Meristar Hospitality Finance Corp Iii 10-Q 2005 Q3 Quarterly report

Exhibit 99.1

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

March 31, 2005

(Dollars in thousands)

	MeriStar Hospitality OP, L.P.			Non-Guarantor Subsidiaries		MeriStar Lexington Mortgage, LLC		MeriStar Lexington Partners, LLC	MeriStar Sub 7C, LLC	MeriStar Sub 8G, LLC	AGH UPREIT LLC	MeriStar Sub 6H, L.P.		MeriStar Sub 8F, L.P.		MeriStar Sub 8B, LLC		MeriStar Sub 1C, LLC		MeriStar Sub 8E, LLC
Assets
Property and equipment	$	23,772		1,504,837		—		—	—	—	—	10,886		13,805		94,250		27,639		16,074
Accumulated depreciation		(15,296	)	(299,876	)	—		—	—	—	—	(940	)	(3,343	)	(15,365	)	(7,672	)	(3,754	)
		8,476		1,204,961		—		—	—	—	—	9,946		10,462		78,885		19,967		12,320
Investments in affiliates		2,406,629		7,992		41,590		8,146	32	72	2,989	—		—		—		—		—
Prepaid expenses and other assets		30,965		(4,685	)	(10	)	96	—	—	—	(14	)	(94	)	(116	)	(228	)	(30	)
Insurance claim receivable		60,896		—		—		—	—	—	—	—		—		—		—		—
Accounts receivable, net		13,004		774		—		—	—	—	—	—		—		63		—		—
Due to/from subsidiaries		(1,130,785	)	537,290		1,670		655	—	9	73	8,122		7,107		27,702		(4,041	)	7,796
Note receivable from subsidiaries		259,065		—		—		—	—	—	—	—		—		—		—		—
Restricted cash		57,926		1,478		—		—	—	—	—	—		—		—		—		—
Cash and cash equivalents		24,971		—		—		—	—	—	—	—		—		—		—		—
	$	1,731,147		1,747,810		43,250		8,897	32	81	3,062	18,054		17,475		106,534		15,698		20,086
Liabilities and Partners’ Capital
Long-term debt	$	835,410		469,231		—		—	—	—	—	—		—		—		—		—
Notes payable to MeriStar Hospitality Corporation		202,528		—		—		—	—	—	—	—		—		—		—		—
Accounts payable and accrued expenses		12,035		3,762		—		—	—	—	—	22		5		5		104		(32	)
Accrued interest		33,399		2,146		—		—	—	—	—	—		—		—		—		—
Due to Interstate Hotels & Resorts		11,808		—		—		—	—	—	—	—		—		—		—		—
Other liabilities		12,130		—		—		—	—	—	—	—		—		—		—		—
		1,107,310		475,139		—		—	—	—	—	22		5		5		104		(32	)
Minority interests		2,422		—		—		—	—	—	—	—		—		—		—		—
Redeemable OP units at redemption value		16,085		—		—		—	—	—	—	—		—		—		—		—
Partners’ capital - Common OP units		605,330		1,272,671		43,250		8,897	32	81	3,062	18,032		17,470		106,529		15,594		20,118
	$	1,731,147		1,747,810		43,250		8,897	32	81	3,062	18,054		17,475		106,534		15,698		20,086

1

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

March 31, 2005

(Dollars in thousands)

	MeriStar Sub 7F, LLC		MeriStar Sub 5L, LLC		MeriStar Sub 3C, LLC		MeriStar Sub 5R, LLC		MeriStar Sub 8A, 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
Assets
Property and equipment	9,753		11,990		17,612		—		—	18,427		51,799		—		21,021		23,124		24,394		—
Accumulated depreciation	(547	)	(763	)	(4,538	)	—		—	(3,483	)	(11,940	)	(1	)	(4,684	)	(745	)	(5,905	)	—
	9,206		11,227		13,074		—		—	14,944		39,859		(1	)	16,337		22,379		18,489		—
Investments in affiliates	—		—		—		43		—	—		—		—		—		—		—		—
Prepaid expenses and other assets	(14	)	(89	)	(4	)	—		—	(24	)	694		—		(95	)	(205	)	(40	)	—
Insurance claim receivable	—		—		—		—		—	—		—		—		—		—		—		—
Accounts receivable, net	—		—		—		—		—	112		3		—		96		—		—		—
Due to/from subsidiaries	3,659		5,125		7,299		(43	)	—	9,801		56,137		7,074		15,475		8,860		9,288		11,439
Note receivable from subsidiaries	—		—		—		—		—	—		—		—		—		—		—		—
Restricted cash	—		—		—		—		—	—		3,000		—		—		—		—		—
Cash and cash equivalents	—		—		—		—		—	—		—		—		—		—		—		—
	12,851		16,263		20,369		—		—	24,833		99,693		7,073		31,813		31,034		27,737		11,439
Liabilities and Partners’ Capital
Long-term debt	—		—		—		—		—	—		37,650		—		28		—		—		—
Notes payable to MeriStar Hospitality Corporation	—		—		—		—		—	—		—		—		—		—		—		—
Accounts payable and accrued expenses	184		23		310		—		—	(60	)	121		—		30		61		5		—
Accrued interest	—		—		—		—		—	—		—		—		—		—		—		—
Due to Interstate Hotels & Resorts	—		—		—		—		—	—		—		—		—		—		—		—
Other liabilities	—		—		—		—		—	—		—		—		—		—		—		—
	184		23		310		—		—	(60	)	37,771		—		58		61		5		—
Minority interests	—		—		—		—		—	—		—		—		—		—		—		—
Redeemable OP units at redemption value	—		—		—		—		—	—		—		—		—		—		—		—
Partners’ capital - Common OP units	12,667		16,240		20,059		—		—	24,893		61,922		7,073		31,755		30,973		27,732		11,439
	12,851		16,263		20,369		—		—	24,833		99,693		7,073		31,813		31,034		27,737		11,439

2

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

March 31, 2005

(Dollars in thousands)

	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, LP	MeriStar Sub 4D, LLC	MeriStar Sub 2A, LLC	MeriStar Sub 6L, LLC
Assets
Property and equipment	—	1	20,248		23,435		5,522		—		—	—	—	—	—	—
Accumulated depreciation	—	—	(4,139	)	(7,902	)	(75	)	—		—	—	—	—	—	—
	—	1	16,109		15,533		5,447		—		—	—	—	—	—	—
Investments in affiliates	—	—	—		—		—		—		—	—	—	—	—	—
Prepaid expenses and other assets	—	—	(25	)	(50	)	(119	)	—		—	—	—	—	—	—
Insurance claim receivable	—	—	—		—		—		—		—	—	—	—	—	—
Accounts receivable, net	—	—	—		—		—		(44	)	—	—	—	—	—	178
Due to/from subsidiaries	—	3,413	6,193		9,381		8,842		9,944		—	4,976	—	—	—	20,297
Note receivable from subsidiaries	—	—	—		—		—		—		—	—	—	—	—	—
Restricted cash	—	—	—		—		—		—		—	—	—	—	—	—
Cash and cash equivalents	—	—	—		—		—		—		—	—	—	—	—	—
	—	3,414	22,277		24,864		14,170		9,900		—	4,976	—	—	—	20,475
Liabilities and Partners’ Capital
Long-term debt	—	—	—		—		—		—		—	—	—	—	—	—
Notes payable to MeriStar Hospitality Corporation	—	—	—		—		—		—		—	—	—	—	—	—
Accounts payable and accrued expenses	—	—	78		30		23		—		—	—	—	—	—	—
Accrued interest	—	—	—		—		—		—		—	—	—	—	—	—
Due to Interstate Hotels & Resorts	—	—	—		—		—		—		—	—	—	—	—	—
Other liabilities	—	—	—		—		—		—		—	—	—	—	—	—
	—	—	78		30		23		—		—	—	—	—	—	—
Minority interests	—	—	—		—		—		—		—	—	—	—	—	—
Redeemable OP units at redemption value	—	—	—		—		—		—		—	—	—	—	—	—
Partners’ capital - Common OP units	—	3,414	22,199		24,834		14,147		9,900		—	4,976	—	—	—	20,475
	—	3,414	22,277		24,864		14,170		9,900		—	4,976	—	—	—	20,475

3

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

March 31, 2005

(Dollars in thousands)

	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.	MeriStar Sub 5D, LLC		MeriStar Sub 5H, LLC	MeriStar Sub 7H, LLC
Assets
Property and equipment	3,981		—	20,113		70,361		—	55,296		—	11,976		—	42,495		—	—
Accumulated depreciation	(889	)	—	(4,455	)	(14,906	)	—	(11,595	)	—	(2,748	)	—	(9,875	)	—	—
	3,092		—	15,658		55,455		—	43,701		—	9,228		—	32,620		—	—
Investments in affiliates	—		—	—		—		—	—		—	—		—	51,368		—	—
Prepaid expenses and other assets	(29	)	—	(13	)	(629	)	—	10		—	(16	)	—	(91	)	—	—
Insurance claim receivable	—		—	—		—		—	—		—	—		—	—		—	—
Accounts receivable, net	—		—	—		—		—	1,469		—	22		—	—		—	—
Due to/from subsidiaries	2,926		—	10,356		23,476		—	26,878		2,370	3,144		—	(6,150	)	—	—
Note receivable from subsidiaries	—		—	—		—		—	—		—	—		—	—		—	—
Restricted cash	—		—	—		—		—	—		—	—		—	—		—	—
Cash and cash equivalents	—		—	—		—		—	—		—	—		—	—		—	—
	5,989		—	26,001		78,302		—	72,058		2,370	12,378		—	77,747		—	—
Liabilities and Partners’ Capital
Long-term debt	—		—	—		—		—	—		—	—		—	24,000		—	—
Notes payable to MeriStar Hospitality Corporation	—		—	—		—		—	—		—	—		—	—		—	—
Accounts payable and accrued expenses	40		—	21		246		—	1,881		—	(67	)	—	234		—	—
Accrued interest	—		—	—		—		—	—		—	—		—	—		—	—
Due to Interstate Hotels & Resorts	—		—	—		—		—	(200	)	—	—		—	—		—	—
Other liabilities	—		—	—		—		—	—		—	—		—	—		—	—
	40		—	21		246		—	1,681		—	(67	)	—	24,234		—	—
Minority interests	—		—	—		—		—	—		—	—		—	—		—	—
Redeemable OP units at redemption value	—		—	—		—		—	—		—	—		—	—		—	—
Partners’ capital - Common OP units	5,949		—	25,980		78,056		—	70,377		2,370	12,445		—	53,513		—	—
	5,989		—	26,001		78,302		—	72,058		2,370	12,378		—	77,747		—	—

4

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

March 31, 2005

(Dollars in thousands)

	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.	MeriStar Sub 2C, LLC		MeriStar Sub 4G, L.P.		MeriStar Sub 3B, LLC	MeriStar Sub 5G, L.P.
Assets
Property and equipment	—	—	35,940		—	19,714		—	7,842		—	—		—		—	171,319
Accumulated depreciation	—	—	(7,206	)	—	(1,674	)	—	(878	)	—	—		(1	)	—	(37,273	)
	—	—	28,734		—	18,040		—	6,964		—	—		(1	)	—	134,046
Investments in affiliates	—	—	—		—	—		—	—		—	—		—		—	—
Prepaid expenses and other assets	—	—	(16	)	—	(135	)	—	(45	)	—	—		—		—	(490	)
Insurance claim receivable	—	—	—		—	—		—	—		—	—		—		—	—
Accounts receivable, net	—	—	—		—	—		—	—		—	—		—		—	—
Due to/from subsidiaries	—	—	3,677		21,531	10,450		—	3,969		—	(2,360	)	16,930		—	46,755
Note receivable from subsidiaries	—	—	—		—	—		—	—		—	—		—		—	—
Restricted cash	—	—	—		—	—		—	—		—	—		—		—	—
Cash and cash equivalents	—	—	—		—	—		—	—		—	—		—		—	—
	—	—	32,395		21,531	28,355		—	10,888		—	(2,360	)	16,929		—	180,311
Liabilities and Partners’ Capital
Long-term debt	—	—	—		—	—		—	—		—	—		—		—	—
Notes payable to MeriStar Hospitality Corporation	—	—	—		—	—		—	—		—	—		—		—	—
Accounts payable and accrued expenses	—	—	84		—	51		—	19		—	—		—		—	289
Accrued interest	—	—	—		—	—		—	—		—	—		—		—	—
Due to Interstate Hotels & Resorts	—	—	—		—	—		—	—		—	—		—		—	—
Other liabilities	—	—	—		—	—		—	—		—	—		—		—	—
	—	—	84		—	51		—	19		—	—		—		—	289
Minority interests	—	—	—		—	—		—	—		—	—		—		—	—
Redeemable OP units at redemption value	—	—	—		—	—		—	—		—	—		—		—	—
Partners’ capital - Common OP units	—	—	32,311		21,531	28,304		—	10,869		—	(2,360	)	16,929		—	180,022
	—	—	32,395		21,531	28,355		—	10,888		—	(2,360	)	16,929		—	180,311

5

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

March 31, 2005

(Dollars in thousands)

	MeriStar Sub 5N, LLC		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		MeriStar Sub 6K, LLC	MeriStar Sub 5E, LLC	MeriStar Sub 6I, LLC
Assets
Property and equipment	3,898		39		83,616		15,131		37,544		—	42,637		93,559		—	—	—
Accumulated depreciation	(467	)	(29	)	(15,730	)	(2,435	)	(12,037	)	—	(8,717	)	(4,782	)	—	—	—
	3,431		10		67,886		12,696		25,507		—	33,920		88,777		—	—	—
Investments in affiliates	—		—		—		—		4,627		—	—		—		—	—	—
Prepaid expenses and other assets	(52	)	(11	)	(891	)	(156	)	(90	)	—	(58	)	423		—	—	—
Insurance claim receivable	—		—		—		—		—		—	—		—		—	—	—
Accounts receivable, net	—		38		2		—		—		—	(14	)	(908	)	—	—	—
Due to/from subsidiaries	4,695		3,809		47,765		7,519		8,514		—	5,962		60,732		—	—	—
Note receivable from subsidiaries	—		—		—		—		—		—	—		—		—	—	—
Restricted cash	—		—		—		—		—		—	—		—		—	—	—
Cash and cash equivalents	—		—		—		—		—		—	—		—		—	—	—
	8,074		3,846		114,762		20,059		38,558		—	39,810		149,024		—	—	—
Liabilities and Partners’ Capital
Long-term debt	—		—		—		—		23,609		—	—		55,330		—	—	—
Notes payable to MeriStar Hospitality Corporation	—		—		—		—		—		—	—		—		—	—	—
Accounts payable and accrued expenses	22		—		362		12		283		—	97		545		—	—	—
Accrued interest	—		—		—		—		—		—	—		267		—	—	—
Due to Interstate Hotels & Resorts	—		—		—		—		—		—	—		—		—	—	—
Other liabilities	—		—		—		—		—		—	—		—		—	—	—
	22		—		362		12		23,892		—	97		56,142		—	—	—
Minority interests	—		—		—		—		—		—	—		—		—	—	—
Redeemable OP units at redemption value	—		—		—		—		—		—	—		—		—	—	—
Partners’ capital - Common OP units	8,052		3,846		114,400		20,047		14,666		—	39,713		92,882		—	—	—
	8,074		3,846		114,762		20,059		38,558		—	39,810		149,024		—	—	—

6

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

March 31, 2005

(Dollars in thousands)

	MeriStar Sub 5I, LLC	CapStar Cherry Hill Company, LLC	Meristar Acquisition Company, LLC	MeriStar Sub 6A, LLC	MeriStar Sub 6F, LLC	MeriStar Hotel Lessee, Inc.	Guarantor Eliminations	Guarantor Subsidiaries Total	Consolidation Eliminations	Total Consolidated
Assets
Property and equipment	—	—	—	—	—	3,312	—	1,108,753	—	$2,637,362
Accumulated depreciation	—	—	—	—	—	(3,384)	—	(214,877)	—	(530,049)
	—	—	—	—	—	(72)	—	893,876	—	2,107,313
Investments in affiliates	—	—	—	—	—	43,219	(41,590)	110,496	(2,454,666)	70,451
Prepaid expenses and other assets	—	—	—	—	—	10,411	10	7,765	—	34,045
Insurance claim receivable	—	—	—	—	—	—	—	—	—	60,896
Accounts receivable, net	—	—	—	—	—	38,395	—	39,412	(12,684)	40,506
Due to/from subsidiaries	—	—	—	—	—	45,964	(1,670)	593,495	—	—
Note receivable from subsidiaries	—	—	—	—	—	—	—	—	(259,065)	—
Restricted cash	—	—	—	—	—	542	—	3,542	—	62,946
Cash and cash equivalents	—	—	—	—	—	28,892	—	28,892	—	53,863
	—	—	—	—	—	167,351	(43,250)	1,677,478	(2,726,415)	$2,430,020
Liabilities and Partners' Capital
Long-term debt	—	—	—	—	—	211,456	—	352,073	(259,065)	$1,397,649
Notes payable to MeriStar Hospitality Corporation	—	—	—	—	—	—	—	—	—	202,528
Accounts payable and accrued expenses	—	—	—	—	—	45,319	—	50,347	—	66,144
Accrued interest	—	—	—	—	—	12,684	—	12,951	(12,684)	35,812
Due to Interstate Hotels & Resorts	—	—	—	—	—	6,437	—	6,237	—	18,045
Other liabilities	—	—	—	—	—	8,116	—	8,116	—	20,246
	—	—	—	—	—	284,012	—	429,724	(271,749)	1,740,424
Minority interests	—	—	—	—	—	—	—	—	—	2,422
Redeemable OP units at redemption value	—	—	—	—	—	—	—	—	—	16,085
Partners' capital—Common OP units	—	—	—	—	—	(116,661)	(43,250)	1,247,754	(2,454,666)	671,089
	—	—	—	—	—	167,351	(43,250)	1,677,478	(2,726,415)	$2,430,020

7

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

December 31, 2004

(Dollars in thousands)

	MeriStar Hospitality OP, L.P.			Non-Guarantor Subsidiaries		MeriStar Lexington Mortgage, LLC	MeriStar Lexington Partners, LLC	MeriStar Sub 7C, LLC	MeriStar Sub 8G, LLC	AGH UPREIT LLC	MeriStar Sub 6H, L.P.		MeriStar Sub 8F, L.P.		MeriStar Sub 8B, LLC		MeriStar Sub 1C, LLC		MeriStar Sub 8E, LLC		MeriStar Sub 7F, LLC
Assets
Property and equipment	$	22,301		1,476,952		—	—	—	—	—	10,885		13,687		88,943		27,485		16,028		10,034
Accumulated depreciation		(14,642	)	(286,652	)	—	—	—	—	—	(783	)	(3,179	)	(14,741	)	(7,319	)	(3,618	)	(413	)
		7,659		1,190,300		—	—	—	—	—	10,102		10,508		74,202		20,166		12,410		9,621
Investments in affiliates		2,492,499		7,992		40,661	9,487	32	72	2,989	—		—		—		—		—		—
Prepaid expenses and other assets		31,287		(3,841	)	—	—	—	—	—	(11	)	(81	)	(101	)	(190	)	(26	)	(12	)
Insurance claim receivable		76,056		—		—	—	—	—	—	—		—		—		—		—		—
Accounts receivable, net		9,596		1,054		—	—	—	—	—	—		—		—		—		—		—
Due to/from subsidiaries		(1,106,110	)	522,427		1,181	750	—	9	73	7,830		6,748		31,376		(4,175	)	7,517		3,135
Note receivable from subsidiaries		221,704		—		—	—	—	—	—	—		—		—		—		—		—
Restricted cash		55,754		1,346		—	—	—	—	—	—		—		—		—		—		—
Cash and cash equivalents		41,224		—		—	—	—	—	—	—		—		—		—		—		—
	$	1,829,669		1,719,278		41,842	10,237	32	81	3,062	17,921		17,175		105,477		15,801		19,901		12,744
Liabilities and Partners’ Capital
Long-term debt	$	841,976		471,781		—	—	—	—	—	—		—		—		—		—		—
Notes payable to MeriStar Hospitality Corporation		203,977		—		—	—	—	—	—	—		—		—		—		—		—
Accounts payable and accrued expenses		14,777		5,128		—	—	—	—	—	—		6		—		59		—		153
Accrued interest		38,683		2,214		—	—	—	—	—	—		—		—		—		—		—
Due to Interstate Hotels & Resorts		11,347		—		—	—	—	—	—	—		—		—		—		—		—
Other liabilities		5,382		—		—	—	—	—	—	—		—		—		—		—		—
		1,116,142		479,123		—	—	—	—	—	—		6		—		59		—		153
Minority interests		2,418		—		—	—	—	—	—	—		—		—		—		—		—
Redeemable OP units at redemption value		19,187		—		—	—	—	—	—	—		—		—		—		—		—
Partners’ capital - Common OP units		691,922		1,240,155		41,842	10,237	32	81	3,062	17,921		17,169		105,477		15,742		19,901		12,591
	$	1,829,669		1,719,278		41,842	10,237	32	81	3,062	17,921		17,175		105,477		15,801		19,901		12,744

8

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

December 31, 2004

(Dollars in thousands)

	MeriStar Sub 5L, LLC		MeriStar Sub 3C, LLC		MeriStar Sub 5R, LLC		MeriStar Sub 8A, 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.	MeriStar Sub 4H, L.P.
Assets
Property and equipment	11,800		17,581		—		—	18,367		49,971		—		20,404		18,560		24,167		—	—	1
Accumulated depreciation	(723	)	(4,384	)	—		—	(3,377	)	(11,560	)	(1	)	(4,557	)	(591	)	(5,738	)	—	—	—
	11,077		13,197		—		—	14,990		38,411		(1	)	15,847		17,969		18,429		—	—	1
Investments in affiliates	—		—		43		—	—		—		—		—		—		—		—	—	—
Prepaid expenses and other assets	(77	)	2		—		—	(21	)	(93	)	—		(83	)	(178	)	(35	)	—	—	—
Insurance claim receivable	—		—		—		—	—		—		—		—		—		—		—	—	—
Accounts receivable, net	—		—		—		—	124		—		64		96		—		—		—	—	—
Due to/from subsidiaries	5,022		6,581		(43	)	—	9,328		22,758		7,015		15,571		12,510		8,688		11,439	—	3,413
Note receivable from subsidiaries	—		—		—		—	—		—		—		—		—		—		—	—	—
Restricted cash	—		—		—		—	—		—		—		—		—		—		—	—	—
Cash and cash equivalents	—		—		—		—	—		—		—		—		—		—		—	—	—
	16,022		19,780		—		—	24,421		61,076		7,078		31,431		30,301		27,082		11,439	—	3,414
Liabilities and Partners’ Capital
Long-term debt	—		—		—		—	—		—		—		33		—		—		—	—	—
Notes payable to MeriStar Hospitality Corporation	—		—		—		—	—		—		—		—		—		—		—	—	—
Accounts payable and accrued expenses	1		211		—		—	(21	)	(20	)	5		(7	)	(4	)	61		—	—	—
Accrued interest	—		—		—		—	—		—		—		—		—		—		—	—	—
Due to Interstate Hotels & Resorts	—		—		—		—	—		—		—		—		—		—		—	—	—
Other liabilities	—		—		—		—	—		—		—		—		—		—		—	—	—
	1		211		—		—	(21	)	(20	)	5		26		(4	)	61		—	—	—
Minority interests	—		—		—		—	—		—		—		—		—		—		—	—	—
Redeemable OP units at redemption value	—		—		—		—	—		—		—		—		—		—		—	—	—
Partners’ capital - Common OP units	16,021		19,569		—		—	24,442		61,096		7,073		31,405		30,305		27,021		11,439	—	3,414
	16,022		19,780		—		—	24,421		61,076		7,078		31,431		30,301		27,082		11,439	—	3,414

9

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

December 31, 2004

(Dollars in thousands)

	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, LP	MeriStar Sub 4D, LLC	MeriStar Sub 2A, LLC	MeriStar Sub 6L, LLC	MDV Limited Partnership		MeriStar Sub 5C, LLC	MeriStar Sub 6J, LLC
Assets
Property and equipment	20,118		22,986		5,500		—		—	—	—	—	—	—	3,955		—	19,976
Accumulated depreciation	(3,974	)	(7,740	)	(2	)	—		—	—	—	—	—	—	(840	)	—	(4,320	)
	16,144		15,246		5,498		—		—	—	—	—	—	—	3,115		—	15,656
Investments in affiliates	—		—		—		—		—	—	—	—	—	—	—		—	—
Prepaid expenses and other assets	(22	)	(43	)	(96	)	—		—	—	—	—	—	—	(24	)	—	(6	)
Insurance claim receivable	—		—		—		—		—	—	—	—	—	—	—		—	—
Accounts receivable, net	—		—		—		(44	)	—	—	—	—	—	178	—		—	—
Due to/from subsidiaries	6,024		9,411		8,518		9,944		—	4,976	7,612	—	—	20,297	2,879		—	9,835
Note receivable from subsidiaries	—		—		—		—		—	—	—	—	—	—	—		—	—
Restricted cash	—		—		—		—		—	—	—	—	—	—	—		—	—
Cash and cash equivalents	—		—		—		—		—	—	—	—	—	—	—		—	—
	22,146		24,614		13,920		9,900		—	4,976	7,612	—	—	20,475	5,970		—	25,485
Liabilities and Partners’ Capital
Long-term debt	—		—		—		—		—	—	—	—	—	—	—		—	—
Notes payable to MeriStar Hospitality Corporation	—		—		—		—		—	—	—	—	—	—	—		—	—
Accounts payable and accrued expenses	88		—		2		—		—	—	—	—	—	—	75		—	59
Accrued interest	—		—		—		—		—	—	—	—	—	—	—		—	—
Due to Interstate Hotels & Resorts	—		—		—		—		—	—	—	—	—	—	—		—	—
Other liabilities	—		—		—		—		—	—	—	—	—	—	—		—	—
	88		—		2		—		—	—	—	—	—	—	75		—	59
Minority interests	—		—		—		—		—	—	—	—	—	—	—		—	—
Redeemable OP units at redemption value	—		—		—		—		—	—	—	—	—	—	—		—	—
Partners’ capital - Common OP units	22,058		24,614		13,918		9,900		—	4,976	7,612	—	—	20,475	5,895		—	25,426
	22,146		24,614		13,920		9,900		—	4,976	7,612	—	—	20,475	5,970		—	25,485

10

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

December 31, 2004

(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.	MeriStar Sub 2D, LLC	MeriStar Sub 4F, L.P.		MeriStar Sub 5K, LLC
Assets
Property and equipment	69,500		—		55,081		—	11,877		—	42,467		—	—	—	—	35,341		—
Accumulated depreciation	(14,321	)	—		(11,258	)	—	(2,636	)	—	(9,533	)	—	—	—	—	(6,923	)	—
	55,179		—		43,823		—	9,241		—	32,934		—	—	—	—	28,418		—
Investments in affiliates	—		—		—		—	—		—	51,368		—	—	—	—	—		—
Prepaid expenses and other assets	(550	)	—		46		—	(14	)	—	(77	)	—	—	—	—	(10	)	—
Insurance claim receivable	—		—		—		—	—		—	—		—	—	—	—	—		—
Accounts receivable, net	—		—		1,169		—	—		—	—		—	—	—	—	—		—
Due to/from subsidiaries	22,849		(262	)	26,640		2,370	2,976		—	(6,151	)	—	—	—	—	4,108		21,531
Note receivable from subsidiaries	—		—		—		—	—		—	—		—	—	—	—	—		—
Restricted cash	—		—		—		—	—		—	—		—	—	—	—	—		—
Cash and cash equivalents	—		—		—		—	—		—	—		—	—	—	—	—		—
	77,478		(262	)	71,678		2,370	12,203		—	78,074		—	—	—	—	32,516		21,531
Liabilities and Partners’ Capital
Long-term debt	—		—		—		—	—		—	24,000		—	—	—	—	—		—
Notes payable to MeriStar Hospitality Corporation	—		—		—		—	—		—	—		—	—	—	—	—		—
Accounts payable and accrued expenses	—		—		2,381		—	(125	)	—	165		—	—	—	—	334		—
Accrued interest	—		—		—		—	—		—	—		—	—	—	—	—		—
Due to Interstate Hotels & Resorts	—		—		(200	)	—	—		—	—		—	—	—	—	—		—
Other liabilities	—		—		—		—	—		—	—		—	—	—	—	—		—
	—		—		2,181		—	(125	)	—	24,165		—	—	—	—	334		—
Minority interests	—		—		—		—	—		—	—		—	—	—	—	—		—
Redeemable OP units at redemption value	—		—		—		—	—		—	—		—	—	—	—	—		—
Partners’ capital - Common OP units	77,478		(262	)	69,497		2,370	12,328		—	53,909		—	—	—	—	32,182		21,531
	77,478		(262	)	71,678		2,370	12,203		—	78,074		—	—	—	—	32,516		21,531

11

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

December 31, 2004

(Dollars in thousands)

	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 5N, LLC		MeriStar Sub 5P, LLC
Assets
Property and equipment	18,969		—	7,263		—	—		—		—	168,827		3,580		39
Accumulated depreciation	(1,607	)	—	(844	)	—	—		(1	)	—	(35,721	)	(448	)	(28	)
	17,362		—	6,419		—	—		(1	)	—	133,106		3,132		11
Investments in affiliates	—		—	—		—	—		—		—	—		—		—
Prepaid expenses and other assets	(118	)	—	(39	)	—	—		—		—	(394	)	(45	)	(10	)
Insurance claim receivable	—		—	—		—	—		—		—	—		—		—
Accounts receivable, net	—		—	—		—	—		—		—	—		—		38
Due to/from subsidiaries	10,741		—	4,524		1,728	(2,360	)	16,930		—	45,208		4,988		3,724
Note receivable from subsidiaries	—		—	—		—	—		—		—	—		—		—
Restricted cash	—		—	—		—	—		—		—	—		—		—
Cash and cash equivalents	—		—	—		—	—		—		—	—		—		—
	27,985		—	10,904		1,728	(2,360	)	16,929		—	177,920		8,075		3,763
Liabilities and Partners’ Capital
Long-term debt	—		—	—		—	—		—		—	—		—		—
Notes payable to MeriStar Hospitality Corporation	—		—	—		—	—		—		—	—		—		—
Accounts payable and accrued expenses	—		—	—		—	—		—		—	—		4		—
Accrued interest	—		—	—		—	—		—		—	—		—		—
Due to Interstate Hotels & Resorts	—		—	—		—	—		—		—	—		—		—
Other liabilities	—		—	—		—	—		—		—	—		—		—
	—		—	—		—	—		—		—	—		4		—
Minority interests	—		—	—		—	—		—		—	—		—		—
Redeemable OP units at redemption value	—		—	—		—	—		—		—	—		—		—
Partners’ capital - Common OP units	27,985		—	10,904		1,728	(2,360	)	16,929		—	177,920		8,071		3,763
	27,985		—	10,904		1,728	(2,360	)	16,929		—	177,920		8,075		3,763

12

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

December 31, 2004

(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 Sub 6K, LLC	MeriStar Sub 5E, LLC	MeriStar Sub 6I, LLC	MeriStar Sub 5I, LLC	CapStar Cherry Hill Company, LLC	Meristar Acquisition Company, LLC	MeriStar Sub 6A, LLC
Assets
Property and equipment	79,579		13,980		37,074		—	41,862		93,264		—	—	—	—	—	—	—
Accumulated depreciation	(14,819	)	(2,312	)	(11,767	)	—	(8,398	)	(3,478	)	—	—	—	—	—	—	—
	64,760		11,668		25,307		—	33,464		89,786		—	—	—	—	—	—	—
Investments in affiliates	—		—		4,627		—	—		—		—	—	—	—	—	—	—
Prepaid expenses and other assets	(769	)	(137	)	(78	)	—	(51	)	466		—	—	—	—	—	—	—
Insurance claim receivable	—		—		—		—	—		—		—	—	—	—	—	—	—
Accounts receivable, net	—		—		—		359	(14	)	(361	)	—	—	—	—	—	—	—
Due to/from subsidiaries	51,127		8,187		8,010		16,379	6,370		58,867		—	—	—	—	—	—	—
Note receivable from subsidiaries	—		—		—		—	—		—		—	—	—	—	—	—	—
Restricted cash	—		—		—		—	—		—		—	—	—	—	—	—	—
Cash and cash equivalents	—		—		—		—	—		—		—	—	—	—	—	—	—
	115,118		19,718		37,866		16,738	39,769		148,758		—	—	—	—	—	—	—
Liabilities and Partners’ Capital
Long-term debt	—		—		23,609		—	—		55,509		—	—	—	—	—	—	—
Notes payable to MeriStar Hospitality Corporation	—		—		—		—	—		—		—	—	—	—	—	—	—
Accounts payable and accrued expenses	126		(18	)	114		—	152		273		—	—	—	—	—	—	—
Accrued interest	—		—		—		—	—		268		—	—	—	—	—	—	—
Due to Interstate Hotels & Resorts	—		—		—		—	—		—		—	—	—	—	—	—	—
Other liabilities	—		—		—		—	—		—		—	—	—	—	—	—	—
	126		(18	)	23,723		—	152		56,050		—	—	—	—	—	—	—
Minority interests	—		—		—		—	—		—		—	—	—	—	—	—	—
Redeemable OP units at redemption value	—		—		—		—	—		—		—	—	—	—	—	—	—
Partners’ capital - Common OP units	114,992		19,736		14,143		16,738	39,617		92,708		—	—	—	—	—	—	—
	115,118		19,718		37,866		16,738	39,769		148,758		—	—	—	—	—	—	—

13

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Balance Sheet

December 31, 2004

(Dollars in thousands)

	MeriStar Sub 6F, LLC	MeriStar Hotel Lessee, Inc.		Guarantor Eliminations		Guarantor Subsidiaries Total		Consolidation Eliminations		Total Consolidated
Assets
Property and equipment	—	3,316		—		1,082,467		—		$	2,581,720
Accumulated depreciation	—	(3,384	)	—		(205,338	)	—			(506,632	)
	—	(68	)	—		877,129		—			2,075,088
Investments in affiliates	—	42,290		(40,661	)	110,908		(2,526,603	)		84,796
Prepaid expenses and other assets	—	9,661		—		6,784		—			34,230
Insurance claim receivable	—	—		—		—		—			76,056
Accounts receivable, net	—	30,134		—		31,743		(9,414	)		32,979
Due to/from subsidiaries	—	40,158		(1,181	)	583,683		—			—
Note receivable from subsidiaries	—	—		—		—		(221,704	)		—
Restricted cash	—	1,313		—		1,313		—			58,413
Cash and cash equivalents	—	19,309		—		19,309		—			60,533
	—	142,797		(41,842	)	1,630,869		(2,757,721	)	$	2,422,095
Liabilities and Partners’ Capital
Long-term debt	—	174,095		—		277,246		(221,704	)	$	1,369,299
Notes payable to MeriStar Hospitality Corporation	—	—		—		—		—			203,977
Accounts payable and accrued expenses	—	47,802		—		51,876		—			71,781
Accrued interest	—	9,414		—		9,682		(9,414	)		41,165
Due to Interstate Hotels & Resorts	—	10,652		—		10,452		—			21,799
Other liabilities	—	6,171		—		6,171		—			11,553
	—	248,134		—		355,427		(231,118	)		1,719,574
Minority interests	—	—		—		—		—			2,418
Redeemable OP units at redemption value	—	—		—		—		—			19,187
Partners’ capital - Common OP units	—	(105,337	)	(41,842	)	1,275,442		(2,526,603	)		680,916
	—	142,797		(41,842	)	1,630,869		(2,757,721	)	$	2,422,095

14

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2005

(Dollars in thousands)

	MeriStar Hospitality OP, L.P.			Non-Guarantor Subsidiaries		MeriStar Lexington Mortgage, LLC	MeriStar Lexington Partners, LLC		MeriStar Sub 7C, LLC	MeriStar Sub 8G, LLC	AGH UPREIT LLC	MeriStar Sub 6H, L.P.	MeriStar Sub 8F, L.P.	MeriStar Sub 8B, LLC
Revenue:
Hotel operations:
Rooms	$	—		—		—	—		—	—	—	—	—	—
Food and beverage		—		—		—	—		—	—	—	—	—	—
Other hotel operations		—		—		—	—		—	—	—	—	—	—
Office rental, parking and other revenue		1,434		129		—	—		—	—	—	—	—	—
Participating lease revenue		—		35,598		1,408	(1,341	)	—	—	—	293	624	1,934
Total revenue		1,434		35,727		1,408	(1,341	)	—	—	—	293	624	1,934
Hotel operating expenses:
Rooms		—		—		—	—		—	—	—	—	—	—
Food and beverage		—		—		—	—		—	—	—	—	—	—
Other hotel operating expenses		—		—		—	—		—	—	—	—	—	—
Office rental, parking and other expenses		—		346		—	—		—	—	—	—	—	—
Other operating expenses:		—		—		—	—		—	—	—	—	—	—
General and administrative, hotel		—		—		—	—		—	—	—	—	—	—
General and administrative, corporate		3,500		—		—	—		—	—	—	—	—	—
Property operating costs		—		—		—	—		—	—	—	—	—	—
Depreciation and amortization		2,012		13,257		—	—		—	—	—	157	165	623
Property taxes, insurance and other		1,387		4,761		—	—		—	—	—	25	158	259
Loss on asset impairments		—		—		—	—		—	—	—	—	—	—
Operating expenses		6,899		18,364		—	—		—	—	—	182	323	882
Equity in income/loss of and interest earned from unconsolidated affiliates		1,634		—		—	—		—	—	—	—	—	—
Hurricane business interruption income		—		—		—	—		—	—	—	—	—	—
Operating income (loss)		(3,831	)	17,363		1,408	(1,341	)	—	—	—	111	301	1,052
Minority interest income (expense)		(5	)	—		—	—		—	—	—	—	—	—
Interest expense, net		(17,675	)	(7,669	)	—	—		—	—	—	—	—	—
Loss on early extinguishments of debt		(60	)	—		—	—		—	—	—	—	—	—
Equity in income from consolidated entities		7,822		—		—	—		—	—	—	—	—	—
(Loss) income before income taxes and discontinued operations		(13,749	)	9,694		1,408	(1,341	)	—	—	—	111	301	1,052
Income tax expense		—		—		—	—		—	—	—	—	—	—
(Loss) income from continuing operations		(13,749	)	9,694		1,408	(1,341	)	—	—	—	111	301	1,052
Discontinued operations:
(Loss) income from discontinued operations before income taxes		—		—		—	—		—	—	—	—	—	—
Income tax expense		—		—		—	—		—	—	—	—	—	—
(Loss) income from discontinued operations		—		—		—	—		—	—	—	—	—	—
Net income (loss)	$	(13,749	)	9,694		1,408	(1,341	)	—	—	—	111	301	1,052

15

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2005

(Dollars in thousands)

	MeriStar 1C, LLC		MeriStar Sub 8E, LLC	MeriStar Sub 7F, LLC	MeriStar Sub 5L, LLC	MeriStar Sub 3C, LLC	MeriStar Sub 5R, LLC	MeriStar Sub 8A, LLC	MeriStar Sub 6D, LLC	MeriStar Sub 6E, LLC		MeriStar Sub 4E, L.P.
Revenue:
Hotel operations:
Rooms	—		—	—	—	—	—	—	—	—		—
Food and beverage	—		—	—	—	—	—	—	—	—		—
Other hotel operations	—		—	—	—	—	—	—	—	—		—
Office rental, parking and other revenue	—		11	—	—	1	—	—	17	3		—
Participating lease revenue	414		385	242	293	748	—	—	618	1,561		—
Total revenue	414		396	242	293	749	—	—	635	1,564		—
Hotel operating expenses:
Rooms	—		—	—	—	—	—	—	—	—		—
Food and beverage	—		—	—	—	—	—	—	—	—		—
Other hotel operating expenses	—		—	—	—	—	—	—	—	—		—
Office rental, parking and other expenses	3		—	—	—	—	—	—	—	—		—
Other operating expenses:	—		—	—	—	—	—	—	—	—		—
General and administrative, hotel	—		—	—	—	—	—	—	—	—		—
General and administrative, corporate	—		—	—	—	—	—	—	—	—		—
Property operating costs	—		—	—	—	—	—	—	—	—		—
Depreciation and amortization	353		136	134	40	156	—	—	106	380		—
Property taxes, insurance and other	207		44	32	34	102	—	—	79	138		—
Loss on asset impairments	—		—	—	—	—	—	—	—	—		—
Operating expenses	563		180	166	74	258	—	—	185	518		—
Equity in income/loss of and interest earned from unconsolidated affiliates	—		—	—	—	—	—	—	—	—		—
Hurricane business interruption income	—		—	—	—	—	—	—	—	—		—
Operating income (loss)	(149	)	216	76	219	491	—	—	450	1,046		—
Minority interest income (expense)	—		—	—	—	—	—	—	—	—		—
Interest expense, net	—		—	—	—	—	—	—	—	(220	)	—
Loss on early extinguishments of debt	—		—	—	—	—	—	—	—	—		—
Equity in income from consolidated entities	—		—	—	—	—	—	—	—	—		—
(Loss) income before income taxes and discontinued operations	(149	)	216	76	219	491	—	—	450	826		—
Income tax expense	—		—	—	—	—	—	—	—	—		—
(Loss) income from continuing operations	(149	)	216	76	219	491	—	—	450	826		—
Discontinued operations:
(Loss) income from discontinued operations before income taxes	—		—	—	—	—	—	—	—	—		—
Income tax expense	—		—	—	—	—	—	—	—	—		—
(Loss) income from discontinued operations	—		—	—	—	—	—	—	—	—		—
Net income (loss)	(149	)	216	76	219	491	—	—	450	826		—

16

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2005

(Dollars in thousands)

	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	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	520		910	979	—	—	—	358	444	439	—	—
Total revenue	520		910	979	—	—	—	358	444	439	—	—
Hotel operating expenses:
Rooms	—		—	—	—	—	—	—	—	—	—	—
Food and beverage	—		—	—	—	—	—	—	—	—	—	—
Other hotel operating expenses	—		—	—	—	—	—	—	—	—	—	—
Office rental, parking and other expenses	(3	)	—	—	—	—	—	—	5	36	—	—
Other operating expenses:	—		—	—	—	—	—	—	—	—	—	—
General and administrative, hotel	—		—	—	—	—	—	—	—	—	—	—
General and administrative, corporate	—		—	—	—	—	—	—	—	—	—	—
Property operating costs	—		—	—	—	—	—	—	—	—	—	—
Depreciation and amortization	126		154	167	—	—	—	165	162	73	—	—
Property taxes, insurance and other	44		89	101	—	—	—	52	57	100	—	—
Loss on asset impairments	—		—	—	—	—	—	—	—	—	—	—
Operating expenses	167		243	268	—	—	—	217	224	209	—	—
Equity in income/loss of and interest earned from unconsolidated affiliates	—		—	—	—	—	—	—	—	—	—	—
Hurricane business interruption income	—		—	—	—	—	—	—	—	—	—	—
Operating income (loss)	353		667	711	—	—	—	141	220	230	—	—
Minority interest income (expense)	—		—	—	—	—	—	—	—	—	—	—
Interest expense, net	(2	)	—	—	—	—	—	—	—	—	—	—
Loss on early extinguishments of debt	—		—	—	—	—	—	—	—	—	—	—
Equity in income from consolidated entities	—		—	—	—	—	—	—	—	—	—	—
(Loss) income before income taxes and discontinued operations	351		667	711	—	—	—	141	220	230	—	—
Income tax expense	—		—	—	—	—	—	—	—	—	—	—
(Loss) income from continuing operations	351		667	711	—	—	—	141	220	230	—	—
Discontinued operations:
(Loss) income from discontinued operations before income taxes	—		—	—	—	—	—	—	—	—	—	—
Income tax expense	—		—	—	—	—	—	—	—	—	—	—
(Loss) income from discontinued operations	—		—	—	—	—	—	—	—	—	—	—
Net income (loss)	351		667	711	—	—	—	141	220	230	—	—

17

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2005

(Dollars in thousands)

	MeriStar Sub 3A, LLC	MeriStar Sub 4A, LP	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	—	—	—	—	—	—	—	—	4	—
Participating lease revenue	—	—	—	—	—	134	—	768	1,581	—
Total revenue	—	—	—	—	—	134	—	768	1,585	—
Hotel operating expenses:
Rooms	—	—	—	—	—	—	—	—	—	—
Food and beverage	—	—	—	—	—	—	—	—	—	—
Other hotel operating expenses	—	—	—	—	—	—	—	—	—	—
Office rental, parking and other expenses	—	—	—	—	—	—	—	—	60	—
Other operating expenses:	—	—	—	—	—	—	—	—	—	—
General and administrative, hotel	—	—	—	—	—	—	—	—	—	—
General and administrative, corporate	—	—	—	—	—	—	—	—	—	—
Property operating costs	—	—	—	—	—	—	—	—	—	—
Depreciation and amortization	—	—	—	—	—	49	—	139	584	—
Property taxes, insurance and other	—	—	—	—	—	31	—	76	363	—
Loss on asset impairments	—	—	—	—	—	—	—	—	—	—
Operating expenses	—	—	—	—	—	80	—	215	1,007	—
Equity in income/loss of and interest earned from unconsolidated affiliates	—	—	—	—	—	—	—	—	—	—
Hurricane business interruption income	—	—	—	—	—	—	—	—	—	—
Operating income (loss)	—	—	—	—	—	54	—	553	578	—
Minority interest income (expense)	—	—	—	—	—	—	—	—	—	—
Interest expense, net	—	—	—	—	—	—	—	—	—	—
Loss on early extinguishments of debt	—	—	—	—	—	—	—	—	—	—
Equity in income from consolidated entities	—	—	—	—	—	—	—	—	—	—
(Loss) income before income taxes and discontinued operations	—	—	—	—	—	54	—	553	578	—
Income tax expense	—	—	—	—	—	—	—	—	���	—
(Loss) income from continuing operations	—	—	—	—	—	54	—	553	578	—
Discontinued operations:
(Loss) income from discontinued operations before income taxes	—	—	—	—	—	—	—	—	—	—
Income tax expense	—	—	—	—	—	—	—	—	—	—
(Loss) income from discontinued operations	—	—	—	—	—	—	—	—	—	—
Net income (loss)	—	—	—	—	—	54	—	553	578	—

18

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2005

(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	—	—	—	—	—		—	—	—	—	3
Participating lease revenue	2,176	—	267	—	442		—	—	—	—	511
Total revenue	2,176	—	267	—	442		—	—	—	—	514
Hotel operating expenses:
Rooms	—	—	—	—	—		—	—	—	—	—
Food and beverage	—	—	—	—	—		—	—	—	—	—
Other hotel operating expenses	—	—	—	—	—		—	—	—	—	—
Office rental, parking and other expenses	353	—	—	—	2		—	—	—	—	(1	)
Other operating expenses:	—	—	—	—	—		—	—	—	—	—
General and administrative, hotel	—	—	—	—	—		—	—	—	—	—
General and administrative, corporate	—	—	—	—	—		—	—	—	—	—
Property operating costs	—	—	—	—	—		—	—	—	—	—
Depreciation and amortization	358	—	113	—	343		—	—	—	—	283
Property taxes, insurance and other	585	—	37	—	86		—	—	—	—	101
Loss on asset impairments	—	—	—	—	—		—	—	—	—	—
Operating expenses	1,296	—	150	—	431		—	—	—	—	383
Equity in income/loss of and interest earned from unconsolidated affiliates	—	—	—	—	—		—	—	—	—	—
Hurricane business interruption income	—	—	—	—	—		—	—	—	—	—
Operating income (loss)	880	—	117	—	11		—	—	—	—	131
Minority interest income (expense)	—	—	—	—	—		—	—	—	—	—
Interest expense, net	—	—	—	—	(408	)	—	—	—	—	—
Loss on early extinguishments of debt	—	—	—	—	—		—	—	—	—	—
Equity in income from consolidated entities	—	—	—	—	—		—	—	—	—	—
(Loss) income before income taxes and discontinued operations	880	—	117	—	(397	)	—	—	—	—	131
Income tax expense	—	—	—	—	—		—	—	—	—	—
(Loss) income from continuing operations	880	—	117	—	(397	)	—	—	—	—	131
Discontinued operations:
(Loss) income from discontinued operations before income taxes	—	—	—	—	—		—	—	—	—	—
Income tax expense	—	—	—	—	—		—	—	—	—	—
(Loss) income from discontinued operations	—	—	—	—	—		—	—	—	—	—
Net income (loss)	880	—	117	—	(397	)	—	—	—	—	131

19

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2005

(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 5N, LLC
Revenue:
Hotel operations:
Rooms	—	—	—	—		—	—	—	—	—	—
Food and beverage	—	—	—	—		—	—	—	—	—	—
Other hotel operations	—	—	—	—		—	—	—	—	—	—
Office rental, parking and other revenue	—	—	—	—		—	—	—	—	9	—
Participating lease revenue	—	386	—	—		—	—	—	—	3,989	—
Total revenue	—	386	—	—		—	—	—	—	3,998	—
Hotel operating expenses:
Rooms	—	—	—	—		—	—	—	—	—	—
Food and beverage	—	—	—	—		—	—	—	—	—	—
Other hotel operating expenses	—	—	—	—		—	—	—	—	—	—
Office rental, parking and other expenses	—	—	—	—		—	—	—	—	8	—
Other operating expenses:	—	—	—	—		—	—	—	—	—	—
General and administrative, hotel	—	—	—	—		—	—	—	—	—	—
General and administrative, corporate	—	—	—	—		—	—	—	—	—	—
Property operating costs	—	—	—	—		—	—	—	—	—	—
Depreciation and amortization	—	67	—	35		—	—	—	—	1,551	19
Property taxes, insurance and other	—	—	—	—		—	—	—	—	336	—
Loss on asset impairments	—	—	—	—		—	—	—	—	—	—
Operating expenses	—	67	—	35		—	—	—	—	1,895	19
Equity in income/loss of and interest earned from unconsolidated affiliates	—	—	—	—		—	—	—	—	—	—
Hurricane business interruption income	—	—	—	—		—	—	—	—	—	—
Operating income (loss)	—	319	—	(35	)	—	—	—	—	2,103	(19	)
Minority interest income (expense)	—	—	—	—		—	—	—	—	—	—
Interest expense, net	—	—	—	—		—	—	—	—	—	—
Loss on early extinguishments of debt	—	—	—	—		—	—	—	—	—	—
Equity in income from consolidated entities	—	—	—	—		—	—	—	—	—	—
(Loss) income before income taxes and discontinued operations	—	319	—	(35	)	—	—	—	—	2,103	(19	)
Income tax expense	—	—	—	—		—	—	—	—	—	—
(Loss) income from continuing operations	—	319	—	(35	)	—	—	—	—	2,103	(19	)
Discontinued operations:
(Loss) income from discontinued operations before income taxes	—	—	—	—		—	—	—	—	—	—
Income tax expense	—	—	—	—		—	—	—	—	—	—
(Loss) income from discontinued operations	—	—	—	—		—	—	—	—	—	—
Net income (loss)	—	319	—	(35	)	—	—	—	—	2,103	(19	)

20

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2005

(Dollars in thousands)

	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		MeriStar Sub 6K, LLC	MeriStar Sub 5E, LLC	MeriStar Sub 6I, LLC
Revenue:
Hotel operations:
Rooms	—	—		—	—		—	—	—		—	—	—
Food and beverage	—	—		—	—		—	—	—		—	—	—
Other hotel operations	—	—		—	—		—	—	—		—	—	—
Office rental, parking and other revenue	—	227		—	18		—	2	—		—	—	—
Participating lease revenue	85	—		434	1,696		—	630	2,878		—	—	—
Total revenue	85	227		434	1,714		—	632	2,878		—	—	—
Hotel operating expenses:
Rooms	—	—		—	—		—	—	—		—	—	—
Food and beverage	—	—		—	—		—	—	—		—	—	—
Other hotel operating expenses	—	—		—	—		—	—	—		—	—	—
Office rental, parking and other expenses	—	1		—	1		—	122	—		—	—	—
Other operating expenses:	—	—		—	—		—	—	—		—	—	—
General and administrative, hotel	—	—		—	—		—	—	—		—	—	—
General and administrative, corporate	—	—		—	—		—	—	—		—	—	—
Property operating costs	—	—		—	—		—	—	—		—	—	—
Depreciation and amortization	1	911		123	270		—	318	1,323		—	—	—
Property taxes, insurance and other	1	(93	)	—	211		—	96	578		—	—	—
Loss on asset impairments	—	—		—	—		—	—	—		—	—	—
Operating expenses	2	819		123	482		—	536	1,901		—	—	—
Equity in income/loss of and interest earned from unconsolidated affiliates	—	—		—	—		—	—	—		—	—	—
Hurricane business interruption income	—	—		—	—		—	—	—		—	—	—
Operating income (loss)	83	(592	)	311	1,232		—	96	977		—	—	—
Minority interest income (expense)	—	—		—	—		—	—	—		—	—	—
Interest expense, net	—	—		—	(708	)	—	—	(803	)	—	—	—
Loss on early extinguishments of debt	—	—		—	—		—	—	—		—	—	—
Equity in income from consolidated entities	—	—		—	—		—	—	—		—	—	—
(Loss) income before income taxes and discontinued operations	83	(592	)	311	524		—	96	174		—	—	—
Income tax expense	—	—		—	—		—	—	—		—	—	—
(Loss) income from continuing operations	83	(592	)	311	524		—	96	174		—	—	—
Discontinued operations:
(Loss) income from discontinued operations before income taxes	—	—		—	—		—	—	—		—	—	—
Income tax expense	—	—		—	—		—	—	—		—	—	—
(Loss) income from discontinued operations	—	—		—	—		—	—	—		—	—	—
Net income (loss)	83	(592	)	311	524		—	96	174		—	—	—

21

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2005

(Dollars in thousands)

	MeriStar Sub 5I, LLC	CapStar Cherry Hill Company, LLC	Meristar Acquisition Company, LLC	MeriStar Sub 6A, LLC	MeriStar Sub 6F, LLC	MeriStar Hotel Lessee, Inc.		Guarantor Eliminations		Guarantor Subsidiaries Total		Consolidation Eliminations		Total Consolidated
Revenue:
Hotel operations:
Rooms	—	—	—	—	—	125,995		—		125,995		—		$	125,995
Food and beverage	—	—	—	—	—	51,858		—		51,858		—			51,858
Other hotel operations	—	—	—	—	—	11,384		—		11,384		—			11,384
Office rental, parking and other revenue	—	—	—	—	—	—		—		295		—			1,858
Participating lease revenue	—	—	—	—	—	1,408		(1,408	)	26,806		(62,404	)		—
Total revenue	—	—	—	—	—	190,645		(1,408	)	216,338		(62,404	)		191,095
Hotel operating expenses:
Rooms	—	—	—	—	—	31,359		—		31,359		—			31,359
Food and beverage	—	—	—	—	—	37,509		—		37,509		—			37,509
Other hotel operating expenses	—	—	—	—	—	7,116		—		7,116		—			7,116
Office rental, parking and other expenses	—	—	—	—	—	(109	)	—		478		—			824
Other operating expenses:	—	—	—	—	—	—		—		—		—			—
General and administrative, hotel	—	—	—	—	—	32,105		—		32,105		—			32,105
General and administrative, corporate	—	—	—	—	—	33		—		33		—			3,533
Property operating costs	—	—	—	—	—	29,682		—		29,682		—			29,682
Depreciation and amortization	—	—	—	—	—	—		—		9,584		—			24,853
Property taxes, insurance and other	—	—	—	—	—	63,316		—		67,245		(62,404	)		10,989
Loss on asset impairments	—	—	—	—	—	—		—		—		—			—
Operating expenses	—	—	—	—	—	201,011		—		215,111		(62,404	)		177,970
Equity in income/loss of and interest earned from unconsolidated affiliates	—	—	—	—	—	—		—		—		—			1,634
Hurricane business interruption income	—	—	—	—	—	2,281		—		2,281		—			2,281
Operating income (loss)	—	—	—	—	—	(8,085	)	(1,408	)	3,508		—			17,040
Minority interest income (expense)	—	—	—	—	—	—		—		—		—			(5	)
Interest expense, net	—	—	—	—	—	(3,229	)	—		(5,370	)	—			(30,714	)
Loss on early extinguishments of debt	—	—	—	—	—	—		—		—		—			(60	)
Equity in income from consolidated entities	—	—	—	—	—	—		—		—		(7,822	)		—
(Loss) income before income taxes and discontinued operations	—	—	—	—	—	(11,314	)	(1,408	)	(1,862	)	(7,822	)		(13,739	)
Income tax expense	—	—	—	—	—	(10	)	—		(10	)	—			(10	)
(Loss) income from continuing operations	—	—	—	—	—	(11,324	)	(1,408	)	(1,872	)	(7,822	)		(13,749	)
Discontinued operations:
(Loss) income from discontinued operations before income taxes	—	—	—	—	—	—		—		—		—			—
Income tax expense	—	—	—	—	—	—		—		—		—			—
(Loss) income from discontinued operations	—	—	—	—	—	—		—		—		—			—
Net income (loss)	—	—	—	—	—	(11,324	)	(1,408	)	(1,872	)	(7,822	)	$	(13,749	)

22

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2004

(Dollars in thousands)

	MeriStar Hospitality OP, L.P.			Non- Guarantor Subsidiaries		MeriStar Sub 7C, LLC	MeriStar Sub 8G, LLC	AGH UPREIT LLC	MeriStar Sub 6H, L.P.	MeriStar Sub 8F, L.P.	MeriStar Sub 8B, LLC	MeriStar Sub 1C, LLC		MeriStar Sub 8E, LLC	MeriStar Sub 7F, LLC	MeriStar Sub 5L, LLC
Revenue:
Hotel operations:
Rooms	$	—		—		—	—	—	—	—	—	—		—	—	—
Food and beverage		—		—		—	—	—	—	—	—	—		—	—	—
Other hotel operations		—		—		—	—	—	—	—	—	—		—	—	—
Office rental, parking and other revenue		4		634		—	—	—	—	—	—	—		9	—	—
Participating lease revenue		—		33,982		—	—	—	302	601	1,864	422		371	245	377
Total revenue		4		34,616		—	—	—	302	601	1,864	422		380	245	377
Hotel operating expenses:
Rooms		—		—		—	—	—	—	—	—	—		—	—	—
Food and beverage		—		—		—	—	—	—	—	—	—		—	—	—
Other hotel operating expenses		—		—		—	—	—	—	—	—	—		—	—	—
Office rental, parking and other expenses		—		290		—	—	—	—	—	—	—		—	—	—
Other operating expenses:
General and administrative, hotel		—		—		—	—	—	—	—	—	—		—	—	—
General and administrative, corporate		3,831		—		—	—	—	—	—	—	—		—	—	—
Property operating costs		—		—		—	—	—	—	—	—	—		—	—	—
Depreciation and amortization		2,521		12,529		—	—	—	157	164	595	356		149	97	38
Property taxes, insurance and other		—		5,735		—	—	—	24	123	306	210		62	29	40
Loss on asset impairments		—		—		—	—	—	—	—	—	—		—	—	—
Write-off of deferred financing fees		856		—		—	—	—	—	—	—	—		—	—	—
Operating expenses		7,208		18,554		—	—	—	181	287	901	566		211	126	78
Equity in income/loss of and interest earned from unconsolidated affiliates		1,600		—		—	—	—	—	—	—	—		—	—	—
Operating income (loss)		(5,604	)	16,062		—	—	—	121	314	963	(144	)	169	119	299
Minority interest income (expense)		4		—		—	—	—	—	—	—	—		—	—	—
Interest expense, net		(23,430	)	(8,415	)	—	—	—	—	—	—	—		—	—	—
Loss on early extinguishments of debt		(5,923	)	—		—	—	—	—	—	—	—		—	—	—
Equity in income from consolidated entities		(6,866	)	—		—	—	—	—	—	—	—		—	—	—
(Loss) income before income taxes and discontinued operations		(41,819	)	7,647		—	—	—	121	314	963	(144	)	169	119	299
Income tax benefit		390		—		—	—	—	—	—	—	—		—	—	—
(Loss) income from continuing operations		(41,429	)	7,647		—	—	—	121	314	963	(144	)	169	119	299
Discontinued operations:
(Loss) income from discontinued operations before income taxes		477		(56	)	—	—	—	—	—	—	—		—	—	—
Income tax benefit		65		—		—	—	—	—	—	—	—		—	—	—
(Loss) income from discontinued operations		542		(56	)	—	—	—	—	—	—	—		—	—	—
Net income (loss)	$	(40,887	)	7,591		—	—	—	121	314	963	(144	)	169	119	299

23

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2004

(Dollars in thousands)

	MeriStar Sub 3C, LLC	MeriStar Sub 5R, LLC	MeriStar SUB 8A, 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.	MeriStar Sub 4H, L.P.
Revenue:
Hotel operations:
Rooms	—	—	—	—	—	—	—	—	—	—		—	—
Food and beverage	—	—	—	—	—	—	—	—	—	—		—	—
Other hotel operations	—	—	—	—	—	—	—	—	—	—		—	—
Office rental, parking and other revenue	1	—	—	49	—	—	—	—	—	—		—	—
Participating lease revenue	583	—	—	432	1,413	—	604	692	829	—		—	—
Total revenue	584	—	—	481	1,413	—	604	692	829	—		—	—
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	178	—	—	137	410	—	128	196	209	—		—	—
Property taxes, insurance and other	109	—	—	78	153	—	47	98	105	—		—	—
Loss on asset impairments	—	—	—	—	—	—	—	—	—	—		—	—
Write-off of deferred financing fees	—	—	—	—	—	—	—	—	—	—		—	—
Operating expenses	287	—	—	215	563	—	175	294	314	—		—	—
Equity in income/loss of and interest earned from unconsolidated affiliates	—	—	—	—	—	—	—	—	—	—		—	—
Operating income (loss)	297	—	—	266	850	—	429	398	515	—		—	—
Minority interest income (expense)	—	—	—	—	—	—	—	—	—	—		—	—
Interest expense, net	—	—	—	—	—	—	—	—	—	—		—	—
Loss on early extinguishments of debt	—	—	—	—	—	—	—	—	—	—		—	—
Equity in income from consolidated entities	—	—	—	—	—	—	—	—	—	—		—	—
(Loss) income before income taxes and discontinued operations	297	—	—	266	850	—	429	398	515	—		—	—
Income tax benefit	—	—	—	—	—	—	—	—	—	—		—	—
(Loss) income from continuing operations	297	—	—	266	850	—	429	398	515	—		—	—
Discontinued operations:
(Loss) income from discontinued operations before income taxes	—	—	—	—	—	165	—	—	—	(203	)	—	(403	)
Income tax benefit	—	—	—	—	—	—	—	—	—	—		—	—
(Loss) income from discontinued operations	—	—	—	—	—	165	—	—	—	(203	)	—	(403	)
Net income (loss)	297	—	—	266	850	165	429	398	515	(203	)	—	(403	)

24

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2004

(Dollars in thousands)

	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, LP	MeriStar Sub 4D, LLC	MeriStar Sub 2A, LLC	MeriStar Sub 6L, LLC	MDV Limited Partnership	MeriStar Sub 5C, LLC
Revenue:
Hotel operations:
Rooms	—	—	—		—		—	—	—	—	—	—	—	—
Food and beverage	—	—	—		—		—	—	—	—	—	—	—	—
Other hotel operations	—	—	—		—		—	—	—	—	—	—	—	—
Office rental, parking and other revenue	1	—	—		—		—	—	—	—	—	—	—	—
Participating lease revenue	345	376	422		—		—	—	—	—	—	—	130	—
Total revenue	346	376	422		—		—	—	—	—	—	—	130	—
Hotel operating expenses:
Rooms	—	—	—		—		—	—	—	—	—	—	—	—
Food and beverage	—	—	—		—		—	—	—	—	—	—	—	—
Other hotel operating expenses	—	—	—		—		—	—	—	—	—	—	—	—
Office rental, parking and other expenses	—	—	—		—		—	—	—	—	—	—	—	—
Other operating expenses:
General and administrative, hotel	—	—	34		—		—	—	—	—	—	—	—	—
General and administrative, corporate	—	—	—		—		—	—	—	—	—	—	—	—
Property operating costs	—	—	—		—		—	—	—	—	—	—	—	—
Depreciation and amortization	152	192	113		—		—	—	—	—	—	—	23	—
Property taxes, insurance and other	52	65	108		—		—	—	—	—	—	—	29	—
Loss on asset impairments	—	—	184		—		—	—	—	—	—	—	—	—
Write-off of deferred financing fees	—	—	—		—		—	—	—	—	—	—	—	—
Operating expenses	204	257	439		—		—	—	—	—	—	—	52	—
Equity in income/loss of and interest earned from unconsolidated affiliates	—	—	—		—		—	—	—	—	—	—	—	—
Operating income (loss)	142	119	(17	)	—		—	—	—	—	—	—	78	—
Minority interest income (expense)	—	—	—		—		—	—	—	—	—	—	—	—
Interest expense, net	—	—	—		—		—	—	—	—	—	—	—	—
Loss on early extinguishments of debt	—	—	—		—		—	—	—	—	—	—	—	—
Equity in income from consolidated entities	—	—	—		—		—	—	—	—	—	—	—	—
(Loss) income before income taxes and discontinued operations	142	119	(17	)	—		—	—	—	—	—	—	78	—
Income tax benefit	—	—	—		—		—	—	—	—	—	—	—	—
(Loss) income from continuing operations	142	119	(17	)	—		—	—	—	—	—	—	78	—
Discontinued operations:
(Loss) income from discontinued operations before income taxes	—	—	—		(664	)	—	89	96	—	—	1,852	—	—
Income tax benefit	—	—	—		—		—	—	—	—	—	—	—	—
(Loss) income from discontinued operations	—	—	—		(664	)	—	89	96	—	—	1,852	—	—
Net income (loss)	142	119	(17	)	(664	)	—	89	96	—	—	1,852	78	—

25

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2004

(Dollars in thousands)

	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.	MeriStar Sub 2D, LLC
Revenue:
Hotel operations:
Rooms	—	—	—		—	—	—	—	—		—	—	—	—
Food and beverage	—	—	—		—	—	—	—	—		—	—	—	—
Other hotel operations	—	—	—		—	—	—	—	—		—	—	—	—
Office rental, parking and other revenue	—	85	—		436	—	—	—	—		—	—	—	—
Participating lease revenue	496	1,389	—		1,461	—	237	—	459		—	—	—	—
Total revenue	496	1,474	—		1,897	—	237	—	459		—	—	—	—
Hotel operating expenses:
Rooms	—	—	—		—	—	—	—	—		—	—	—	—
Food and beverage	—	—	—		—	—	—	—	—		—	—	—	—
Other hotel operating expenses	—	—	—		—	—	—	—	—		—	—	—	—
Office rental, parking and other expenses	—	28	—		199	—	—	—	—		—	—	—	—
Other operating expenses:
General and administrative, hotel	—	—	—		—	—	—	—	—		—	—	—	—
General and administrative, corporate	—	—	—		—	—	—	—	—		—	—	—	—
Property operating costs	—	—	—		—	—	—	—	—		—	—	—	—
Depreciation and amortization	141	569	—		431	—	112	—	369		—	—	—	—
Property taxes, insurance and other	75	418	—		658	—	58	—	53		—	—	—	—
Loss on asset impairments	—	—	—		—	—	—	—	—		—	—	—	—
Write-off of deferred financing fees	—	—	—		—	—	—	—	—		—	—	—	—
Operating expenses	216	1,015	—		1,288	—	170	—	422		—	—	—	—
Equity in income/loss of and interest earned from unconsolidated affiliates	—	—	—		—	—	—	—	—		—	—	—	—
Operating income (loss)	280	459	—		609	—	67	—	37		—	—	—	—
Minority interest income (expense)	—	—	—		—	—	—	—	—		—	—	—	—
Interest expense, net	—	—	—		—	—	—	—	(307	)	—	—	—	—
Loss on early extinguishments of debt	—	—	—		—	—	—	—	—		—	—	—	—
Equity in income from consolidated entities	—	—	—		—	—	—	—	—		—	—	—	—
(Loss) income before income taxes and discontinued operations	280	459	—		609	—	67	—	(270	)	—	—	—	—
Income tax benefit	—	—	—		—	—	—	—	—		—	—	—	—
(Loss) income from continuing operations	280	459	—		609	—	67	—	(270	)	—	—	—	—
Discontinued operations:
(Loss) income from discontinued operations before income taxes	—	—	(284	)	—	47	—	—	—		—	—	—	—
Income tax benefit	—	—	—		—	—	—	—	—		—	—	—	—
(Loss) income from discontinued operations	—	—	(284	)	—	47	—	—	—		—	—	—	—
Net income (loss)	280	459	(284	)	609	47	67	—	(270	)	—	—	—	—

26

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2004

(Dollars in thousands)

	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.
Revenue:
Hotel operations:
Rooms	—	—	—	—	—	—		—		—	—	—
Food and beverage	—	—	—	—	—	—		—		—	—	—
Other hotel operations	—	—	—	—	—	—		—		—	—	—
Office rental, parking and other revenue	4	—	—	—	—	—		—		—	—	7
Participating lease revenue	492	—	569	—	261	—		—		—	—	3,062
Total revenue	496	—	569	—	261	—		—		—	—	3,069
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	277	—	118	—	57	—		—		—	—	1,572
Property taxes, insurance and other	89	—	71	—	27	—		—		—	—	426
Loss on asset impairments	—	—	—	—	—	—		—		—	—	—
Write-off of deferred financing fees	—	—	—	—	—	—		—		—	—	—
Operating expenses	366	—	189	—	84	—		—		—	—	1,998
Equity in income/loss of and interest earned from unconsolidated affiliates	—	—	—	—	—	—		—		—	—	—
Operating income (loss)	130	—	380	—	177	—		—		—	—	1,071
Minority interest income (expense)	—	—	—	—	—	—		—		—	—	—
Interest expense, net	—	—	—	—	—	—		—		—	—	—
Loss on early extinguishments of debt	—	—	—	—	—	—		—		—	—	—
Equity in income from consolidated entities	—	—	—	—	—	—		—		—	—	—
(Loss) income before income taxes and discontinued operations	130	—	380	—	177	—		—		—	—	1,071
Income tax benefit	—	—	—	—	—	—		—		—	—	—
(Loss) income from continuing operations	130	—	380	—	177	—		—		—	—	1,071
Discontinued operations:
(Loss) income from discontinued operations before income taxes	—	264	—	—	—	(216	)	(978	)	85	—	—
Income tax benefit	—	—	—	—	—	—		—		—	—	—
(Loss) income from discontinued operations	—	264	—	—	—	(216	)	(978	)	85	—	—
Net income (loss)	130	264	380	—	177	(216	)	(978	)	85	—	1,071

27

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2004

(Dollars in thousands)

	MeriStar Sub 5N, LLC	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 Sub 6K, LLC	MeriStar Sub 5E, LLC	MeriStar Sub 6I, LLC
Revenue:
Hotel operations:
Rooms	—	—	—	—	—		—		—	—	—	—
Food and beverage	—	—	—	—	—		—		—	—	—	—
Other hotel operations	—	—	—	—	—		—		—	—	—	—
Office rental, parking and other revenue	—	—	—	—	36		—		32	—	—	—
Participating lease revenue	308	167	2,675	571	1,631		—		654	—	—	—
Total revenue	308	167	2,675	571	1,667		—		686	—	—	—
Hotel operating expenses:
Rooms	—	—	—	—	—		—		—	—	—	—
Food and beverage	—	—	—	—	—		—		—	—	—	—
Other hotel operating expenses	—	—	—	—	—		—		—	—	—	—
Office rental, parking and other expenses	—	—	—	—	—		—		68	—	—	—
Other operating expenses:
General and administrative, hotel	—	—	—	—	—		—		—	—	—	—
General and administrative, corporate	—	—	—	—	—		—		—	—	—	—
Property operating costs	—	—	—	—	—		—		—	—	—	—
Depreciation and amortization	34	1	1,415	140	269		—		315	—	—	—
Property taxes, insurance and other	28	2	375	57	189		—		91	—	—	—
Loss on asset impairments	—	—	—	—	—		—		—	—	—	—
Write-off of deferred financing fees	—	—	—	—	—		—		—	—	—	—
Operating expenses	62	3	1,790	197	458		—		474	—	—	—
Equity in income/loss of and interest earned from unconsolidated affiliates	—	—	—	—	—		—		—	—	—	—
Operating income (loss)	246	164	885	374	1,209		—		212	—	—	—
Minority interest income (expense)	—	—	—	—	—		—		—	—	—	—
Interest expense, net	—	—	—	—	(708	)	—		—	—	—	—
Loss on early extinguishments of debt	—	—	—	—	—		—		—	—	—	—
Equity in income from consolidated entities	—	—	—	—	—		—		—	—	—	—
(Loss) income before income taxes and discontinued operations	246	164	885	374	501		—		212	—	—	—
Income tax benefit	—	—	—	—	—		—		—	—	—	—
(Loss) income from continuing operations	246	164	885	374	501		—		212	—	—	—
Discontinued operations:
(Loss) income from discontinued operations before income taxes	—	—	—	—	—		(857	)	—	—	—	—
Income tax benefit	—	—	—	—	—		—		—	—	—	—
(Loss) income from discontinued operations	—	—	—	—	—		(857	)	—	—	—	—
Net income (loss)	246	164	885	374	501		(857	)	212	—	—	—

28

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Operations

Three Months Ended March 31, 2004

(Dollars in thousands)

	MeriStar Sub 5I, LLC	CapStar Cherry Hill Company, LLC	Meristar Acquisition Company, LLC	MeriStar Sub 6A, LLC	MeriStar Sub 6F, LLC	MeriStar Hotel Lessee, Inc.		Guarantor Subsidiaries Total		Eliminations		Total Consolidated
Revenue:
Hotel operations:
Rooms	—	—	—	—	—	129,992		129,992		—		$	129,992
Food and beverage	—	—	—	—	—	49,110		49,110		—			49,110
Other hotel operations	—	—	—	—	—	15,340		15,340		—			15,340
Office rental, parking and other revenue	—	—	—	—	—	70		730		—			1,368
Participating lease revenue	—	—	—	—	—	—		24,440		(58,422	)		—
Total revenue	—	—	—	—	—	194,512		219,612		(58,422	)		195,810
Hotel operating expenses:
Rooms	—	—	—	—	—	31,686		31,686		—			31,686
Food and beverage	—	—	—	—	—	36,907		36,907		—			36,907
Other hotel operating expenses	—	—	—	—	—	9,475		9,475		—			9,475
Office rental, parking and other expenses	—	—	—	—	—	—		295		—			585
Other operating expenses:
General and administrative, hotel	—	—	—	—	—	32,230		32,264		—			32,264
General and administrative, corporate	—	—	—	—	—	51		51		—			3,882
Property operating costs	—	—	—	—	—	29,735		29,735		—			29,735
Depreciation and amortization	—	—	—	—	—	39		9,153		—			24,203
Property taxes, insurance and other	—	—	—	—	—	64,766		69,021		(58,422	)		16,334
Loss on asset impairments	—	—	—	—	—	—		184		—			184
Write-off of deferred financing fees	—	—	—	—	—	—		—		—			856
Operating expenses	—	—	—	—	—	204,889		218,771		(58,422	)		186,111
Equity in income/loss of and interest earned from unconsolidated affiliates	—	—	—	—	—	—		—		—			1,600
Operating income (loss)	—	—	—	—	—	(10,377	)	841		—			11,299
Minority interest income (expense)	—	—	—	—	—	—		—		—			4
Interest expense, net	—	—	—	—	—	(1,642	)	(2,657	)	—			(34,502	)
Loss on early extinguishments of debt	—	—	—	—	—	—		—		—			(5,923	)
Equity in income from consolidated entities	—	—	—	—	—	—		—		6,866			—
(Loss) income before income taxes and discontinued operations	—	—	—	—	—	(12,019	)	(1,816	)	6,866			(29,122	)
Income tax benefit	—	—	—	—	—	—		—		—			390
(Loss) income from continuing operations	—	—	—	—	—	(12,019	)	(1,816	)	6,866			(28,732	)
Discontinued operations:
(Loss) income from discontinued operations before income taxes	—	—	—	—	—	(11,634	)	(12,641	)	—			(12,220	)
Income tax benefit	—	—	—	—	—	—		—		—			65
(Loss) income from discontinued operations	—	—	—	—	—	(11,634	)	(12,641	)	—			(12,155	)
Net income (loss)	—	—	—	—	—	(23,653	)	(14,457	)	6,866		$	(40,887	)

29

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2005

(Dollars in thousands)

	MeriStar Hospitality OP, L.P.			Non- Guarantor Subsidiaries		MeriStar Lexington Mortgage, LLC		MeriStar Lexington Partners, LLC		MeriStar Sub 7C, LLC	MeriStar Sub 8G, LLC	AGH UPREIT LLC	MeriStar Sub 6H, L.P.		MeriStar Sub 8F, L.P.		MeriStar Sub 8B, LLC
Operating activities:
Net income (loss)	$	(13,749	)	9,694		1,408		(1,341	)	—	—	—	111		301		1,052
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		2,012		13,257		—		(29	)	—	—	—	157		165		623
Loss on early extinguishments of debt		60		—		—		—		—	—	—	—		—		—
Minority interests		5		—		—		—		—	—	—	—		—		—
Equity in loss (income) of unconsolidated affiliates		(7,822	)	—		—		1,370		—	—	—	—		—		—
Amortization of unearned stock-based compensation		277		—		—		—		—	—	—	—		—		—
Changes in operating assets and liabilities:
Accounts receivable		11,752		280		—		—		—	—	—	—		—		(63	)
Prepaid expenses and other assets		25		844		10		(96	)	—	—	—	3		13		15
Receivables from unconsolidated affiliates		13,933		—		1,229		(2,158	)	—	—	—	—		—		—
Due from/to Interstate Hotels & Resorts		461		—		—		—		—	—	—	—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities		(7,005	)	(1,434	)	—		—		—	—	—	22		(1	)	5
Due from/to subsidiaries		202,954		5,866		(1,624	)	913		—	—	—	(292	)	(360	)	3,675
Net cash provided by (used in) operating activities		202,903		28,507		1,023		(1,341	)	—	—	—	1		118		5,307
Investing activities:
Capital expenditures for property and equipment		(1,472	)	(27,830	)	(929	)	1,341		—	—	—	(1	)	(118	)	(5,307	)
Proceeds from sales of assets		—		—		—		—		—	—	—	—		—		—
(Increase) decrease in restricted cash		(2,172	)	(132	)	—		—		—	—	—	—		—		—
Net cash (used in) provided by investing activities		(3,644	)	(27,962	)	(929	)	1,341		—	—	—	(1	)	(118	)	(5,307	)
Financing activities:
Prepayments on long-term debt		(1,531	)	—		—		—		—	—	—	—		—		—
Scheduled payments on long-term debt		(2,003	)	(545	)	—		—		—	—	—	—		—		—
Proceeds from incurrence of mortgage loan, net of financing costs		(41	)	—		(94	)	—		—	—	—	—		—		—
Loans to/from subsidiaries		(211,456	)	—		—		—		—	—	—	—		—		—
Repurchase of limited partnership units		(507	)	—		—		—		—	—	—	—		—		—
Other		26		—		—		—		—	—	—	—		—		—
Net cash provided by (used in) financing activities		(215,512	)	(545	)	(94	)	—		—	—	—	—		—		—
Net (decrease) increase in cash and cash equivalents		(16,253	)	—		—		—		—	—	—	—		—		—
Cash and cash equivalents, beginning of period		41,224		—		—		—		—	—	—	—		—		—
Cash and cash equivalents, end of period	$	24,971		—		—		—		—	—	—	—		—		—

30

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2005

(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 8A, LLC	MeriStar Sub 6D, LLC		MeriStar Sub 6E, LLC		MeriStar Sub 4E, L.P.
Operating activities:
Net income (loss)	(149	)	216		76		219		491		—	—	450		826		—
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	353		136		134		40		156		—	—	106		380		—
Loss on early extinguishments of debt	—		—		—		—		—		—	—	—		—		—
Minority interests	—		—		—		—		—		—	—	—		—		—
Equity in loss (income) of unconsolidated affiliates	—		—		—		—		—		—	—	—		—		—
Amortization of unearned stock-based compensation	—		—		—		—		—		—	—	—		—		—
Changes in operating assets and liabilities:
Accounts receivable	—		—		—		—		—		—	—	12		(3	)	64
Prepaid expenses and other assets	38		4		2		12		6		—	—	3		(787	)	—
Receivables from unconsolidated affiliates	—		—		—		—		—		—	—	—		—		—
Due from/to Interstate Hotels & Resorts	—		—		—		—		—		—	—	—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	45		(32	)	31		22		99		—	—	(39	)	141		(5	)
Due from/to subsidiaries	(133	)	(278	)	(525	)	(104	)	(722	)	—	—	(472	)	(32,578	)	(59	)
Net cash provided by (used in) operating activities	154		46		(282	)	189		30		—	—	60		(32,021	)	—
Investing activities:
Capital expenditures for property and equipment	(154	)	(46	)	282		(189	)	(30	)	—	—	(60	)	(1,828	)	—
Proceeds from sales of assets	—		—		—		—		—		—	—	—		—		—
(Increase) decrease in restricted cash	—		—		—		—		—		—	—	—		(3,000	)	—
Net cash (used in) provided by investing activities	(154	)	(46	)	282		(189	)	(30	)	—	—	(60	)	(4,828	)	—
Financing activities:
Prepayments on long-term debt	—		—		—		—		—		—	—	—		—		—
Scheduled payments on long-term debt	—		—		—		—		—		—	—	—		—		—
Proceeds from incurrence of mortgage loan, net of financing costs	—		—		—		—		—		—	—	—		36,849		—
Loans to/from subsidiaries	—		—		—		—		—		—	—	—		—		—
Repurchase of limited partnership units	—		—		—		—		—		—	—	—		—		—
Other	—		—		—		—		—		—	—	—		—		—
Net cash provided by (used in) financing activities	—		—		—		—		—		—	—	—		36,849		—
Net (decrease) increase in cash and cash equivalents	—		—		—		—		—		—	—	—		—		—
Cash and cash equivalents, beginning of period	—		—		—		—		—		—	—	—		—		—
Cash and cash equivalents, end of period	—		—		—		—		—		—	—	—		—		—

31

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2005

(Dollars in thousands)

	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		MeriStar Sub 1A, LLC		MeriStar Sub 7A Joint Venture
Operating activities:
Net income (loss)	351		667		711		—	—	—	141		220		230		—
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	126		154		167		—	—	—	165		162		73		—
Loss on early extinguishments of debt	—		—		—		—	—	—	—		—		—		—
Minority interests	—		—		—		—	—	—	—		—		—		—
Equity in loss (income) of unconsolidated affiliates	—		—		—		—	—	—	—		—		—		—
Amortization of unearned stock-based compensation	—		—		—		—	—	—	—		—		—		—
Changes in operating assets and liabilities:
Accounts receivable	—		—		—		—	—	—	—		—		—		—
Prepaid expenses and other assets	12		27		5		—	—	—	3		7		23		—
Receivables from unconsolidated affiliates	—		—		—		—	—	—	—		—		—		—
Due from/to Interstate Hotels & Resorts	—		—		—		—	—	—	—		—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	37		65		(56	)	—	—	—	(10	)	30		21		—
Due from/to subsidiaries	97		3,651		(600	)	—	—	—	(169	)	31		(325	)	—
Net cash provided by (used in) operating activities	623		4,564		227		—	—	—	130		450		22		—
Investing activities:
Capital expenditures for property and equipment	(618	)	(4,564	)	(227	)	—	—	—	(130	)	(450	)	(22	)	—
Proceeds from sales of assets	—		—		—		—	—	—	—		—		—		—
(Increase) decrease in restricted cash	—		—		—		—	—	—	—		—		—		—
Net cash (used in) provided by investing activities	(618	)	(4,564	)	(227	)	—	—	—	(130	)	(450	)	(22	)	—
Financing activities:
Prepayments on long-term debt	—		—		—		—	—	—	—		—		—		—
Scheduled payments on long-term debt	(5	)	—		—		—	—	—	—		—		—		—
Proceeds from incurrence of mortgage loan, net of financing costs	—		—		—		—	—	—	—		—		—		—
Loans to/from subsidiaries	—		—		—		—	—	—	—		—		—		—
Repurchase of limited partnership units	—		—		—		—	—	—	—		—		—		—
Other	—		—		—		—	—	—	—		—		—		—
Net cash provided by (used in) financing activities	(5	)	—		—		—	—	—	—		—		—		—
Net (decrease) increase in cash and cash equivalents	—		—		—		—	—	—	—		—		—		—
Cash and cash equivalents, beginning of period	—		—		—		—	—	—	—		—		—		—
Cash and cash equivalents, end of period	—		—		—		—	—	—	—		—		—		—

32

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2005

(Dollars in thousands)

	MeriStar Sub 2B, LLC	MeriStar Sub 3A, LLC	MeriStar Sub 4A, LP	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
Operating activities:
Net income (loss)	—	—	—	—	—	—	54		—	553		578
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	—	—	—	—	—	—	49		—	139		584
Loss on early extinguishments of debt	—	—	—	—	—	—	—		—	—		—
Minority interests	—	—	—	—	—	—	—		—	—		—
Equity in loss (income) of unconsolidated affiliates	—	—	—	—	—	—	—		—	—		—
Amortization of unearned stock-based compensation	—	—	—	—	—	—	—		—	—		—
Changes in operating assets and liabilities:
Accounts receivable	—	—	—	—	—	—	—		—	—		—
Prepaid expenses and other assets	—	—	—	—	—	—	5		—	7		79
Receivables from unconsolidated affiliates	—	—	—	—	—	—	—		—	—		—
Due from/to Interstate Hotels & Resorts	—	—	—	—	—	—	—		—	—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	—	—	—	—	—	—	(35	)	—	(38	)	246
Due from/to subsidiaries	—	—	—	—	—	—	(47	)	—	(524	)	(574	)
Net cash provided by (used in) operating activities	—	—	—	—	—	—	26		—	137		913
Investing activities:
Capital expenditures for property and equipment	—	—	—	—	—	—	(26	)	—	(137	)	(913	)
Proceeds from sales of assets	—	—	—	—	—	—	—		—	—		—
(Increase) decrease in restricted cash	—	—	—	—	—	—	—		—	—		—
Net cash (used in) provided by investing activities	—	—	—	—	—	—	(26	)	—	(137	)	(913	)
Financing activities:
Prepayments on long-term debt	—	—	—	—	—	—	—		—	—		—
Scheduled payments on long-term debt	—	—	—	—	—	—	—		—	—		—
Proceeds from incurrence of mortgage loan, net of financing costs	—	—	—	—	—	—	—		—	—		—
Loans to/from subsidiaries	—	—	—	—	—	—	—		—	—		—
Repurchase of limited partnership units	—	—	—	—	—	—	—		—	—		—
Other	—	—	—	—	—	—	—		—	—		—
Net cash provided by (used in) financing activities	—	—	—	—	—	—	—		—	—		—
Net (decrease) increase in cash and cash equivalents	—	—	—	—	—	—	—		—	—		—
Cash and cash equivalents, beginning of period	—	—	—	—	—	—	—		—	—		—
Cash and cash equivalents, end of period	—	—	—	—	—	—	—		—	—		—

33

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2005

(Dollars in thousands)

	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.	MeriStar Sub 2D, LLC
Operating activities:
Net income (loss)	—	880		—	117		—	(397	)	—	—	—	—
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	—	358		—	113		—	343		—	—	—	—
Loss on early extinguishments of debt	—	—		—	—		—	—		—	—	—	—
Minority interests	—	—		—	—		—	—		—	—	—	—
Equity in loss (income) of unconsolidated affiliates	—	—		—	—		—	—		—	—	—	—
Amortization of unearned stock-based compensation	—	—		—	—		—	—		—	—	—	—
Changes in operating assets and liabilities:
Accounts receivable	—	(300	)	—	(22	)	—	—		—	—	—	—
Prepaid expenses and other assets	—	36		—	2		—	14		—	—	—	—
Receivables from unconsolidated affiliates	—	—		—	—		—	—		—	—	—	—
Due from/to Interstate Hotels & Resorts	—	—		—	—		—	—		—	—	—	—
Accounts payable, accrued expenses, accrued interest and other liabilities	—	(500	)	—	58		—	69		—	—	—	—
Due from/to subsidiaries	—	(259	)	—	(169	)	—	(1	)	—	—	—	—
Net cash provided by (used in) operating activities	—	215		—	99		—	28		—	—	—	—
Investing activities:
Capital expenditures for property and equipment	—	(215	)	—	(99	)	—	(28	)	—	—	—	—
Proceeds from sales of assets	—	—		—	—		—	—		—	—	—	—
(Increase) decrease in restricted cash	—	—		—	—		—	—		—	—	—	—
Net cash (used in) provided by investing activities	—	(215	)	—	(99	)	—	(28	)	—	—	—	—
Financing activities:
Prepayments on long-term debt	—	—		—	—		—	—		—	—	—	—
Scheduled payments on long-term debt	—	—		—	—		—	—		—	—	—	—
Proceeds from incurrence of mortgage loan, net of financing costs	—	—		—	—		—	—		—	—	—	—
Loans to/from subsidiaries	—	—		—	—		—	—		—	—	—	—
Repurchase of limited partnership units	—	—		—	—		—	—		—	—	—	—
Other	—	—		—	—		—	—		—	—	—	—
Net cash provided by (used in) financing activities	—	—		—	—		—	—		—	—	—	—
Net (decrease) increase in cash and cash equivalents	—	—		—	—		—	—		—	—	—	—
Cash and cash equivalents, beginning of period	—	—		—	—		—	—		—	—	—	—
Cash and cash equivalents, end of period	—	—		—	—		—	—		—	—	—	—

34

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2005

(Dollars in thousands)

	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.
Operating activities:
Net income (loss)	131		—	319		—	(35	)	—	—	—	—	2,103
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	283		—	67		—	35		—	—	—	—	1,551
Loss on early extinguishments of debt	—		—	—		—	—		—	—	—	—	—
Minority interests	—		—	—		—	—		—	—	—	—	—
Equity in loss (income) of unconsolidated affiliates	—		—	—		—	—		—	—	—	—	—
Amortization of unearned stock-based compensation	—		—	—		—	—		—	—	—	—	—
Changes in operating assets and liabilities:
Accounts receivable	—		—	—		—	—		—	—	—	—	—
Prepaid expenses and other assets	6		—	17		—	6		—	—	—	—	96
Receivables from unconsolidated affiliates	—		—	—		—	—		—	—	—	—	—
Due from/to Interstate Hotels & Resorts	—		—	—		—	—		—	—	—	—	—
Accounts payable, accrued expenses, accrued interest and other liabilities	(250	)	—	51		—	19		—	—	—	—	289
Due from/to subsidiaries	429		—	291		—	554		—	—	—	—	(1,548	)
Net cash provided by (used in) operating activities	599		—	745		—	579		—	—	—	—	2,491
Investing activities:
Capital expenditures for property and equipment	(599	)	—	(745	)	—	(579	)	—	—	—	—	(2,491	)
Proceeds from sales of assets	—		—	—		—	—		—	—	—	—	—
(Increase) decrease in restricted cash	—		—	—		—	—		—	—	—	—	—
Net cash (used in) provided by investing activities	(599	)	—	(745	)	—	(579	)	—	—	—	—	(2,491	)
Financing activities:
Prepayments on long-term debt	—		—	—		—	—		—	—	—	—	—
Scheduled payments on long-term debt	—		—	—		—	—		—	—	—	—	—
Proceeds from incurrence of mortgage loan, net of financing costs	—		—	—		—	—		—	—	—	—	—
Loans to/from subsidiaries	—		—	—		—	—		—	—	—	—	—
Repurchase of limited partnership units	—		—	—		—	—		—	—	—	—	—
Other	—		—	—		—	—		—	—	—	—	—
Net cash provided by (used in) financing activities	—		—	—		—	—		—	—	—	—	—
Net (decrease) increase in cash and cash equivalents	—		—	—		—	—		—	—	—	—	—
Cash and cash equivalents, beginning of period	—		—	—		—	—		—	—	—	—	—
Cash and cash equivalents, end of period	—		—	—		—	—		—	—	—	—	—

35

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2005

(Dollars in thousands)

	MeriStar Sub 5N, LLC		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		MeriStar Sub 6K, LLC	MeriStar Sub 5E, LLC
Operating activities:
Net income (loss)	(19	)	83		(592	)	311		524		—		96		174		—	—
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	19		1		911		123		270		—		318		1,323		—	—
Loss on early extinguishments of debt	—		—		—		—		—		—		—		—		—	—
Minority interests	—		—		—		—		—		—		—		—		—	—
Equity in loss (income) of unconsolidated affiliates	—		—		—		—		—		—		—		—		—	—
Amortization of unearned stock-based compensation	—		—		—		—		—		—		—		—		—	—
Changes in operating assets and liabilities:
Accounts receivable	—		—		(2	)	—		—		359		—		547		—	—
Prepaid expenses and other assets	7		1		122		19		12		—		7		43		—	—
Receivables from unconsolidated affiliates	—		—		—		—		—		—		—		—		—	—
Due from/to Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—	—
Accounts payable, accrued expenses, accrued interest and other liabilities	18		—		236		30		169		—		(55	)	271		—	—
Due from/to subsidiaries	293		(85	)	3,362		668		(505	)	(359	)	409		(1,885	)	—	—
Net cash provided by (used in) operating activities	318		—		4,037		1,151		470		—		775		473		—	—
Investing activities:
Capital expenditures for property and equipment	(318	)	—		(4,037	)	(1,151	)	(470	)	—		(775	)	(295	)	—	—
Proceeds from sales of assets	—		—		—		—		—		—		—		—		—	—
(Increase) decrease in restricted cash	—		—		—		—		—		—		—		—		—	—
Net cash (used in) provided by investing activities	(318	)	—		(4,037	)	(1,151	)	(470	)	—		(775	)	(295	)	—	—
Financing activities:
Prepayments on long-term debt	—		—		—		—		—		—		—		—		—	—
Scheduled payments on long-term debt	—		—		—		—		—		—		—		(178	)	—	—
Proceeds from incurrence of mortgage loan, net of financing costs	—		—		—		—		—		—		—		—		—	—
Loans to/from subsidiaries	—		—		—		—		—		—		—		—		—	—
Repurchase of limited partnership units	—		—		—		—		—		—		—		—		—	—
Other	—		—		—		—		—		—		—		—		—	—
Net cash provided by (used in) financing activities	—		—		—		—		—		—		—		(178	)	—	—
Net (decrease) increase in cash and cash equivalents	—		—		—		—		—		—		—		—		—	—
Cash and cash equivalents, beginning of period	—		—		—		—		—		—		—		—		—	—
Cash and cash equivalents, end of period	—		—		—		—		—		—		—		—		—	—

36

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2005

(Dollars in thousands)

	MeriStar Sub 6I, LLC	MeriStar Sub 5I, LLC	CapStar Cherry Hill Company, LLC	MeriStar Acquisition Company, LLC	MeriStar Sub 6A, LLC	MeriStar Sub 6F, LLC	MeriStar Hotel Lessee, Inc.		Guarantor Eliminations		Guarantor Subsidiaries Total		Consolidation Eliminations		Total Consolidated
Operating activities:
Net income (loss)	—	—	—	—	—	—	(11,324	)	(1,408	)	(1,872	)	(7,822	)	$	(13,749	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	—	—	—	—	—	—	—		—		9,555		—			24,824
Loss on early extinguishments of debt	—	—	—	—	—	—	—		—		—		—			60
Minority interests	—	—	—	—	—	—	—		—		—		—			5
Equity in loss (income) of unconsolidated affiliates	—	—	—	—	—	—	—		—		1,370		7,822			1,370
Amortization of unearned stock-based compensation	—	—	—	—	—	—	—		—		—		—			277
Changes in operating assets and liabilities:
Accounts receivable	—	—	—	—	—	—	(8,261	)	—		(7,669	)	3,270			7,633
Prepaid expenses and other assets	—	—	—	—	—	—	(750	)	(10	)	(981	)	—			(112	)
Receivables from unconsolidated affiliates	—	—	—	—	—	—	1,229		(1,229	)	(929	)	—			13,004
Due from/to Interstate Hotels & Resorts	—	—	—	—	—	—	(4,215	)	—		(4,215	)	—			(3,754	)
Accounts payable, accrued expenses, accrued interest and other liabilities	—	—	—	—	—	—	2,732		—		3,685		(3,270	)		(8,024	)
Due from/to subsidiaries	—	—	—	—	—	—	(180,714	)	1,718		(208,820	)	—			—
Net cash provided by (used in) operating activities	—	—	—	—	—	—	(201,303	)	(929	)	(209,876	)	—			21,534
Investing activities:
Capital expenditures for property and equipment	—	—	—	—	—	—	(1,341	)	929		(26,340	)	—			(55,642	)
Proceeds from sales of assets	—	—	—	—	—	—	—		—		—		—			—
(Increase) decrease in restricted cash	—	—	—	—	—	—	771		—		(2,229	)	—			(4,533	)
Net cash (used in) provided by investing activities	—	—	—	—	—	—	(570	)	929		(28,569	)	—			(60,175	)
Financing activities:
Prepayments on long-term debt	—	—	—	—	—	—	—		—		—		—			(1,531	)
Scheduled payments on long-term debt	—	—	—	—	—	—	—		—		(183	)	—			(2,731	)
Proceeds from incurrence of mortgage loan, net of financing costs	—	—	—	—	—	—	—		—		36,755		—			36,714
Loans to/from subsidiaries	—	—	—	—	—	—	211,456		—		211,456		—			—
Repurchase of limited partnership units	—	—	—	—	—	—	—		—		—		—			(507	)
Other	—	—	—	—	—	—	—		—		—		—			26
Net cash provided by (used in) financing activities	—	—	—	—	—	—	211,456		—		248,028		—			31,971
Net (decrease) increase in cash and cash equivalents	—	—	—	—	—	—	9,583		—		9,583		—			(6,670	)
Cash and cash equivalents, beginning of period	—	—	—	—	—	—	19,309		—		19,309		—			60,533
Cash and cash equivalents, end of period	—	—	—	—	—	—	28,892		—		28,892		—		$	53,863

37

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2004

(Dollars in thousands)

	MeriStar Hospitality OP, L.P.			Non- Guarantor Subsidiaries		MeriStar Sub 7C, LLC	MeriStar Sub 8G, LLC	AGH UPREIT LLC	MeriStar Sub 6H, L.P.		MeriStar Sub 8F, L.P.		MeriStar Sub 8B, LLC		MeriStar Sub 1C, LLC		MeriStar Sub 8E, LLC
Operating activities:
Net income (loss)	$	(40,887	)	7,591		—	—	—	121		314		963		(144	)	169
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		3,377		13,358		—	—	—	157		164		595		356		149
Loss on asset impairments		—		2,870		—	—	—	—		—		—		—		—
Loss on sale of assets, before tax effect		(68	)	(378	)	—	—	—	—		—		—		—		—
Loss on early extinguishments of debt		5,923		—		—	—	—	—		—		—		—		—
Minority interests		(4	)	—		—	—	—	—		—		—		—		—
Equity in loss of unconsolidated affiliates		6,866		—		—	—	—	—		—		—		—		—
Amortization of unearned stock-based compensation		587		—		—	—	—	—		—		—		—		—
Deferred income taxes		(358	)	—		—	—	—	—		—		—		—		—
Changes in operating assets and liabilities:
Accounts receivable		26		151		—	—	—	—		—		—		—		—
Prepaid expenses and other assets		1,187		1,972		—	—	—	4		16		19		19		5
Receivables from unconsolidated affiliates		(1,600	)	—		—	—	—	—		—		—		—		—
Due from/to Interstate Hotels & Resorts		5,866		—		—	—	—	—		—		—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities		(8,972	)	(3,129	)	—	—	—	(139	)	(66	)	59		37		(11	)
Due from/to subsidiaries		86,165		(36,539	)	—	—	—	(143	)	(428	)	954		(111	)	(256	)
Net cash provided by (used in) operating activities		58,108		(14,104	)	—	—	—	—		—		2,590		157		56
Investing activities:
Capital expenditures for property and equipment		(3,321	)	(9,189	)	—	—	—	—		—		(2,590	)	(157	)	(56	)
Proceeds from sales of assets		—		26,475		—	—	—	—		—		—		—		—
(Increase) decrease in restricted cash		(1,127	)	282		—	—	—	—		—		—		—		—
Costs associated with disposition program and other, net		84		(1,157	)	—	—	—	—		—		—		—		—
Net cash (used in) provided by investing activities		(4,364	)	16,411		—	—	—	—		—		(2,590	)	(157	)	(56	)
Financing activities:
Prepayments on long-term debt		(75,497	)	—		—	—	—	—		—		—		—		—
Scheduled payments on long-term debt		—		(2,307	)	—	—	—	—		—		—		—		—
Loans to/from subsidiaries		(27,493	)	—		—	—	—	—		—		—		—		—
Distributions to minority investors		(141	)	—		—	—	—	—		—		—		—		—
Other		(77	)	—		—	—	—	—		—		—		—		—
Net cash provided by (used in) financing activities		(103,208	)	(2,307	)	—	—	—	—		—		—		—		—
Effect of exchange rate changes on cash and cash equivalents		(150	)	—		—	—	—	—		—		—		—		—
Net decrease in cash and cash equivalents		(49,614	)	—		—	—	—	—		—		—		—		—
Cash and cash equivalents, beginning of period		218,646		—		—	—	—	—		—		—		—		—
Cash and cash equivalents, end of period	$	169,032		—		—	—	—	—		—		—		—		—

38

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2004

(Dollars in thousands)

	MeriStar Sub 7F, LLC		MeriStar Sub 5L, LLC		MeriStar Sub 3C, LLC		MeriStar Sub 5R, LLC	MeriStar Sub 8A, LLC	MeriStar Sub 6D, LLC		MeriStar Sub 6E, LLC		MeriStar Sub 4E, L.P.		MeriStar Sub 1B, LLC		MeriStar Sub 5F, L.P.
Operating activities:
Net income (loss)	119		299		297		—	—	266		850		165		429		398
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	97		38		178		—	—	137		410		76		128		196
Loss on asset impairments	—		—		—		—	—	—		—		—		—		—
Loss on sale of assets, before tax effect	—		—		—		—	—	—		—		—		—		—
Loss on early extinguishments of debt	—		—		—		—	—	—		—		—		—		—
Minority interests	—		—		—		—	—	—		—		—		—		—
Equity in loss of unconsolidated affiliates	—		—		—		—	—	—		—		—		—		—
Amortization of unearned stock-based compensation	—		—		—		—	—	—		—		—		—		—
Deferred income taxes	—		—		—		—	—	—		—		—		—		—
Changes in operating assets and liabilities:
Accounts receivable	—		—		—		—	—	(7	)	—		—		—		—
Prepaid expenses and other assets	3		17		5		—	—	4		16		10		16		36
Receivables from unconsolidated affiliates	—		—		—		—	—	—		—		—		—		—
Due from/to Interstate Hotels & Resorts	—		—		—		—	—	—		—		—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	(24	)	38		175		—	—	(38	)	328		(255	)	(15	)	(39	)
Due from/to subsidiaries	(186	)	(357	)	(648	)	—	—	(312	)	(1,026	)	13		(311	)	(442	)
Net cash provided by (used in) operating activities	9		35		7		—	—	50		578		9		247		149
Investing activities:
Capital expenditures for property and equipment	(9	)	(35	)	(7	)	—	—	(50	)	(578	)	(9	)	(247	)	(149	)
Proceeds from sales of assets	—		—		—		—	—	—		—		—		—		—
(Increase) decrease in restricted cash	—		—		—		—	—	—		—		—		—		—
Costs associated with disposition program and other, net	—		—		—		—	—	—		—		—		—		—
Net cash (used in) provided by investing activities	(9	)	(35	)	(7	)	—	—	(50	)	(578	)	(9	)	(247	)	(149	)
Financing activities:
Prepayments on long-term debt	—		—		—		—	—	—		—		—		—		—
Scheduled payments on long-term debt	—		—		—		—	—	—		—		—		—		—
Loans to/from subsidiaries	—		—		—		—	—	—		—		—		—		—
Distributions to minority investors	—		—		—		—	—	—		—		—		—		—
Other	—		—		—		—	—	—		—		—		—		—
Net cash provided by (used in) financing activities	—		—		—		—	—	—		—		—		—		—
Effect of exchange rate changes on cash and cash equivalents	—		—		—		—	—	—		—		—		—		—
Net decrease in cash and cash equivalents	—		—		—		—	—	—		—		—		—		—
Cash and cash equivalents, beginning of period	—		—		—		—	—	—		—		—		—		—
Cash and cash equivalents, end of period	—		—		—		—	—	—		—		—		—		—

39

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2004

(Dollars in thousands)

	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		MeriStar Sub 3A, LLC
Operating activities:
Net income (loss)	515		(203	)	—	(403	)	142		119		(17	)	(664	)		—		89
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	209		—		—	43		152		192		113		61			—		51
Loss on asset impairments	—		—		—	—		—		—		184		809			—		—
Loss on sale of assets, before tax effect	—		253		—	365		—		—		—		—			—		(20	)
Loss on early extinguishments of debt	—		—		—	—		—		—		—		—			—		—
Minority interests	—		—		—	—		—		—		—		—			—		—
Equity in loss of unconsolidated affiliates	—		—		—	—		—		—		—		—			—		—
Amortization of unearned stock-based compensation	—		—		—	—		—		—		—		—			—		—
Deferred income taxes	—		—		—	—		—		—		—		—			—		—
Changes in operating assets and liabilities:
Accounts receivable	—		—		—	—		—		—		—		—			2,345		—
Prepaid expenses and other assets	6		117		—	(8	)	4		8		26		7			—		1
Receivables from unconsolidated affiliates	—		—		—	—		—		—		—		—			—		—
Due from/to Interstate Hotels & Resorts	—		—		—	—		—		—		—		—			—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	97		306		—	(178	)	(13	)	3		59		(20	)		—		(161	)
Due from/to subsidiaries	(742	)	(5,787	)	—	(4,192	)	158		(298	)	(361	)	(185	)		(2,345	)	(2,936	)
Net cash provided by (used in) operating activities	85		(5,314	)	—	(4,373	)	443		24		4		8			—		(2,976	)
Investing activities:																��
Capital expenditures for property and equipment	(85	)	569		—	(86	)	(443	)	(24	)	(4	)	(8	)		—		(83	)
Proceeds from sales of assets	—		5,000		—	4,650		—		—		—		—			—		3,300
(Increase) decrease in restricted cash	—		—		—	—		—		—		—		—			—		—
Costs associated with disposition program and other, net	—		(255	)	—	(191	)	—		—		—		—			—		(241	)
Net cash (used in) provided by investing activities	(85	)	5,314		—	4,373		(443	)	(24	)	(4	)	(8	)		—		2,976
Financing activities:
Prepayments on long-term debt	—		—		—	—		—		—		—		—			—		—
Scheduled payments on long-term debt	—		—		—	—		—		—		—		—			—		—
Loans to/from subsidiaries	—		—		—	—		—		—		—		—			—		—
Distributions to minority investors	—		—		—	—		—		—		—		—			—		—
Other	—		—		—	—		—		—		—		—			—		—
Net cash provided by (used in) financing activities	—		—		—	—		—		—		—		—			—		—
Effect of exchange rate changes on cash and cash equivalents	—		—		—	—		—		—		—		—			—		—
Net decrease in cash and cash equivalents	—		—		—	—		—		—		—		—			—		—
Cash and cash equivalents, beginning of period	—		—		—	—		—		—		—		—			—		—
Cash and cash equivalents, end of period	—		—		—	—		—		—		—		—			—		—

40

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2004

(Dollars in thousands)

	MeriStar Sub 4A, LP		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.		MeriStar Sub 7D, LLC
Operating activities:
Net income (loss)	96		—		—		1,852		78		—		280		459		(284	)	609
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	—		—		—		—		23		—		141		569		98		431
Loss on asset impairments	—		—		—		—		—		—		—		—		—		—
Loss on sale of assets, before tax effect	46		—		—		(1,827	)	—		—		—		—		425		—
Loss on early extinguishments of debt	—		—		—		—		—		—		—		—		—		—
Minority interests	—		—		—		—		—		—		—		—		—		—
Equity in loss of unconsolidated affiliates	—		—		—		—		—		—		—		—		—		—
Amortization of unearned stock-based compensation	—		—		—		—		—		—		—		—		—		—
Deferred income taxes	—		—		—		—		—		—		—		—		—		—
Changes in operating assets and liabilities:
Accounts receivable	—		—		2,002		(178	)	—		2		—		—		—		(234	)
Prepaid expenses and other assets	(9	)	3		—		14		4		(4	)	4		105		7		17
Receivables from unconsolidated affiliates	—		—		—		—		—		—		—		—		—		—
Due from/to Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	(342	)	—		—		(25	)	4		—		228		335		(540	)	(166	)
Due from/to subsidiaries	(2,918	)	(3	)	(2,002	)	(13,823	)	(82	)	2		(560	)	(1,155	)	328		(326	)
Net cash provided by (used in) operating activities	(3,127	)	—		—		(13,987	)	27		—		93		313		34		331
Investing activities:
Capital expenditures for property and equipment	(194	)	—		—		(319	)	(27	)	—		(93	)	(313	)	(34	)	(331	)
Proceeds from sales of assets	3,575		—		—		14,775		—		—		—		—		—		—
(Increase) decrease in restricted cash	—		—		—		—		—		—		—		—		—		—
Costs associated with disposition program and other, net	(254	)	—		—		(469	)	—		—		—		—		—		—
Net cash (used in) provided by investing activities	3,127		—		—		13,987		(27	)	—		(93	)	(313	)	(34	)	(331	)
Financing activities:
Prepayments on long-term debt	—		—		—		—		—		—		—		—		—		—
Scheduled payments on long-term debt	—		—		—		—		—		—		—		—		—		—
Loans to/from subsidiaries	—		—		—		—		—		—		—		—		—		—
Distributions to minority investors	—		—		—		—		—		—		—		—		—		—
Other	—		—		—		—		—		—		—		—		—		—
Net cash provided by (used in) financing activities	—		—		—		—		—		—		—		—		—		—
Effect of exchange rate changes on cash and cash equivalents	—		—		—		—		—		—		—		—		—		—
Net decrease in cash and cash equivalents	—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, beginning of period	—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, end of period	—		—		—		—		—		—		—		—		—		—

41

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2004

(Dollars in thousands)

	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.		MeriStar Sub 5K, LLC
Operating activities:
Net income (loss)	47		67		—		(270	)	—		—		—		—		130		264
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	49		112		—		369		—		—		—		—		277		324
Loss on asset impairments	—		—		—		—		—		—		—		—		—		—
Loss on sale of assets, before tax effect	—		—		—		—		—		—		—		—		—		—
Loss on early extinguishments of debt	—		—		—		—		—		—		—		—		—		—
Minority interests	—		—		—		—		—		—		—		—		—		—
Equity in loss of unconsolidated affiliates	—		—		—		—		—		—		—		—		—		—
Amortization of unearned stock-based compensation	—		—		—		—		—		—		—		—		—		—
Deferred income taxes	—		—		—		—		—		—		—		—		—		—
Changes in operating assets and liabilities:
Accounts receivable	—		—		—		—		—		43		—		1,166		—		—
Prepaid expenses and other assets	5		2		—		18		1		—		1		—		7		37
Receivables from unconsolidated affiliates	—		—		—		—		—		—		—		—		—		—
Due from/to Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	147		63		61		327		—		—		—		—		(295	)	44
Due from/to subsidiaries	(241	)	(81	)	(61	)	(346	)	(1	)	(43	)	(1	)	(1,166	)	241		(632	)
Net cash provided by (used in) operating activities	7		163		—		98		—		—		—		—		360		37
Investing activities:
Capital expenditures for property and equipment	(7	)	(163	)	—		(98	)	—		—		—		—		(360	)	(37	)
Proceeds from sales of assets	—		—		—		—		—		—		—		—		—		—
(Increase) decrease in restricted cash	—		—		—		—		—		—		—		—		—		—
Costs associated with disposition program and other, net	—		—		—		—		—		—		—		—		—		—
Net cash (used in) provided by investing activities	(7	)	(163	)	—		(98	)	—		—		—		—		(360	)	(37	)
Financing activities:
Prepayments on long-term debt	—		—		—		—		—		—		—		—		—		—
Scheduled payments on long-term debt	—		—		—		—		—		—		—		—		—		—
Loans to/from subsidiaries	—		—		—		—		—		—		—		—		—		—
Distributions to minority investors	—		—		—		—		—		—		—		—		—		—
Other	—		—		—		—		—		—		—		—		—		—
Net cash provided by (used in) financing activities	—		—		—		—		—		—		—		—		—		—
Effect of exchange rate changes on cash and cash equivalents	—		—		—		—		—		—		—		—		—		—
Net decrease in cash and cash equivalents	—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, beginning of period	—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, end of period	—		—		—		—		—		—		—		—		—		—

42

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2004

(Dollars in thousands)

	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 5N, LLC		MeriStar Sub 5P, LLC
Operating activities:
Net income (loss)	380		—		177		(216	)	(978	)	85		—		1,071		246		164
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	118		—		57		—		—		112		—		1,572		34		1
Loss on asset impairments	—		—		—		—		903		245		—		—		—		—
Loss on sale of assets, before tax effect	—		—		—		215		—		—		—		—		—		—
Loss on early extinguishments of debt	—		—		—		—		—		—		—		—		—		—
Minority interests	—		—		—		—		—		—		—		—		—		—
Equity in loss of unconsolidated affiliates	—		—		—		—		—		—		—		—		—		—
Amortization of unearned stock-based compensation	—		—		—		—		—		—		—		—		—		—
Deferred income taxes	—		—		—		—		—		—		—		—		—		—
Changes in operating assets and liabilities:
Accounts receivable	—		198		—		—		(7	)	—		—		—		—		—
Prepaid expenses and other assets	21		(1	)	8		(4	)	17		47		—		131		9		2
Receivables from unconsolidated affiliates	—		—		—		—		—		—		—		—		—		—
Due from/to Interstate Hotels & Resorts	—		—		—		—		—		—		—		—		—		—
Accounts payable, accrued expenses, accrued interest and other liabilities	49		(14	)	27		(411	)	(119	)	(405	)	22		(761	)	28		—
Due from/to subsidiaries	(548	)	(183	)	(264	)	(6,187	)	251		(83	)	(22	)	567		(300	)	(167	)
Net cash provided by (used in) operating activities	20		—		5		(6,603	)	67		1		—		2,580		17		—
Investing activities:
Capital expenditures for property and equipment	(20	)	—		(5	)	(415	)	(67	)	(1	)	—		(2,580	)	(17	)	—
Proceeds from sales of assets	—		—		—		7,500		—		—		—		—		—		—
(Increase) decrease in restricted cash	—		—		—		—		—		—		—		—		—		—
Costs associated with disposition program and other, net	—		—		—		(482	)	—		—		—		—		—		—
Net cash (used in) provided by investing activities	(20	)	—		(5	)	6,603		(67	)	(1	)	—		(2,580	)	(17	)	—
Financing activities:
Prepayments on long-term debt	—		—		—		—		—		—		—		—		—		—
Scheduled payments on long-term debt	—		—		—		—		—		—		—		—		—		—
Loans to/from subsidiaries	—		—		—		—		—		—		—		—		—		—
Distributions to minority investors	—		—		—		—		—		—		—		—		—		—
Other	—		—		—		—		—		—		—		—		—		—
Net cash provided by (used in) financing activities	—		—		—		—		—		—		—		—		—		—
Effect of exchange rate changes on cash and cash equivalents	—		—		—		—		—		—		—		—		—		—
Net decrease in cash and cash equivalents	—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, beginning of period	—		—		—		—		—		—		—		—		—		—
Cash and cash equivalents, end of period	—		—		—		—		—		—		—		—		—		—

43

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2004

(Dollars in thousands)

	MeriStar Sub 5J, LLC		MeriStar Sub 5Q, LLC		MeriStar Sub 5A, LLC		MeriStar Sub 8D, LLC		MeriStar Sub 4J, LLC		MeriStar Sub 6K, LLC	MeriStar Sub 5E, LLC	MeriStar Sub 6I, LLC	MeriStar Sub 5I, LLC	CapStar Cherry Hill Company, LLC
Operating activities:
Net income (loss)	885		374		501		(857	)	212		—	—	—	—	—
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	1,415		140		269		—		315		—	—	—	—	—
Loss on asset impairments	—		—		—		—		—		—	—	—	—	—
Loss on sale of assets, before tax effect	—		—		—		899		—		—	—	—	—	—
Loss on early extinguishments of debt	—		—		—		—		—		—	—	—	—	—
Minority interests	—		—		—		—		—		—	—	—	—	—
Equity in loss of unconsolidated affiliates	—		—		—		—		—		—	—	—	—	—
Amortization of unearned stock-based compensation	—		—		—		—		—		—	—	—	—	—
Deferred income taxes	—		—		—		—		—		—	—	—	—	—
Changes in operating assets and liabilities:
Accounts receivable	—		—		—		(359	)	—		—	—	—	—	—
Prepaid expenses and other assets	169		26		15		14		9		—	—	—	—	—
Receivables from unconsolidated affiliates	—		—		—		—		—		—	—	—	—	—
Due from/to Interstate Hotels & Resorts	—		—		—		—		—		—	—	—	—	—
Accounts payable, accrued expenses, accrued interest and other liabilities	154		28		370		183		12		—	—	—	—	—
Due from/to subsidiaries	(1,505	)	(510	)	(940	)	(7,983	)	(202	)	—	—	—	—	—
Net cash provided by (used in) operating activities	1,118		58		215		(8,103	)	346		—	—	—	—	—
Investing activities:
Capital expenditures for property and equipment	(1,118	)	(58	)	(215	)	(358	)	(346	)	—	—	—	—	—
Proceeds from sales of assets	—		—		—		8,800		—		—	—	—	—	—
(Increase) decrease in restricted cash	—		—		—		—		—		—	—	—	—	—
Costs associated with disposition program and other, net	—		—		—		(339	)	—		—	—	—	—	—
Net cash (used in) provided by investing activities	(1,118	)	(58	)	(215	)	8,103		(346	)	—	—	—	—	—
Financing activities:
Prepayments on long-term debt	—		—		—		—		—		—	—	—	—	—
Scheduled payments on long-term debt	—		—		—		—		—		—	—	—	—	—
Loans to/from subsidiaries	—		—		—		—		—		—	—	—	—	—
Distributions to minority investors	—		—		—		—		—		—	—	—	—	—
Other	—		—		—		—		—		—	—	—	—	—
Net cash provided by (used in) financing activities	—		—		—		—		—		—	—	—	—	—
Effect of exchange rate changes on cash and cash equivalents	—		—		—		—		—		—	—	—	—	—
Net decrease in cash and cash equivalents	—		—		—		—		—		—	—	—	—	—
Cash and cash equivalents, beginning of period	—		—		—		—		—		—	—	—	—	—
Cash and cash equivalents, end of period	—		—		—		—		—		—	—	—	—	—

44

MeriStar Hospitality Operating Partnership, L.P.

Consolidated Statement of Cash Flows

Three Months Ended March 31, 2004

(Dollars in thousands)

	Meristar Acquisition Company, LLC	MeriStar Sub 6A, LLC	MeriStar Sub 6F, LLC	MeriStar Hotel Lessee, Inc.		Guarantor Subsidiaries Total		Eliminations		Total Consolidated
Operating activities:
Net income (loss)	—	—	—	(23,653	)	(14,457	)	6,866		$	(40,887	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	—	—	—	39		9,967		—			26,702
Loss on asset impairments	—	—	—	—		2,141		—			5,011
Loss on sale of assets, before tax effect	—	—	—	7,036		7,392		—			6,946
Loss on early extinguishments of debt	—	—	—	—		—		—			5,923
Minority interests	—	—	—	—		—		—			(4	)
Equity in loss of unconsolidated affiliates	—	—	—	—		—		(6,866	)		—
Amortization of unearned stock-based compensation	—	—	—	—		—		—			587
Deferred income taxes	—	—	—	—		—		—			(358	)
Changes in operating assets and liabilities:
Accounts receivable	—	—	—	(7,915	)	(2,944	)	—			(2,767	)
Prepaid expenses and other assets	—	—	—	755		1,761		—			4,920
Receivables from unconsolidated affiliates	—	—	—	—		—		—			(1,600	)
Due from/to Interstate Hotels & Resorts	—	—	—	(11,327	)	(11,327	)	—			(5,461	)
Accounts payable, accrued expenses, accrued interest and other liabilities	—	—	—	11,306		10,453		—			(1,648	)
Due from/to subsidiaries	—	—	—	11,261		(49,626	)	—			—
Net cash provided by (used in) operating activities	—	—	—	(12,498	)	(46,640	)	—			(2,636	)
Investing activities:
Capital expenditures for property and equipment	—	—	—	—		(11,227	)	—			(23,737	)
Proceeds from sales of assets	—	—	—	—		47,600		—			74,075
(Increase) decrease in restricted cash	—	—	—	(1,288	)	(1,288	)	—			(2,133	)
Costs associated with disposition program and other, net	—	—	—	—		(2,231	)	—			(3,304	)
Net cash (used in) provided by investing activities	—	—	—	(1,288	)	32,854		—			44,901
Financing activities:
Prepayments on long-term debt	—	—	—	—		—		—			(75,497	)
Scheduled payments on long-term debt	—	—	—	—		—		—			(2,307	)
Loans to/from subsidiaries	—	—	—	27,493		27,493		—			—
Distributions to minority investors	—	—	—	—		—		—			(141	)
Other	—	—	—	—		—		—			(77	)
Net cash provided by (used in) financing activities	—	—	—	27,493		27,493		—			(78,022	)
Effect of exchange rate changes on cash and cash equivalents	—	—	—	—		—		—			(150	)
Net decrease in cash and cash equivalents	—	—	—	13,707		13,707		—			(35,907	)
Cash and cash equivalents, beginning of period	—	—	—	12,230		12,230		—			230,876
Cash and cash equivalents, end of period	—	—	—	25,937		25,937		—		$	194,969

45