EXHIBIT 12 CAPSTAR HOTEL COMPANY STATEMENT REGARDING COMPUTATION OF RATIOS (UNAUDITED, DOLLARS IN THOUSANDS) YEAR ENDED DECEMBER 31, SIX MONTHS ------------------------------------------------------------- ENDED 1992(1) 1993(1) 1994(1) 1995 1996 JUNE 30, 1997 ----------- ----------- ----------- ----------- --------- ------------- Income before minority interest, income tax expense and extraordinary items(2)....................... $ -- $ -- $ -- $ 213 $ 6,988 $ 16,996 Fixed charges: Interest expense................................. -- -- -- 2,673 12,784 8,858 Interest capitalized............................. -- -- -- 67 461 173 Amortization of debt expense..................... -- -- -- 131 986 687 Preferred distributions to minority interest..... -- -- -- -- -- 163 Rent deemed as interest.......................... -- -- -- 16 22 13 ----- --- --- ----- --------- ------------- Total fixed charges.......................... -- -- -- 2,887 14,253 9,894 ----- --- --- ----- --------- ------------- Income before minority interest, income tax expense, extraordinary items and fixed charges (excluding capitalized interest and preferred distributions to minority interest).............. -- -- -- 3,033 20,780 26,554 Divided by fixed charges........................... -- -- -- 2,887 14,253 9,894 Ratio of earnings to fixed charges................. -- -- -- 1.05x 1.46x 2.68x - ------------------------ (1) Prior to 1995, the Company's predecessor entities had no fixed charges and therefore the ratio of earnings to fixed charges was not applicable. (2) This amount is before minority interest since the minority interest relates to majority-owned subsidiaries that have fixed charges.