P.

Condensed Consolidating Balance Sheet

December 31, 2003

(Dollars in thousands)

	MeriStar Sub 5F, L.P.		MeriStar Sub 6G, LLC		MeriStar Sub 8C, LLC		MeriStar Sub 4C, L.P.	MeriStar Sub 4H, L.P.		MeriStar Sub 7E, LLC		MeriStar Sub 3D, LLC		MeriStar Sub 1A, LLC		MeriStar Sub 7A Joint Venture		MeriStar Sub 2B, LLC
Assets
Property and equipment	17,410		22,578		—		—	4,929		18,569		22,682		11,514		5,881		—
Accumulated depreciation	(198	)	(5,014	)	—		—	(130	)	(3,323	)	(7,036	)	(2,928	)	(121	)	—
	17,212		17,564		—		—	4,799		15,246		15,646		8,586		5,760		—
Assets held for sale	—		—		5,530		—	—		—		—		—		—		—
Investments in affiliate	—		—		—		—	—		—		—		—		—		—
Due to/from subsidiaries	12,431		6,988		5,557		—	(791	)	6,367		8,459		7,330		5,021		(7,036	)
Note receivable from subsidiaries	—		—		—		—	—		—		—		—		—		—
Prepaid expenses and other assets	(63	)	(12	)	117		—	(8	)	(8	)	(16	)	(56	)	1		—
Insurance claim receviable	—		—		—		—	—		—		—		—		—		—
Accounts receivable, net of allowance for doubtful accounts	—		—		—		—	—		—		—		—		—		2,345
Restricted cash	—		—		—		—	—		—		—		—		—		—
Cash and cash equivalents - unrestricted	—		—		—		—	—		—		—		—		—		—
	29,580		24,540		11,204		—	4,000		21,605		24,089		15,860		10,782		(4,691	)
Liabilities and Partners’ capital
Long-term debt	—		—		—		—	—		—		—		—		—		—
Notes payable to MeriStar Hospitality Corporation	—		—		—		—	—		—		—		—		—		—
Accounts payable and accrued expenses	97		(69	)	(306	)	—	178		74		30		(17	)	150		(8	)
Accrued interest	—		—		—		—	—		—		—		—		—		—
Due to Interstate Hotels & Resorts	—		—		—		—	—		—		—		—		—		—
Other liabilities	—		—		—		—	—		—		—		—		—		—
Total liabilities	97		(69	)	(306	)	—	178		74		30		(17	)	150		(8	)
Minority interests	—		—		—		—	—		—		—		—		—		—
Redeemable OP units at redemption value	—		—		—		—	—		—		—		—		—		—
Partners’ capital	29,483		24,609		11,510		—	3,822		21,531		24,059		15,877		10,632		(4,683	)
	29,580		24,540		11,204		—	4,000		21,605		24,089		15,860		10,782		(4,691	)

10

MeriStar Hospitality Operating Partnership, L.P.

Condensed Consolidating Balance Sheet

December 31, 2003

(Dollars in thousands)

	MeriStar Sub 3A, LLC		MeriStar Sub 4A, LLC		MeriStar Sub 4D, LLC	MeriStar Sub 2A, LLC		MeriStar Sub 6L, LLC	MDV Limited Partnership		MeriStar Sub 5C, LLC	MeriStar Sub 6J, LLC		MeriStar Sub 1D, LLC		MeriStar Sub 7B, L.P.
Assets
Property and equipment	3,197		—		—	—		—	3,850		—	19,530		68,709		4,806
Accumulated depreciation	(51	)	—		—	—		—	(686	)	—	(3,776	)	(12,036	)	(156	)
	3,146		—		—	—		—	3,164		—	15,754		56,673		4,650
Assets held for sale	—		3,301		—	—		12,395	—		—	—		—		—
Investments in affiliate	—		—		—	—		—	—		—	—		—		—
Due to/from subsidiaries	1,904		4,573		2,930	(9,934	)	6,238	2,538		5,088	7,636		19,511		(3,011	)
Note receivable from subsidiaries	—		—		—	—		—	—		—	—		—		—
Prepaid expenses and other assets	1		(9	)	3	—		15	(4	)	—	23		(209	)	1
Insurance claim receivable	—		—		—	—		—	—		—	—		—		—
Accounts receivable, net of allowance for doubtful accounts	—		—		—	2,002		—	—		—	—		—		—
Restricted cash	—		—		—	—		—	—		—	—		—		—
Cash and cash equivalents - unrestricted	—		—		—	—		—	—		—	—		—		—
	5,051		7,865		2,933	(7,932	)	18,648	5,698		5,088	23,413		75,975		1,640
Liabilities and Partners’ capital
Long-term debt	—		—		—	—		—	—		—	—		—		—
Notes payable to MeriStar Hospitality Corporation	—		—		—	—		—	—		—	—		—		—
Accounts payable and accrued expenses	161		342		—	(8	)	25	96		—	(216	)	(91	)	1,080
Accrued interest	—		—		—	—		—	—		—	—		—		—
Due to Interstate Hotels & Resorts	—		—		—	—		—	—		—	—		—		—
Other liabilities	—		—		—	—		—	—		—	—		—		—
Total liabilities	161		342		—	(8	)	25	96		—	(216	)	(91	)	1,080
Minority interests	—		—		—	—		—	—		—	—		—		—
Redeemable OP units at redemption value	—		—		—	—		—	—		—	—		—		—
Partners’ capital	4,890		7,523		2,933	(7,924	)	18,623	5,602		5,088	23,629		76,066		560
	5,051		7,865		2,933	(7,932	)	18,648	5,698		5,088	23,413		75,975		1,640

11

MeriStar Hospitality Operating Partnership, L.P.

Condensed Consolidating Balance Sheet

December 31, 2003

(Dollars in thousands)

	MeriStar Sub 7D, LLC		MeriStar Sub 7G, LLC		MeriStar Sub 6B, LLC		MeriStar Sub 4I, L.P.		MeriStar Sub 5D, LLC		MeriStar Sub 5H, LLC		MeriStar Sub 7H, LLC	AGH PSS I, Inc.	MeriStar Sub 2D, LLC		MeriStar Sub 4F, L.P.
Assets
Property and equipment	52,417		1,901		10,802		—		42,105		—		—	—	—		32,615
Accumulated depreciation	(9,771	)	—		(2,188	)	—		(8,102	)	—		—	—	—		(5,809	)
	42,646		1,901		8,614		—		34,003		—		—	—	—		26,806
Assets held for sale	—		—		—		—		—		—		—	—	—		—
Investments in affiliate	—		—		—		—		51,368		—		—	—	—		—
Due to/from subsidiaries	25,422		365		3,137		1,609		(6,600	)	36,579		9,567	25,579	(6,223	)	5,237
Note receivable from subsidiaries	—		—		—		—		—		—		—	—	—		—
Prepaid expenses and other assets	192		—		(5	)	—		(17	)	1		—	1	—		13
Insurance claim receivable	—		—		—		—		—		—		—	—	—		—
Accounts receivable, net of allowance for doubtful accounts	1,326		—		—		—		—		46		43	—	1,166		—
Restricted cash	—		—		—		—		—		—		—	—	—		—
Cash and cash equivalents - unrestricted	—		—		—		—		—		—		—	—	—		—
	69,586		2,266		11,746		1,609		78,754		36,626		9,610	25,580	(5,057	)	32,056
Liabilities and Partners’ capital
Long-term debt	—		—		—		—		24,000		—		—	—	—		—
Notes payable to MeriStar Hospitality Corporation	—		—		—		—		—		—		—	—	—		—
Accounts payable and accrued expenses	4,169		(6	)	(107	)	(61	)	12		(2	)	—	—	(1	)	370
Accrued interest	—		—		—		—		—		—		—	—	—		—
Due to Interstate Hotels & Resorts	(200	)	—		—		—		—		—		—	—	—		—
Other liabilities	—		—		—		—		—		—		—	—	—		—
Total liabilities	3,969		(6	)	(107	)	(61	)	24,012		(2	)	—	—	(1	)	370
Minority interests	—		—		—		—		—		—		—	—	—		—
Redeemable OP units at redemption value	—		—		—		—		—		—		—	—	—		—
Partners’ capital	65,617		2,272		11,853		1,670		54,742		36,628		9,610	25,580	(5,056	)	31,686
	69,586		2,266		11,746		1,609		78,754		36,626		9,610	25,580	(5,057	)	32,056

12

MeriStar Hospitality Operating Partnership, L.P.

Condensed Consolidating Balance Sheet

December 31, 2003

(Dollars in thousands)

	MeriStar Sub 5K, LLC		MeriStar Sub 5M, LLC		MeriStar Sub 1E, LLC			MeriStar Sub 5O, LLC		MeriStar Sub 4B, L.P.		MeriStar Sub 2C, LLC		MeriStar Sub 4G, L.P.		MeriStar Sub 3B, LLC		MeriStar Sub 5G, L.P.		MeriStar Sub 5P, LLC
Assets							��
Property and equipment	28,386		22,056		—			8,741		—		—		9,086		—		164,273		39
Accumulated depreciation	(5,206	)	(2,355	)	—			(1,144	)	—		—		—		—		(30,502	)	(23	)
	23,180		19,701		—			7,597		—		—		9,086		—		133,771		16
Assets held for sale	—		—		—			—		7,158		9,415		—		—		—		—
Investments in affiliate	—		—		—			—		—		—		—		—		—		—
Due to/from subsidiaries	(365	)	7,852		24,172			3,077		(4,789	)	5,673		8,806		9,336		42,679		3,088
Note receivable from subsidiaries	—		—		—			—		—		—		—		—		—		—
Prepaid expenses and other assets	(74	)	(48	)	(1	)		(15	)	(4	)	(240	)	(89	)	(3	)	(255	)	(4	)
Insurance claim receivable	—		—		—			—		—		—		—		—		—		—
Accounts receivable, net of allowance for doubtful accounts	—		—		198			—		—		—		—		—		—		38
Restricted cash	—		—		—			—		—		—		—		—		—		—
Cash and cash equivalents - unrestricted	—		—		—			—		—		—		—		—		—		—
	22,741		27,505		24,369			10,659		2,365		14,848		17,803		9,333		176,195		3,138
Liabilities and Partners’ capital
Long-term debt	—		—		—			—		—		19,731		—		—		—		—
Notes payable to MeriStar Hospitality Corporation	—		—		—			—		—		—		—		—		—		—
Accounts payable and accrued expenses	3,028		—		14			(8	)	410		257		488		—		775		—
Accrued interest	—		—		—			—		—		—		—		—		—		—
Due to Interstate Hotels & Resorts	—		—		—			—		—		—		—		—		—		—
Other liabilities	—		—		—			—		—		—		—		—		—		—
Total liabilities	3,028		—		14			(8	)	410		19,988		488		—		775		—
Minority interests	—		—		—			—		—		—		—		—		—		—
Redeemable OP units at redemption value	—		—		—			—		—		—		—		—		—		—
Partners’ capital	19,713		27,505		24,355			10,667		1,955		(5,140	)	17,315		9,333		175,420		3,138
	22,741		27,505		24,369			10,659		2,365		14,848		17,803		9,333		176,195		3,138

13

MeriStar Hospitality Operating Partnership, L.P.

Condensed Consolidating Balance Sheet

December 31, 2003

(Dollars in thousands)

	MeriStar Sub 5J, LLC		MeriStar Sub 5Q, LLC		MeriStar Sub 5A, LLC		MeriStar Sub 8D, LLC		MeriStar Sub 4J, LLC		MeriStar Hotel Lessee, Inc.		Guarantor Subsidiaries Total		Eliminations		Total Consolidated
Assets
Property and equipment	110,406		16,737		35,707		—		38,463		3,146		1,055,333		—		2,481,752
Accumulated depreciation	(16,816	)	(2,269	)	(10,686	)	—		(7,127	)	(3,284	)	(186,722	)	—		(446,032	)
	93,590		14,468		25,021		—		31,336		(138	)	868,611		—		2,035,720
Assets held for sale	—		—		—		9,097		—		—		46,896		—		51,169
Investments in affiliate	—		—		4,627		—		—		1,629		60,760		(2,262,601	)	15,000
Due to/from subsidiaries	21,963		4,637		6,562		8,303		7,469		(189	)	440,421		—		—
Note receivable from subsidiaries	—		—		—		—		—		—		—		(120,855	)	—
Prepaid expenses and other assets	(370	)	(53	)	(29	)	14		(19	)	15,471		13,987		—		47,033
Insurance claim receivable	—		—		—		—		—		—		—		—		—
Accounts receivable, net of allowance for doubtful accounts	—		—		—		—		(13	)	38,183		45,533		—		64,709
Restricted cash	—		—		—		—		—		—		115		—		42,523
Cash and cash equivalents - unrestricted	—		—		—		—		—		12,230		12,230		—		230,876
	115,183		19,052		36,181		17,414		38,773		67,186		1,488,553		(2,383,456	)	2,487,030
Liabilities and Partners’ capital
Long-term debt	—		—		23,609		—		—		81,027		148,400		(120,855	)	1,381,555
Notes payable to MeriStar Hospitality Corporation	—		—		—		—		—		—		—		—		256,473
Accounts payable and accrued expenses	131		(189	)	(195	)	(183	)	81		45,862		59,691		—		80,014
Accrued interest	—		—		—		—		—		778		778		—		46,813
Due to Interstate Hotels & Resorts	—		—		—		—		—		9,688		9,488		—		16,411
Other liabilities	—		—		—		—		—		9,599		9,599		—		11,045
Total liabilities	131		(189	)	23,414		(183	)	81		146,954		227,956		(120,855	)	1,792,311
Minority interests	—		—		—		—		—		—		—		—		2,496
Redeemable OP units at redemption value	—		—		—		—		—		—		—		—		35,926
Partners’ capital	115,052		19,241		12,767		17,597		38,692		(79,768	)	1,260,597		(2,262,601	)	656,297
	115,183		19,052		36,181		17,414		38,773		67,186		1,488,553		(2,383,456	)	2,487,030

14

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Three months ended September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Hospitality OP, L.P.		Non-Guarantor Subsidiaries		MeriStar Sub 7C, LLC	AGH Upreit, LLC	MeriStar Sub 5N, LLC	MeriStar Sub 8A, LLC	MeriStar Sub 8F, L.P.	MeriStar Sub 8G, LLC	MeriStar Sub 6H, L.P.	MeriStar Sub 8B, LLC
Revenue:
Hotel operations:
Rooms	—		—		—	—	—	—	—	—	—	—
Food and beverage	—		—		—	—	—	—	—	—	—	—
Other hotel operations	—		—		—	—	—	—	—	—	—	—
Office rental, parking and other revenue	(13	)	611		—	—	—	—	—	—	—	—
Participating lease revenue	—		34,788		—	—	72	—	601	—	321	1,864
Total revenue	(13	)	35,399		—	—	72	—	601	—	321	1,864
Hotel operating expenses:
Rooms	—		—		—	—	—	—	—	—	—	—
Food and beverage	—		—		—	—	—	—	—	—	—	—
Other hotel operating expenses	—		—		—	—	—	—	—	—	—	—
Office rental, parking and other expenses	—		287		—	—	—	—	—	—	—	—
Other operating expenses:
General and administrative, hotel	—		(4	)	—	—	—	—	—	—	—	(2,612	)
General and administrative, corporate	2,462		—		—	—	—	—	—	—	—	—
Property operating costs	—		—		—	—	—	—	—	—	—	—
Depreciation and amortization	1,707		13,002		—	—	35	—	164	—	157	618
Property taxes, insurance and other	1		4,929		—	—	26	—	167	—	25	280
Hurricane cost recoveries, net of expenses	—		—		—	—	—	—	—	—	—	—
Loss on asset impairments	—		908		—	—	—	—	—	—	—	—
Operating expenses	4,170		19,122		—	—	61	—	331	—	182	(1,714	)
Preferred return on investment in MIP	1,600		—		—	—	—	—	—	—	—	—
Operating (loss) income	(2,583	)	16,277		—	—	11	—	270	—	139	3,578
Minority interest	40		—		—	—	—	—	—	—	—	—
Interest expense, net	(17,916	)	(8,955	)	—	—	—	—	—	—	—	—
Loss on early extinguishments of debt	—		—		—	—	—	—	—	—	—	—
Equity in income from consolidated entities	(7,403	)	—		—	—	—	—	—	—	—	—
(Loss) income before income taxes and discontinued operations	(27,862	)	7,322		—	—	11	—	270	—	139	3,578
Income tax benefit	212		—		—	—	—	—	—	—	—	—
(Loss) income from continuing operations	(27,650	)	7,322		—	—	11	—	270	—	139	3,578
Discontinued operations:
(Loss) income from discontinued operations	77		626		—	—	—	—	—	—	—	—
Income tax benefit	32		—		—	—	—	—	—	—	—	—
(Loss) income from discontinued operations	109		626		—	—	—	—	—	—	—	—
Net (loss) income	(27,541	)	7,948		—	—	11	—	270	—	139	3,578

15

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Three months ended September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 1C, LLC		MeriStar Sub 8E, LLC	MeriStar Sub 7F, LLC	MeriStar Sub 5L, LLC	MeriStar Sub 3C, LLC	MeriStar Sub 5R, LLC	MeriStar Sub 6D, LLC	MeriStar Sub 6E, LLC	MeriStar Sub 4E, L.P.		MeriStar Sub 1B, LLC
Revenue:
Hotel operations:
Rooms	—		—	—	—	—	—	—	—	—		—
Food and beverage	—		—	—	—	—	—	—	—	—		—
Other hotel operations	—		—	—	—	—	—	—	—	—		—
Office rental, parking and other revenue	—		7	—	—	1	—	41	—	1		—
Participating lease revenue	162		372	208	104	414	—	447	1,563	360		566
Total revenue	162		379	208	104	415	—	488	1,563	361		566
Hotel operating expenses:
Rooms	—		—	—	—	—	—	—	—	—		—
Food and beverage	—		—	—	—	—	—	—	—	—		—
Other hotel operating expenses	—		—	—	—	—	—	—	—	—		—
Office rental, parking and other expenses	—		—	—	—	—	—	—	—	—		—
Other operating expenses:
General and administrative, hotel	—		—	—	—	—	—	—	—	—		—
General and administrative, corporate	—		—	—	—	—	—	—	—	—		—
Property operating costs	—		—	—	—	—	—	—	—	—		—
Depreciation and amortization	345		149	73	38	177	—	106	382	71		119
Property taxes, insurance and other	149		53	32	38	102	—	76	141	(10	)	42
Hurricane cost recoveries, net of expenses	—		—	—	—	—	—	—	—	—		—
Loss on asset impairments	—		—	—	—	—	—	—	—	40		—
Operating expenses	494		202	105	76	279	—	182	523	101		161
Preferred return on investment in MIP	—		—	—	—	—	—	—	—	—		—
Operating (loss) income	(332	)	177	103	28	136	—	306	1,040	260		405
Minority interest	—		—	—	—	—	—	—	—	—		—
Interest expense, net	—		—	—	—	—	—	—	—	—		—
Loss on early extinguishments of debt	—		—	—	—	—	—	—	—	—		—
Equity in income from consolidated entities	—		—	—	—	—	—	—	—	—		—
(Loss) income before income taxes and discontinued operations	(332	)	177	103	28	136	—	306	1,040	260		405
Income tax benefit	—		—	—	—	—	—	—	—	—		—
(Loss) income from continuing operations	(332	)	177	103	28	136	—	306	1,040	260		405
Discontinued operations:
(Loss) income from discontinued operations	—		—	—	—	—	—	—	—	—		—
Income tax benefit	—		—	—	—	—	—	—	—	—		—
(Loss) income from discontinued operations	—		—	—	—	—	—	—	—	—		—
Net (loss) income	(332	)	177	103	28	136	—	306	1,040	260		405

16

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Three months ended September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 5F, L.P.	MeriStar Sub 6G, LLC	MeriStar Sub 8C, LLC	MeriStar Sub 4C, L.P.	MeriStar Sub 4H, L.P.	MeriStar Sub 7E, LLC	MeriStar Sub 3D, LLC	MeriStar Sub 1A, LLC		MeriStar Sub 7A Joint Venture		MeriStar Sub 2B, LLC
Revenue:
Hotel operations:
Rooms	—	—	—	—	—	—	—	—		—		—
Food and beverage	—	—	—	—	—	—	—	—		—		—
Other hotel operations	—	—	—	—	—	—	—	—		—		—
Office rental, parking and other revenue	—	—	—	—	—	—	—	—		—		—
Participating lease revenue	361	769	—	—	—	345	425	422		—		—
Total revenue	361	769	—	—	—	345	425	422		—		—
Hotel operating expenses:
Rooms	—	—	—	—	—	—	—	—		—		—
Food and beverage	—	—	—	—	—	—	—	—		—		—
Other hotel operating expenses	—	—	—	—	—	—	—	—		—		—
Office rental, parking and other expenses	—	—	—	—	—	—	—	—		—		—
Other operating expenses:
General and administrative, hotel	—	—	—	—	—	—	—	15		—		—
General and administrative, corporate	—	—	—	—	—	—	—	—		—		—
Property operating costs	—	—	—	—	—	—	—	—		—		—
Depreciation and amortization	196	183	—	—	—	165	160	—		—		—
Property taxes, insurance and other	89	97	—	—	—	51	61	101		—		—
Hurricane cost recoveries, net of expenses	—	—	—	—	—	—	—	—		—		—
Loss on asset impairments	—	—	—	—	—	—	—	897		—		—
Operating expenses	285	280	—	—	—	216	221	1,013		—		—
Preferred return on investment in MIP	—	—	—	—	—	—	—	—		—		—
Operating (loss) income	76	489	—	—	—	129	204	(591	)	—		—
Minority interest	—	—	—	—	—	—	—	—		—		—
Interest expense, net	—	—	—	—	—	—	—	—		—		—
Loss on early extinguishments of debt	—	—	—	—	—	—	—	—		—		—
Equity in income from consolidated entities	—	—	—	—	—	—	—	—		—		—
(Loss) income before income taxes and discontinued operations	76	489	—	—	—	129	204	(591	)	—		—
Income tax benefit	—	—	—	—	—	—	—	—		—		—
(Loss) income from continuing operations	76	489	—	—	—	129	204	(591	)	—		—
Discontinued operations:
(Loss) income from discontinued operations	—	—	—	—	—	—	—	—		(19	)	—
Income tax benefit	—	—	—	—	—	—	—	—		—		—
(Loss) income from discontinued operations	—	—	—	—	—	—	—	—		(19	)	—
Net (loss) income	76	489	—	—	—	129	204	(591	)	(19	)	—

17

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Three months ended September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 3A, LLC	MeriStar Sub 4A, LLC	MeriStar Sub 4D, LLC	MeriStar Sub 2A, LLC	MeriStar Sub 6L, LLC	MDV Limited Partnership	MeriStar Sub 5C, LLC	MeriStar Sub 6J, LLC		MeriStar Sub 1D, LLC	MeriStar Sub 7B, L.P.
Revenue:
Hotel operations:
Rooms	—	—	—	—	—	—	—	—		—	—
Food and beverage	—	—	—	—	—	—	—	—		—	—
Other hotel operations	—	—	—	—	—	—	—	—		—	—
Office rental, parking and other revenue	—	—	—	—	—	—	—	—		78	—
Participating lease revenue	—	—	—	—	—	126	—	714		1,359	—
Total revenue	—	—	—	—	—	126	—	714		1,437	—
Hotel operating expenses:
Rooms	—	—	—	—	—	—	—	—		—	—
Food and beverage	—	—	—	—	—	—	—	—		—	—
Other hotel operating expenses	—	—	—	—	—	—	—	—		—	—
Office rental, parking and other expenses	—	—	—	—	—	—	—	—		23	—
Other operating expenses:
General and administrative, hotel	—	—	—	—	—	—	—	—		5	—
General and administrative, corporate	—	—	—	—	—	—	—	—		—	—
Property operating costs	—	—	—	—	—	—	—	—		—	—
Depreciation and amortization	—	—	—	—	—	35	—	137		568	—
Property taxes, insurance and other	—	—	—	—	—	35	—	74		345	—
Hurricane cost recoveries, net of expenses	—	—	—	—	—	—	—	—		—	—
Loss on asset impairments	—	—	—	—	—	—	—	—		—	—
Operating expenses	—	—	—	—	—	70	—	211		941	—
Preferred return on investment in MIP	—	—	—	—	—	—	—	—		—	—
Operating (loss) income	—	—	—	—	—	56	—	503		496	—
Minority interest	—	—	—	—	—	—	—	—		—	—
Interest expense, net	—	—	—	—	—	—	—	—		—	—
Loss on early extinguishments of debt	—	—	—	—	—	—	—	—		—	—
Equity in income from consolidated entities	—	—	—	—	—	—	—	—		—	—
(Loss) income before income taxes and discontinued operations	—	—	—	—	—	56	—	503		496	—
Income tax benefit	—	—	—	—	—	—	—	—		—	—
(Loss) income from continuing operations	—	—	—	—	—	56	—	503		496	—
Discontinued operations:
(Loss) income from discontinued operations	—	—	—	—	—	—	—	—		—	—
Income tax benefit	—	—	—	—	—	—	—	—	��	—	—
(Loss) income from discontinued operations	—	—	—	—	—	—	—	—		—	—
Net (loss) income	—	—	—	—	—	56	—	503		496	—

18

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Three months ended September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 7D, LLC		MeriStar Sub 7G, LLC	MeriStar Sub 6B, LLC	MeriStar Sub 4I, L.P.	MeriStar Sub 5D, LLC		MeriStar Sub 5H, LLC	MeriStar Sub 7H, LLC	AGH PSS I, Inc.	MeriStar Sub 2D, LLC	MeriStar Sub 4F, L.P.
Revenue:
Hotel operations:
Rooms	—		—	—	—	—		—	—	—	—	—
Food and beverage	—		—	—	—	—		—	—	—	—	—
Other hotel operations	—		—	—	—	—		—	—	—	—	—
Office rental, parking and other revenue	636		—	—	—	—		—	—	—	—	4
Participating lease revenue	1,447		—	309	—	596		—	—	—	—	492
Total revenue	2,083		—	309	—	596		—	—	—	—	496
Hotel operating expenses:
Rooms	—		—	—	—	—		—	—	—	—	—
Food and beverage	—		—	—	—	—		—	—	—	—	—
Other hotel operating expenses	—		—	—	—	—		—	—	—	—	—
Office rental, parking and other expenses	251		—	—	—	—		—	—	—	—	—
Other operating expenses:
General and administrative, hotel	—		—	—	—	—		—	—	—	—	—
General and administrative, corporate	—		—	—	—	—		—	—	—	—	—
Property operating costs	—		—	—	—	—		—	—	—	—	—
Depreciation and amortization	352		—	111	—	351		—	—	—	—	276
Property taxes, insurance and other	(354	)	—	56	—	49		—	—	—	—	93
Hurricane cost recoveries, net of expenses	—		—	—	—	—		—	—	—	—	—
Loss on asset impairments	—		—	—	—	—		—	—	—	—	—
Operating expenses	249		—	167	—	400		—	—	—	—	369
Preferred return on investment in MIP	—		—	—	—	—		—	—	—	—	—
Operating (loss) income	1,834		—	142	—	196		—	—	—	—	127
Minority interest	—		—	—	—	—		—	—	—	—	—
Interest expense, net	—		—	—	—	(356	)	—	—	—	—	—
Loss on early extinguishments of debt	—		—	—	—	—		—	—	—	—	—
Equity in income from consolidated entities	—		—	—	—	—		—	—	—	—	—
(Loss) income before income taxes and discontinued operations	1,834		—	142	—	(160	)	—	—	—	—	127
Income tax benefit	—		—	—	—	—		—	—	—	—	—
(Loss) income from continuing operations	1,834		—	142	—	(160	)	—	—	—	—	127
Discontinued operations:
(Loss) income from discontinued operations	—		—	—	—	—		—	—	—	—	—
Income tax benefit	—		—	—	—	—		—	—	—	—	—
(Loss) income from discontinued operations	—		—	—	—	—		—	—	—	—	—
Net (loss) income	1,834		—	142	—	(160	)	—	—	—	—	127

19

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Three months ended September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 5K, LLC	MeriStar Sub 5M, LLC		MeriStar Sub 1E, LLC	MeriStar Sub 5O, LLC		MeriStar Sub 4B, L.P.	MeriStar Sub 2C, LLC		MeriStar Sub 4G, L.P.		MeriStar Sub 3B, LLC	MeriStar Sub 5G, L.P.	MeriStar Sub 5P, LLC
Revenue:
Hotel operations:
Rooms	—	—		—	—		—	—		—		—	—	—
Food and beverage	—	—		—	—		—	—		—		—	—	—
Other hotel operations	—	—		—	—		—	—		—		—	—	—
Office rental, parking and other revenue	—	—		—	—		—	—		—		—	7	—
Participating lease revenue	435	158		—	71		—	—		—		—	2,379	99
Total revenue	435	158		—	71		—	—		—		—	2,386	99
Hotel operating expenses:
Rooms	—	—		—	—		—	—		—		—	—	—
Food and beverage	—	—		—	—		—	—		—		—	—	—
Other hotel operating expenses	—	—		—	—		—	—		—		—	—	—
Office rental, parking and other expenses	—	—		—	—		—	—		—		—	—	—
Other operating expenses:
General and administrative, hotel	—	—		—	—		—	—		—		—	—	—
General and administrative, corporate	—	—		—	—		—	—		—		—	—	—
Property operating costs	—	—		—	—		—	—		—		—	—	—
Depreciation and amortization	324	118		—	58		—	—		—		—	1,594	1
Property taxes, insurance and other	89	66		—	25		—	—		—		—	391	2
Hurricane cost recoveries, net of expenses	—	—		—	—		—	—		—		—	—	—
Loss on asset impairments	—	—		—	—		—	—		—		—	—	—
Operating expenses	413	184		—	83		—	—		—		—	1,985	3
Preferred return on investment in MIP	—	—		—	—		—	—		—		—	—	—
Operating (loss) income	22	(26	)	—	(12	)	—	—		—		—	401	96
Minority interest	—	—		—	—		—	—		—		—	—	—
Interest expense, net	—	—		—	—		—	—		—		—	—	—
Loss on early extinguishments of debt	—	—		—	—		—	—		—		—	—	—
Equity in income from consolidated entities	—	—		—	—		—	—		—		—	—	—
(Loss) income before income taxes and discontinued operations	22	(26	)	—	(12	)	—	—		—		—	401	96
Income tax benefit	—	—		—	—		—	—		—		—	—	—
(Loss) income from continuing operations	22	(26	)	—	(12	)	—	—		—		—	401	96
Discontinued operations:
(Loss) income from discontinued operations	—	—		—	—		—	(1,597	)	(509	)	—	—	—
Income tax benefit	—	—		—	—		—	—		—		—	—	—
(Loss) income from discontinued operations	—	—		—	—		—	(1,597	)	(509	)	—	—	—
Net (loss) income	22	(26	)	—	(12	)	—	(1,597	)	(509	)	—	401	96

20

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Three months ended September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 5J, LLC		MeriStar Sub 5Q, LLC	MeriStar Sub 5A, LLC		MeriStar Sub 8D, LLC	MeriStar Sub 4J, LLC	MeriStar Pentagon City, LLC		MeriStar Hotel Lessee, Inc.		Guarantor Subsidiaries Total		Eliminations		Total Consolidated
Revenue:
Hotel operations:
Rooms	—		—	—		—	—	—		128,309		128,309		—		128,309
Food and beverage	—		—	—		—	—	—		47,043		47,043		—		47,043
Other hotel operations	—		—	—		—	—	—		13,981		13,981		—		13,981
Office rental, parking and other revenue	—		—	18		—	53	—		(1	)	845		—		1,443
Participating lease revenue	1,094		227	1,430		—	791	2,315		—		23,418		(58,206	)	—
Total revenue	1,094		227	1,448		—	844	2,315		189,332		213,596		(58,206	)	190,776
Hotel operating expenses:
Rooms	—		—	—		—	—	—		35,295		35,295		—		35,295
Food and beverage	—		—	—		—	—	—		37,966		37,966		—		37,966
Other hotel operating expenses	—		—	—		—	—	—		9,676		9,676		—		9,676
Office rental, parking and other expenses	—		—	—		—	121	—		—		395		—		682
Other operating expenses:
General and administrative, hotel	28		—	2		—	—	8		34,760		32,206		—		32,202
General and administrative, corporate	—		—	—		—	—	—		58		58		—		2,520
Property operating costs	—		—	—		—	—	—		31,299		31,299		—		31,299
Depreciation and amortization	1,422		147	266		—	316	1,819		14		11,047		—		25,756
Property taxes, insurance and other	335		50	194		—	81	494		63,336		66,881		(58,206	)	13,605
Hurricane cost recoveries, net of expenses	—		—	—		—	—	—		(5,345	)	(5,345	)	—		(5,345	)
Loss on asset impairments	—		—	—		—	—	—		—		937		—		1,845
Operating expenses	1,785		197	462		—	518	2,321		207,059		220,415		(58,206	)	185,501
Preferred return on investment in MIP	—		—	—		—	—	—		—		—		—		1,600
Operating (loss) income	(691	)	30	986		—	326	(6	)	(17,727	)	(6,819	)	—		6,875
Minority interest	—		—	—		—	—	—		—		—		—		40
Interest expense, net	—		—	(708	)	—	—	(807	)	(2,252	)	(4,123	)	—		(30,994	)
Loss on early extinguishments of debt	—		—	—		—	—	—		—		—		—		—
Equity in income from consolidated entities	—		—	—		—	—	—		—		—		7,403		—
(Loss) income before income taxes and discontinued operations	(691	)	30	278		—	326	(813	)	(19,979	)	(10,942	)	7,403		(24,079	)
Income tax benefit	—		—	—		—	—	—		—		—		—		212
(Loss) income from continuing operations	(691	)	30	278		—	326	(813	)	(19,979	)	(10,942	)	7,403		(23,867	)
Discontinued operations:
(Loss) income from discontinued operations	—		—	—		1,000	—	—		(3,281	)	(4,406	)	—		(3,703	)
Income tax benefit	—		—	—		—	—	—		—		—		—		32
(Loss) income from discontinued operations	—		—	—		1,000	—	—		(3,281	)	(4,406	)	—		(3,671	)
Net (loss) income	(691	)	30	278		1,000	326	(813	)	(23,260	)	(15,348	)	7,403		(27,538	)

21

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Three months ended September 30, 2003

(Dollars in thousands)

	MeriStar Hospitality OP, L.P.		Non-Guarantor Subsidiaries		MeriStar Sub 7C, LLC	AGH Upreit, LLC	MeriStar Sub 5N, LLC	MeriStar Sub 8A, LLC	MeriStar Sub 8F, L.P.	MeriStar Sub 8G, LLC	MeriStar Sub 6H, L.P.
Revenue:
Hotel operations:
Rooms	—		—		—	—	—	—	—	—	—
Food and beverage	—		—		—	—	—	—	—	—	—
Other hotel operations	—		—		—	—	—	—	—	—	—
Office rental, parking and other revenue	21		(240	)	—	—	—	—	—	—	—
Participating lease revenue	—		29,884		—	—	165	—	587	—	317
Total revenue	21		29,644		—	—	165	—	587	—	317
Hotel operating expenses:
Rooms	—		—		—	—	—	—	—	—	—
Food and beverage	—		—		—	—	—	—	—	—	—
Other hotel operating expenses	—		—		—	—	—	—	—	—	—
Office rental, parking and other expenses	—		78		—	—	—	—	—	—	—
Other operating expenses:
General and administrative, hotel	(503	)	—		—	—	—	—	—	—	—
General and administrative, corporate	2,279		258		—	—	—	—	—	—	—
Property operating costs	(359	)	—		—	—	—	—	—	—	—
Depreciation and amortization	2,162		11,914		—	—	34	—	162	—	160
Property taxes, insurance and other	(397	)	3,463		—	—	27	—	156	—	24
Hurricane cost recoveries, net of expenses	—		—		—	—	—	—	—	—	—
Loss on asset impairments	—		1,100		—	—	—	—	—	—	500
Operating expenses	3,182		16,813		—	—	61	—	318	—	684
Preferred return on investment in MIP	1,600		—		—	—	—	—	—	—	—
Operating (loss) income	(1,561	)	12,831		—	—	104	—	269	—	(367	)
Minority interest expense	—		—		—	—	—	—	—	—	—
Interest expense, net	(26,896	)	(6,503	)	—	—	—	—	—	—	—
Gain on early extinguishment of debt	4,574		—		—	—	—	—	—	—	—
Equity in loss from consolidated entities	(27,554	)	—		—	—	—	—	—	—	—
(Loss) income before income taxes and discontinued operations	(51,437	)	6,328		—	—	104	—	269	—	(367	)
Income tax benefit	120		—		—	—	—	—	—	—	—
(Loss) income from continuing operations	(51,317	)	6,328		—	—	104	—	269	—	(367	)
Discontinued operations:
(Loss) income from discontinued operations	90		4,042		—	—	—	—	—	—	—
Income tax benefit	184		—		—	—	—	—	—	—	—
(Loss) income from discontinued operations	274		4,042		—	—	—	—	—	—	—
Net (loss) income	(51,043	)	10,370		—	—	104	—	269	—	(367	)

22

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Three months ended September 30, 2003

(Dollars in thousands)

	MeriStar Sub 8B, LLC	MeriStar Sub 1C, LLC		MeriStar Sub 8E, LLC	MeriStar Sub 7F, LLC		MeriStar Sub 5L, LLC	MeriStar Sub 3C, LLC	MeriStar Sub 5R, LLC	MeriStar Sub 6D, LLC	MeriStar Sub 6E, LLC
Revenue:
Hotel operations:
Rooms	—	—		—	—		—	—	—	—	—
Food and beverage	—	—		—	—		—	—	—	—	—
Other hotel operations	—	—		—	—		—	—	—	—	—
Office rental, parking and other revenue	—	—		6	—		—	—	—	15	—
Participating lease revenue	1,818	178		362	269		254	347	—	497	1,193
Total revenue	1,818	178		368	269		254	347	—	512	1,193
Hotel operating expenses:
Rooms	—	—		—	—		—	—	—	—	—
Food and beverage	—	—		—	—		—	—	—	—	—
Other hotel operating expenses	—	—		—	—		—	—	—	—	—
Office rental, parking and other expenses	—	—		—	—		—	—	—	—	—
Other operating expenses:
General and administrative, hotel	—	—		—	—		—	—	—	—	—
General and administrative, corporate	—	—		—	—		—	—	—	—	—
Property operating costs	—	—		—	—		—	—	—	—	—
Depreciation and amortization	601	254		143	99		34	176	—	137	397
Property taxes, insurance and other	346	180		55	41		38	99	—	92	194
Hurricane cost recoveries, net of expenses	—	—		—	—		—	—	—	—	—
Loss on asset impairments	—	—		—	400		—	—	—	—	—
Operating expenses	947	434		198	540		72	275	—	229	591
Preferred return on investment in MIP	—	—		—	—		—	—	—	—	—
Operating (loss) income	871	(256	)	170	(271	)	182	72	—	283	602
Minority interest expense	—	—		—	—		—	—	—	—	—
Interest expense, net	—	—		—	—		—	—	—	—	—
Gain on early extinguishment of debt	—	—		—	—		—	—	—	—	—
Equity in loss from consolidated entities	—	—		—	—		—	—	—	—	—
(Loss) income before income taxes and discontinued operations	871	(256	)	170	(271	)	182	72	—	283	602
Income tax benefit	—	—		—	—		—	—	—	—	—
(Loss) income from continuing operations	871	(256	)	170	(271	)	182	72	—	283	602
Discontinued operations:
(Loss) income from discontinued operations	—	—		—	—		—	—	—	—	—
Income tax benefit	—	—		—	—		—	—	—	—	—
(Loss) income from discontinued operations	—	—		—	—		—	—	—	—	—
Net (loss) income	871	(256	)	170	(271	)	182	72	—	283	602

23

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Three months ended September 30, 2003

(Dollars in thousands)

	MeriStar Sub 4E, L.P.		MeriStar Sub 1B, LLC	MeriStar Sub 5F, L.P.		MeriStar Sub 6G, LLC	MeriStar Sub 8C, LLC	MeriStar Sub 4C, L.P.	MeriStar Sub 4H, L.P.		MeriStar Sub 7E, LLC	MeriStar Sub 3D, LLC
Revenue:
Hotel operations:
Rooms	—		—	—		—	—	—	—		—	—
Food and beverage	—		—	—		—	—	—	—		—	—
Other hotel operations	—		—	—		—	—	—	—		—	—
Office rental, parking and other revenue	1		340	—		—	—	—	—		—	—
Participating lease revenue	351		695	669		615	—	—	—		336	407
Total revenue	352		1,035	669		615	—	—	—		336	407
Hotel operating expenses:
Rooms	—		—	—		—	—	—	—		—	—
Food and beverage	—		—	—		—	—	—	—		—	—
Other hotel operating expenses	—		—	—		—	—	—	—		—	—
Office rental, parking and other expenses	—		—	—		—	—	—	—		—	—
Other operating expenses:
General and administrative, hotel	—		—	—		—	—	—	—		—	—
General and administrative, corporate	—		—	—		—	—	—	—		—	—
Property operating costs	—		—	—		—	—	—	—		—	—
Depreciation and amortization	81		122	209		204	—	—	—		153	191
Property taxes, insurance and other	113		17	107		95	—	—	—		49	60
Hurricane cost recoveries, net of expenses	—		—	—		—	—	—	—		—	—
Loss on asset impairments	736		—	2,000		—	—	—	—		—	—
Operating expenses	930		139	2,316		299	—	—	—		202	251
Preferred return on investment in MIP	—		—	—		—	—	—	—		—	—
Operating (loss) income	(578	)	896	(1,647	)	316	—	—	—		134	156
Minority interest expense	—		—	—		—	—	—	—		—	—
Interest expense, net	—		—	—		—	—	—	—		—	—
Gain on early extinguishment of debt	—		—	—		—	—	—	—		—	—
Equity in loss from consolidated entities	—		—	—		—	—	—	—		—	—
(Loss) income before income taxes and discontinued operations	(578	)	896	(1,647	)	316	—	—	—		134	156
Income tax benefit	—		—	—		—	—	—	—		—	—
(Loss) income from continuing operations	(578	)	896	(1,647	)	316	—	—	—		134	156
Discontinued operations:
(Loss) income from discontinued operations	—		—	—		—	176	—	(15	)	—	—
Income tax benefit	—		—	—		—	—	—	—		—	—
(Loss) income from discontinued operations	—		—	—		—	176	—	(15	)	—	—
Net (loss) income	(578	)	896	(1,647	)	316	176	—	(15	)	134	156

24

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Three months ended September 30, 2003

(Dollars in thousands)

	MeriStar Sub 1A, LLC	MeriStar Sub 7A Joint Venture	MeriStar Sub 2B, LLC		MeriStar Sub 3A, LLC		MeriStar Sub 4A, L.P.	MeriStar Sub 4D, LLC	MeriStar Sub 2A, LLC		MeriStar Sub 6L, LLC	MDV Limited Partnership
Revenue:
Hotel operations:
Rooms	—	—	—		—		—	—	—		—	—
Food and beverage	—	—	—		—		—	—	—		—	—
Other hotel operations	—	—	—		—		—	—	—		—	—
Office rental, parking and other revenue	—	—	—		—		—	—	—		—	—
Participating lease revenue	526	—	—		—		—	—	—		—	126
Total revenue	526	—	—		—		—	—	—		—	126
Hotel operating expenses:
Rooms	—	—	—		—		—	—	—		—	—
Food and beverage	—	—	—		—		—	—	—		—	—
Other hotel operating expenses	—	—	—		—		—	—	—		—	—
Office rental, parking and other expenses	—	—	—		—		—	—	—		—	—
Other operating expenses:
General and administrative, hotel	—	—	—		—		—	—	—		—	—
General and administrative, corporate	—	—	—		—		—	—	—		—	—
Property operating costs	—	—	—		—		—	—	—		—	—
Depreciation and amortization	113	—	—		—		—	—	—		—	35
Property taxes, insurance and other	111	—	—		—		—	—	—		—	35
Hurricane cost recoveries, net of expenses	—	—	—		—		—	—	—		—	—
Loss on asset impairments	—	—	—		—		—	—	—		—	—
Operating expenses	224	—	—		—		—	—	—		—	70
Preferred return on investment in MIP	—	—	—		—		—	—	—		—	—
Operating (loss) income	302	—	—		—		—	—	—		—	56
Minority interest expense	—	—	—		—		—	—	—		—	—
Interest expense, net	—	—	—		—		—	—	—		—	—
Gain on early extinguishment of debt	—	—	—		—		—	—	—		—	—
Equity in loss from consolidated entities	—	—	—		—		—	—	—		—	—
(Loss) income before income taxes and discontinued operations	302	—	—		—		—	—	—		—	56
Income tax benefit	—	—	—		—		—	—	—		—	—
(Loss) income from continuing operations	302	—	—		—		—	—	—		—	56
Discontinued operations:
(Loss) income from discontinued operations	—	189	(70	)	(595	)	159	—	(140	)	361	—
Income tax benefit	—	—	—		—		—	—	—		—	—
(Loss) income from discontinued operations	—	189	(70	)	(595	)	159	—	(140	)	361	—
Net (loss) income	302	189	(70	)	(595	)	159	—	(140	)	361	56

25

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Three months ended September 30, 2003

(Dollars in thousands)

	MeriStar Sub 5C, LLC	MeriStar Sub 6J, LLC	MeriStar Sub 1D, LLC		MeriStar Sub 7B, L.P.	MeriStar Sub 7D, LLC		MeriStar Sub 7G, LLC		MeriStar Sub 6B, LLC	MeriStar Sub 4I, L.P.		MeriStar Sub 5D, LLC
Revenue:
Hotel operations:
Rooms	—	—	—		—	—		—		—	—		—
Food and beverage	—	—	—		—	—		—		—	—		—
Other hotel operations	—	—	—	��	—	—		—		—	—		—
Office rental, parking and other revenue	—	—	191		—	1,403		—		—	—		—
Participating lease revenue	—	569	973		—	610		—		275	—		510
Total revenue	—	569	1,164		—	2,013		—		275	—		510
Hotel operating expenses:
Rooms	—	—	—		—	—		—		—	—		—
Food and beverage	—	—	—		—	—		—		—	—		—
Other hotel operating expenses	—	—	—		—	—		—		—	—		—
Office rental, parking and other expenses	—	—	31		—	586		—		—	—		—
Other operating expenses:
General and administrative, hotel	—	—	(25	)	—	(177	)	—		—	—		—
General and administrative, corporate	—	—	—		—	—		—		—	—		—
Property operating costs	—	—	—		—	—		—		—	—		—
Depreciation and amortization	—	138	559		—	430		—		105	—		365
Property taxes, insurance and other	—	68	412		—	538		—		50	—		57
Hurricane cost recoveries, net of expenses	—	—	—		—	—		—		—	—		—
Loss on asset impairments	—	—	—		—	—		—		—	—		—
Operating expenses	—	206	977		—	1,377		—		155	—		422
Preferred return on investment in MIP	—	—	—		—	—		—		—	—		—
Operating (loss) income	—	363	187		—	636		—		120	—		88
Minority interest expense	—	—	—		—	—		—		—	—		—
Interest expense, net	—	—	—		—	—		—		—	—		(267	)
Gain on early extinguishment of debt	—	—	—		—	—		—		—	—		—
Equity in loss from consolidated entities	—	—	—		—	—		—		—	—		—
(Loss) income before income taxes and discontinued operations	—	363	187		—	636		—		120	—		(179	)
Income tax benefit	—	—	—		—	—		—		—	—		—
(Loss) income from continuing operations	—	363	187		—	636		—		120	—		(179	)
Discontinued operations:
(Loss) income from discontinued operations	151	—	—		158	—		(8	)	—	(116	)	—
Income tax benefit	—	—	—		—	—		—		—	—		—
(Loss) income from discontinued operations	151	—	—		158	—		(8	)	—	(116	)	—
Net (loss) income	151	363	187		158	636		(8	)	120	(116	)	(179	)

26

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Three months ended September 30, 2003

(Dollars in thousands)

	MeriStar Sub 5H, LLC		MeriStar Sub 7H, LLC	AGH PSS I, Inc.		MeriStar Sub 2D, LLC	MeriStar Sub 4F, L.P.	MeriStar Sub 5K, LLC	MeriStar Sub 5M, LLC	MeriStar Sub 1E, LLC	MeriStar Sub 5O, LLC
Revenue:
Hotel operations:
Rooms	—		—	—		—	—	—	—	—	—
Food and beverage	—		—	—		—	—	—	—	—	—
Other hotel operations	—		—	—		—	—	—	—	—	—
Office rental, parking and other revenue	—		—	—		—	4	—	—	—	—
Participating lease revenue	—		—	—		—	459	471	304	—	136
Total revenue	—		—	—		—	463	471	304	—	136
Hotel operating expenses:
Rooms	—		—	—		—	—	—	—	—	—
Food and beverage	—		—	—		—	—	—	—	—	—
Other hotel operating expenses	—		—	—		—	—	—	—	—	—
Office rental, parking and other expenses	—		—	—		—	—	—	—	—	—
Other operating expenses:
General and administrative, hotel	—		—	—		—	—	—	—	—	—
General and administrative, corporate	—		—	—		—	—	—	—	—	—
Property operating costs	—		—	—		—	—	—	—	—	—
Depreciation and amortization	—		—	—		—	272	322	118	—	57
Property taxes, insurance and other	—		—	—		—	88	98	70	—	26
Hurricane cost recoveries, net of expenses	—		—	—		—	—	—	—	—	—
Loss on asset impairments	—		—	—		—	—	—	—	—	—
Operating expenses	—		—	—		—	360	420	188	—	83
Preferred return on investment in MIP	—		—	—		—	—	—	—	—	—
Operating (loss) income	—		—	—		—	103	51	116	—	53
Minority interest expense	—		—	—		—	—	—	—	—	—
Interest expense, net	—		—	—		—	—	—	—	—	—
Gain on early extinguishment of debt	—		—	—		—	—	—	—	—	—
Equity in loss from consolidated entities	—		—	—		—	—	—	—	—	—
(Loss) income before income taxes and discontinued operations	—		—	—		—	103	51	116	—	53
Income tax benefit	—		—	—		—	—	—	—	—	—
(Loss) income from continuing operations	—		—	—		—	103	51	116	—	53
Discontinued operations:
(Loss) income from discontinued operations	(1,599	)	153	(32	)	106	—	—	—	388	—
Income tax benefit	—		—	—		—	—	—	—	—	—
(Loss) income from discontinued operations	(1,599	)	153	(32	)	106	—	—	—	388	—
Net (loss) income	(1,599	)	153	(32	)	106	103	51	116	388	53

27

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Three months ended September 30, 2003

(Dollars in thousands)

	MeriStar Sub 4B, L.P.		MeriStar Sub 2C, LLC		MeriStar Sub 4G, L.P.		MeriStar Sub 3B, LLC		MeriStar Sub 5G, L.P.	MeriStar Sub 5P, LLC	MeriStar Sub 5J, LLC	MeriStar Sub 5Q, LLC	MeriStar Sub 5A, LLC
Revenue:
Hotel operations:
Rooms	—		—		—		—		—	—	—	—	—
Food and beverage	—		—		—		—		—	—	—	—	—
Other hotel operations	—		—		—		—		—	—	—	—	—
Office rental, parking and other revenue	—		—		—		—		11	—	—	—	32
Participating lease revenue	—		—		—		—		2,313	267	1,822	363	1,351
Total revenue	—		—		—		—		2,324	267	1,822	363	1,383
Hotel operating expenses:
Rooms	—		—		—		—		—	—	—	—	—
Food and beverage	—		—		—		—		—	—	—	—	—
Other hotel operating expenses	—		—		—		—		—	—	—	—	—
Office rental, parking and other expenses	—		—		—		—		—	—	—	—	—
Other operating expenses:
General and administrative, hotel	—		—		—		—		—	—	—	—	—
General and administrative, corporate	—		—		—		—		—	—	—	—	—
Property operating costs	—		—		—		—		—	—	—	—	—
Depreciation and amortization	—		—		—		—		1,571	1	871	140	257
Property taxes, insurance and other	—		—		—		—		486	2	391	57	179
Hurricane cost recoveries, net of expenses	—		—		—		—		—	—	—	—	—
Loss on asset impairments	—		—		—		—		—	—	—	—	—
Operating expenses	—		—		—		—		2,057	3	1,262	197	436
Preferred return on investment in MIP	—		—		—		—		—	—	—	—	—
Operating (loss) income	—		—		—		—		267	264	560	166	947
Minority interest expense	—		—		—		—		—	—	—	—	—
Interest expense, net	—		—		—		—		—	—	—	—	(708	)
Gain on early extinguishment of debt	—		—		—		—		—	—	—	—	—
Equity in loss from consolidated entities	—		—		—		—		—	—	—	—	—
(Loss) income before income taxes and discontinued operations	—		—		—		—		267	264	560	166	239
Income tax benefit	—		—		—		—		—	—	—	—	—
(Loss) income from continuing operations	—		—		—		—		267	264	560	166	239
Discontinued operations:
(Loss) income from discontinued operations	(542	)	(286	)	(312	)	(1,150	)	—	—	—	—	—
Income tax benefit	—		—		—		—		—	—	—	—	—
(Loss) income from discontinued operations	(542	)	(286	)	(312	)	(1,150	)	—	—	—	—	—
Net (loss) income	(542	)	(286	)	(312	)	(1,150	)	267	264	560	166	239

28

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Three months ended September 30, 2003

(Dollars in thousands)

	MeriStar Sub 8D, LLC		MeriStar Sub 4J, LLC		MeriStar Hotel Lessee, Inc.		Guarantor Subsidiaries Total		Eliminations		Total Consolidated
Revenue:
Hotel operations:
Rooms	—		—		121,037		121,037		—		121,037
Food and beverage	—		—		44,250		44,250		—		44,250
Other hotel operations	—		—		15,696		15,696		—		15,696
Office rental, parking and other revenue	—		174		—		2,177		—		1,958
Participating lease revenue	—		683		—		20,818		(50,702	)	—
Total revenue	—		857		180,983		203,978		(50,702	)	182,941
Hotel operating expenses:
Rooms	—		—		32,856		32,856		—		32,856
Food and beverage	—		—		35,171		35,171		—		35,171
Other hotel operating expenses	—		—		9,584		9,584		—		9,584
Office rental, parking and other expenses	—		238		—		855		—		933
Other operating expenses:
General and administrative, hotel	—		(48	)	30,766		30,516		—		30,013
General and administrative, corporate	—		—		84		84				2,621
Property operating costs	—		—		30,664		30,664		—		30,305
Depreciation and amortization	—		312		267		9,090		—		23,166
Property taxes, insurance and other	—		74		58,161		62,596		(50,702	)	14,960
Hurricane cost recoveries, net of expenses	—		—		—		—		—		—
Loss on asset impairments	—		—		—		3,636		—		4,736
Operating expenses	—		576		197,553		215,052		(50,702	)	184,345
Preferred return on investment in MIP	—		—		—		—		—		1,600
Operating (loss) income	—		281		(16,570	)	(11,074	)	—		196
Minority interest expense	—		—		—		—		—		—
Interest expense, net	—		—		(825	)	(1,800	)	—		(35,199	)
Gain on early extinguishment of debt	—		—		—		—		—		4,574
Equity in loss from consolidated entities	—		—		—		—		27,554		—
(Loss) income before income taxes and discontinued operations	—		281		(17,395	)	(12,874	)	27,554		(30,429	)
Income tax benefit	—		—		—		—		—		120
(Loss) income from continuing operations	—		281		(17,395	)	(12,874	)	27,554		(30,309	)
Discontinued operations:
(Loss) income from discontinued operations	(15,767	)	—		(6,261	)	(25,052	)	—		(20,920	)
Income tax benefit	—		—		—		—		—		184
(Loss) income from discontinued operations	(15,767	)	—		(6,261	)	(25,052	)	—		(20,736	)
Net (loss) income	(15,767	)	281		(23,656	)	(37,926	)	27,554		(51,045	)

29

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Nine months ended September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Hospitality OP, L.P.		Non- Guarantor Subsidiaries		MeriStar Sub 7C, LLC	AGH Upreit, LLC	MeriStar Sub 5N, LLC	MeriStar Sub 8A, LLC	MeriStar Sub 8F, L.P.	MeriStar Sub 8G, LLC	MeriStar Sub 6H, L.P.	MeriStar Sub 8B, LLC
Revenue:
Hotel operations:
Rooms	—		—		—	—	—	—	—	—	—	—
Food and beverage	—		—		—	—	—	—	—	—	—	—
Other hotel operations	—		—		—	—	—	—	—	—	—	—
Office rental, parking and other revenue	14		1,906		—	—	—	—	—	—	—	—
Participating lease revenue	—		102,640		—	—	591	—	1,803	—	996	5,591
Total revenue	14		104,546		—	—	591	—	1,803	—	996	5,591
Hotel operating expenses:
Rooms	—		—		—	—	—	—	—	—	—	—
Food and beverage	—		—		—	—	—	—	—	—	—	—
Other hotel operating expenses	—		—		—	—	—	—	—	—	—	—
Office rental, parking and other expenses	—		849		—	—	—	—	—	—	—	—
Other operating expenses:
General and administrative, hotel	—		19		—	—	—	—	—	—	—	(2,612	)
General and administrative, corporate	9,477		—		—	—	—	—	—	—	—	—
Property operating costs	—		—		—	—	—	—	—	—	—	—
Depreciation and amortization	7,944		37,839		—	—	104	—	493	—	470	1,815
Property taxes, insurance and other	(355	)	14,757		—	—	78	—	472	—	75	836
Hurricane cost recoveries, net of expenses	—		—		—	—	—	—	—	—	—	—
Loss on asset impairments	—		1,218		—	—	—	—	—	—	—	—
Operating expenses	17,066		54,682		—	—	182	—	965	—	545	39
Preferred return on investment in MIP	4,800		—		—	—	—	—	—	—	—	—
Operating (loss) income	(12,252	)	49,864		—	—	409	—	838	—	451	5,552
Minority interest	65		—		—	—	—	—	—	—	—	—
Interest expense, net	(60,242	)	(25,623	)	—	—	—	—	—	—	—	—
Loss on early extinguishments of debt	(7,903	)	—		—	—	—	—	—	—	—	—
Equity in income from consolidated entities	(1,389	)	—		—	—	—	—	—	—	—	—
(Loss) income before income taxes and discontinued operations	(81,721	)	24,241		—	—	409	—	838	—	451	5,552
Income tax benefit	537		—		—	—	—	—	—	—	—	—
(Loss) income from continuing operations	(81,184	)	24,241		—	—	409	—	838	—	451	5,552
Discontinued operations:
(Loss) income from discontinued operations	524		2,776		—	—	—	—	—	—	—	—
Income tax benefit	183		—		—	—	—	—	—	—	—	—
(Loss) income from discontinued operations	707		2,776		—	—	—	—	—	—	—	—
Net (loss) income	(80,477	)	27,017		—	—	409	—	838	—	451	5,552

30

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Nine months ended September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 1C, LLC		MeriStar Sub 8E, LLC	MeriStar Sub 7F, LLC	MeriStar Sub 5L, LLC	MeriStar Sub 3C, LLC	MeriStar Sub 5R, LLC	MeriStar Sub 6D, LLC	MeriStar Sub 6E, LLC	MeriStar Sub 4E, L.P.		MeriStar Sub 1B, LLC
Revenue:
Hotel operations:
Rooms	—		—	—	—	—	—	—	—	—		—
Food and beverage	—		—	—	—	—	—	—	—	—		—
Other hotel operations	—		—	—	—	—	—	—	—	—		—
Office rental, parking and other revenue	—		23	—	—	2	—	131	—	4		(4	)
Participating lease revenue	888		1,114	758	734	1,429	—	1,461	4,570	1,080		1,689
Total revenue	888		1,137	758	734	1,431	—	1,592	4,570	1,084		1,685
Hotel operating expenses:
Rooms	—		—	—	—	—	—	—	—	—		—
Food and beverage	—		—	—	—	—	—	—	—	—		—
Other hotel operating expenses	—		—	—	—	—	—	—	—	—		—
Office rental, parking and other expenses	—		—	—	—	—	—	—	—	—		—
Other operating expenses:
General and administrative, hotel	—		—	—	—	—	—	—	—	—		—
General and administrative, corporate	—		—	—	—	—	—	—	—	—		—
Property operating costs	—		—	—	—	—	—	—	—	—		—
Depreciation and amortization	1,042		447	243	115	533	—	379	1,207	220		368
Property taxes, insurance and other	528		137	93	114	304	—	228	429	304		97
Hurricane cost recoveries, net of expenses	—		—	—	—	—	—	—	—	—		—
Loss on asset impairments	—		—	—	—	—	—	—	—	1,021		—
Operating expenses	1,570		584	336	229	837	—	607	1,636	1,545		465
Preferred return on investment in MIP	—		—	—	—	—	—	—	—	—		—
Operating (loss) income	(682	)	553	422	505	594	—	985	2,934	(461	)	1,220
Minority interest	—		—	—	—	—	—	—	—	—		—
Interest expense, net	—		—	—	—	—	—	—	—	—		—
Loss on early extinguishments of debt	—		—	—	—	—	—	—	—	—		—
Equity in income from consolidated entities	—		—	—	—	—	—	—	—	—		—
(Loss) income before income taxes and discontinued operations	(682	)	553	422	505	594	—	985	2,934	(461	)	1,220
Income tax benefit	—		—	—	—	—	—	—	—	—		—
(Loss) income from continuing operations	(682	)	553	422	505	594	—	985	2,934	(461	)	1,220
Discontinued operations:
(Loss) income from discontinued operations	—		—	—	—	—	—	—	—	—		—
Income tax benefit	—		—	—	—	—	—	—	—	—		—
(Loss) income from discontinued operations	—		—	—	—	—	—	—	—	—		—
Net (loss) income	(682	)	553	422	505	594	—	985	2,934	(461	)	1,220

31

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Nine months ended September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 5F, L.P.	MeriStar Sub 6G, LLC	MeriStar Sub 8C, LLC		MeriStar Sub 4C, L.P.	MeriStar Sub 4H, L.P.		MeriStar Sub 7E, LLC	MeriStar Sub 3D, LLC	MeriStar Sub 1A, LLC			MeriStar Sub 7A Joint Venture
Revenue:
Hotel operations:
Rooms	—	—	—		—	—		—	—	—			—
Food and beverage	—	—	—		—	—		—	—	—			—
Other hotel operations	—	—	—		—	—		—	—	—			—
Office rental, parking and other revenue	—	—	—		—	—		1	—	—			—
Participating lease revenue	1,790	2,682	—		—	—		1,034	1,179	1,267			—
Total revenue	1,790	2,682	—		—	—		1,035	1,179	1,267			—
Hotel operating expenses:
Rooms	—	—	—		—	—		—	—	—			—
Food and beverage	—	—	—		—	—		—	—	—			—
Other hotel operating expenses	—	—	—		—	—		—	—	—			—
Office rental, parking and other expenses	—	—	—		—	—		—	—	—			—
Other operating expenses:
General and administrative, hotel	—	—	—		—	—		—	—	79			—
General and administrative, corporate	—	—	—		—	—		—	—	—			—
Property operating costs	—	—	—		—	—		—	—	—			—
Depreciation and amortization	587	545	—		—	—		478	542	197			—
Property taxes, insurance and other	276	294	—		—	—		151	187	308			—
Hurricane cost recoveries, net of expenses	—	—	—		—	—		—	—	—			—
Loss on asset impairments	—	—	—		—	—		—	—	1,441			—
Operating expenses	863	839	—		—	—		629	729	2,025			—
Preferred return on investment in MIP	—	—	—		—	—		—	—	—			—
Operating (loss) income	927	1,843	—		—	—		406	450	(758	)		—
												��
Minority interest	—	—	—		—	—		—	—	—			—
Interest expense, net	—	—	—		—	—		—	—	—			—
Loss on early extinguishments of debt	—	—	—		—	—		—	—	—			—
Equity in income from consolidated entities	—	—	—		—	—		—	—	—			—
(Loss) income before income taxes and discontinued operations	927	1,843	—		—	—		406	450	(758	)		—
Income tax benefit	—	—	—		—	—		—	—	—			—
(Loss) income from continuing operations	927	1,843	—		—	—		406	450	(758	)		—
Discontinued operations:
(Loss) income from discontinued operations	—	—	(61	)	—	(403	)	—	—	—			(732	)
Income tax benefit	—	—	—		—	—		—	—	—			—
(Loss) income from discontinued operations	—	—	(61	)	—	(403	)	—	—	—			(732	)
Net (loss) income	927	1,843	(61	)	—	(403	)	406	450	(758	)		(732	)

32

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Nine months ended September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 2B, LLC	MeriStar Sub 3A, LLC	MeriStar Sub 4A, LLC	MeriStar Sub 4D, LLC	MeriStar Sub 2A, LLC	MeriStar Sub 6L, LLC	MDV Limited Partnership	MeriStar Sub 5C, LLC	MeriStar Sub 6J, LLC
Revenue:
Hotel operations:
Rooms	—	—	—	—	—	—	—	—	—
Food and beverage	—	—	—	—	—	—	—	—	—
Other hotel operations	—	—	—	—	—	—	—	—	—
Office rental, parking and other revenue	—	—	—	—	—	—	—	—	—
Participating lease revenue	—	—	—	—	—	—	389	—	1,964
Total revenue	—	—	—	—	—	—	389	—	1,964
Hotel operating expenses:
Rooms	—	—	—	—	—	—	—	—	—
Food and beverage	—	—	—	—	—	—	—	—	—
Other hotel operating expenses	—	—	—	—	—	—	—	—	—
Office rental, parking and other expenses	—	—	—	—	—	—	—	—	—
Other operating expenses:
General and administrative, hotel	—	—	—	—	—	—	—	—	—
General and administrative, corporate	—	—	—	—	—	—	—	—	—
Property operating costs	—	—	—	—	—	—	—	—	—
Depreciation and amortization	—	—	—	—	—	—	105	—	418
Property taxes, insurance and other	—	—	—	—	—	—	98	—	220
Hurricane cost recoveries, net of expenses	—	—	—	—	—	—	—	—	—
Loss on asset impairments	—	—	—	—	—	—	—	—	—
Operating expenses	—	—	—	—	—	—	203	—	638
Preferred return on investment in MIP	—	—	—	—	—	—	—	—	—
Operating (loss) income	—	—	—	—	—	—	186	—	1,326
Minority interest	—	—	—	—	—	—	—	—	—
Interest expense, net	—	—	—	—	—	—	—	—	—
Loss on early extinguishments of debt	—	—	—	—	—	—	—	—	—
Equity in income from consolidated entities	—	—	—	—	—	—	—	—	—
(Loss) income before income taxes and discontinued operations	—	—	—	—	—	—	186	—	1,326
Income tax benefit	—	—	—	—	—	—	—	—	—
(Loss) income from continuing operations	—	—	—	—	—	—	186	—	1,326
Discontinued operations:
(Loss) income from discontinued operations	—	89	97	—	—	1,852	—	—	—
Income tax benefit	—	—	—	—	—	—	—	—	—
(Loss) income from discontinued operations	—	89	97	—	—	1,852	—	—	—
Net (loss) income	—	89	97	—	—	1,852	186	—	1,326

33

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Nine months ended September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 1D, LLC	MeriStar Sub 7B, L.P.		MeriStar Sub 7D, LLC	MeriStar Sub 7G, LLC	MeriStar Sub 6B, LLC	MeriStar Sub 4I, L.P.	MeriStar Sub 5D, LLC		MeriStar Sub 5H, LLC	MeriStar Sub 7H, LLC	AGH PSS I, Inc.
Revenue:
Hotel operations:
Rooms	—	—		—	—	—	—	—		—	—	—
Food and beverage	—	—		—	—	—	—	—		—	—	—
Other hotel operations	—	—		—	—	—	—	—		—	—	—
Office rental, parking and other revenue	218	—		1,346	—	—	—	—		—	—	—
Participating lease revenue	3,872	—		4,382	—	902	—	1,697		—	—	—
Total revenue	4,090	—		5,728	—	902	—	1,697		—	—	—
Hotel operating expenses:
Rooms	—	—		—	—	—	—	—		—	—	—
Food and beverage	—	—		—	—	—	—	—		—	—	—
Other hotel operating expenses	—	—		—	—	—	—	—		—	—	—
Office rental, parking and other expenses	86	—		666	—	—	—	—		—	—	—
Other operating expenses:
General and administrative, hotel	5	—		—	—	—	—	—		—	—	—
General and administrative, corporate	—	—		—	—	—	—	—		—	—	—
Property operating costs	—	—		—	—	—	—	—		—	—	—
Depreciation and amortization	1,704	—		1,214	—	335	—	1,089		—	—	—
Property taxes, insurance and other	1,152	—		951	—	168	—	151		—	—	—
Hurricane cost recoveries, net of expenses	—	—		—	—	—	—	—		—	—	—
Loss on asset impairments	—	—		—	—	—	—	—		—	—	—
Operating expenses	2,947	—		2,831	—	503	—	1,240		—	—	—
Preferred return on investment in MIP	—	—		—	—	—	—	—		—	—	—
Operating (loss) income	1,143	—		2,897	—	399	—	457		—	—	—
Minority interest	—	—		—	—	—	—	—		—	—	—
Interest expense, net	—	—		—	—	—	—	(1,003	)	—	—	—
Loss on early extinguishments of debt	—	—		—	—	—	—	—		—	—	—
Equity in income from consolidated entities	—	—		—	—	—	—	—		—	—	—
(Loss) income before income taxes and discontinued operations	1,143	—		2,897	—	399	—	(546	)	—	—	—
Income tax benefit	—	—		—	—	—	—	—		—	—	—
(Loss) income from continuing operations	1,143	—		2,897	—	399	—	(546	)	—	—	—
Discontinued operations:
(Loss) income from discontinued operations	—	(787	)	—	103	—	—	—		—	—	—
Income tax benefit	—	—		—	—	—	—	—		—	—	—
(Loss) income from discontinued operations	—	(787	)	—	103	—	—	—		—	—	—
Net (loss) income	1,143	(787	)	2,897	103	399	—	(546	)	—	—	—

34

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Nine months ended September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 2D, LLC	MeriStar Sub 4F, L.P.	MeriStar Sub 5K, LLC	MeriStar Sub 5M, LLC	MeriStar Sub 1E, LLC	MeriStar Sub 5O, LLC	MeriStar Sub 4B, L.P.		MeriStar Sub 2C, LLC
Revenue:
Hotel operations:
Rooms	—	—	—	—	—	—	—		—
Food and beverage	—	—	—	—	—	—	—		—
Other hotel operations	—	—	—	—	—	—	—		—
Office rental, parking and other revenue	—	14	—	—	—	—	—		—
Participating lease revenue	—	1,476	1,698	1,149	—	542	—		—
Total revenue	—	1,490	1,698	1,149	—	542	—		—
Hotel operating expenses:
Rooms	—	—	—	—	—	—	—		—
Food and beverage	—	—	—	—	—	—	—		—
Other hotel operating expenses	—	—	—	—	—	—	—		—
Office rental, parking and other expenses	—	—	—	—	—	—	—		—
Other operating expenses:
General and administrative, hotel	—	—	—	—	—	—	—		—
General and administrative, corporate	—	—	—	—	—	—	—		—
Property operating costs	—	—	—	—	—	—	—		—
Depreciation and amortization	—	828	972	356	—	172	—		—
Property taxes, insurance and other	—	280	275	201	—	77	—		—
Hurricane cost recoveries, net of expenses	—	—	—	—	—	—	—		—
Loss on asset impairments	—	—	—	—	—	—	—		—
Operating expenses	—	1,108	1,247	557	—	249	—		—
Preferred return on investment in MIP	—	—	—	—	—	—	—		—
Operating (loss) income	—	382	451	592	—	293	—		—
Minority interest	—	—	—	—	—	—	—		—
Interest expense, net	—	—	—	—	—	—	—		—
Loss on early extinguishments of debt	—	—	—	—	—	—	—		—
Equity in income from consolidated entities	—	—	—	—	—	—	—		—
(Loss) income before income taxes and discontinued operations	—	382	451	592	—	293	—		—
Income tax benefit	—	—	—	—	—	—	—		—
(Loss) income from continuing operations	—	382	451	592	—	293	—		—
Discontinued operations:
(Loss) income from discontinued operations	—	—	—	—	—	—	(217	)	(3,242	)
Income tax benefit	—	—	—	—	—	—	—		—
(Loss) income from discontinued operations	—	—	—	—	—	—	(217	)	(3,242	)
Net (loss) income	—	382	451	592	—	293	(217	)	(3,242	)

35

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Nine months ended September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Sub 4G, L.P.		MeriStar Sub 3B, LLC	MeriStar Sub 5G, L.P.	MeriStar Sub 5P, LLC	MeriStar Sub 5J, LLC	MeriStar Sub 5Q, LLC	MeriStar Sub 5A, LLC		MeriStar Sub 8D, LLC	MeriStar Sub 4J, LLC	MeriStar Pentagon City, LLC
Revenue:
Hotel operations:
Rooms	—		—	—	—	—	—	—		—	—	—
Food and beverage	—		—	—	—	—	—	—		—	—	—
Other hotel operations	—		—	—	—	—	—	—		—	—	—
Office rental, parking and other revenue	—		—	21	—	—	—	78		—	157	—
Participating lease revenue	—		—	7,885	587	6,380	1,314	4,545		—	2,144	3,721
Total revenue	—		—	7,906	587	6,380	1,314	4,623		—	2,301	3,721
Hotel operating expenses:
Rooms	—		—	—	—	—	—	—		—	—	—
Food and beverage	—		—	—	—	—	—	—		—	—	—
Other hotel operating expenses	—		—	—	—	—	—	—		—	—	—
Office rental, parking and other expenses	—		—	—	—	—	—	—		—	337	—
Other operating expenses:
General and administrative, hotel	—		—	—	—	28	—	2		—	—	12
General and administrative, corporate	—		—	—	—	—	—	—		—	—	—
Property operating costs	—		—	—	—	—	—	—		—	—	—
Depreciation and amortization	—		—	4,744	3	4,232	441	798		—	948	2,173
Property taxes, insurance and other	—		—	1,210	5	1,208	204	584		—	253	671
Hurricane cost recoveries, net of expenses	—		—	—	—	—	—	—		—	—	—
Loss on asset impairments	—		—	—	—	—	—	—		—	—	—
Operating expenses	—		—	5,954	8	5,468	645	1,384		—	1,538	2,856
Preferred return on investment in MIP	—		—	—	—	—	—	—		—	—	—
Operating (loss) income	—		—	1,952	579	912	669	3,239		—	763	865
Minority interest	—		—	—	—	—	—	—		—	—	—
Interest expense, net	—		—	—	—	—	—	(2,125	)	—	—	(816	)
Loss on early extinguishments of debt	—		—	—	—	—	—	—		—	—	—
Equity in income from consolidated entities	—		—	—	—	—	—	—		—	—	—
(Loss) income before income taxes and discontinued operations	—		—	1,952	579	912	669	1,114		—	763	49
Income tax benefit	—		—	—	—	—	—	—		—	—	—
(Loss) income from continuing operations	—		—	1,952	579	912	669	1,114		—	763	49
Discontinued operations:
(Loss) income from discontinued operations	(168	)	—	—	—	—	—	—		143	—	—
Income tax benefit	—		—	—	—	—	—	—		—	—	—
(Loss) income from discontinued operations	(168	)	—	—	—	—	—	—		143	—	—
Net (loss) income	(168	)	—	1,952	579	912	669	1,114		143	763	49

36

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Nine months ended September 30, 2004

Unaudited

(Dollars in thousands)

	MeriStar Hotel Lessee, Inc.		Guarantor Subsidiaries Total		Eliminations		Total Consolidated
Revenue:
Hotel operations:
Rooms	401,815		401,815		—		401,815
Food and beverage	156,261		156,261		—		156,261
Other hotel operations	48,194		48,194		—		48,194
Office rental, parking and other revenue	160		2,151		—		4,071
Participating lease revenue	—		75,303		(177,943	)	—
Total revenue	606,430		683,724		(177,943	)	610,341
Hotel operating expenses:
Rooms	102,072		102,072		—		102,072
Food and beverage	117,109		117,109		—		117,109
Other hotel operating expenses	30,645		30,645		—		30,645
Office rental, parking and other expenses	—		1,089		—		1,938
Other operating expenses:
General and administrative, hotel	99,639		97,153		—		97,172
General and administrative, corporate	148		148		—		9,625
Property operating costs	93,056		93,056		—		93,056
Depreciation and amortization	98		30,415		—		76,198
Property taxes, insurance and other	196,880		209,499		(177,943	)	45,958
Hurricane cost recoveries, net of expenses	(5,345	)	(5,345	)	—		(5,345	)
Loss on asset impairments	—		2,462		—		3,680
Operating expenses	634,302		678,303		(177,943	)	572,108
Preferred return on investment in MIP	—		—				4,800
Operating (loss) income	(27,872	)	5,421		—		43,033
Minority interest	—		—		—		65
Interest expense, net	(5,777	)	(9,721	)	—		(95,586	)
Loss on early extinguishments of debt	—		—		—		(7,903	)
Equity in income from consolidated entities	—		—		1,389		—
(Loss) income before income taxes and discontinued operations	(33,649	)	(4,300	)	1,389		(60,391	)
Income tax benefit	—		—		—		537
(Loss) income from continuing operations	(33,649	)	(4,300	)	1,389		(59,854	)
Discontinued operations:
(Loss) income from discontinued operations	(20,778	)	(24,104	)	—		(20,804	)
Income tax benefit	—		—		—		183
(Loss) income from discontinued operations	(20,778	)	(24,104	)	—		(20,621	)
Net (loss) income	(54,427	)	(28,404	)	1,389		(80,475	)

37

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Nine Months Ended September 30, 2003

(Dollars in Thousands)

	MeriStar Hospitality OP, L.P.		Non-Guarantor Subsidiaries		MeriStar Sub 7C, LLC	AGH Upreit, LLC	MeriStar Sub 5N, LLC	MeriStar SUB 8A, LLC	MeriStar Sub 8F, L.P.	MeriStar Sub 8G, LLC	MeriStar Sub 6H, L.P.		MeriStar Sub 8B, LLC	MeriStar Sub 1C, L.P.
Revenue:
Hotel operations:
Rooms	—		—		—	—	—	—	—	—	—		—	—
Food and beverage	—		—		—	—	—	—	—	—	—		—	—
Other hotel operations	—		—		—	—	—	—	—	—	—		—	—
Office rental, parking and other revenue	52		2,153		—	—	—	—	—	—	—		—	—
Participating lease revenue	—		92,787		—	—	680	—	1,759	—	886		5,454	1,012
Total revenue	52		94,940		—	—	680	—	1,759	—	886		5,454	1,012
Hotel operating expenses:
Rooms	—		—		—	—	—	—	—	—	—		—	—
Food and beverage	—		—		—	—	—	—	—	—	—		—	—
Other hotel operating expenses	—		—		—	—	—	—	—	—	—		—	—
Office rental, parking and other expenses	20		887		—	—	—	—	—	—	—		—	—
Other operating expenses:
General and administrative, hotel	(648	)	(8	)	—	—	—	—	—	—	—		—	—
General and administrative, corporate	8,526		—		—	—	—	—	—	—	—		—	—
Property operating costs	(363	)	—		—	—	—	—	—	—	—		—	—
Depreciation and amortization	7,412		35,507		—	—	103	—	423	—	412		1,821	762
Property taxes, insurance and other	866		14,715		—	—	79	—	401	—	71		1,038	554
Hurricane cost recoveries, net of expenses	—		—		—	—	—	—	—	—	—		—	—
Loss on asset impairments	—		14,935		—	—	—	—	—	—	500		—	—
Operating expenses	15,813		66,036		—	—	182	—	824	—	983		2,859	1,316
Preferred return on investment in MIP	5,769		—		—	—	—	—	—	—	—		—	—
Operating (loss) income	(9,992	)	28,904		—	—	498	—	935	—	(97	)	2,595	(304	)
Minority interest expense	(6	)	—		—	—	—	—	—	—	—		—	—
Interest expense, net	(77,777	)	(19,753	)	—	—	—	—	—	—	—		—	—
Gain on early extinguishment of debt	4,574		—		—	—	—	—	—	—	—		—	—
Equity in loss from consolidated entities	(257,756	)	—		—	—	—	—	—	—	—		—	—
(Loss) income before income taxes and discontinued operations	(340,957	)	9,151		—	—	498	—	935	—	(97	)	2,595	(304	)
Income tax (expense) benefit	(1,783	)	—		—	—	—	—	—	—	—		—	—
(Loss) income from continuing operations	(342,740	)	9,151		—	—	498	—	935	—	(97	)	2,595	(304	)
Discontinued operations:
(Loss) income from discontinued operations	(370	)	(99,132	)	—	—	—	—	—	—	—		—	—
Income tax benefit	2,212		—		—	—	—	—	—	—	—		—	—
(Loss) income from discontinued operations	1,842		(99,132	)	—	—	—	—	—	—	—		—	—
Net (loss) income	(340,898	)	(89,981	)	—	—	498	—	935	—	(97	)	2,595	(304	)

38

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Nine Months Ended September 30, 2003

(Dollars in Thousands)

	MeriStar Sub 8E, LLC	MeriStar Sub 7F, LLC		MeriStar Sub 5L, LLC		MeriStar Sub 3C, LLC	MeriStar Sub 5R, LLC	MeriStar Sub 6D, LLC	MeriStar Sub 6E, LLC	MeriStar Sub 4E, L.P.		MeriStar Sub 1B, LLC		MeriStar Sub 5F, L.P.		MeriStar Sub 6G, LLC
Revenue:
Hotel operations:
Rooms	—	—		—		—	—	—	—	—		—		—		—
Food and beverage	—	—		—		—	—	—	—	—		—		—		—
Other hotel operations	—	—		—		—	—	—	—	—		—		—		—
Office rental, parking and other revenue	16	—		—		—	—	23	—	4		341		—		—
Participating lease revenue	1,086	721		801		1,316	—	1,460	3,984	1,054		1,969		2,156		1,863
Total revenue	1,102	721		801		1,316	—	1,483	3,984	1,058		2,310		2,156		1,863
Hotel operating expenses:
Rooms	—	—		—		—	—	—	—	—		—		—		—
Food and beverage	—	—		—		—	—	—	—	—		—		—		—
Other hotel operating expenses	—	—		—		—	—	—	—	—		—		—		—
Office rental, parking and other expenses	—	—		—		—	—	—	—	—		—		—		—
Other operating expenses:
General and administrative, hotel	—	—		—		—	—	—	—	—		—		—		—
General and administrative, corporate	—	—		—		—	—	—	—	—		—		—		—
Property operating costs	—	—		—		—	—	—	—	—		—		—		—
Depreciation and amortization	434	328		103		532	—	410	1,219	502		406		743		634
Property taxes, insurance and other	163	122		99		296	—	251	516	336		111		305		284
Hurricane cost recoveries, net of expenses	—	—		—		—	—	—	—	—		—		—		—
Loss on asset impairments	—	2,037		—		—	—	—	—	15,347		—		9,231		—
Operating expenses	597	2,487		202		828	—	661	1,735	16,185		517		10,279		918
Preferred return on investment in MIP	—	—		—		—	—	—	—	—		—		—		—
Operating (loss) income	505	(1,766	)	599		488	—	822	2,249	(15,127	)	1,793		(8,123	)	945
Minority interest expense	—	—		—		—	—	—	—	—		—		—		—
Interest expense, net	—	—		(2	)	—	—	—	—	—		(10	)	—		—
Gain on early extinguishment of debt	—	—		—		—	—	—	—	—		—		—		—
Equity in loss from consolidated entities	—	—		—		—	—	—	—	—		—		—		—
(Loss) income before income taxes and discontinued operations	505	(1,766	)	597		488	—	822	2,249	(15,127	)	1,783		(8,123	)	945
Income tax (expense) benefit	—	—		—		—	—	—	—	—		—		—		—
(Loss) income from continuing operations	505	(1,766	)	597		488	—	822	2,249	(15,127	)	1,783		(8,123	)	945
Discontinued operations:
(Loss) income from discontinued operations	—	—		—		—	—	—	—	—		—		—		—
Income tax benefit	—	—		—		—	—	—	—	—		—		—		—
(Loss) income from discontinued operations	—	—		—		—	—	—	—	—		—		—		—
Net (loss) income	505	(1,766	)	597		488	—	822	2,249	(15,127	)	1,783		(8,123	)	945

39

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Nine Months Ended September 30, 2003

(Dollars in Thousands)

	MeriStar Sub 8C, LLC		MeriStar Sub 4C, L.P	MeriStar Sub 4H, L.P.		MeriStar Sub 7E, LLC	MeriStar Sub 3D, LLC	MeriStar Sub 1A, LLC	MeriStar Sub 7A Joint Venture		MeriStar Sub 2B, LLC		MeriStar Sub 3A, LLC		MeriStar Sub 4A, L.P.		MeriStar Sub 4D, L.P.
Revenue:
Hotel operations:
Rooms	—		—	—		—	—	—	—		—		—		—		—
Food and beverage	—		—	—		—	—	—	—		—		—		—		—
Other hotel operations	—		—	—		—	—	—	—		—		—		—		—
Office rental, parking and other revenue	—		—	—		—	1	—	—		—		—		—		—
Participating lease revenue	—		—	—		1,009	1,133	1,421	—		—		—		—		—
Total revenue	—		—	—		1,009	1,134	1,421	—		—		—		—		—
Hotel operating expenses:
Rooms	—		—	—		—	—	—	—		—		—		—		—
Food and beverage	—		—	—		—	—	—	—		—		—		—		—
Other hotel operating expenses	—		—	—		—	—	—	—		—		—		—		—
Office rental, parking and other expenses	—		—	—		—	—	—	—		—		—		—		—
Other operating expenses:
General and administrative, hotel	—		—	—		—	—	—	—		—		—		—		—
General and administrative, corporate	—		—	—		—	—	—	—		—		—		—		—
Property operating costs	—		—	—		—	—	—	—		—		—		—		—
Depreciation and amortization	—		—	—		462	583	338	—		—		—		—		—
Property taxes, insurance and other	—		—	—		148	177	321	—		—		—		—		—
Hurricane cost recoveries, net of expenses	—		—	—		—	—	—	—		—		—		—		—
Loss on asset impairments	—		—	—		—	—	—	—		—		—		—		—
Operating expenses	—		—	—		610	760	659	—		—		—		—		—
Preferred return on investment in MIP	—		—	—		—	—	—	—		—		—		—		—
Operating (loss) income	—		—	—		399	374	762	—		—		—		—		—
Minority interest expense	—		—	—		—	—	—	—		—		—		—		—
Interest expense, net	—		—	—		—	—	—	—		—		—		—		—
Gain on early extinguishment of debt	—		—	—		—	—	—	—		—		—		—		—
Equity in loss from consolidated entities	—		—	—		—	—	—	—		—		—		—		—
(Loss) income before income taxes and discontinued operations	—		—	—		399	374	762	—		—		—		—		—
Income tax (expense) benefit	—		—	—		—	—	—	—		—		—		—		—
(Loss) income from continuing operations	—		—	—		399	374	762	—		—		—		—		—
Discontinued operations:
(Loss) income from discontinued operations	(4,758	)	—	(5,414	)	—	—	—	(5,026	)	(5,041	)	(1,994	)	(942	)	(939	)
Income tax benefit	—		—	—		—	—	—	—		—		—		—		—
(Loss) income from discontinued operations	(4,758	)	—	(5,414	)	—	—	—	(5,026	)	(5,041	)	(1,994	)	(942	)	(939	)
Net (loss) income	(4,758	)	—	(5,414	)	399	374	762	(5,026	)	(5,041	)	(1,994	)	(942	)	(939	)

40

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Nine Months Ended September 30, 2003

(Dollars in Thousands)

	MeriStar Sub 2A, LLC		MeriStar Sub 6L, LLC		MDV Limited Partnership	MeriStar Sub 5C, LLC		MeriStar Sub 6J, LLC	MeriStar Sub 1D, LLC	MeriStar Sub 7B, L.P.		MeriStar Sub 7D, LLC	MeriStar Sub 7G, LLC		MeriStar Sub 6B, LLC	MeriStar Sub 4I, L.P.
Revenue:
Hotel operations:
Rooms	—		—		—	—		—	—	—		—	—		—	—
Food and beverage	—		—		—	—		—	—	—		—	—		—	—
Other hotel operations	—		—		—	—		—	—	—		—	—		—	—
Office rental, parking and other revenue	—		—		—	—		—	197	—		1,403	—		—	—
Participating lease revenue	—		—		379	—		1,620	3,402	—		4,275	—		825	—
Total revenue	—		—		379	—		1,620	3,599	—		5,678	—		825	—
Hotel operating expenses:
Rooms	—		—		—	—		—	—	—		—	—		—	—
Food and beverage	—		—		—	—		—	—	—		—	—		—	—
Other hotel operating expenses	—		—		—	—		—	—	—		—	—		—	—
Office rental, parking and other expenses	—		—		—	—		—	78	—		776	—		—	—
Other operating expenses:
General and administrative, hotel	—		—		—	—		—	—	—		—	—		—	—
General and administrative, corporate	—		—		—	—		—	—	—		—	—		—	—
Property operating costs	—		—		—	—		—	—	—		—	—		—	—
Depreciation and amortization	—		—		104	—		440	1,707	—		1,292	—		337	—
Property taxes, insurance and other	—		—		105	—		198	1,247	—		1,663	—		150	—
Hurricane cost recoveries, net of expenses	—		—		—	—		—	—	—		—	—		—	—
Loss on asset impairments	—		—		—	—		—	—	—		—	—		—	—
Operating expenses	—		—		209	—		638	3,032	—		3,731	—		487	—
Preferred return on investment in MIP	—		—		—	—		—	—	—		—	—		—	—
Operating (loss) income	—		—		170	—		982	567	—		1,947	—		338	—
Minority interest expense	—		—		—	—		—	—	—		—	—		—	—
Interest expense, net	—		—		—	—		2	—	—		—	—		—	—
Gain on early extinguishment of debt	—		—		—	—		—	—	—		—	—		—	—
Equity in loss from consolidated entities	—		—		—	—		—	—	—		—	—		—	—
(Loss) income before income taxes and discontinued operations	—		—		170	—		984	567	—		1,947	—		338	—
Income tax (expense) benefit	—		—		—	—		—	—	—		—	—		—	—
(Loss) income from continuing operations	—		—		170	—		984	567	—		1,947	—		338	—
Discontinued operations:
(Loss) income from discontinued operations	(3,361	)	(12,720	)	—	(6,918	)	—	—	(10,033	)	—	(7,539	)	—	(1,600	)
Income tax benefit	—		—		—	—		—	—	—		—	—		—	—
(Loss) income from discontinued operations	(3,361	)	(12,720	)	—	(6,918	)	—	—	(10,033	)	—	(7,539	)	—	(1,600	)
Net (loss) income	(3,361	)	(12,720	)	170	(6,918	)	984	567	(10,033	)	1,947	(7,539	)	338	(1,600	)

41

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Nine Months Ended September 30, 2003

(Dollars in Thousands)

	MeriStar Sub 5D, LLC		MeriStar Sub 5H, LLC		MeriStar Sub 7H, LLC		AGH PSS I, Inc.		MeriStar Sub 2D, LLC		MeriStar Sub 4F, L.P.	MeriStar Sub 5K, LLC	MeriStar Sub 5M, LLC	MeriStar Sub 1E, LLC	MeriStar Sub 5O, LLC	MeriStar Sub 4B, L.P.
Revenue:
Hotel operations:
Rooms	—		—		—		—		—		—	—	—	—	—	—
Food and beverage	—		—		—		—		—		—	—	—	—	—	—
Other hotel operations	—		—		—		—		—		—	—	—	—	—	—
Office rental, parking and other revenue	—		—		—		—		—		11	—	—	—	—	—
Participating lease revenue	1,534		—		—		—		—		1,440	1,730	1,280	—	576	—
Total revenue	1,534		—		—		—		—		1,451	1,730	1,280	—	576	—
Hotel operating expenses:
Rooms	—		—		—		—		—		—	—	—	—	—	—
Food and beverage	—		—		—		—		—		—	—	—	—	—	—
Other hotel operating expenses	—		—		—		—		—		—	—	—	—	—	—
Office rental, parking and other expenses	—		—		—		—		—		—	—	—	—	—	—
Other operating expenses:
General and administrative, hotel	—		—		—		—		—		—	—	—	—	—	—
General and administrative, corporate	—		—		—		—		—		—	—	—	—	—	—
Property operating costs	—		—		—		—		—		—	—	—	—	—	—
Depreciation and amortization	1,095		—		—		—		—		828	966	354	—	171	—
Property taxes, insurance and other	169		—		—		—		—		261	285	201	—	78	—
Hurricane cost recoveries, net of expenses	—		—		—		—		—		—	—	—	—	—	—
Loss on asset impairments	—		—		—		—		—		—	—	—	—	—	—
Operating expenses	1,264		—		—		—		—		1,089	1,251	555	—	249	—
Preferred return on investment in MIP	—		—		—		—		—		—	—	—	—	—	—
Operating (loss) income	270		—		—		—		—		362	479	725	—	327	—
Minority interest expense	—		—		—		—		—		—	—	—	—	—	—
Interest expense, net	(911	)	—		—		—		—		—	—	—	—	—	—
Gain on early extinguishment of debt	—		—		—		—		—		—	—	—	—	—	—
Equity in loss from consolidated entities	—		—		—		—		—		—	—	—	—	—	—
(Loss) income before income taxes and discontinued operations	(641	)	—		—		—		—		362	479	725	—	327	—
Income tax (expense) benefit	—		—		—		—		—		—	—	—	—	—	—
(Loss) income from continuing operations	(641	)	—		—		—		—		362	479	725	—	327	—
Discontinued operations:
(Loss) income from discontinued operations	—		(18,966	)	(933	)	(929	)	(8,807	)	—	—	—	927	—	(1,114	)
Income tax benefit	—		—		—		—		—		—	—	—	—	—	—
(Loss) income from discontinued operations	—		(18,966	)	(933	)	(929	)	(8,807	)	—	—	—	927	—	(1,114	)
Net (loss) income	(641	)	(18,966	)	(933	)	(929	)	(8,807	)	362	479	725	927	327	(1,114	)

42

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Nine Months Ended September 30, 2003

(Dollars in Thousands)

	MeriStar Sub 2C, LLC		MeriStar Sub 4G, L.P.		MeriStar Sub 3B, LLC		MeriStar Sub 5G, L.P.	MeriStar Sub 5P, LLC	MeriStar Sub 5J, LLC		MeriStar Sub 5Q, LLC	MeriStar Sub 5A, LLC		MeriStar Sub 8D, LLC
Revenue:
Hotel operations:
Rooms	—		—		—		—	—	—		—	—		—
Food and beverage	—		—		—		—	—	—		—	—		—
Other hotel operations	—		—		—		—	—	—		—	—		—
Office rental, parking and other revenue	—		—		—		36	—	—		—	88		—
Participating lease revenue	—		—		—		7,636	953	7,191		1,561	4,232		—
Total revenue	—		—		—		7,672	953	7,191		1,561	4,320		—
Hotel operating expenses:
Rooms	—		—		—		—	—	—		—	—		—
Food and beverage	—		—		—		—	—	—		—	—		—
Other hotel operating expenses	—		—		—		—	—	—		—	—		—
Office rental, parking and other expenses	—		—		—		—	—	—		—	—		—
Other operating expenses:
General and administrative, hotel	—		—		—		—	—	—		—	—		—
General and administrative, corporate	—		—		—		—	—	—		—	—		—
Property operating costs	—		—		—		—	—	—		—	—		—
Depreciation and amortization	—		—		—		4,716	3	2,612		420	1,028		—
Property taxes, insurance and other	—		—		—		1,441	6	1,130		166	534		—
Hurricane cost recoveries, net of expenses	—		—		—		—	—	—		—	—		—
Loss on asset impairments	—		—		—		—	—	—		—	—		—
Operating expenses	—		—		—		6,157	9	3,742		586	1,562		—
Preferred return on investment in MIP	—		—		—		—	—	—		—	—		—
Operating (loss) income	—		—		—		1,515	944	3,449		975	2,758		—
Minority interest expense	—		—		—		—	—	—		—	—		—
Interest expense, net	—		—		—		—	—	(3	)	—	(2,125	)	—
Gain on early extinguishment of debt	—		—		—		—	—	—		—	—		—
Equity in loss from consolidated entities	—		—		—		—	—	—		—	—		—
(Loss) income before income taxes and discontinued operations	—		—		—		1,515	944	3,446		975	633		—
Income tax (expense) benefit	—		—		—		—	—	—		—	—		—
(Loss) income from continuing operations	—		—		—		1,515	944	3,446		975	633		—
Discontinued operations:
(Loss) income from discontinued operations	(16,292	)	(8,053	)	(2,034	)	—	—	—		—	—		(15,429	)
Income tax benefit	—		—		—		—	—	—		—	—		—
(Loss) income from discontinued operations	(16,292	)	(8,053	)	(2,034	)	—	—	—		—	—		(15,429	)
Net (loss) income	(16,292	)	(8,053	)	(2,034	)	1,515	944	3,446		975	633		(15,429	)

43

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Operations

Nine Months Ended September 30, 2003

(Dollars in Thousands)

	MeriStar Sub 4J, LLC	MeriStar Hotel Lessee, Inc.		Guarantor Subsidiaries Total		Eliminations		Total Consolidated
Revenue:
Hotel operations:
Rooms	—	384,329		384,329		—		384,329
Food and beverage	—	150,842		150,842		—		150,842
Other hotel operations	—	51,314		51,314		—		51,314
Office rental, parking and other revenue	177	—		2,297		—		4,502
Participating lease revenue	2,313	—		70,711		(163,498	)	—
Total revenue	2,490	586,485		659,493		(163,498	)	590,987
Hotel operating expenses:
Rooms	—	95,097		95,097		—		95,097
Food and beverage	—	110,131		110,131		—		110,131
Other hotel operating expenses	—	29,798		29,798		—		29,798
Office rental, parking and other expenses	400	—		1,254		—		2,161
Other operating expenses:
General and administrative, hotel	—	92,794		92,794		—		92,138
General and administrative, corporate	—	195		195		—		8,721
Property operating costs	—	89,256		87,256		—		88,893
Depreciation and amortization	955	800		28,043		—		70,962
Property taxes, insurance and other	234	183,678		196,818		(163,498	)	48,901
Hurricane cost recoveries, net of expenses	—	—		—		—		—
Loss on asset impairments	—	—		27,115		—		42,050
Operating expenses	1,589	601,749		670,501		(163,498	)	588,852
Preferred return on investment in MIP	—	—		—		—		5,769
Operating (loss) income	901	(15,264	)	(11,008	)	—		7,904
Minority interest expense	—	—		—		—		(6	)
Interest expense, net	—	(1,807	)	(4,856	)	—		(102,386	)
Gain on early extinguishment of debt	—	—		—		—		4,574
Equity in loss from consolidated entities	—	—		—		257,756		—
(Loss) income before income taxes and discontinued operations	901	(17,071	)	(15,864	)	257,756		(89,914	)
Income tax (expense) benefit	—	—		—		—		(1,783	)
(Loss) income from continuing operations	901	(17,071	)	(15,864	)	257,756		(91,697	)
Discontinued operations:
(Loss) income from discontinued operations	—	(13,996	)	(151,911	)	—		(251,413	)
Income tax benefit	—	—		—		—		2,212
(Loss) income from discontinued operations	—	(13,996	)	(151,911	)	—		(249,201	)
Net (loss) income	901	(31,067	)	(167,775	)	257,756		(340,898	)

44

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2004 Unaudited (Dollars in thousands)

	MeriStar Hospitality OP, L.P.		Non-Guarantor Subsidiaries		MeriStar Sub 7C, LLC	AGH Upreit, LLC	MeriStar Sub 5N, LLC		MeriStar Sub 8A, LLC	MeriStar Sub 8F, L.P.		MeriStar Sub 8G, LLC	MeriStar Sub 6H, L.P.		MeriStar Sub 8B, LLC		MeriStar Sub 1C, L.P.		MeriStar Sub 8E, LLC
Operating activities:
Net (loss) income	(80,477	)	27,017		—	—	409		—	838		—	451		5,552		(682	)	553
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	7,944		38,929		—	—	104		—	493		—	470		1,815		1,042		447
Equity in earnings from consolidated entities	1,389		—		—	—	—		—	—		—	—		—		—		—
Loss on asset impairments	—		4,671		—	—	—		—	—		—	—		—		—		—
Loss on sale of assets, before tax effect	149		(968	)	—	—	—		—	—		—	—		—		—		—
Loss on early extinguishments of debt	7,903		—		—	—	—		—	—		—	—		—		—		—
Minority interests	(65	)	—		—	—	—		—	—		—	—		—		—		—
Amortization of unearned and adjustment to stock-based compensation	(3,845	)	—		—	—	—		—	—		—	—		—		—		—
Change in value of interest rate swaps	—		—		—	—	—		—	—		—	—		—		—		—
Deferred income taxes	(357	)	—		—	—	—		—	—		—	—		—		—		—
Changes in operating assets and liabilities:	—		—		—	—	—		—	—		—	—		—		—		—
Accounts receivable	(14,922	)	1,133		—	—	—		—	—		—	—		—		—		—
Prepaid expenses and other assets	(2,113	)	2,294		—	—	21		—	41		—	9		48		95		12
Due from/to Interstate Hotels & Resorts	(3,205	)	—		—	—	—		—	—		—	—		—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	(16,458	)	804		—	—	67		—	(76	)	—	(96	)	(2,700	)	(20	)	(27	)
Due from/to subsidiaries	100,461		(45,945	)	—	—	(509	)	—	(429	)	—	(829	)	726		128		(664	)
Net cash (used in) provided by operating activities	(3,596	)	27,935		—	—	92		—	867		—	5		5,441		563		321
Investing activities:
Acquisition of hotels, net of cash acquired	—		(91,251	)	—	—	—		—	—		—	—		—		—		—
Capital expenditures for property and equipment	(2,622	)	(40,437	)	—	—	(92	)	—	(867	)	—	(5	)	(5,441	)	(563	)	(321	)
Deposit on investment in hotel	(7,500	)	—		—	—	—		—	—		—	—		—		—		—
Proceeds from sales of assets	—		51,675		—	—	—		—	—		—	—		—		—		—
Purchases of marketable securities	—		—		—	—	—		—	—		—	—		—		—		—
Sales of marketable securities	—		—		—	—	—		—	—		—	—		—		—		—
Net payments from (advances to) Interstate Hotels & Resorts	—		—		—	—	—		—	—		—	—		—		—		—
(Increase) decrease in restricted cash	(16,972	)	616		—	—	—		—	—		—	—		—		—		—
Costs associated with disposition program and other, net	84		(2,021	)	—	—	—		—	—		—	—		—		—		—
Net cash (used in) provided by investing activities	(27,010	)	(81,418	)	—	—	(92	)	—	(867	)	—	(5	)	(5,441	)	(563	)	(321	)
Financing activities:
Prepayments on long-term debt	(85,318	)	—		—	—	—		—	—		—	—		—		—		—
Scheduled payments on long-term debt	(5,600	)	(1,275	)	—	—	—		—	—		—	—		—		—		—
Proceeds from debt issuance, net of issuance costs	(334	)	54,758		—	—	—		—	—		—	—		—		—		—
Loans to/from subsidiaries	(61,901	)	—		—	—	—		—	—		—	—		—		—		—
Distributions to minority investors	(141	)	—		—	—	—		—	—		—	—		—		—		—
Contributions from partners	72,261		—		—	—	—		—	—		—	—		—		—		—
Purchase of limited partnership units	(8,690	)	—		—	—	—		—	—		—	—		—		—		—
Other	(367	)	—		—	—	—		—	—		—	—		—		—		—
Net cash (used in) provided by financing activities	(90,090	)	53,483		—	—	—		—	—		—	—		—		—		—
Effect of exchange rate changes on cash and cash equivalents	(632	)	—		—	—	—		—	—		—	—		—		—		—
Net (decrease) increase in cash and cash equivalents	(121,328	)	—		—	—	—		—	—		—	—		—		—		—
Cash and cash equivalents, beginning of period	218,645		—		—	—	—		—	—		—	—		—		—		—
Cash and cash equivalents, end of period	97,317		—		—	—	—		—	—		—	—		—		—		—

45

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2004 Unaudited (Dollars in thousands)

	MeriStar Sub 7F, LLC		MeriStar Sub 5L, LLC		MeriStar Sub 3C, LLC		MeriStar Sub 5R, LLC	MeriStar Sub 6D, LLC		MeriStar Sub 6E, LLC		MeriStar Sub 4E, L.P.		MeriStar Sub 1B, LLC		MeriStar Sub 5F, L.P.		MeriStar Sub 6G, LLC		MeriStar Sub 8C, LLC		MeriStar Sub 4C, L.P.
Operating activities:
Net (loss) income	422		505		594		—	985		2,934		(461	)	1,220		927		1,843		(61	)	—
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	242		115		533		—	379		1,207		220		368		587		544		—		—
Equity in earnings from consolidated entities	—		—		—		—	—		—		—		—		—		—		—		—
Loss on asset impairments	—		—		—		—	—		—		1,021		—		—		—		—		—
Loss on sale of assets, before tax effect	—		—		—		—	—		—		—		—		—		—		110		—
Loss on early extinguishments of debt	—		—		—		—	—		—		—		—		—		—		—		—
Minority interests	—		—		—		—	—		—		—		—		—		—		—		—
Amortization of unearned and adjustment to stock-based compensation	—		—		—		—	—		—		—		—		—		—		—		—
Change in value of interest rate swaps	—		—		—		—	—		—		—		—		—		—		—		—
Deferred income taxes	—		—		—		—	—		—		—		—		—		—		—		—
Changes in operating assets and liabilities:	—		—		—		—	—		—		—		—		—		—		—		—
Accounts receivable	—		—		—		—	7		—		—		—		—		—		—		—
Prepaid expenses and other assets	8		41		11		—	10		45		29		39		89		17		117		—
Due from/to Interstate Hotels & Resorts	—		—		—		—	—		—		—		—		—		—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	(30	)	87		169		—	(52	)	102		(167	)	(16	)	86		57		306		—
Due from/to subsidiaries	1,246		(367	)	(1,268	)	—	(601	)	(830	)	(590	)	(377	)	2,698		(1,518	)	(6,002	)	—
Net cash (used in) provided by operating activities	1,888		381		39		—	728		3,458		52		1,234		4,387		943		(5,530	)	—
Investing activities:
Acquisition of hotels, net of cash acquired	—		—		—		—	—		—		—		—		—		—		—		—
Capital expenditures for property and equipment	(1,888	)	(381	)	(39	)	—	(728	)	(3,458	)	(52	)	(1,234	)	(4,387	)	(943	)	643		—
Deposit on investment in hotel	—		—		—		—	—		—		—		—		—		—		—		—
Proceeds from sales of assets	—		—		—		—	—		—		—		—		—		—		5,000		—
Purchases of marketable securities	—		—		—		—	—		—		—		—		—		—		—		—
Sales of marketable securities	—		—		—		—	—		—		—		—		—		—		—		—
Net payments from (advances to) Interstate Hotels & Resorts	—		—		—		—	—		—		—		—		—		—		—		—
(Increase) decrease in restricted cash	—		—		—		—	—		—		—		—		—		—		—		—
Costs associated with disposition program and other, net	—		—		—		—	—		—		—		—	��	—		—		(113	)	—
Net cash (used in) provided by investing activities	(1,888	)	(381	)	(39	)	—	(728	)	(3,458	)	(52	)	(1,234	)	(4,387	)	(943	)	5,530		—
Financing activities:
Prepayments on long-term debt	—		—		—		—	—		—		—		—		—		—		—		—
Scheduled payments on long-term debt	—		—		—		—	—		—		—		—		—		—		—		—
Proceeds from debt issuance, net of issuance costs	—		—		—		—	—		—		—		—		—		—		—		—
Loans to/from subsidiaries	—		—		—		—	—		—		—		—		—		—		—		—
Distributions to minority investors	—		—		—		—	—		—		—		—		—		—		—		—
Contributions from partners	—		—		—		—	—		—		—		—		—		—		—		—
Purchase of limited partnership units	—		—		—		—	—		—		—		—		—		—		—		—
Other	—		—		—		—	—		—		—		—		—		—		—		—
Net cash (used in) provided by financing activities	—		—		—		—	—		—		—		—		—		— ��		—		—
Effect of exchange rate changes on cash and cash equivalents	—		—		—		—	—		—		—		—		—		—		—		—
Net (decrease) increase in cash and cash equivalents	—		—		—		—	—		—		—		—		—		—		—		—
Cash and cash equivalents, beginning of period	—		—		—		—	—		—		—		—		—		—		—		—
Cash and cash equivalents, end of period	—		—		—		—	—		—		—		—		—		—		—		—

46

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2004 Unaudited (Dollars in thousands)

	MeriStar Sub 4H, L.P.		MeriStar Sub 7E, LLC		MeriStar Sub 3D, LLC		MeriStar Sub 1A, LLC		MeriStar Sub 7A Joint Venture		MeriStar Sub 2B, LLC		MeriStar Sub 3A, LLC		MeriStar Sub 4A, LLC		MeriStar Sub 4D, LLC		MeriStar Sub 2A, LLC		MeriStar Sub 6L, LLC		MDV Limited Partnership
Operating activities:
Net (loss) income	(403	)	406		450		(758	)	(732	)	—		89		97		—		—		1,852		186
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	43		478		542		197		121		—		51		—		—		—		—		105
Equity in earnings from consolidated entities	—		—		—		—		—		—		—		—		—		—		—		—
Loss on asset impairments	—		—		—		1,441		1,005		—		—		—		—		—		—		—
Loss on sale of assets, before tax effect	365		—		—		—		55		—		(20	)	45		—		—		(1,827	)	—
Loss on early extinguishments of debt	—		—		—		—		—		—		—		—		—		—		—		—
Minority interests	—		—		—		—		—		—		—		—		—		—		—		—
Amortization of unearned and adjustment to stock-based compensation	—		—		—		—		—		—		—		—		—		—		—		—
Change in value of interest rate swaps	—		—		—		—		—		—		—		—		—		—		—		—
Deferred income taxes	—		—		—		—		—		—		—		—		—		—		—		—
Changes in operating assets and liabilities:	—		—		—		—		—		—		—		—		—		—		—		—
Accounts receivable	—		—		—		—		44		2,345		—		—		—		2,002		(178	)	—
Prepaid expenses and other assets	(8	)	11		21		43		1		—		1		(9	)	3		—		15		15
Due from/to Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—		—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	(178	)	(32	)	106		52		(150	)	8		(161	)	(342	)	—		8		(25	)	24
Due from/to subsidiaries	(4,747	)	918		(868	)	(719	)	(4,977	)	(2,353	)	(3,157	)	(3,092	)	(3	)	(2,010	)	(12,232	)	(264	)
Net cash (used in) provided by operating activities	(4,928	)	1,781		251		256		(4,633	)	—		(3,197	)	(3,301	)	—		—		(12,395	)	66
Investing activities:
Acquisition of hotels, net of cash acquired	—		—		—		—		—		—		—		—		—		—		—		—
Capital expenditures for property and equipment	469		(1,781	)	(251	)	(256	)	(12	)	—		138		(20	)	—		—		(1,911	)	(66	)
Deposit on investment in hotel	—		—		—		—		—		—		—		—		—		—		—		—
Proceeds from sales of assets	4,650		—		—		—		4,850		—		3,300		3,575		—		—		14,775		—
Purchases of marketable securities	—		—		—		—		—		—		—		—		—		—		—		—
Sales of marketable securities	—		—		—		—		—		—		—		—		—		—		—		—
Net payments from (advances to) Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—		—		—		—
(Increase) decrease in restricted cash	—		—		—		—		—		—		—		—		—		—		—		—
Costs associated with disposition program and other, net	(191	)	—		—		—		(205	)	—		(241	)	(254	)	—		—		(469	)	—
Net cash (used in) provided by investing activities	4,928		(1,781	)	(251	)	(256	)	4,633		—		3,197		3,301		—		—		12,395		(66	)
Financing activities:
Prepayments on long-term debt	—		—		—		—		—		—		—		—		—		—		—		—
Scheduled payments on long-term debt	—		—		—		—		—		—		—		—		—		—		—		—
Proceeds from debt issuance, net of issuance costs	—		—		—		—		—		—		—		—		—		—		—		—
Loans to/from subsidiaries	—		—		—		—		—		—		—		—		—		—		—		—
Distributions to minority investors	—		—		—		—		—		—		—		—		—		—		—		—
Contributions from partners	—		—		—		—		—		—		—		—		—		—		—		—
Purchase of limited partnership units	—		—		—		—		—		—		—		—		—		—		—		—
Other	—		—		—		—		—		—		—		—		—		—		—		—
Net cash (used in) provided by financing activities	—		—		—		—		—		—		—		—		—		—		—		—
Effect of exchange rate changes on cash and cash equivalents	—		—		—		—		—		—		—		—		—		—		—		—
Net (decrease) increase in cash and cash equivalents	—		—		—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, beginning of period	—		—		—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, end of period	—		—		—		—		—		—		—		—		—		—		—		—

47

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2004 Unaudited (Dollars in thousands)

	MeriStar Sub 5C, LLC	MeriStar Sub 6J, LLC		MeriStar Sub 1D, LLC		MeriStar Sub 7B, L.P.		MeriStar Sub 7D, LLC		MeriStar Sub 7G, LLC		MeriStar Sub 6B, LLC		MeriStar Sub 4I, L.P.		MeriStar Sub 5D, LLC		MeriStar Sub 5H, LLC		MeriStar Sub 7H, LLC		AGH PSS I, Inc.
Operating activities:
Net (loss) income	—	1,326		1,143		(787	)	2,897		103		399		—		(546	)	—		—		—
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	—	418		1,704		99		1,214		49		335		—		1,089		—		—		—
Equity in earnings from consolidated entities	—	—		—		—		—		—		—		—		—		—		—		—
Loss on asset impairments	—	—		—		—		—		—		—		—		—		—		—		—
Loss on sale of assets, before tax effect	—	—		—		1,035		—		(39	)	—		—		—		—		—		—
Loss on early extinguishments of debt	—	—		—		—		—		—		—		—		—		—		—		—
Minority interests	—	—		—		—		—		—		—		—		—		—		—		—
Amortization of unearned and adjustment to stock-based compensation	—	—		—		—		—		—		—		—		—		—		—		—
Change in value of interest rate swaps	—	—		—		—		—		—		—		—		—		—		—		—
Deferred income taxes	—	—		—		—		—		—		—		—		—		—		—		—
Changes in operating assets and liabilities:	—	—		—		—		—		—		—		—		—		—		—		—
Accounts receivable	—	—		—		—		283		—		—		—		—		46		43		—
Prepaid expenses and other assets	—	11		262		1		47		—		7		—		46		1		—		1
Due from/to Interstate Hotels & Resorts	—	—		—		—		—		—		—		—		—		—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	—	206		335		(1,080	)	84		6		(70	)	61		393		2		—		—
Due from/to subsidiaries	—	(1,600	)	(2,941	)	(4,074	)	(2,205	)	(2,020	)	215		(61	)	(780	)	(49	)	(43	)	(1	)
Net cash (used in) provided by operating activities	—	361		503		(4,806	)	2,320		(1,901	)	886		—		202		—		—		—
Investing activities:
Acquisition of hotels, net of cash acquired	—	—		—		—		—		—		—		—		—		—		—		—
Capital expenditures for property and equipment	—	(361	)	(503	)	711		(2,320	)	(38	)	(886	)	—		(202	)	—		—		—
Deposit on investment in hotel	—	—		—		—		—		—		—		—		—		—		—		—
Proceeds from sales of assets	—	—		—		4,500		—		2,300		—		—		—		—		—		—
Purchases of marketable securities	—	—		—		—		—		—		—		—		—		—		—		—
Sales of marketable securities	—	—		—		—		—		—		—		—		—		—		—		—
Net payments from (advances to) Interstate Hotels & Resorts	—	—		—		—		—		—		—		—		—		—		—		—
(Increase) decrease in restricted cash	—	—		—		—		—		—		—		—		—		—		—		—
Costs associated with disposition program and other, net	—	—		—		(405	)	—		(361	)	—		—		—		—		—		—
Net cash (used in) provided by investing activities	—	(361	)	(503	)	4,806		(2,320	)	1,901		(886	)	—		(202	)	—		—		—
Financing activities:
Prepayments on long-term debt	—	—		—		—		—		—		—		—		—		—		—		—
Scheduled payments on long-term debt	—	—		—		—		—		—		—		—		—		—		—		—
Proceeds from debt issuance, net of issuance costs	—	—		—		—		—		—		—		—		—		—		—		—
Loans to/from subsidiaries	—	—		—		—		—		—		—		—		—		—		—		—
Distributions to minority investors	—	—		—		—		—		—		—		—		—		—		—		—
Contributions from partners	—	—		—		—		—		—		—		—		—		—		—		—
Purchase of limited partnership units	—	—		—		—		—		—		—		—		—		—		—		—
Other	—	—		—		—		—		—		—		—		—		—		—		—
Net cash (used in) provided by financing activities	—	—		—		—		—		—		—		—		—		—		—		—
Effect of exchange rate changes on cash and cash equivalents	—	—		—		—		—		—		—		—		—		—		—		—
Net (decrease) increase in cash and cash equivalents	—	—		—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, beginning of period	—	—		—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, end of period	—	—		—		—		—		—		—		—		—		—		—		—

48

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2004 Unaudited (Dollars in thousands)

	MeriStar Sub 2D, LLC		MeriStar Sub 4F, L.P.		MeriStar Sub 5K, LLC		MeriStar Sub 5M, LLC		MeriStar Sub 1E, LLC		MeriStar Sub 5O, LLC		MeriStar Sub 4B, L.P.		MeriStar Sub 2C, LLC		MeriStar Sub 4G, L.P.		MeriStar Sub 3B, LLC		MeriStar Sub 5G, L.P.		MeriStar Sub 5P, LLC
Operating activities:
Net (loss) income	—		382		451		592		—		293		(217	)	(3,242	)	(168	)	—		1,952		579
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	—		828		972		356		—		172		—		—		333		—		4,744		3
Equity in earnings from consolidated entities	—		—		—		—		—		—		—		—		—		—		—		—
Loss on asset impairments	—		—		—		—		—		—		—		903		981		—		—		—
Loss on sale of assets, before tax effect	—		—		—		—		—		—		215		2,210		—		—		—		—
Loss on early extinguishments of debt	—		—		—		—		—		—		—		—		—		—		—		—
Minority interests	—		—		—		—		—		—		—		—		—		—		—		—
Amortization of unearned and adjustment to stock-based compensation	—		—		—		—		—		—		—		—		—		—		—		—
Change in value of interest rate swaps	—		—		—		—		—		—		—		—		—		—		—		—
Deferred income taxes	—		—		—		—		—		—		—		—		—		—		—		—
Changes in operating assets and liabilities:	—		—		—		—		—		—		—		—		—		—		—		—
Accounts receivable	1,166		—		—		—		198		—		—		(6	)	—		—		—		—
Prepaid expenses and other assets	—		18		92		54		(1	)	19		(4	)	(232	)	115		(3	)	47		5
Due from/to Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—		—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	1		(116	)	(1,419	)	147		(14	)	65		(410	)	(293	)	(229	)	—		89		—
Due from/to subsidiaries	(1,167	)	901		421		(980	)	(183	)	(383	)	(6,742	)	12,076		(1,241	)	3		(1,150	)	(587	)
Net cash (used in) provided by operating activities	—		2,013		517		169		—		166		(7,158	)	11,416		(209	)	—		5,682		—
Investing activities:
Acquisition of hotels, net of cash acquired	—		—		—		—		—		—		—		—		—		—		—		—
Capital expenditures for property and equipment	—		(2,013	)	(517	)	(169	)	—		(166	)	140		573		209		—		(5,682	)	—
Deposit on investment in hotel	—		—		—		—		—		—		—		—		—		—		—		—
Proceeds from sales of assets	—		—		—		—		—		—		7,500		8,398		—		—		—		—
Purchases of marketable securities	—		—		—		—		—		—		—		—		—		—		—		—
Sales of marketable securities	—		—		—		—		—		—		—		—		—		—		—		—
Net payments from (advances to) Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—		—		—		—
(Increase) decrease in restricted cash	—		—		—		—		—		—		—		—		—		—		—		—
Costs associated with disposition program and other, net	—		—		—		—		—		—		(482	)	(656	)	—		—		—		—
Net cash (used in) provided by investing activities	—		(2,013	)	(517	)	(169	)	—		(166	)	7,158		8,315		209		—		(5,682	)	—
Financing activities:
Prepayments on long-term debt	—		—		—		—		—		—		—		(19,731	)	—		—		—		—
Scheduled payments on long-term debt	—		—		—		—		—		—		—		—		—		—		—		—
Proceeds from debt issuance, net of issuance costs	—		—		—		—		—		—		—		—		—		—		—		—
Loans to/from subsidiaries	—		—		—		—		—		—		—		—		—		—		—		—
Distributions to minority investors	—		—		—		—		—		—		—		—		—		—		—		—
Contributions from partners	—		—		—		—		—		—		—		—		—		—		—		—
Purchase of limited partnership units	—		—		—		—		—		—		—		—		—		—		—		—
Other	—		—		—		—		—		—		—		—		—		—		—		—
Net cash (used in) provided by financing activities	—		—		—		—		—		—		—		(19,731	)	—		—		—		—
Effect of exchange rate changes on cash and cash equivalents	—		—		—		—		—		—		—		—		—		—		—		—
Net (decrease) increase in cash and cash equivalents	—		—		—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, beginning of period	—		—		—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, end of period	—		—		—		—		—		—		—		—		—		—		—		—

49

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2004 Unaudited (Dollars in thousands)

	MeriStar Sub 5J, LLC		MeriStar Sub 5Q, LLC		MeriStar Sub 5A, LLC		MeriStar Sub 8D, LLC		MeriStar Sub 4J, LLC		MeriStar Pentagon City, LLC		MeriStar Hotel Lessee, Inc.		Guarantor Subsidiaries Total		Eliminations		Total Consolidated
Operating activities:
Net (loss) income	912		669		1,114		143		763		49		(54,427	)	(28,404	)	1,389		(80,475	)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	4,232		441		798		—		948		2,174		98		31,110		—		77,983
Equity in earnings from consolidated entities	—		—		—		—		—		—		—		—		(1,389	)	—
Loss on asset impairments	—		—		—		—		—		—		—		5,351		—		10,022
Loss on sale of assets, before tax effect	—		—		—		899		—		—		11,533		14,581		—		13,762
Loss on early extinguishments of debt	—		—		—		—		—		—		—		—		—		7,903
Minority interests	—		—		—		—		—		—		—		—		—		(65	)
Amortization of unearned and adjustment to stock-based compensation	—		—		—		—		—		—		—		—		—		(3,845	)
Change in value of interest rate swaps	—		—		—		—		—		—		—		—		—		—
Deferred income taxes	—		—		—		—		—		—		—		—		—		(357	)
Changes in operating assets and liabilities:	—		—		—		—		—		—		—		—		—		—
Accounts receivable	—		—		—		(359	)	(5	)	2,671		(609	)	7,648		6,612		471
Prepaid expenses and other assets	278		65		38		14		24		(92	)	7,266		8,804		—		8,985
Due from/to Interstate Hotels & Resorts	—		—		—		—		—		—		(5,853	)	(5,853	)	—		(9,058	)
Accounts payable, accrued expenses, accrued interest and other liabilities	761		260		740		183		144		(3,784	)	9,722		2,784		(6,612	)	(19,482	)
Due from/to subsidiaries	(1,439	)	(994	)	(1,702	)	(9,977	)	(79	)	35,347		(20,391	)	(54,516	)	—		—
Net cash (used in) provided by operating activities	4,744		441		988		(9,097	)	1,795		36,365		(52,661	)	(18,495	)	—		5,844
Investing activities:
Acquisition of hotels, net of cash acquired	—		—		—		—		—		(91,124	)	—		(91,124	)	—		(182,375	)
Capital expenditures for property and equipment	(4,744	)	(441	)	(988	)	636		(1,795	)	(401	)	(170	)	(42,573	)	—		(85,632	)
Deposit on investment in hotel	—		—		—		—		—		—		—		—		—		(7,500	)
Proceeds from sales of assets	—		—		—		8,800		—		—		—		67,648		—		119,323
Purchases of marketable securities	—		—		—		—		—		—		—		—		—		—
Sales of marketable securities	—		—		—		—		—		—		—		—		—		—
Net payments from (advances to) Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—		—
(Increase) decrease in restricted cash	—		—		—		—		—		—		(831	)	(831	)	—		(17,187	)
Costs associated with disposition program and other, net	—		—		—		(339	)	—		—		—		(3,716	)	—		(5,653	)
Net cash (used in) provided by investing activities	(4,744	)	(441	)	(988	)	9,097		(1,795	)	(91,525	)	(1,001	)	(70,596	)	—		(179,024	)
Financing activities:
Prepayments on long-term debt	—		—		—		—		—		—		—		(19,731	)	—		(105,049	)
Scheduled payments on long-term debt	—		—		—		—		—		(116	)	—		(116	)	—		(6,991	)
Proceeds from debt issuance, net of issuance costs	—		—		—		—		—		55,276		—		55,276		—		109,700
Loans to/from subsidiaries	—		—		—		—		—		—		61,901		61,901		—		—
Distributions to minority investors	—		—		—		—		—		—		—		—		—		(141	)
Contributions from partners	—		—		—		—		—		—		—		—		—		72,261
Purchase of limited partnership units	—		—		—		—		—		—		—		—		—		(8,690	)
Other	—		—		—		—		—		—		—		—		—		(367	)
Net cash (used in) provided by financing activities	—		—		—		—		—		55,160		61,901		97,330		—		60,723
Effect of exchange rate changes on cash and cash equivalents	—		—		—		—		—		—		—		—		—		(632	)
Net (decrease) increase in cash and cash equivalents	—		—		—		—		—		—		8,239		8,239		—		(113,089	)
Cash and cash equivalents, beginning of period	—		—		—		—		—		—		12,231		12,231		—		230,876
Cash and cash equivalents, end of period	—		—		—		—		—		—		20,470		20,470		—		117,787

50

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Cash Flows

For the Nine Months ended September 30, 2003 (Dollars in Thousands)

	MeriStar Hospitality OP, L.P.		Non- Guarantor Subsidiaries		MeriStar Sub 7C, LLC	AGH Upreit, LLC	MeriStar Sub 5N, LLC		MeriStar Sub 8A, LLC		MeriStar Sub 8F, L.P.		MeriStar Sub 8G, LLC	MeriStar Sub 6H, L.P.		MeriStar Sub 8B, LLC		MeriStar Sub 1C, L.P.
Operating activities:
Net (loss) income	(340,898	)	(89,981	)	—	—	498		—		935		—	(97	)	2,595		(304	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization	6,573		41,025		—	—	103		—		423		—	412		1,821		762
Equity in earnings from consolidated entities	257,756		—		—	—	—		—		—		—	—		—		—
Loss on asset impairments	—		119,639		—	—	—		—		—		—	500		—		—
Loss on sale of assets, before tax effect	—		(577	)	—	—	—		—		—		—	—		—		—
Gain on early extinguishment of debt	(4,574	)	—		—	—	—		—		—		—	—		—		—
Minority interests	6		—		—	—	—		—		—		—	—		—		—
Amortization of unearned and adjustment to stock-based compensation	2,380		—		—	—	—		—		—		—	—		—		—
Change in value of interest rate swaps	(3,977	)	—		—	—	—		—		—		—	—		—		—
Deferred income taxes	(1,848	)	—		—	—	—		—		—		—	—		—		—
Changes in operating assets and liabilities:
Accounts receivable	(4,448	)	204		—	—	—		(17	)	(28	)	—	—		—		—
Prepaid expenses and other assets	(575	)	1,302		—	—	10		—		17		—	(1	)	4		43
Due from/to Interstate Hotels & Resorts	424		—		—	—	—		—		—		—	—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	(2,062	)	(7,528	)	—	—	31		36		(135	)	—	51		(91	)	(140	)
Due from/to subsidiaries	173,158		(72,381	)	—	—	(622	)	(19	)	(1,182	)	—	(849	)	(3,508	)	(154	)
Net cash provided by (used in) operating activities	81,915		(8,297	)	—	—	20		—		30		—	16		821		207
Investing activities:
Acquisition of hotels, net of cash acquired	—		—		—	—	—		—		—		—	—		—		—
Capital expenditures for property and equipment	(1,146	)	(7,371	)	—	—	(20	)	—		(30	)	—	(16	)	(821	)	(207	)
Deposit on investment in hotel	—		—		—	—	—		—		—		—	—		—		—
Proceeds from sales of assets	—		21,900		—	—	—		—		—		—	—		—		—
Purchases of marketable securities	(18,040	)	—		—	—	—		—		—		—	—		—		—
Sales of marketable securities	17,040		—		—	—	—		—		—		—	—		—		—
Net payments from (advances to) Interstate Hotels & Resorts	42,052		—		—	—	—		—		—		—	—		—		—
(Increase) decrease in restricted cash	(17,714	)	(324	)	—	—	—		—		—		—	—		—		—
Costs associated with disposition program and other, net	—		(299	)	—	—	—		—		—		—	—		—		—
Net cash provided by (used in) investing activities	22,192		13,906		—	—	(20	)	—		(30	)	—	(16	)	(821	)	(207	)
Financing activities:
Prepayments on long-term debt	—		—		—	—	—		—		—		—	—		—		—
Scheduled payments on long-term debt	(219,650	)	(5,609	)	—	—	—		—		—		—	—		—		—
Proceeds from debt issuance, net of issuance costs	263,491		—		—	—	—		—		—		—	—		—		—
Distributions to minority investors	(424	)	—		—	—	—		—		—		—	—		—		—
Contributions from partners	82,920		—		—	—	—		—		—		—	—		—		—
Purchase of limited partnership unit	(65	)	—		—	—	—		—		—		—	—		—		—
Other	—		—		—	—	—		—		—		—	—		—		—
Net cash provided by (used in) financing activities	126,272		(5,609	)	—	—	—		—		—		—	—		—		—
Effect of exchange rate changes on cash and cash equivalents	(304	)	—		—	—	—		—		—		—	—		—		—
Net increase (decrease) in cash and cash equivalents	230,075		—		—	—	—		—		—		—	—		—		—
Cash and cash equivalents, beginning of period	21,372		—		—	—	—		—		—		—	—		—		—
Cash and cash equivalents, end of period	251,447		—		—	—	—		—		—		—	—		—		—

51

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Cash Flows

For the Nine Months ended September 30, 2003 (Dollars in Thousands)

	MeriStar Sub 8E, LLC		MeriStar Sub 7F, LLC		MeriStar Sub 5L, LLC		MeriStar Sub 3C, LLC		MeriStar Sub 5R, LLC	MeriStar Sub 6D, LLC		MeriStar Sub 6E, LLC		MeriStar Sub 4E, L.P.		MeriStar Sub 1B, LLC		MeriStar Sub 5F, L.P.		MeriStar Sub 6G, LLC
Operating activities:
Net (loss) income	505		(1,766	)	597		488		—	822		2,249		(15,127	)	1,783		(8,123	)	945
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization	434		328		103		532		—	410		1,219		502		406		743		634
Equity in earnings from consolidated entities	—		—		—		—		—	—		—		—		—		—		—
Loss on asset impairments	—		2,037		—		—		—	—		—		15,347		—		9,231		—
Loss on sale of assets, before tax effect	—		—		—		—		—	—		—		—		—		—		—
Gain on early extinguishment of debt	—		—		—		—		—	—		—		—		—		—		—
Minority interests	—		—		—		—		—	—		—		—		—		—		—
Amortization of unearned and adjustment to stock-based compensation	—		—		—		—		—	—		—		—		—		—		—
Change in value of interest rate swaps	—		—		—		—		—	—		—		—		—		—		—
Deferred income taxes	—		—		—		—		—	—		—		—		—		—		—
Changes in operating assets and liabilities:
Accounts receivable	—		—		28		—		—	(14	)	—		—		—		—		—
Prepaid expenses and other assets	6		(1	)	14		6		—	5		20		15		20		42		7
Due from/to Interstate Hotels & Resorts	—		—		—		—		—	—		—		—		—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	(73	)	57		15		31		—	(56	)	(235	)	(162	)	17		108		(246	)
Due from/to subsidiaries	(790	)	(621	)	(652	)	(1,001	)	—	(1,158	)	(2,985	)	(441	)	(2,074	)	(1,853	)	(1,194	)
Net cash provided by (used in) operating activities	82		34		105		56		—	9		268		134		152		148		146
Investing activities:
Acquisition of hotels, net of cash acquired	—		—		—		—		—	—		—		—		—		—		—
Capital expenditures for property and equipment	(82	)	(34	)	(105	)	(56	)	—	(9	)	(268	)	(134	)	(141	)	(148	)	(146	)
Deposit on investment in hotel	—		—		���		—		—	—		—		—		—		—		—
Proceeds from sales of assets	—		—		—		—		—	—		—		—		—		—		—
Purchases of marketable securities	—		—		—		—		—	—		—		—		—		—		—
Sales of marketable securities	—		—		—		—		—	—		—		—		—		—		—
Net payments from (advances to) Interstate Hotels & Resorts	—		—		—		—		—	—		—		—		—		—		—
(Increase) decrease in restricted cash	—		—		—		—		—	—		—		—		—		—		—
Costs associated with disposition program and other, net	—		—		—		—		—	—		—		—		—		—		—
Net cash provided by (used in) investing activities	(82	)	(34	)	(105	)	(56	)	—	(9	)	(268	)	(134	)	(141	)	(148	)	(146	)
Financing activities:
Prepayments on long-term debt	—		—		—		—		—	—		—		—		—		—		—
Scheduled payments on long-term debt	—		—		—		—		—	—		—		—		(11	)	—		—
Proceeds from debt issuance, net of issuance costs	—		—		—		—		—	—		—		—		—		—		—
Distributions to minority investors	—		—		—		—		—	—		—		—		—		—		—
Contributions from partners	—		—		—		—		—	—		—		—		—		—		—
Purchase of limited partnership unit	—		—		—		—		—	—		—		—		—		—		—
Other	—		—		—		—		—	—		—		—		—		—		—
Net cash provided by (used in) financing activities	—		—		—		—		—	—		—		—		(11	)	—		—
Effect of exchange rate changes on cash and cash equivalents	—		—		—		—		—	—		—		—		—		—		—
Net increase (decrease) in cash and cash equivalents	—		—		—		—		—	—		—		—		—		—		—
Cash and cash equivalents, beginning of period	—		—		—		—		—	—		—		—		—		—		—
Cash and cash equivalents, end of period	—		—		—		—		—	—		—		—		—		—		—

52

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Cash Flows

For the Nine Months ended September 30, 2003 (Dollars in Thousands)

	MeriStar Sub 8C, LLC		MeriStar Sub 4C, L.P		MeriStar Sub 4H, L.P.		MeriStar Sub 7E, LLC		MeriStar Sub 3D, LLC		MeriStar Sub 1A, LLC		MeriStar Sub 7A Joint Venture		MeriStar Sub 2B, LLC		MeriStar Sub 3A, LLC		MeriStar Sub 4A, L.P.		MeriStar Sub 4D, L.P.
Operating activities:
Net (loss) income	(4,758	)	—		(5,414	)	399		374		762		(5,026	)	(5,041	)	(1,994	)	(942	)	(939	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization	535		—		330		462		583		338		275		292		186		31		55
Equity in earnings from consolidated entities	—		—		—		—		—		—		—		—		—		—		—
Loss on asset impairments	5,213		—		5,187		—		—		—		5,478		4,670		2,137		1,455		1,004
Loss on sale of assets, before tax effect	—		—		—		—		—		—		—		—		—		—		—
Gain on early extinguishment of debt	—		—		—		—		—		—		—		—		—		—		—
Minority interests	—		—		—		—		—		—		—		—		—		—		—
Amortization of unearned and adjustment to stock-based compensation	—		—		—		—		—		—		—		—		—		—		—
Change in value of interest rate swaps	—		—		—		—		—		—		—		—		—		—		—
Deferred income taxes	—		—		—		—		—		—		—		—		—		—		—
Changes in operating assets and liabilities:
Accounts receivable	—		1		14		—		—		—		—		2		—		—		—
Prepaid expenses and other assets	(35	)	—		4		5		10		31		6		(4	)	3		7		(3	)
Due from/to Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	(332	)	(130	)	(28	)	(56	)	103		(91	)	(110	)	—		(23	)	(61	)	(112	)
Due from/to subsidiaries	(613	)	129		19		(571	)	(945	)	(859	)	(485	)	85		(279	)	(232	)	(2,984	)
Net cash provided by (used in) operating activities	10		—		112		239		125		181		138		4		30		258		(2,979	)
Investing activities:
Acquisition of hotels, net of cash acquired	—		—		—		—		—		—		—		—		—		—		—
Capital expenditures for property and equipment	(10	)	—		(112	)	(239	)	(125	)	(181	)	(138	)	(25	)	(30	)	(258	)	(91	)
Deposit on investment in hotel	—		—		—		—		—		—		—		—		—		—		—
Proceeds from sales of assets	—		—		—		—		—		—		—		—		—		—		3,070
Purchases of marketable securities	—		—		—		—		—		—		—		—		—		—		—
Sales of marketable securities	—		—		—		—		—		—		—		—		—		—		—
Net payments from (advances to) Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—		—		—
(Increase) decrease in restricted cash	—		—		—		—		—		—		—		—		—		—		—
Costs associated with disposition program and other, net	—		—		—		—		—		—		—		—		—		—		—
Net cash provided by (used in) investing activities	(10	)	—		(112	)	(239	)	(125	)	(181	)	(138	)	(25	)	(30	)	(258	)	2,979
Financing activities:
Prepayments on long-term debt	—		—		—		—		—		—		—		—		—		—		—
Scheduled payments on long-term debt	—		—		—		—		—		—		—		21		—		—		—
Proceeds from debt issuance, net of issuance costs	—		—		—		—		—		—		—		—		—		—		—
Distributions to minority investors	—		—		—		—		—		—		—		—		—		—		—
Contributions from partners	—		—		—		—		—		—		—		—		—		—		—
Purchase of limited partnership unit	—		—		—		—		—		—		—		—		—		—		—
Other	—		—		—		—		—		—		—		—		—		—		—
Net cash provided by (used in) financing activities	—		—		—		—		—		—		—		21		—		—		—
Effect of exchange rate changes on cash and cash equivalents	—		—		—		—		—		—		—		—		—		—		—
Net increase (decrease) in cash and cash equivalents	—		—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, beginning of period	—		—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, end of period	—		—		—		—		—		—		—		—		—		—		—

53

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Cash Flows

For the Nine Months ended September 30, 2003 (Dollars in Thousands)

	MeriStar Sub 2A, LLC		MeriStar Sub 6L, LLC		MDV Limited Partnership		MeriStar Sub 5C, LLC		MeriStar Sub 6J, LLC		MeriStar Sub 1D, LLC		MeriStar Sub 7B, L.P.		MeriStar Sub 7D, LLC		MeriStar Sub 7G, LLC		MeriStar Sub 6B, LLC		MeriStar Sub 4I, L.P.
Operating activities:
Net (loss) income	(3,361	)	(12,720	)	170		(6,918	)	984		567		(10,033	)	1,947		(7,539	)	338		(1,600	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization	233		561		104		349		440		1,707		398		1,292		412		337		223
Equity in earnings from consolidated entities	—		—		—		—		—		—		—		—		—		—		—
Loss on asset impairments	2,828		13,286		—		7,187		—		—		10,288		—		7,416		—		1,259
Loss on sale of assets, before tax effect	—		—		—		—		—		—		—		—		—		—		—
Gain on early extinguishment of debt	—		—		—		—		—		—		—		—		—		—		—
Minority interests	—		—		—		—		—		—		—		—		—		—		—
Amortization of unearned and adjustment to stock-based compensation	—		—		—		—		—		—		—		—		—		—		—
Change in value of interest rate swaps	—		—		—		—		—		—		—		—		—		—		—
Deferred income taxes	—		—		—		—		—		—		—		—		—		—		—
Changes in operating assets and liabilities:
Accounts receivable	—		—		—		—		—		—		—		(4	)	—		—		—
Prepaid expenses and other assets	(6	)	5		8		89		5		122		8		20		6		1		(5	)
Due from/to Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	(41	)	(73	)	(15	)	(30	)	(160	)	(53	)	(242	)	(910	)	(91	)	(61	)	(79	)
Due from/to subsidiaries	317		(1,005	)	(256	)	(574	)	(1,227	)	(2,178	)	(344	)	(2,288	)	(117	)	(479	)	247
Net cash provided by (used in) operating activities	(30	)	54		11		103		42		165		75		57		87		136		45
Investing activities:
Acquisition of hotels, net of cash acquired	—		—		—		—		—		—		—		—		—		—		—
Capital expenditures for property and equipment	(4	)	(54	)	(11	)	(103	)	(42	)	(165	)	(75	)	(57	)	(87	)	(136	)	(45	)
Deposit on investment in hotel	—		—		—		—		—		—		—		—		—		—		—
Proceeds from sales of assets	—		—		—		—		—		—		—		—		—		—		—
Purchases of marketable securities	—		—		—		—		—		—		—		—		—		—		—
Sales of marketable securities	—		—		—		—		—		—		—		—		—		—		—
Net payments from (advances to) Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—		—		—
(Increase) decrease in restricted cash	—		—		—		—		—		—		—		—		—		—		—
Costs associated with disposition program and other, net	—		—		—		—		—		—		—		—		—		—		—
Net cash provided by (used in) investing activities	(4	)	(54	)	(11	)	(103	)	(42	)	(165	)	(75	)	(57	)	(87	)	(136	)	(45	)
Financing activities:
Prepayments on long-term debt	—		—		—		—		—		—		—		—		—		��		—
Scheduled payments on long-term debt	34		—		—		—		—		—		—		—		—		—		—
Proceeds from debt issuance, net of issuance costs	—		—		—		—		—		—		—		—		—		—		—
Distributions to minority investors	—		—		—		—		—		—		—		—		—		—		—
Contributions from partners	—		—		—		—		—		—		—		—		—		—		—
Purchase of limited partnership unit	—		—		—		—		—		—		—		—		—		—		—
Other	—		—		—		—		—		—		—		—		—		—		—
Net cash provided by (used in) financing activities	34		—		—		—		—		—		—		—		—		—		—
Effect of exchange rate changes on cash and cash equivalents	—		—		—		—		—		—		—		—		—		—		—
Net increase (decrease) in cash and cash equivalents	—		—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, beginning of period	—		—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, end of period	—		—		—		—		—		—		—		—		—		—		—

54

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Cash Flows

For the Nine Months ended September 30, 2003 (Dollars in Thousands)

	MeriStar Sub 5D, LLC		MeriStar Sub 5H, LLC		MeriStar Sub 7H, LLC		AGH PSS I, Inc.		MeriStar Sub 2D, LLC		MeriStar Sub 4F, L.P.		MeriStar Sub 5K, LLC		MeriStar Sub 5M, LLC		MeriStar Sub 1E, LLC		MeriStar Sub 5O, LLC		MeriStar Sub 4B, L.P.
Operating activities:
Net (loss) income	(641	)	(18,966	)	(933	)	(929	)	(8,807	)	362		479		725		927		327		(1,114	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization	1,095		1,178		140		—		319		828		966		354		237		171		413
Equity in earnings from consolidated entities	—		—		—		—		—		—		—		—		—		—		—
Loss on asset impairments	—		18,075		1,383		1,787		8,685		—		—		—		—		—		638
Loss on sale of assets, before tax effect	—		1,827		—		318		—		—		—		—		—		—		—
Gain on early extinguishment of debt	—		—		—		—		—		—		—		—		—		—		—
Minority interests	—		—		—		—		—		—		—		—		—		—		—
Amortization of unearned and adjustment to stock-based compensation	—		—		—		—		—		—		—		—		—		—		—
Change in value of interest rate swaps	—		—		—		—		—		—		—		—		—		—		—
Deferred income taxes	—		—		—		—		—		—		—		—		—		—		—
Changes in operating assets and liabilities:
Accounts receivable	—		—		—		—		—		—		—		—		—		—		—
Prepaid expenses and other assets	19		—		(2	)	—		(2	)	6		43		29		13		9		5
Due from/to Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	41		(148	)	(69	)	(107	)	(97	)	(109	)	(1,115	)	82		(139	)	37		(90	)
Due from/to subsidiaries	(480	)	(28,315	)	(492	)	(14,769	)	(124	)	(612	)	(192	)	(1,171	)	(1,018	)	(536	)	261
Net cash provided by (used in) operating activities	34		(26,349	)	27		(13,700	)	(26	)	475		181		19		20		8		113
Investing activities:
Acquisition of hotels, net of cash acquired	—		—		—		—		—		—		—		—		—		—		—
Capital expenditures for property and equipment	(34	)	(901	)	(27	)	(800	)	(14	)	(475	)	(181	)	(19	)	(20	)	(8	)	(113	)
Deposit on investment in hotel	—		—		—		—		—		—		—		—		—		—		—
Proceeds from sales of assets	—		27,250		—		14,500		—		—		—		—		—		—		—
Purchases of marketable securities	—		—		—		—		—		—		—		—		—		—		—
Sales of marketable securities	—		—		—		—		—		—		—		—		—		—		—
Net payments from (advances to) Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—		—		—
(Increase) decrease in restricted cash	—		—		—		—		—		—		—		—		—		—		—
Costs associated with disposition program and other, net	—		—		—		—		—		—		—		—		—		—		—
Net cash provided by (used in) investing activities	(34	)	26,349		(27	)	13,700		(14	)	(475	)	(181	)	(19	)	(20	)	(8	)	(113	)
Financing activities:
Prepayments on long-term debt	—		—		—		—		—		—		—		—		—		—		—
Scheduled payments on long-term debt	—		—		—		—		40		—		—		—		—		—		—
Proceeds from debt issuance, net of issuance costs	—		—		—		—		—		—		—		—		—		—		—
Distributions to minority investors	—		—		—		—		—		—		—		—		—		—		—
Contributions from partners	—		—		—		—		—		—		—		—		—		—		—
Purchase of limited partnership unit	—		—		—		—		—		—		—		—		—		—		—
Other	—		—		—		—		—		—		—		—		—		—		—
Net cash provided by (used in) financing activities	—		—		—		—		40		—		—		—		—		—		—
Effect of exchange rate changes on cash and cash equivalents	—		—		—		—		—		—		—		—		—		—		—
Net increase (decrease) in cash and cash equivalents	—		—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, beginning of period	—		—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, end of period	—		—		—		—		—		—		—		—		—		—		—

55

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Cash Flows

For the Nine Months ended September 30, 2003 (Dollars in Thousands)

	MeriStar Sub 2C, LLC		MeriStar Sub 4G, L.P.		MeriStar Sub 3B, LLC		MeriStar Sub 5G, L.P.		MeriStar Sub 5P, LLC		MeriStar Sub 5J, LLC		MeriStar Sub 5Q, LLC		MeriStar Sub 5A, LLC		MeriStar Sub 8D, LLC
Operating activities:
Net (loss) income	(16,292	)	(8,053	)	(2,034	)	1,515		944		3,446		975		633		(15,429	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization	697		584		259		4,716		3		2,612		420		1,028		747
Equity in earnings from consolidated entities	—		—		—		—		—		—		—		—		—
Loss on asset impairments	15,255		8,500		1,064		—		—		—		—		—		16,128
Loss on sale of assets, before tax effect	—		—		1,204		—		—		—		—		—		—
Gain on early extinguishment of debt	—		—		—		—		—		—		—		—		—
Minority interests	—		—		—		—		—		—		—		—		—
Amortization of unearned and adjustment to stock-based compensation	—		—		—		—		—		—		—		—		—
Change in value of interest rate swaps	—		—		—		—		—		—		—		—		—
Deferred income taxes	—		—		—		—		—		—		—		—		—
Changes in operating assets and liabilities:
Accounts receivable	—		—		—		—		—		—		—		—		—
Prepaid expenses and other assets	19		52		3		151		2		227		31		18		6
Due from/to Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	(97	)	(178	)	(173	)	699		(4	)	220		25		359		(49	)
Due from/to subsidiaries	497		(851	)	(6,475	)	(6,504	)	(945	)	(4,160	)	(1,278	)	(1,639	)	(1,019	)
Net cash provided by (used in) operating activities	79		54		(6,152	)	577		—		2,345		173		399		384
Investing activities:
Acquisition of hotels, net of cash acquired	—		—		—		—		—		—		—		—		—
Capital expenditures for property and equipment	(11	)	(54	)	(1,598	)	(577	)	—		(2,345	)	(173	)	(399	)	(384	)
Deposit on investment in hotel	—		—		—		—		—		—		—		—		—
Proceeds from sales of assets	—		—		7,750		—		—		—		—		—		—
Purchases of marketable securities	—		—		—		—		—		—		—		—		—
Sales of marketable securities	—		—		—		—		—		—		—		—		—
Net payments from (advances to) Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—
(Increase) decrease in restricted cash	—		—		—		—		—		—		—		—		—
Costs associated with disposition program and other, net	—		—		—		—		—		—		—		—		—
Net cash provided by (used in) investing activities	(11	)	(54	)	6,152		(577	)	—		(2,345	)	(173	)	(399	)	(384	)
Financing activities:
Prepayments on long-term debt	—		—		—		—		—		—		—		—		—
Scheduled payments on long-term debt	(68	)	—		—		—		—		—		—		—		—
Proceeds from debt issuance, net of issuance costs	—		—		—		—		—		—		—		—		—
Distributions to minority investors	—		—		—		—		—		—		—		—		—
Contributions from partners	—		—		—		—		—		—		—		—		—
Purchase of limited partnership unit	—		—		—		—		—		—		—		—		—
Other	—		—		—		—		—		—		—		—		—
Net cash provided by (used in) financing activities	(68	)	—		—		—		—		—		—		—		—
Effect of exchange rate changes on cash and cash equivalents	—		—		—		—		—		—		—		—		—
Net increase (decrease) in cash and cash equivalents	—		—		—		—		—		—		—		—		—
Cash and cash equivalents, beginning of period	—		—		—		—		—		—		—		—		—
Cash and cash equivalents, end of period	—		—		—		—		—		—		—		—		—

56

MeriStar Hospitality Operating Partnership, L.P.

Consolidating Statement of Cash Flows

For the Nine Months ended September 30, 2003 (Dollars in Thousands)

	MeriStar Sub 4J, LLC		MeriStar Hotel Lessee, Inc.		Guarantor Subsidiaries Total		Eliminations		Total Consolidated
Operating activities:
Net (loss) income	901		(31,067	)	(167,775	)	257,756		(340,898	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization	955		800		36,497		—		84,095
Equity in earnings from consolidated entities	—		—		—		(257,756	)	—
Loss on asset impairments	—		—		166,038		—		285,677
Loss on sale of assets, before tax effect	—		—		3,349		—		2,772
Gain on early extinguishment of debt	—		—		—		—		(4,574	)
Minority interests	—		—		—		—		6
Amortization of unearned and adjustment to stock-based compensation	—		—		—		—		2,380
Change in value of interest rate swaps	—		—		—		—		(3,977	)
Deferred income taxes	—		—		—		—		(1,848	)
Changes in operating assets and liabilities:
Accounts receivable	(8	)	(3,371	)	(3,397	)	—		(7,641	)
Prepaid expenses and other assets	12		911		2,036		—		2,763
Due from/to Interstate Hotels & Resorts	—		(4,955	)	(4,955	)	—		(4,531	)
Accounts payable, accrued expenses, accrued interest and other liabilities	22		(5,636	)	(9,913	)	—		(19,503	)
Due from/to subsidiaries	(1,805	)	4,592		(100,777	)	—		—
Net cash provided by (used in) operating activities	77		(38,726	)	(78,897	)	—		(5,279	)
Investing activities:
Acquisition of hotels, net of cash acquired	—		—		—		—		—
Capital expenditures for property and equipment	(77	)	(894	)	(13,309	)	—		(21,826	)
Deposit on investment in hotel	—		—		—		—		—
Proceeds from sales of assets	—		—		52,570		—		74,470
Purchases of marketable securities	—		—		—		—		(18,040	)
Sales of marketable securities	—		—		—		—		17,040
Net payments from (advances to) Interstate Hotels & Resorts	—		—		—		—		42,052
(Increase) decrease in restricted cash	—		—		—		—		(18,038	)
Costs associated with disposition program and other, net	—		—		—		—		(299	)
Net cash provided by (used in) investing activities	(77	)	(894	)	39,261		—		75,359
Financing activities:
Prepayments on long-term debt	—		—		—		—		—
Scheduled payments on long-term debt	—		45,934		45,950		—		(179,309	)
Proceeds from debt issuance, net of issuance costs	—		(4	)	(4	)	—		263,487
Distributions to minority investors	—		—		—		—		(424	)
Contributions from partners	—		—		—		—		82,920
Purchase of limited partnership unit	—		—		—		—		(65	)
Other	—		—		—		—		—
Net cash provided by (used in) financing activities	—		45,930		45,946		—		166,609
Effect of exchange rate changes on cash and cash equivalents	—		—		—		—		(304	)
Net increase (decrease) in cash and cash equivalents	—		6,310		6,310		—		236,385
Cash and cash equivalents, beginning of period	—		12,517		12,517		—		33,889
Cash and cash equivalents, end of period	—		18,827		18,827		—		270,274

57