Exhibit 99.1
INDEPENDENT AUDITORS' REPORT
----------------------------
The Partners
MeriStar Hospitality Operating Partnership, L.P.:
Under date of February 12, 2003, we reported on the consolidated balance
sheets of MeriStar Hospitality Operating Partnership, L.P. and subsidiaries
(the Partnership) as of December 31, 2002 and 2001, and the related
consolidated statements of operations, partners' capital and cash flows
for each of the years in the three-year period ended December 31, 2002, as
contained in the annual report on Form 10-K for the year 2002. Our audits
were made for the purpose of forming an opinion on the consolidated financial
statements of MeriStar Hospitality Operating Partnership, L.P. and subsidiaries
taken as a whole. The consolidating information is presented for purposes of
additional analysis of the consolidated financial statements rather than to
present the financial position, results of operations and cash flows of the
individual companies. The consolidating information has been subjected to the
auditing procedures applied in the audits of the consolidated financial
statements and, in our opinion, is fairly stated in all material respects in
relation to the consolidated financial statements taken as a whole.
/s/ KPMG LLP
Washington, D.C.
February 12, 2003
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(IN THOUSANDS OF DOLLARS)
MERISTAR NON- MERISTAR AGH MERISTAR
HOSPITALITY GUARANTOR SUB 7C, UPREIT, SUB 5N,
OP, L.P. SUBSIDIARIES LLC LLC LLC
----------- ------------ ----------- ----------- -----------
ASSETS
Investments in hotel properties $ 16,986 1,474,169 -- -- 4,117
Accumulated depreciation (8,686) (227,691) -- -- (541)
----------- ----------- ----------- ----------- -----------
8,300 1,246,478 -- -- 3,576
Restricted cash 15,374 4,876 -- -- --
Investments in and advances to affiliates 2,590,429 8,200 32 3,056 --
Due from subsidiaries (595,139) 196,324 -- 66 3,522
Note receivable from Interstate Hotels & Resorts 150,657 -- -- -- --
Prepaid expenses and other assets 22,457 304 -- -- --
Accounts receivable, net of allowance for doubtful accounts 11,944 1,313 -- -- --
Cash and cash equivalents 21,372 -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets $ 2,225,394 1,457,495 32 3,122 7,098
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt $ 945,830 352,052 -- -- --
Notes payable to MeriStar Hospitality Corporation 357,505 -- -- -- --
Accounts payable and accrued expenses 15,585 9,733 -- -- 7
Accrued interest 49,106 3,577 -- -- --
Due to Interstate Hotels & Resorts 372 -- -- -- --
Other liabilities 4,591 -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities 1,372,989 365,362 -- -- 7
----------- ----------- ----------- ----------- -----------
Minority interests 2,624 -- -- -- --
Redeemable OP units at redemption value 38,205 -- -- -- --
Partners' capital - Common OP Units 811,576 1,092,133 32 3,122 7,091
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital $ 2,225,394 1,457,495 32 3,122 7,098
=========== =========== =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 8F, SUB 8G, SUB 6H, SUB 8B,
LLC LLC LLC L.P. LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties -- 11,471 -- 13,635 81,872
Accumulated depreciation -- (1,933) -- (1,877) (9,874)
----------- ----------- ----------- ----------- -----------
-- 9,538 -- 11,758 71,998
Restricted cash -- 115 -- -- --
Investments in and advances to affiliates -- -- 72 -- --
Due from subsidiaries 4,879 5,385 10 5,770 26,553
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- 2 -- -- 32
Accounts receivable, net of allowance for doubtful accounts (17) (28) -- -- --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 4,862 15,012 82 17,528 98,583
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses (132) 207 -- 179 2,626
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities (132) 207 -- 179 2,626
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 4,994 14,805 82 17,349 95,957
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 4,862 15,012 82 17,528 98,583
=========== =========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1C, SUB 8E, SUB 7F, SUB 5L, SUB 3C,
L.P. LLC LLC LLC LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 25,327 15,274 12,046 11,579 17,380
Accumulated depreciation (4,885) (2,441) (2,453) (504) (2,998)
----------- ----------- ----------- ----------- -----------
20,442 12,833 9,593 11,075 14,382
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries (2,994) 5,641 4,366 3,676 3,935
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- -- -- -- 48
Accounts receivable, net of allowance for doubtful accounts -- -- -- 28 --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 17,448 18,474 13,959 14,779 18,365
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 186 (8) 162 35 208
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities 186 (8) 162 35 208
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 17,262 18,482 13,797 14,744 18,157
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 17,448 18,474 13,959 14,779 18,365
=========== =========== =========== =========== ===========
MERISTAR OLD MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5R, SUB 8A, SUB 6D, SUB 6E, SUB 4E,
LLC LLC LLC LLC L.P.
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties -- -- 17,430 44,495 24,741
Accumulated depreciation -- -- (2,347) (8,334) (3,986)
----------- ----------- ----------- ----------- -----------
-- -- 15,083 36,161 20,755
Restricted cash -- -- -- -- --
Investments in and advances to affiliates 43 -- -- -- --
Due from subsidiaries (43) -- 6,781 18,092 2,772
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- -- -- -- 2
Accounts receivable, net of allowance for doubtful accounts -- -- 101 -- --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets -- -- 21,965 54,253 23,529
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses -- -- 18 (132) 415
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities -- -- 18 (132) 415
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units -- -- 21,947 54,385 23,114
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital -- -- 21,965 54,253 23,529
=========== =========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1B, SUB 5F, SUB 6G, SUB 8C, SUB 4C,
LLC L.P. LLC LLC L.P.
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 18,416 31,539 22,381 16,704 --
Accumulated depreciation (3,529) (4,421) (4,166) (5,304) --
----------- ----------- ----------- ----------- -----------
14,887 27,118 18,215 11,400 --
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries 12,954 10,473 5,200 4,587 11,521
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets 1 5 -- 1 --
Accounts receivable, net of allowance for doubtful accounts 96 -- -- -- 1
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 27,938 37,596 23,415 15,988 11,522
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 48 -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 51 170 108 (77) 98
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities 99 170 108 (77) 98
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 27,839 37,426 23,307 16,065 11,424
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 27,938 37,596 23,415 15,988 11,522
=========== =========== =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4H, SUB 7E, SUB 3D, SUB 1A, SUB 5E,
L.P. LLC LLC LLC LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 12,462 17,972 22,549 11,318 52,868
Accumulated depreciation (2,253) (2,711) (6,261) (2,478) (8,155)
----------- ----------- ----------- ----------- -----------
10,209 15,261 16,288 8,840 44,713
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries (738) 5,820 7,409 6,231 14,226
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets 14 3 -- -- 1
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 9,485 21,084 23,697 15,071 58,940
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 172 86 61 121 184
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities 172 86 61 121 184
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 9,313 20,998 23,636 14,950 58,756
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 9,485 21,084 23,697 15,071 58,940
=========== =========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR SUB MERISTAR MERISTAR MERISTAR MERISTAR
7A JOINT SUB 6K, SUB 2B, SUB 3A, SUB 4A,
VENTURE LLC LLC LLC LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 13,161 22,855 9,672 7,032 5,729
Accumulated depreciation (1,761) (4,296) (1,985) (1,546) (1,112)
----------- ----------- ----------- ----------- -----------
11,400 18,559 7,687 5,486 4,617
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries 4,352 16,890 (804) 1,500 4,097
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets 5 -- 1 -- --
Accounts receivable, net of allowance for doubtful accounts -- -- (12) -- --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 15,757 35,449 6,872 6,986 8,714
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- 4,890 -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 218 122 75 163 346
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities 218 122 4,965 163 346
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 15,539 35,327 1,907 6,823 8,368
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 15,757 35,449 6,872 6,986 8,714
=========== =========== =========== =========== ===========
MERISTAR MERISTAR MERISTAR MDV MERISTAR
SUB 4D, SUB 2A, SUB 6L, LIMITED SUB 5C,
LLC LLC LLC PARTNERSHIP LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 5,523 8,294 29,650 3,838 14,088
Accumulated depreciation (1,486) (1,464) (3,354) (547) (2,812)
----------- ----------- ----------- ----------- -----------
4,037 6,830 26,296 3,291 11,276
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries (74) (884) 4,928 2,169 242
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets 21 21 -- 9 70
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 3,984 5,967 31,224 5,469 11,588
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- 7,977 -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 112 65 51 95 866
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities 112 8,042 51 95 866
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 3,872 (2,075) 31,173 5,374 10,722
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 3,984 5,967 31,224 5,469 11,588
=========== =========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6J, SUB 1D, SUB 7B, SUB 7D, SUB 7G,
LLC L.P. L.P. LLC LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 19,412 68,456 18,519 52,184 16,620
Accumulated depreciation (3,208) (9,754) (3,205) (8,132) (4,107)
----------- ----------- ----------- ----------- -----------
16,204 58,702 15,314 44,052 12,513
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries 5,957 16,638 (3,681) 21,885 122
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets 45 11 -- 309 1
Accounts receivable, net of allowance for doubtful accounts -- -- -- 1,026 --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 22,206 75,351 11,633 67,272 12,636
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses (116) 20 1,148 4,552 37
Accrued interest -- 117 -- -- --
Due to Interstate Hotels & Resorts -- -- -- (200) --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities (116) 137 1,148 4,352 37
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 22,322 75,214 10,485 62,920 12,599
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 22,206 75,351 11,633 67,272 12,636
=========== =========== =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6B, SUB 4I, SUB 5D, SUB 5H, SUB 7H,
LLC L.P. LLC LLC LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 10,645 7,914 42,013 53,422 10,157
Accumulated depreciation (1,742) (4,114) (6,645) (7,989) (4,457)
----------- ----------- ----------- ----------- -----------
8,903 3,800 35,368 45,433 5,700
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- 51,368 -- --
Due from subsidiaries 2,423 895 (7,027) 8,773 5,754
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets 3 -- 18 -- --
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 11,329 4,695 79,727 54,206 11,454
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- 24,000 -- 13
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses (95) 411 206 146 267
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities (95) 411 24,206 146 280
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 11,424 4,284 55,521 54,060 11,174
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 11,329 4,695 79,727 54,206 11,454
=========== =========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(in thousands of dollars)
AGH MERISTAR MERISTAR MERISTAR MERISTAR
PSS I, SUB 2D, SUB 4F, SUB 5K, SUB 5M,
INC. LLC L.P. LLC LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 17,855 15,465 31,912 28,057 22,022
Accumulated depreciation (2,049) (2,435) (4,714) (3,916) (1,883)
----------- ----------- ----------- ----------- -----------
15,806 13,030 27,198 24,141 20,139
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries 10,810 416 4,392 (705) 6,601
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- 1 12 -- --
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 26,616 13,447 31,602 23,436 26,740
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- 9,243 -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 107 63 399 4,316 48
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities 107 9,306 399 4,316 48
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 26,509 4,141 31,203 19,120 26,692
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 26,616 13,447 31,602 23,436 26,740
=========== =========== =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1E, SUB 5O, SUB 6M SUB 4B, SUB 6C,
L.P. LLC COMPANY L.P. LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 10,457 8,727 32,975 13,388 20,855
Accumulated depreciation (1,649) (916) (4,779) (5,123) (3,592)
----------- ----------- ----------- ----------- -----------
8,808 7,811 28,196 8,265 17,263
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries 7,355 2,486 15,876 (4,592) 10,175
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- -- 21 -- --
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 16,163 10,297 44,093 3,673 27,438
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 13 7 (117) 443 (142)
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities 13 7 (117) 443 (142)
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 16,150 10,290 44,210 3,230 27,580
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 16,163 10,297 44,093 3,673 27,438
=========== =========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2C, SUB 4G, SUB 3B, SUB 5G, SUB 5P,
LLC L.P. LLC L.P. LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 28,658 25,601 12,441 163,237 39
Accumulated depreciation (5,385) (4,015) (3,891) (24,213) (18)
----------- ----------- ----------- ----------- -----------
23,273 21,586 8,550 139,024 21
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries 4,873 7,456 2,201 35,538 1,989
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets 1 9 -- 5 --
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 28,147 29,051 10,751 174,567 2,010
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 16,143 -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 238 558 173 838 4
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities 16,381 558 173 838 4
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 11,766 28,493 10,578 173,729 2,006
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 28,147 29,051 10,751 174,567 2,010
=========== =========== =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5J, SUB 5Q, SUB 5A, SUB 8D, SUB 4J,
LLC LLC LLC LLC LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 107,471 16,509 34,981 30,687 38,154
Accumulated depreciation (13,334) (1,709) (9,395) (5,080) (5,862)
----------- ----------- ----------- ----------- -----------
94,137 14,800 25,586 25,607 32,292
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- 4,627 -- --
Due from subsidiaries 17,649 3,274 5,147 6,942 5,438
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- -- -- -- 5
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- (24)
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 111,786 18,074 35,360 32,549 37,711
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- 23,609 -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 453 (122) (3) (117) 171
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities 453 (122) 23,606 (117) 171
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 111,333 18,196 11,754 32,666 37,540
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 111,786 18,074 35,360 32,549 37,711
=========== =========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR GUARANTOR
HOTEL SUBSIDIARIES TOTAL
LESSEE, INC. TOTAL ELIMINATIONS CONSOLIDATED
----------- ------------ ------------ ------------
ASSETS
Investments in hotel properties 2,252 1,566,503 -- $ 3,057,658
Accumulated depreciation (2,219) (261,344) -- (497,721)
----------- ----------- ----------- -----------
33 1,305,159 -- 2,559,937
Restricted cash -- -- -- 20,365
Investments in and advances to affiliates 1,630 60,828 (2,617,743) 41,714
Due from subsidiaries 5,245 398,815 -- --
Note receivable from Interstate Hotels & Resorts -- -- (108,605) 42,052
Prepaid expenses and other assets 15,759 16,436 -- 39,197
Accounts receivable, net of allowance for doubtful accounts 42,400 43,571 -- 56,828
Cash and cash equivalents 12,517 12,517 -- 33,889
----------- ----------- ----------- -----------
Total Assets 77,584 1,837,441 (2,726,348) $ 2,793,982
=========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 21,397 107,320 (108,605) 1,296,597
Notes payable to MeriStar Hospitality Corporation -- -- -- 357,505
Accounts payable and accrued expenses 58,595 79,359 -- 104,677
Accrued interest 107 224 -- 52,907
Due to Interstate Hotels & Resorts 10,328 10,128 -- 10,500
Other liabilities 11,376 11,376 -- 15,967
----------- ----------- ----------- -----------
Total liabilities 101,803 208,407 (108,605) 1,838,153
----------- ----------- ----------- -----------
Minority interests -- -- -- 2,624
Redeemable OP units at redemption value -- -- -- 38,205
Partners' capital - Common OP Units (24,219) 1,629,034 (2,617,743) 915,000
----------- ----------- ----------- -----------
Total Liabilities and Capital 77,584 1,837,441 (2,726,348) $ 2,793,982
=========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR NON- MERISTAR AGH MERISTAR
HOSPITALITY GUARANTOR SUB 7C, UPREIT, SUB 5N,
OP, L.P. SUBSIDIARIES LLC LLC LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties $ 14,662 1,547,038 -- -- 4,074
Accumulated depreciation (5,085) (184,188) -- -- (408)
----------- ----------- ----------- ----------- -----------
9,577 1,362,850 -- -- 3,666
Restricted cash 13,751 7,438 -- -- --
Investments in and advances to affiliates 2,714,272 8,242 32 3,056 --
Due from subsidiaries (32,703) (7,275) -- 66 2,809
Due from MeriStar Hotels & Resorts 12,392 -- -- -- --
Note receivable from Interstate Hotels & Resorts 127,550 (389) -- -- --
Prepaid expenses and other assets 23,773 1,369 -- -- --
Accounts receivable, net of allowance for doubtful accounts 4,092 1,183 -- -- (16)
Cash and cash equivalents 6,798 -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets $ 2,879,502 1,373,418 32 3,122 6,459
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt $ 1,328,011 286,512 -- -- --
Notes payable to MeriStar Hospitality Corporation 357,117 -- -- -- --
Accounts payable and accrued expenses 29,004 14,060 -- -- 14
Accrued interest 40,913 4,022 -- -- --
Other liabilities 9,616 -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities 1,764,661 304,594 -- -- 14
----------- ----------- ----------- ----------- -----------
Minority interests 2,639 -- -- -- --
Redeemable OP units at redemption value 67,012 -- -- -- --
Partners' capital - Common OP Units 1,045,190 1,068,824 32 3,122 6,445
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital $ 2,879,502 1,373,418 32 3,122 6,459
=========== =========== =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 8F, SUB 8G, SUB 6H,
LLC LLC LLC L.P.
----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 7,306 11,335 -- 13,569
Accumulated depreciation (936) (1,481) -- (1,445)
----------- ----------- ----------- -----------
6,370 9,854 -- 12,124
Restricted cash -- 115 -- --
Investments in and advances to affiliates -- -- -- --
Due from subsidiaries 4,720 3,889 82 4,467
Due from MeriStar Hotels & Resorts -- -- -- --
Note receivable from Interstate Hotels & Resorts -- -- -- --
Prepaid expenses and other assets -- 21 -- --
Accounts receivable, net of allowance for doubtful accounts (32) (20) -- --
Cash and cash equivalents -- -- -- --
----------- ----------- ----------- -----------
Total Assets 11,058 13,859 82 16,591
=========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses (42) 160 -- 184
Accrued interest -- -- -- --
Other liabilities -- -- -- --
----------- ----------- ----------- -----------
Total liabilities (42) 160 -- 184
----------- ----------- ----------- -----------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital - Common OP Units 11,100 13,699 82 16,407
----------- ----------- ----------- -----------
Total Liabilities and Capital 11,058 13,859 82 16,591
=========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8B, SUB 1C, SUB 8E, SUB 7F, SUB 5L,
LLC L.P. LLC LLC LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 80,972 24,925 15,157 11,985 11,292
Accumulated depreciation (7,509) (3,865) (1,850) (1,989) (368)
----------- ----------- ----------- ----------- -----------
73,463 21,060 13,307 9,996 10,924
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries 21,498 (3,297) 4,323 3,499 3,090
Due from MeriStar Hotels & Resorts -- -- -- -- --
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets 52 2 9 -- --
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
95,013 17,765 17,639 13,495 14,014
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 2,412 45 8 168 3
Accrued interest -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities 2,412 45 8 168 3
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 92,601 17,720 17,631 13,327 14,011
----------- ----------- ----------- ----------- -----------
95,013 17,765 17,639 13,495 14,014
=========== =========== =========== =========== ===========
MERISTAR MERISTAR OLD MERISTAR MERISTAR
SUB 3C, SUB 5R, SUB 8A, SUB 6D,
LLC LLC LLC LLC
----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 17,274 -- (1) 17,266
Accumulated depreciation (2,302) -- -- (1,820)
----------- ----------- ----------- -----------
14,972 -- (1) 15,446
Restricted cash -- -- -- --
Investments in and advances to affiliates -- 43 -- --
Due from subsidiaries 2,741 (43) 7,918 5,147
Due from MeriStar Hotels & Resorts -- -- -- --
Note receivable from Interstate Hotels & Resorts -- -- -- --
Prepaid expenses and other assets 59 -- 1 --
Accounts receivable, net of allowance for doubtful accounts -- -- -- 115
Cash and cash equivalents -- -- -- --
----------- ----------- ----------- -----------
Total Assets 17,772 -- 7,918 20,708
=========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 170 -- 46 101
Accrued interest -- -- -- --
Other liabilities -- -- -- --
----------- ----------- ----------- -----------
Total liabilities 170 -- 46 101
----------- ----------- ----------- -----------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital - Common OP Units 17,602 -- 7,872 20,607
----------- ----------- ----------- -----------
Total Liabilities and Capital 17,772 -- 7,918 20,708
=========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6E, SUB 4E, SUB 1B, SUB 5F, SUB 6G,
LLC L.P. LLC L.P. LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 43,931 24,547 18,110 30,953 22,050
Accumulated depreciation (6,642) (3,072) (2,927) (3,363) (3,329)
----------- ----------- ----------- ----------- -----------
37,289 21,475 15,183 27,590 18,721
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries 13,660 2,005 10,480 8,695 3,410
Due from MeriStar Hotels & Resorts -- -- -- -- --
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- 7 -- -- --
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 50,949 23,487 25,663 36,285 22,131
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- 48 -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses (295) 456 (11) 94 151
Accrued interest -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities (295) 456 37 94 151
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 51,244 23,031 25,626 36,191 21,980
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 50,949 23,487 25,663 36,285 22,131
=========== =========== =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8C, SUB 4C, SUB 4H, SUB 7E,
LLC L.P. L.P. LLC
----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 36,668 16,345 12,363 17,822
Accumulated depreciation (3,917) (3,356) (1,712) (2,081)
----------- ----------- ----------- -----------
32,751 12,989 10,651 15,741
Restricted cash -- -- -- --
Investments in and advances to affiliates -- -- -- --
Due from subsidiaries 3,419 289 (1,000) 4,799
Due from MeriStar Hotels & Resorts -- -- -- --
Note receivable from Interstate Hotels & Resorts -- -- -- --
Prepaid expenses and other assets 3 -- -- 7
Accounts receivable, net of allowance for doubtful accounts -- -- -- --
Cash and cash equivalents -- -- -- --
----------- ----------- ----------- -----------
Total Assets 36,173 13,278 9,651 20,547
=========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses (21) 447 193 117
Accrued interest -- -- -- --
Other liabilities -- -- -- --
----------- ----------- ----------- -----------
Total liabilities (21) 447 193 117
----------- ----------- ----------- -----------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital - Common OP Units 36,194 12,831 9,458 20,430
----------- ----------- ----------- -----------
Total Liabilities and Capital 36,173 13,278 9,651 20,547
=========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR SUB MERISTAR
SUB 3D, SUB 1A, SUB 5E, 7A JOINT SUB 6K,
LLC LLC LLC VENTURE LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 22,305 11,231 52,817 12,891 22,642
Accumulated depreciation (5,411) (2,024) (6,221) (1,345) (3,560)
----------- ----------- ----------- ----------- -----------
16,894 9,207 46,596 11,546 19,082
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries 5,619 4,953 9,219 3,585 13,504
Due from MeriStar Hotels & Resorts -- -- -- -- --
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- -- 10 -- --
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 22,513 14,160 55,825 15,131 32,586
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses -- 148 301 230 78
Accrued interest -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities -- 148 301 230 78
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 22,513 14,012 55,524 14,901 32,508
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 22,513 14,160 55,825 15,131 32,586
=========== =========== =========== =========== ===========
MeriStar MeriStar MeriStar MeriStar
Sub 2B, Sub 3A, Sub 4A, Sub 4D,
LLC LLC LLC LLC
----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 9,424 6,274 8,619 8,664
Accumulated depreciation (1,558) (1,292) (1,112) (1,179)
----------- ----------- ----------- -----------
7,866 4,982 7,507 7,485
Restricted cash -- -- -- --
Investments in and advances to affiliates -- -- -- --
Due from subsidiaries (486) 1,742 3,572 14
Due from MeriStar Hotels & Resorts -- -- -- --
Note receivable from Interstate Hotels & Resorts -- -- -- --
Prepaid expenses and other assets 1 2 -- 26
Accounts receivable, net of allowance for doubtful accounts (12) -- -- --
Cash and cash equivalents -- -- -- --
----------- ----------- ----------- -----------
Total Assets 7,369 6,726 11,079 7,525
=========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 4,851 -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 147 98 313 62
Accrued interest -- -- -- --
Other liabilities -- -- -- --
----------- ----------- ----------- -----------
Total liabilities 4,998 98 313 62
----------- ----------- ----------- -----------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital - Common OP Units 2,371 6,628 10,766 7,463
----------- ----------- ----------- -----------
Total Liabilities and Capital 7,369 6,726 11,079 7,525
=========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MDV MERISTAR MERISTAR
SUB 2A, SUB 6L, LIMITED SUB 5C, SUB 6J,
LLC LLC PARTNERSHIP LLC LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 8,209 29,443 3,816 13,826 19,169
Accumulated depreciation (1,141) (2,464) (410) (2,215) (2,573)
----------- ----------- ----------- ----------- -----------
7,068 26,979 3,406 11,611 16,596
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries (620) 3,604 1,796 (345) 4,047
Due from MeriStar Hotels & Resorts -- -- -- -- --
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets 25 -- 13 17 58
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 6,473 30,583 5,215 11,283 20,701
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 7,912 -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 31 68 87 828 (57)
Accrued interest -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities 7,943 68 87 828 (57)
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units (1,470) 30,515 5,128 10,455 20,758
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 6,473 30,583 5,215 11,283 20,701
=========== =========== =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1D, SUB 7B, SUB 7D, SUB 7G,
L.P. L.P. LLC LLC
----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 67,929 25,399 52,031 16,462
Accumulated depreciation (7,516) (2,277) (6,516) (3,387)
----------- ----------- ----------- -----------
60,413 23,122 45,515 13,075
Restricted cash -- -- -- --
Investments in and advances to affiliates -- -- -- --
Due from subsidiaries 13,481 (4,749) 18,380 44
Due from MeriStar Hotels & Resorts -- -- 200 --
Note receivable from Interstate Hotels & Resorts -- -- -- --
Prepaid expenses and other assets 55 -- 393 34
Accounts receivable, net of allowance for doubtful accounts -- -- 912 --
Cash and cash equivalents -- -- -- --
----------- ----------- ----------- -----------
Total Assets 73,949 18,373 65,400 13,153
=========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 553 1,011 4,627 161
Accrued interest 57 -- -- --
Other liabilities -- -- 61 --
----------- ----------- ----------- -----------
Total liabilities 610 1,011 4,688 161
----------- ----------- ----------- -----------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital - Common OP Units 73,339 17,362 60,712 12,992
----------- ----------- ----------- -----------
Total Liabilities and Capital 73,949 18,373 65,400 13,153
=========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6B, SUB 4I, SUB 5D, SUB 5H, SUB 7H,
LLC L.P. LLC LLC LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 10,528 12,477 41,617 52,475 9,978
Accumulated depreciation (1,292) (3,677) (5,199) (6,012) (4,063)
----------- ----------- ----------- ----------- -----------
9,236 8,800 36,418 46,463 5,915
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- 51,398 -- --
Due from subsidiaries 1,602 1,289 (6,818) 6,867 5,202
Due from MeriStar Hotels & Resorts -- -- -- -- --
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets 9 -- 21 -- --
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 10,847 10,089 81,019 53,330 11,117
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- 24,000 -- 13
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses (60) 360 241 (115) 414
Accrued interest -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities (60) 360 24,241 (115) 427
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 10,907 9,729 56,778 53,445 10,690
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 10,847 10,089 81,019 53,330 11,117
=========== =========== =========== =========== ===========
AGH MERISTAR MERISTAR MERISTAR
PSS I, SUB 2D, SUB 4F, SUB 5K,
INC. LLC L.P. LLC
----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 17,317 15,307 31,467 27,304
Accumulated depreciation (2,049) (1,949) (3,617) (2,729)
----------- ----------- ----------- -----------
15,268 13,358 27,850 24,575
Restricted cash -- -- -- --
Investments in and advances to affiliates -- -- -- --
Due from subsidiaries 9,631 215 3,292 (781)
Due from MeriStar Hotels & Resorts -- -- -- --
Note receivable from Interstate Hotels & Resorts -- -- -- --
Prepaid expenses and other assets -- 2 37 --
Accounts receivable, net of allowance for doubtful accounts -- -- -- --
Cash and cash equivalents -- -- -- --
----------- ----------- ----------- -----------
Total Assets 24,899 13,575 31,179 23,794
=========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- 9,167 -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses 29 43 388 5,644
Accrued interest -- -- -- --
Other liabilities -- -- -- --
----------- ----------- ----------- -----------
Total liabilities 29 9,210 388 5,644
----------- ----------- ----------- -----------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital - Common OP Units 24,870 4,365 30,791 18,150
----------- ----------- ----------- -----------
Total Liabilities and Capital 24,899 13,575 31,179 23,794
=========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5M, SUB 1E, SUB 5O, SUB 6M SUB 4B,
LLC L.P. LLC COMPANY L.P.
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 21,917 10,379 8,674 32,724 15,830
Accumulated depreciation (1,429) (1,350) (697) (3,594) (4,630)
----------- ----------- ----------- ----------- -----------
20,488 9,029 7,977 29,130 11,200
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries 5,344 5,927 1,939 12,127 (3,367)
Due from MeriStar Hotels & Resorts -- -- -- -- --
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- -- -- 60 29
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 25,832 14,956 9,916 41,317 7,862
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 21 22 18 (99) 387
Accrued interest -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities 21 22 18 (99) 387
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 25,811 14,934 9,898 41,416 7,475
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 25,832 14,956 9,916 41,317 7,862
=========== =========== =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6C, SUB 2C, SUB 4G, SUB 3B,
LLC LLC L.P. LLC
----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 20,493 28,300 25,493 24,577
Accumulated depreciation (2,815) (4,322) (3,112) (2,971)
----------- ----------- ----------- -----------
17,678 23,978 22,381 21,606
Restricted cash -- -- -- --
Investments in and advances to affiliates -- -- -- --
Due from subsidiaries 7,763 7,596 5,849 1,864
Due from MeriStar Hotels & Resorts -- -- -- --
Note receivable from Interstate Hotels & Resorts -- -- -- --
Prepaid expenses and other assets -- 2 28 --
Accounts receivable, net of allowance for doubtful accounts -- -- -- --
Cash and cash equivalents -- -- -- --
----------- ----------- ----------- -----------
Total Assets 25,441 31,576 28,258 23,470
=========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- 16,011 -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses (128) 255 574 115
Accrued interest -- -- -- --
Other liabilities -- -- -- --
----------- ----------- ----------- -----------
Total liabilities (128) 16,266 574 115
----------- ----------- ----------- -----------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital - Common OP Units 25,569 15,310 27,684 23,355
----------- ----------- ----------- -----------
Total Liabilities and Capital 25,441 31,576 28,258 23,470
=========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5G, SUB 5P, SUB 5J, SUB 5Q, SUB 5A,
L.P. LLC LLC LLC LLC
----------- ----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 161,783 -- 104,381 15,964 34,663
Accumulated depreciation (18,012) -- (9,859) (1,216) (7,908)
----------- ----------- ----------- ----------- -----------
143,771 -- 94,522 14,748 26,755
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- 4,627
Due from subsidiaries 28,207 1,117 12,862 2,083 2,995
Due from MeriStar Hotels & Resorts -- -- -- -- --
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- -- 483 -- (53)
Accounts receivable, net of allowance for doubtful accounts -- 319 -- -- --
Cash and cash equivalents -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Assets 171,978 1,436 107,867 16,831 34,324
=========== =========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- 23,609
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 678 19 318 (201) (69)
Accrued interest -- -- -- -- --
Other liabilities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total liabilities 678 19 318 (201) 23,540
----------- ----------- ----------- ----------- -----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 171,300 1,417 107,549 17,032 10,784
----------- ----------- ----------- ----------- -----------
Total Liabilities and Capital 171,978 1,436 107,867 16,831 34,324
=========== =========== =========== =========== ===========
MERISTAR
MERISTAR MERISTAR HOTEL GUARANTOR
SUB 8D, SUB 4J, LESSEE, SUBSIDIARIES
LLC LLC INC. TOTAL
----------- ----------- ----------- -----------
ASSETS
Investments in hotel properties 30,448 37,923 864 1,621,977
Accumulated depreciation (3,813) (4,561) (658) (208,107)
----------- ----------- ----------- -----------
26,635 33,362 206 1,413,870
Restricted cash -- -- --
Investments in and advances to affiliates -- -- 1,629 60,785
Due from subsidiaries 5,308 3,090 6,316 311,545
Due from MeriStar Hotels & Resorts -- -- (3,715) (3,515)
Note receivable from Interstate Hotels & Resorts -- -- 389 389
Prepaid expenses and other assets 1 47 13,172 14,633
Accounts receivable, net of allowance for doubtful accounts -- 21 40,616 41,903
Cash and cash equivalents -- -- 16,643 16,643
----------- ----------- ----------- -----------
Total Assets 31,944 36,520 75,256 1,856,253
=========== =========== =========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- 6,000 91,611
Notes payable to MeriStar Hospitality Corporation -- -- -- --
Accounts payable and accrued expenses (71) 243 59,582 81,694
Accrued interest -- -- 17 74
Other liabilities -- -- 10,167 10,228
----------- ----------- ----------- -----------
Total liabilities (71) 243 75,766 183,607
----------- ----------- ----------- -----------
Minority interests -- -- -- --
Redeemable OP units at redemption value -- -- -- --
Partners' capital - Common OP Units 32,015 36,277 (510) 1,672,761
----------- ----------- ----------- -----------
Total Liabilities and Capital 31,944 36,520 75,256 1,856,368
=========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2001
(in thousands of dollars)
TOTAL
ELIMINATIONS CONSOLIDATED
------------ ------------
ASSETS
Investments in hotel properties -- $ 3,183,677
Accumulated depreciation -- (397,380)
---------- -----------
-- 2,786,297
Restricted cash -- 21,304
Investments in and advances to affiliates (2,741,585) 41,714
Due from subsidiaries (271,567) --
Due from MeriStar Hotels & Resorts -- 8,877
Note receivable from Interstate Hotels & Resorts (91,550) 36,000
Prepaid expenses and other assets -- 39,775
Accounts receivable, net of allowance for doubtful accounts -- 47,178
Cash and cash equivalents -- 23,441
---------- -----------
Total Assets (3,104,702) $ 3,004,586
========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt (363,117) $ 1,343,017
Notes payable to MeriStar Hospitality Corporation -- 357,117
Accounts payable and accrued expenses -- 124,758
Accrued interest -- 45,009
Other liabilities -- 19,844
---------- -----------
Total liabilities (363,117) 1,889,745
---------- -----------
Minority interests -- 2,639
Redeemable OP units at redemption value -- 67,012
Partners' capital - Common OP Units (2,741,585) 1,045,190
---------- -----------
Total Liabilities and Capital (3,104,702) $ 3,004,586
========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR NON- MERISTAR AGH MERISTAR
HOSPITALITY GUARANTOR SUB 7C, UPREIT, SUB 5N,
OP, L.P. SUBSIDIARIES LLC LLC LLC
----------- ----------- ----------- ----------- -----------
Revenue:
Hotel operations:
Rooms $ -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue 7,607 4,785 -- -- --
Participating lease revenue -- 126,784 -- -- 877
----------- ----------- ----------- ----------- -----------
Total revenue 7,607 131,569 -- -- 877
----------- ----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expense -- -- -- -- --
Office rental, parking and other operating expenses -- 1,319 -- -- --
Other operating expenses:
Administrative and general 12,086 21 -- -- --
Property operating costs (1,161) -- -- -- --
Depreciation and amortization 10,289 50,468 -- -- 133
Property taxes, insurance and other (6,039) 19,793 -- -- 104
Loss on asset impairments -- 8,212 -- -- --
Write down of note receivable with Interstate
Hotels & Resorts 14,517 -- -- -- --
Loss on fair value of non-hedging derivatives 4,735 -- -- -- --
Change in fair value of non-hedging derivatives,
net of swap payments 4,446 -- -- -- --
Write off of deferred costs 3,144 -- -- -- --
----------- ----------- ----------- ----------- -----------
Total operating expenses 42,017 79,813 -- -- 237
----------- ----------- ----------- ----------- -----------
Net operating loss (34,410) 51,756 -- -- 640
----------- ----------- ----------- ----------- -----------
Interest expense, net 103,942 27,014 -- -- (6)
Equity in income from consolidated entities 33,753 -- -- -- --
----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests, income taxes,
and discontinued operations (172,105) 24,742 -- -- 646
Minority interests 15 -- -- -- --
Income tax benefit 1,310 -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from continuing operations (170,780) 24,742 -- -- 646
Discontinued operations
Loss from discontinued operations before tax benefit -- (27,585) -- -- --
Income tax benefit 611 -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from discontinued operations 611 (27,585) -- -- --
----------- ----------- ----------- ----------- -----------
Net income (loss) $ (170,169) (2,843) -- -- 646
=========== =========== =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 8F, SUB 8G, SUB 6H, SUB 8B,
LLC LLC LLC L.P. LLC
----------- ----------- ----------- ----------- -----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- --
Participating lease revenue -- 2,282 -- 1,472 7,078
----------- ----------- ----------- ----------- -----------
Total revenue -- 2,282 -- 1,472 7,078
----------- ----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expense -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general -- 1 -- 1 1
Property operating costs -- -- -- -- --
Depreciation and amortization -- 453 -- 431 2,385
Property taxes, insurance and other -- 733 -- 101 1,414
Loss on asset impairments -- -- -- -- --
Write down of note receivable with Interstate
Hotels & Resorts -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Write off of deferred costs -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total operating expenses -- 1,187 -- 533 3,800
----------- ----------- ----------- ----------- -----------
Net operating loss -- 1,095 -- 939 3,278
----------- ----------- ----------- ----------- -----------
Interest expense, net -- (11) -- (3) (78)
Equity in income from consolidated entities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests, income taxes,
and discontinued operations -- 1,106 -- 942 3,356
Minority interests -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from continuing operations -- 1,106 -- 942 3,356
Discontinued operations
Loss from discontinued operations before tax benefit (4,107) -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from discontinued operations (4,107) -- -- -- --
----------- ----------- ----------- ----------- -----------
Net income (loss) (4,107) 1,106 -- 942 3,356
=========== =========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1C, SUB 8E, SUB 7F, SUB 5L, SUB 3C,
L.P. LLC LLC LLC LLC
----------- ----------- ----------- ----------- -----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- 27 -- -- --
Participating lease revenue 1,245 1,605 1,069 991 1,704
----------- ----------- ----------- ----------- -----------
Total revenue 1,245 1,632 1,069 991 1,704
----------- ----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expense -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general 7 1 1 1 1
Property operating costs -- -- -- -- --
Depreciation and amortization 1,021 600 463 135 706
Property taxes, insurance and other 716 187 143 132 458
Loss on asset impairments -- -- -- -- --
Write down of note receivable with Interstate
Hotels & Resorts -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Write off of deferred costs -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total operating expenses 1,744 788 607 268 1,165
----------- ----------- ----------- ----------- -----------
Net operating loss (499) 844 462 723 539
----------- ----------- ----------- ----------- -----------
Interest expense, net (41) (7) (8) (10) (18)
Equity in income from consolidated entities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests, income taxes,
and discontinued operations (458) 851 470 733 557
Minority interests -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from continuing operations (458) 851 470 733 557
Discontinued operations
Loss from discontinued operations before tax benefit -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from discontinued operations -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net income (loss) (458) 851 470 733 557
=========== =========== =========== =========== ===========
MERISTAR OLD MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5R, SUB 8A, SUB 6D, SUB 6E, SUB 4E,
LLC LLC LLC LLC L.P.
----------- ----------- ----------- ----------- -----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- 18 -- 15
Participating lease revenue -- -- 2,031 5,545 1,368
----------- ----------- ----------- ----------- -----------
Total revenue -- -- 2,049 5,545 1,383
----------- ----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expense -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general -- -- 1 16 1
Property operating costs -- -- -- -- --
Depreciation and amortization -- -- 526 1,692 918
Property taxes, insurance and other -- -- 203 762 410
Loss on asset impairments -- -- -- -- --
Write down of note receivable with Interstate
Hotels & Resorts -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Write off of deferred costs -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total operating expenses -- -- 730 2,470 1,329
----------- ----------- ----------- ----------- -----------
Net operating loss -- -- 1,319 3,075 54
----------- ----------- ----------- ----------- -----------
Interest expense, net -- -- (21) (66) (29)
Equity in income from consolidated entities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests, income taxes,
and discontinued operations -- -- 1,340 3,141 83
Minority interests -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from continuing operations -- -- 1,340 3,141 83
Discontinued operations
Loss from discontinued operations before tax benefit -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from discontinued operations -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net income (loss) -- -- 1,340 3,141 83
=========== =========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1B, SUB 5F, SUB 6G, SUB 8C, SUB 4C,
LLC L.P. LLC LLC L.P.
----------- ----------- ----------- ----------- -----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue 572 -- -- 3 --
Participating lease revenue 2,312 2,627 2,459 1,946 --
----------- ----------- ----------- ----------- -----------
Total revenue 2,884 2,627 2,459 1,949 --
----------- ----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expense -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general 1 1 1 -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 602 1,058 837 1,389 --
Property taxes, insurance and other 89 373 335 614 --
Loss on asset impairments -- -- -- 20,111 --
Write down of note receivable with Interstate
Hotels & Resorts -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Write off of deferred costs -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total operating expenses 692 1,432 1,173 22,114 --
----------- ----------- ----------- ----------- -----------
Net operating loss 2,192 1,195 1,286 (20,165) --
----------- ----------- ----------- ----------- -----------
Interest expense, net (21) (40) (41) (36) --
Equity in income from consolidated entities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests, income taxes,
and discontinued operations 2,213 1,235 1,327 (20,129) --
Minority interests -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from continuing operations 2,213 1,235 1,327 (20,129) --
Discontinued operations
Loss from discontinued operations before tax benefit -- -- -- -- (1,407)
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from discontinued operations -- -- -- -- (1,407)
----------- ----------- ----------- ----------- -----------
Net income (loss) 2,213 1,235 1,327 (20,129) (1,407)
=========== =========== =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4H, SUB 7E, SUB 3D, SUB 1A, SUB 5E,
L.P. LLC LLC LLC LLC
----------- ----------- ----------- ----------- -----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- 1 -- -- --
Participating lease revenue 581 1,346 2,159 1,767 5,540
----------- ----------- ----------- ----------- -----------
Total revenue 581 1,347 2,159 1,767 5,540
----------- ----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expense -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general 1 1 1 1 1
Property operating costs -- -- -- -- --
Depreciation and amortization 541 634 849 453 1,943
Property taxes, insurance and other 193 161 225 392 392
Loss on asset impairments -- -- -- -- --
Write down of note receivable with Interstate
Hotels & Resorts -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Write off of deferred costs -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total operating expenses 735 796 1,075 846 2,336
----------- ----------- ----------- ----------- -----------
Net operating loss (154) 551 1,084 921 3,204
----------- ----------- ----------- ----------- -----------
Interest expense, net (9) (17) (39) (17) (28)
Equity in income from consolidated entities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests, income taxes,
and discontinued operations (145) 568 1,123 938 3,232
Minority interests -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from continuing operations (145) 568 1,123 938 3,232
Discontinued operations
Loss from discontinued operations before tax benefit -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from discontinued operations -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net income (loss) (145) 568 1,123 938 3,232
=========== =========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7A JOINT SUB 6K, SUB 2B, SUB 3A, SUB 4A,
VENTURE LLC LLC LLC LLC
----------- ----------- ----------- ----------- -----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- --
Participating lease revenue 1,253 3,975 506 531 994
----------- ----------- ----------- ----------- -----------
Total revenue 1,253 3,975 506 531 994
----------- ----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expense -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general 1 -- 1 1 1
Property operating costs -- -- -- -- --
Depreciation and amortization 416 736 417 256 --
Property taxes, insurance and other 233 453 165 118 254
Loss on asset impairments -- -- -- -- 3,170
Write down of note receivable with Interstate
Hotels & Resorts -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Write off of deferred costs -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total operating expenses 650 1,189 583 375 3,425
----------- ----------- ----------- ----------- -----------
Net operating loss 603 2,786 (77) 156 (2,431)
----------- ----------- ----------- ----------- -----------
Interest expense, net (35) (33) 387 (39) (33)
Equity in income from consolidated entities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests, income taxes,
and discontinued operations 638 2,819 (464) 195 (2,398)
Minority interests -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from continuing operations 638 2,819 (464) 195 (2,398)
Discontinued operations
Loss from discontinued operations before tax benefit -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from discontinued operations -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net income (loss) 638 2,819 (464) 195 (2,398)
=========== =========== =========== =========== ===========
MERISTAR MERISTAR MERISTAR MDV MERISTAR
SUB 4D, SUB 2A, SUB 6L, LIMITED SUB 5C,
LLC LLC LLC PARTNERSHIP LLC
----------- ----------- ----------- ----------- -----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- --
Participating lease revenue 470 569 1,735 503 1,294
----------- ----------- ----------- ----------- -----------
Total revenue 470 569 1,735 503 1,294
----------- ----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expense -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general 1 1 1 -- 1
Property operating costs -- -- -- -- --
Depreciation and amortization 311 320 890 137 597
Property taxes, insurance and other 175 172 201 122 464
Loss on asset impairments 3,617 -- -- -- --
Write down of note receivable with Interstate
Hotels & Resorts -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Write off of deferred costs -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total operating expenses 4,104 493 1,092 259 1,062
----------- ----------- ----------- ----------- -----------
Net operating loss (3,634) 76 643 244 232
----------- ----------- ----------- ----------- -----------
Interest expense, net (43) 681 (15) (2) (35)
Equity in income from consolidated entities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests, income taxes,
and discontinued operations (3,591) (605) 658 246 267
Minority interests -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from continuing operations (3,591) (605) 658 246 267
Discontinued operations
Loss from discontinued operations before tax benefit -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from discontinued operations -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net income (loss) (3,591) (605) 658 246 267
=========== =========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6J, SUB 1D, SUB 7B, SUB 7D, SUB 7G,
LLC L.P. L.P. LLC LLC
----------- ----------- ----------- ----------- -----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- 435 -- 1,484 --
Participating lease revenue 2,387 5,104 1,563 5,660 585
----------- ----------- ----------- ----------- -----------
Total revenue 2,387 5,539 1,563 7,144 585
----------- ----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expense -- -- -- -- --
Office rental, parking and other operating expenses -- 129 -- 1,162 --
Other operating expenses:
Administrative and general 1 -- 1 -- 5
Property operating costs -- -- -- -- --
Depreciation and amortization 647 2,286 929 1,660 753
Property taxes, insurance and other 209 1,287 635 2,154 242
Loss on asset impairments -- -- 6,925 -- --
Write down of note receivable with Interstate
Hotels & Resorts -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Write off of deferred costs -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total operating expenses 857 3,702 8,490 4,976 1,000
----------- ----------- ----------- ----------- -----------
Net operating loss 1,530 1,837 (6,927) 2,168 (415)
----------- ----------- ----------- ----------- -----------
Interest expense, net (34) (38) (50) (40) (22)
Equity in income from consolidated entities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests, income taxes,
and discontinued operations 1,564 1,875 (6,877) 2,208 (393)
Minority interests -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from continuing operations 1,564 1,875 (6,877) 2,208 (393)
Discontinued operations
Loss from discontinued operations before tax benefit -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from discontinued operations -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net income (loss) 1,564 1,875 (6,877) 2,208 (393)
=========== =========== =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6B, SUB 4I, SUB 5D, SUB 5H, SUB 7H,
LLC L.P. LLC LLC LLC
----------- ----------- ----------- ----------- -----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- --
Participating lease revenue 1,192 78 1,889 3,237 1,259
----------- ----------- ----------- ----------- -----------
Total revenue 1,192 78 1,889 3,237 1,259
----------- ----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expense -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general 1 -- 1 1 1
Property operating costs -- -- -- -- --
Depreciation and amortization 456 437 1,450 1,976 395
Property taxes, insurance and other 226 324 216 727 378
Loss on asset impairments -- 4,803 -- -- 22
Write down of note receivable with Interstate
Hotels & Resorts -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Write off of deferred costs -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total operating expenses 683 5,564 1,667 2,704 796
----------- ----------- ----------- ----------- -----------
Net operating loss 509 (5,486) 222 533 463
----------- ----------- ----------- ----------- -----------
Interest expense, net (8) (41) 1,479 (82) (21)
Equity in income from consolidated entities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests, income taxes,
and discontinued operations 517 (5,445) (1,257) 615 484
Minority interests -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from continuing operations 517 (5,445) (1,257) 615 484
Discontinued operations
Loss from discontinued operations before tax benefit -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from discontinued operations -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net income (loss) 517 (5,445) (1,257) 615 484
=========== =========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2002
(in thousands of dollars)
AGH MERISTAR MERISTAR MERISTAR MERISTAR
PSS I, SUB 2D, SUB 4F, SUB 5K, SUB 5M,
INC. LLC L.P. LLC LLC
----------- ----------- ----------- ----------- -----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue 2 -- 12 -- --
Participating lease revenue 2,061 1,284 1,868 2,397 1,604
----------- ----------- ----------- ----------- -----------
Total revenue 2,063 1,284 1,880 2,397 1,604
----------- ----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expense -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general 1 1 -- 1 1
Property operating costs -- -- -- -- --
Depreciation and amortization -- 474 1,122 1,187 454
Property taxes, insurance and other 467 251 383 341 287
Loss on asset impairments -- -- -- -- --
Write down of note receivable with Interstate
Hotels & Resorts -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Write off of deferred costs -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total operating expenses 468 726 1,505 1,529 742
----------- ----------- ----------- ----------- -----------
Net operating loss 1,595 558 375 868 862
----------- ----------- ----------- ----------- -----------
Interest expense, net (44) 782 (37) (102) (19)
Equity in income from consolidated entities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests, income taxes,
and discontinued operations 1,639 (224) 412 970 881
Minority interests -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from continuing operations 1,639 (224) 412 970 881
Discontinued operations
Loss from discontinued operations before tax benefit -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from discontinued operations -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net income (loss) 1,639 (224) 412 970 881
=========== =========== =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1E, SUB 5O, SUB 6M SUB 4B, SUB 6C,
L.P. LLC COMPANY L.P. LLC
----------- ----------- ----------- ----------- -----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- 16
Participating lease revenue 1,657 724 4,279 177 2,946
----------- ----------- ----------- ----------- -----------
Total revenue 1,657 724 4,279 177 2,962
----------- ----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expense -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general 1 1 1 -- 1
Property operating costs -- -- -- -- --
Depreciation and amortization 298 219 1,211 521 777
Property taxes, insurance and other 157 119 294 366 209
Loss on asset impairments -- -- -- 3,780 --
Write down of note receivable with Interstate
Hotels & Resorts -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Write off of deferred costs -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total operating expenses 456 339 1,506 4,667 987
----------- ----------- ----------- ----------- -----------
Net operating loss 1,201 385 2,773 (4,490) 1,975
----------- ----------- ----------- ----------- -----------
Interest expense, net (15) (7) (21) (245) (36)
Equity in income from consolidated entities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests, income taxes,
and discontinued operations 1,216 392 2,794 (4,245) 2,011
Minority interests -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from continuing operations 1,216 392 2,794 (4,245) 2,011
Discontinued operations
Loss from discontinued operations before tax benefit -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from discontinued operations -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net income (loss) 1,216 392 2,794 (4,245) 2,011
=========== =========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2C, SUB 4G, SUB 3B, SUB 5G, SUB 5P,
LLC L.P. LLC L.P. LLC
----------- ----------- ----------- ----------- -----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue 51 20 24 53 --
Participating lease revenue 1,631 2,255 1,124 10,316 581
----------- ----------- ----------- ----------- -----------
Total revenue 1,682 2,275 1,148 10,369 581
----------- ----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expense -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general 1 1 1 2 --
Property operating costs -- -- -- -- --
Depreciation and amortization 1,035 921 921 6,201 3
Property taxes, insurance and other 544 565 327 1,861 (11)
Loss on asset impairments -- -- 12,724 -- --
Write down of note receivable with Interstate
Hotels & Resorts -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Write off of deferred costs -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total operating expenses 1,580 1,487 13,973 8,064 (8)
----------- ----------- ----------- ----------- -----------
Net operating loss 102 788 (12,825) 2,305 589
----------- ----------- ----------- ----------- -----------
Interest expense, net 1,350 (21) (48) (124) --
Equity in income from consolidated entities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests, income taxes,
and discontinued operations (1,248) 809 (12,777) 2,429 589
Minority interests -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from continuing operations (1,248) 809 (12,777) 2,429 589
Discontinued operations
Loss from discontinued operations before tax benefit -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from discontinued operations -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net income (loss) (1,248) 809 (12,777) 2,429 589
=========== =========== =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5J, SUB 5Q, SUB 5A, SUB 8D, SUB 4J,
LLC LLC LLC LLC LLC
----------- ----------- ----------- ----------- -----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- 110 -- 10
Participating lease revenue 8,641 1,838 5,709 2,316 3,000
----------- ----------- ----------- ----------- -----------
Total revenue 8,641 1,838 5,819 2,316 3,010
----------- ----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expense -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general 1 1 1 1 5
Property operating costs -- -- -- -- --
Depreciation and amortization 3,475 494 1,434 1,267 1,343
Property taxes, insurance and other 1,537 255 634 421 274
Loss on asset impairments -- -- -- -- --
Write down of note receivable with Interstate
Hotels & Resorts -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Write off of deferred costs -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total operating expenses 5,013 750 2,069 1,689 1,622
----------- ----------- ----------- ----------- -----------
Net operating loss 3,628 1,088 3,750 627 1,388
----------- ----------- ----------- ----------- -----------
Interest expense, net (156) (76) 2,780 (24) (56)
Equity in income from consolidated entities -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Income (loss) before minority interests, income taxes,
and discontinued operations 3,784 1,164 970 651 1,444
Minority interests -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from continuing operations 3,784 1,164 970 651 1,444
Discontinued operations
Loss from discontinued operations before tax benefit -- -- -- -- --
Income tax benefit -- -- -- -- --
----------- ----------- ----------- ----------- -----------
(Loss) income from discontinued operations -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net income (loss) 3,784 1,164 970 651 1,444
=========== =========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR
HOTEL GUARANTOR
LESSEE, SUBSIDIARIES TOTAL
INC. TOTAL ELIMINATIONS CONSOLIDATED
----------- ----------- ------------ ------------
Revenue:
Hotel operations:
Rooms 634,920 634,920 -- $ 634,920
Food and beverage 257,034 257,034 -- 257,034
Other hotel operations 73,817 73,817 -- 73,817
Office rental, parking and other revenue 2,437 5,290 -- 17,682
Participating lease revenue 139,196 (265,980) --
----------- ----------- ----------- -----------
Total revenue 968,208 1,110,257 (265,980) 983,453
----------- ----------- ----------- -----------
Hotel operating expenses:
Rooms 156,773 156,773 -- 156,773
Food and beverage 184,913 184,913 -- 184,913
Other hotel operating expense 43,003 43,003 -- 43,003
Office rental, parking and other operating expenses 394 1,685 -- 3,004
Other operating expenses:
Administrative and general 158,268 158,349 -- 170,456
Property operating costs 151,132 151,132 -- 149,971
Depreciation and amortization 1,813 58,008 -- 118,765
Property taxes, insurance and other 293,785 319,958 (265,980) 67,732
Loss on asset impairments -- 55,152 -- 63,364
Write down of note receivable with Interstate
Hotels & Resorts -- -- -- 14,517
Loss on fair value of non-hedging derivatives -- -- -- 4,735
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- 4,446
Write off of deferred costs -- -- -- 3,144
----------- ----------- ----------- -----------
Total operating expenses 990,081 1,128,973 (265,980) 984,823
----------- ----------- ----------- -----------
Net operating loss (21,873) (18,716) -- (1,370)
----------- ----------- ----------- -----------
Interest expense, net 162 5,473 -- 136,429
Equity in income from consolidated entities -- -- (33,753) --
----------- ----------- ----------- -----------
Income (loss) before minority interests, income taxes,
and discontinued operations (22,035) (24,189) 33,753 (137,799)
Minority interests -- -- -- 15
Income tax benefit -- -- -- 1,310
----------- ----------- ----------- -----------
(Loss) income from continuing operations (22,035) (24,189) 33,753 (136,474)
Discontinued operations
Loss from discontinued operations before tax benefit (1,857) (7,371) -- (34,956)
Income tax benefit -- -- -- 611
----------- ----------- ----------- -----------
(Loss) income from discontinued operations (1,857) (7,371) -- (34,345)
----------- ----------- ----------- -----------
Net income (loss) (23,892) (31,560) 33,753 $ (170,819)
=========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR NON- MERISTAR AGH MERISTAR
HOSPITALITY GUARANTOR SUB 7C, UPREIT, SUB 5N,
OP, L.P. SUBSIDIARIES LLC LLC LLC
---------- ------------ ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms $ -- -- -- -- --
Food and beverage -- 4,333 -- -- --
Other hotel operations -- 62,149 -- -- --
Office rental, parking and other revenue 6,970 (61,423) -- -- --
Participating lease revenue -- 151,216 -- -- 1,092
---------- ---------- ---------- ---------- ----------
Total revenue 6,970 156,275 -- -- 1,092
---------- ---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- 253 -- -- --
Food and beverage -- 2,074 -- -- --
Other hotel operating expenses -- 29,342 -- -- --
Office rental, parking and other expenses -- (28,881) -- -- --
Other operating expenses:
Administrative and general 2,967 7,925 -- -- 1
Property operating costs -- (434) -- -- --
Depreciation and amortization 5,988 49,008 -- -- 128
Property taxes, insurance and other 5,238 20,836 -- -- 75
Loss on asset impairments -- -- -- -- --
Loss on fair value of non-hedging derivatives 6,666 -- -- -- --
Swap termination costs 9,297 -- -- -- --
Write down of investment in STS Hotel Net 2,112 -- -- -- --
FelCor merger costs 5,817 -- -- -- --
Costs to terminate leases with Prime Hospitality
Corporation 1,315 -- -- -- --
---------- ---------- ---------- ---------- ----------
Total operating expenses 39,400 80,123 -- -- 204
---------- ---------- ---------- ---------- ----------
Net operating income (32,430) 76,152 -- -- 888
---------- ---------- ---------- ---------- ----------
Interest expense, net 88,840 27,679 -- -- (7)
Equity in income from consolidated entities 78,751 -- -- -- --
---------- ---------- ---------- ---------- ----------
Income (loss) before minority interests, loss on
sale of assets, income taxes, discontinued
operations, and extraordinary loss (42,519) 48,473 -- -- 895
Minority interests 48 -- -- -- --
Loss on sale of assets (39) -- -- -- --
Income tax benefit 631 -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income from continuing operations (41,879) 48,473 -- -- 895
Discontinued operations:
(Loss) income from discontinued operations
before tax benefit -- 2,309 -- -- --
Income tax benefit 114 -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income from discontinued operations
tax benefit 114 2,309 -- -- --
---------- ---------- ---------- ---------- ----------
Loss before extraordinary loss (41,765) 50,782 -- -- 895
Extraordinary loss on early extinguishment of debt,
net of tax effect of ($50) in 2001 (2,720) -- -- -- --
---------- ---------- ---------- ---------- ----------
Net income (loss) $ (44,485) 50,782 -- -- 895
========== ========== ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 8F, SUB 8G, SUB 6H, SUB 8B, SUB 1C,
LLC LLC LLC L.P. LLC L.P.
---------- ---------- ---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- -- -- --
Food and beverage -- -- -- -- -- --
Other hotel operations -- 1 -- -- -- --
Office rental, parking and other revenue -- 2,938 -- -- -- --
Participating lease revenue -- -- -- 1,389 8,934 1,387
---------- ---------- ---------- ---------- ---------- ----------
Total revenue -- 2,939 -- 1,389 8,934 1,387
---------- ---------- ---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- -- -- --
Food and beverage -- -- -- -- -- --
Other hotel operating expenses -- -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- -- (5)
Other operating expenses:
Administrative and general (1,999) (7) -- (2) 1 (1)
Property operating costs -- -- -- -- -- --
Depreciation and amortization -- 439 -- 424 2,337 1,014
Property taxes, insurance and other -- 601 -- 18 1,537 790
Loss on asset impairments -- -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- -- --
Swap termination costs -- -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- -- --
FelCor merger costs -- -- -- -- -- --
Costs to terminate leases with Prime
Hospitality Corporation -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total operating expenses (1,999) 1,033 -- 440 3,875 1,798
---------- ---------- ---------- ---------- ---------- ----------
Net operating income 1,999 1,906 -- 949 5,059 (411)
---------- ---------- ---------- ---------- ---------- ----------
Interest expense, net -- 6 -- (4) (60) (25)
Equity in income from consolidated entities -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) before minority interests, loss on
sale of assets, income taxes, discontinued
operations, and extraordinary loss 1,999 1,900 -- 953 5,119 (386)
Minority interests -- -- --
Loss on sale of assets -- -- -- -- -- --
Income tax benefit -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
(Loss) income from continuing operations 1,999 1,900 -- 953 5,119 (386)
Discontinued operations:
(Loss) income from discontinued operations
before tax benefit (903) -- -- -- -- --
Income tax benefit -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
(Loss) income from discontinued operations (903) -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Loss before extraordinary loss 1,096 1,900 -- 953 5,119 (386)
Extraordinary loss on early extinguishment of debt,
net of tax effect of ($50) in 2001 -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net income (loss) 1,096 1,900 -- 953 5,119 (386)
========== ========== ========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8E, SUB 7F, SUB 5L, SUB 3C, SUB 5R,
LLC LLC LLC LLC LLC
---------- ---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue 17 -- -- 6 --
Participating lease revenue 1,980 1,106 1,274 1,823 --
---------- ---------- ---------- ---------- ----------
Total revenue 1,997 1,106 1,274 1,829 --
---------- ---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses (2) -- -- -- --
Other operating expenses:
Administrative and general 1 1 1 1 --
Property operating costs -- -- -- -- --
Depreciation and amortization 547 461 122 690 --
Property taxes, insurance and other 161 166 57 477 --
Loss on asset impairments -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Swap termination costs -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- --
FelCor merger costs -- -- -- -- --
Costs to terminate leases with Prime
Hospitality Corporation -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total operating expenses 707 628 180 1,168 --
---------- ---------- ---------- ---------- ----------
Net operating income 1,290 478 1,094 661 --
---------- ---------- ---------- ---------- ----------
Interest expense, net (34) (13) (12) (22) --
Equity in income from consolidated entities -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Income (loss) before minority interests, loss on
sale of assets, income taxes, discontinued
operations, and extraordinary loss 1,324 491 1,106 683 --
Minority interests -- -- -- -- --
Loss on sale of assets -- -- -- -- --
Income tax benefit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income from continuing operations 1,324 491 1,106 683 --
Discontinued operations:
(Loss) income from discontinued operations
before tax benefit -- -- -- -- --
Income tax benefit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income from discontinued operations -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Loss before extraordinary loss 1,324 491 1,106 683 --
Extraordinary loss on early extinguishment of debt,
net of tax effect of ($50) in 2001 -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net income (loss) 1,324 491 1,106 683 --
========== ========== ========== ========== ==========
OLD
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 6D, SUB 6E, SUB 4E, SUB 1B, SUB 5F,
LLC LLC LLC L.P. LLC L.P.
-------- -------- -------- -------- -------- ---------
Revenue:
Hotel operations:
Rooms -- -- -- -- -- --
Food and beverage -- -- -- -- -- --
Other hotel operations -- -- -- -- -- --
Office rental, parking and other revenue -- 13 -- 12 276 --
Participating lease revenue 377 2,230 5,575 1,516 2,890 2,709
---------- ---------- ---------- ---------- ---------- ----------
Total revenue 377 2,243 5,575 1,528 3,166 2,709
---------- ---------- ---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- -- -- --
Food and beverage -- -- -- -- -- --
Other hotel operating expenses -- -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- -- --
Other operating expenses:
Administrative and general -- 1 1 3 25 1
Property operating costs -- -- -- -- -- --
Depreciation and amortization 89 513 1,672 913 617 1,049
Property taxes, insurance and other 54 287 622 465 192 214
Loss on asset impairments -- -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- -- --
Swap termination costs -- -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- -- --
FelCor merger costs -- -- -- -- -- --
Costs to terminate leases with Prime -- -- -- -- -- --
Hospitality Corporation
---------- ---------- ---------- ---------- ---------- ----------
Total operating expenses 143 801 2,295 1,381 834 1,264
---------- ---------- ---------- ---------- ---------- ----------
Net operating income 234 1,442 3,280 147 2,332 1,445
---------- ---------- ---------- ---------- ---------- ----------
Interest expense, net (5) (20) (44) (22) (31) (19)
Equity in income from consolidated entities -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) before minority interests, loss on
sale of assets, income taxes, discontinued
operations, and extraordinary loss 239 1,462 3,324 169 2,363 1,464
Minority interests -- -- -- -- -- --
Loss on sale of assets (1,061) -- -- -- -- --
Income tax benefit -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
(Loss) income from continuing operations (822) 1,462 3,324 169 2,363 1,464
Discontinued operations:
(Loss) income from discontinued operations -- -- -- -- -- --
before tax benefit
Income tax benefit -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
(Loss) income from discontinued operations -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Loss before extraordinary loss (822) 1,462 3,324 169 2,363 1,464
Extraordinary loss on early extinguishment of debt,
net of tax effect of ($50) in 2001 -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net income (loss) (822) 1,462 3,324 169 2,363 1,464
========== ========== ========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6G, SUB 8C, SUB 4C, SUB 4H, SUB 7E,
LLC LLC L.P. L.P. LLC
---------- ---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- 9 -- -- --
Participating lease revenue 2,510 2,278 -- 501 1,660
---------- ---------- ---------- ---------- ----------
Total revenue 2,510 2,287 -- 501 1,660
---------- ---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
Administrative and general 1 1 -- 2 1
Property operating costs -- -- -- -- --
Depreciation and amortization 788 1,327 -- 532 607
Property taxes, insurance and other 519 789 -- 171 306
Loss on asset impairments -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Swap termination costs -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- --
FelCor merger costs -- -- -- -- --
Costs to terminate leases with Prime
Hospitality Corporation -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total operating expenses 1,308 2,117 -- 705 914
---------- ---------- ---------- ---------- ----------
Net operating income 1,202 170 -- (204) 746
---------- ---------- ---------- ---------- ----------
Interest expense, net (68) (42) -- (11) (20)
Equity in income from consolidated entities -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Income (loss) before minority interests, loss on
sale of assets, income taxes, discontinued
operations, and extraordinary loss 1,270 212 -- (193) 766
Minority interests -- -- -- --
Loss on sale of assets -- -- -- -- --
Income tax benefit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income from continuing operations 1,270 212 -- (193) 766
Discontinued operations:
(Loss) income from discontinued operations
before tax benefit -- -- (6,123) -- --
Income tax benefit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income from discontinued operations -- -- (6,123) -- --
---------- ---------- ---------- ---------- ----------
Loss before extraordinary loss 1,270 212 (6,123) (193) 766
Extraordinary loss on early extinguishment of debt,
net of tax effect of ($50) in 2001 -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net income (loss) 1,270 212 (6,123) (193) 766
========== ========== ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR SUB MERISTAR MERISTAR
SUB 3D, SUB 1A, SUB 5E, 7A JOINT SUB 6K, SUB 2B,
LLC LLC LLC VENTURE LLC LLC
---------- ---------- ---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- -- -- --
Food and beverage -- -- -- -- -- --
Other hotel operations -- -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- -- --
Participating lease revenue 1,832 1,925 5,455 1,324 3,803 569
---------- ---------- ---------- ---------- ---------- ----------
Total revenue 1,832 1,925 5,455 1,324 3,803 569
---------- ---------- ---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- -- -- --
Food and beverage -- -- -- -- -- --
Other hotel operating expenses -- -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- 2 --
Other operating expenses:
Administrative and general 1 1 9 (42) 1 --
Property operating costs -- -- -- -- -- --
Depreciation and amortization 944 475 1,866 403 741 380
Property taxes, insurance and other 255 350 521 137 630 53
Loss on asset impairments -- -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- -- --
Swap termination costs -- -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- -- --
FelCor merger costs -- -- -- -- -- --
Costs to terminate leases with Prime
Hospitality Corporation -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total operating expenses 1,200 826 2,396 498 1,374 433
---------- ---------- ---------- ---------- ---------- ----------
Net operating income 632 1,099 3,059 826 2,429 136
---------- ---------- ---------- ---------- ---------- ----------
Interest expense, net (87) (21) (96) (16) (29) 364
Equity in income from consolidated entities -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) before minority interests, loss on
sale of assets, income taxes, discontinued
operations, and extraordinary loss 719 1,120 3,155 842 2,458 (228)
Minority interests -- -- -- -- -- --
Loss on sale of assets -- -- -- -- -- --
Income tax benefit -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
(Loss) income from continuing operations 719 1,120 3,155 842 2,458 (228)
Discontinued operations:
(Loss) income from discontinued operations
before tax benefit -- -- -- -- -- --
Income tax benefit -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
(Loss) income from discontinued operations -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Loss before extraordinary loss 719 1,120 3,155 842 2,458 (228)
Extraordinary loss on early extinguishment of debt,
net of tax effect of ($50) in 2001 -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net income (loss) 719 1,120 3,155 842 2,458 (228)
========== ========== ========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 3A, SUB 4A, SUB 4D, SUB 2A, SUB 6L,
LLC LLC LLC LLC LLC
---------- ---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- 3 -- --
Participating lease revenue 575 1,094 537 674 1,755
---------- ---------- ---------- ---------- ----------
Total revenue 575 1,094 540 674 1,755
---------- ---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses 3 -- -- -- --
Other operating expenses:
Administrative and general 1 6 1 -- 1
Property operating costs -- -- -- -- --
Depreciation and amortization 344 -- 299 315 882
Property taxes, insurance and other 76 303 157 182 213
Loss on asset impairments 2,278 3,432 -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Swap termination costs -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- --
FelCor merger costs -- -- -- -- --
Costs to terminate leases with Prime
Hospitality Corporation -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total operating expenses 2,702 3,741 457 497 1,096
---------- ---------- ---------- ---------- ----------
Net operating income (2,127) (2,647) 83 177 659
---------- ---------- ---------- ---------- ----------
Interest expense, net (13) (31) (44) 684 (20)
Equity in income from consolidated entities -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Income (loss) before minority interests, loss on
sale of assets, income taxes, discontinued
operations, and extraordinary loss (2,114) (2,616) 127 (507) 679
Minority interests -- -- -- -- --
Loss on sale of assets -- -- -- -- --
Income tax benefit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income from continuing operations (2,114) (2,616) 127 (507) 679
Discontinued operations:
(Loss) income from discontinued operations
before tax benefit -- -- -- -- --
Income tax benefit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income from discontinued operations -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Loss before extraordinary loss (2,114) (2,616) 127 (507) 679
Extraordinary loss on early extinguishment of debt,
net of tax effect of ($50) in 2001 -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net income (loss) (2,114) (2,616) 127 (507) 679
========== ========== ========== ========== ==========
MDV MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
LIMITED SUB 5C, SUB 6J, SUB 1D, SUB 7B, SUB 7D,
PARTNERSHIP LLC LLC L.P. L.P. LLC
----------- ---------- ---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- -- -- --
Food and beverage -- -- -- -- -- --
Other hotel operations -- -- -- -- -- --
Office rental, parking and other revenue -- -- -- 7 -- --
Participating lease revenue 635 1,196 2,391 6,313 1,532 7,588
---------- ---------- ---------- ---------- ---------- ----------
Total revenue 635 1,196 2,391 6,320 1,532 7,588
---------- ---------- ---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- -- -- --
Food and beverage -- -- -- -- -- --
Other hotel operating expenses -- -- -- -- -- --
Office rental, parking and other expenses -- -- -- 6 -- 253
Other operating expenses:
Administrative and general (7) 9 1 37 (100) 706
Property operating costs -- -- -- 87 -- 100
Depreciation and amortization 123 583 611 2,186 888 1,623
Property taxes, insurance and other 130 194 179 1,065 1,028 2,382
Loss on asset impairments -- -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- -- --
Swap termination costs -- -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- -- --
FelCor merger costs -- -- -- -- -- --
Costs to terminate leases with Prime
Hospitality Corporation -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total operating expenses 246 786 791 3,381 1,816 5,064
---------- ---------- ---------- ---------- ---------- ----------
Net operating income 389 410 1,600 2,939 (284) 2,524
---------- ---------- ---------- ---------- ---------- ----------
Interest expense, net (8) (37) (35) (44) (59) (76)
Equity in income from consolidated entities -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) before minority interests, loss on
sale of assets, income taxes, discontinued
operations, and extraordinary loss 397 447 1,635 2,983 (225) 2,600
Minority interests -- -- -- -- -- --
Loss on sale of assets -- -- -- -- -- --
Income tax benefit -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
(Loss) income from continuing operations 397 447 1,635 2,983 (225) 2,600
Discontinued operations:
(Loss) income from discontinued operations
before tax benefit -- -- -- -- -- --
Income tax benefit -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
(Loss) income from discontinued operations -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Loss before extraordinary loss 397 447 1,635 2,983 (225) 2,600
Extraordinary loss on early extinguishment of debt,
net of tax effect of ($50) in 2001 -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net income (loss) 397 447 1,635 2,983 (225) 2,600
========== ========== ========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7G, SUB 6B, SUB 4I, SUB 5D, SUB 5H,
LLC LLC L.P. LLC LLC
---------- ---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- 3 --
Participating lease revenue 781 1,106 85 1,841 4,130
---------- ---------- ---------- ---------- ----------
Total revenue 781 1,106 85 1,844 4,130
---------- ---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
Administrative and general 3 1 12 7 1
Property operating costs -- -- -- -- --
Depreciation and amortization 731 451 855 1,420 1,946
Property taxes, insurance and other 227 258 359 383 526
Loss on asset impairments -- -- 11,594 -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Swap termination costs -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- --
FelCor merger costs -- -- -- -- --
Costs to terminate leases with Prime
Hospitality Corporation -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total operating expenses 961 710 12,820 1,810 2,473
---------- ---------- ---------- ---------- ----------
Net operating income (180) 396 (12,735) 34 1,657
---------- ---------- ---------- ---------- ----------
Interest expense, net (57) (7) (15) 1,773 (39)
Equity in income from consolidated entities -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Income (loss) before minority interests, loss on
sale of assets, income taxes, discontinued
operations, and extraordinary loss (123) 403 (12,720) (1,739) 1,696
Minority interests -- -- -- -- --
Loss on sale of assets -- -- -- -- --
Income tax benefit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income from continuing operations (123) 403 (12,720) (1,739) 1,696
Discontinued operations:
(Loss) income from discontinued operations
before tax benefit -- -- -- -- --
Income tax benefit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income from discontinued operations -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Loss before extraordinary loss (123) 403 (12,720) (1,739) 1,696
Extraordinary loss on early extinguishment of debt,
net of tax effect of ($50) in 2001 -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net income (loss) (123) 403 (12,720) (1,739) 1,696
========== ========== ========== ========== ==========
MERISTAR AGH MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7H, PSS I, SUB 2D, SUB 4F, SUB 5K, SUB 5M,
LLC INC. LLC L.P. LLC LLC
---------- ---------- ---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- -- -- --
Food and beverage -- -- -- -- -- --
Other hotel operations -- -- -- -- -- --
Office rental, parking and other revenue -- 3 -- 17 -- --
Participating lease revenue 1,234 2,994 1,392 2,234 2,755 2,141
---------- ---------- ---------- ---------- ---------- ----------
Total revenue 1,234 2,997 1,392 2,251 2,755 2,141
---------- ---------- ---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- -- -- --
Food and beverage -- -- -- -- -- --
Other hotel operating expenses -- -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- -- --
Other operating expenses:
Administrative and general 1 2 -- 16 1 1
Property operating costs -- -- -- -- -- --
Depreciation and amortization 699 -- 460 1,092 1,181 440
Property taxes, insurance and other 319 459 358 459 321 213
Loss on asset impairments 2,705 -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- -- --
Swap termination costs -- -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- -- --
FelCor merger costs -- -- -- -- -- --
Costs to terminate leases with Prime
Hospitality Corporation -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total operating expenses 3,724 461 818 1,567 1,503 654
---------- ---------- ---------- ---------- ---------- ----------
Net operating income (2,490) 2,536 574 684 1,252 1,487
---------- ---------- ---------- ---------- ---------- ----------
Interest expense, net (25) (10) 780 (26) (35) (28)
Equity in income from consolidated entities -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) before minority interests, loss on
sale of assets, income taxes, discontinued
operations, and extraordinary loss (2,465) 2,546 (206) 710 1,287 1,515
Minority interests -- -- -- -- -- --
Loss on sale of assets -- (1,076) -- -- -- --
Income tax benefit -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
(Loss) income from continuing operations (2,465) 1,470 (206) 710 1,287 1,515
Discontinued operations:
(Loss) income from discontinued operations
before tax benefit -- -- -- -- -- --
Income tax benefit -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
(Loss) income from discontinued operations -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Loss before extraordinary loss (2,465) 1,470 (206) 710 1,287 1,515
Extraordinary loss on early extinguishment of debt,
net of tax effect of ($50) in 2001 -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net income (loss) (2,465) 1,470 (206) 710 1,287 1,515
========== ========== ========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1E, SUB 5O, SUB 6M SUB 4B, SUB 6C,
L.P. LLC COMPANY L.P. LLC
---------- ---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operations -- -- -- -- --
Office rental, parking and other revenue -- -- -- -- 13
Participating lease revenue 1,702 857 4,757 180 3,168
---------- ---------- ---------- ---------- ----------
Total revenue 1,702 857 4,757 180 3,181
---------- ---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other hotel operating expenses -- -- -- -- --
Office rental, parking and other expenses -- -- -- -- --
Other operating expenses:
Administrative and general 1 1 1 1 1
Property operating costs -- -- -- -- --
Depreciation and amortization 291 220 1,194 1,100 755
Property taxes, insurance and other 142 93 302 405 139
Loss on asset impairments -- -- -- 12,326 --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Swap termination costs -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- --
FelCor merger costs -- -- -- -- --
Costs to terminate leases with Prime
Hospitality Corporation -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total operating expenses 434 314 1,497 13,832 895
---------- ---------- ---------- ---------- ----------
Net operating income 1,268 543 3,260 (13,652) 2,286
---------- ---------- ---------- ---------- ----------
Interest expense, net (28) (6) (16) (100) (49)
Equity in income from consolidated entities -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Income (loss) before minority interests, loss on
sale of assets, income taxes, discontinued
operations, and extraordinary loss 1,296 549 3,276 (13,552) 2,335
Minority interests -- -- -- -- --
Loss on sale of assets -- -- -- -- --
Income tax benefit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income from continuing operations 1,296 549 3,276 (13,552) 2,335
Discontinued operations:
(Loss) income from discontinued operations
before tax benefit -- -- -- -- --
Income tax benefit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
(Loss) income from discontinued operations -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Loss before extraordinary loss 1,296 549 3,276 (13,552) 2,335
Extraordinary loss on early extinguishment of debt,
net of tax effect of ($50) in 2001 -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net income (loss) 1,296 549 3,276 (13,552) 2,335
========== ========== ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2C, SUB 4G, SUB 3B, SUB 5G, SUB 5P, SUB 5J,
LLC L.P. LLC L.P. LLC LLC
---------- ---------- ---------- ---------- ---------- ----------
Revenue:
Hotel operations:
Rooms -- -- -- -- -- --
Food and beverage -- -- -- -- -- --
Other hotel operations -- -- -- -- -- --
Office rental, parking and other revenue 50 24 14 54 -- --
Participating lease revenue 1,791 3,080 1,162 11,629 623 10,530
---------- ---------- ---------- ---------- ---------- ----------
Total revenue 1,841 3,104 1,176 11,683 623 10,530
---------- ---------- ---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- -- -- --
Food and beverage -- -- -- -- -- --
Other hotel operating expenses -- -- -- -- -- --
Office rental, parking and other expenses -- -- (9) -- -- --
Other operating expenses:
Administrative and general -- 12 1 6 -- 2
Property operating costs -- -- -- -- -- --
Depreciation and amortization 1,026 870 890 6,165 -- 3,364
Property taxes, insurance and other 496 711 339 1,676 22 1,053
Loss on asset impairments -- -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- -- --
Swap termination costs -- -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- -- --
FelCor merger costs -- -- -- -- -- --
Costs to terminate leases with Prime
Hospitality Corporation -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total operating expenses 1,522 1,593 1,221 7,847 22 4,419
---------- ---------- ---------- ---------- ---------- ----------
Net operating income 319 1,511 (45) 3,836 601 6,111
---------- ---------- ---------- ---------- ---------- ----------
Interest expense, net 1,347 (41) (25) (42) -- (112)
Equity in income from consolidated entities -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) before minority interests, loss on
sale of assets, income taxes, discontinued
operations, and extraordinary loss (1,028) 1,552 (20) 3,878 601 6,223
Minority interests -- -- -- -- -- --
Loss on sale of assets -- -- -- -- -- --
Income tax benefit -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
(Loss) income from continuing operations (1,028) 1,552 (20) 3,878 601 6,223
Discontinued operations:
(Loss) income from discontinued operations
before tax benefit -- -- -- -- -- --
Income tax benefit -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
(Loss) income from discontinued operations -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Loss before extraordinary loss (1,028) 1,552 (20) 3,878 601 6,223
Extraordinary loss on early extinguishment of debt,
net of tax effect of ($50) in 2001 -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net income (loss) (1,028) 1,552 (20) 3,878 601 6,223
========== ========== ========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5Q, SUB 5A, SUB 8D, SUB 4J, HOTEL
LLC LLC LLC LLC LESSEE, INC.
---------- ---------- ---------- ---------- -----------
Revenue:
Hotel operations:
Rooms -- -- -- -- 689,215
Food and beverage -- -- -- -- 261,482
Other hotel operations -- -- -- -- 18,235
Office rental, parking and other revenue -- 81 -- 5 67,737
Participating lease revenue 2,281 5,143 3,388 3,050 --
---------- ---------- ---------- ---------- ----------
Total revenue 2,281 5,224 3,388 3,055 1,036,669
---------- ---------- ---------- ---------- ----------
Hotel operating expenses:
Rooms -- -- -- -- 167,012
Food and beverage -- -- -- -- 189,764
Other hotel operating expenses -- -- -- -- 13,690
Office rental, parking and other expenses -- -- 5 8 31,677
Other operating expenses:
Administrative and general -- 2 37 49 157,017
Property operating costs -- -- -- 497 156,100
Depreciation and amortization 410 1,673 1,251 1,279 253
Property taxes, insurance and other 71 554 337 196 322,155
Loss on asset impairments -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Swap termination costs -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- --
FelCor merger costs -- -- -- -- --
Costs to terminate leases with Prime
Hospitality Corporation -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total operating expenses 481 2,229 1,630 2,029 1,037,668
---------- ---------- ---------- ---------- ----------
Net operating income 1,800 2,995 1,758 1,026 (999)
---------- ---------- ---------- ---------- ----------
Interest expense, net (110) 2,791 (22) (76) 152
Equity in income from consolidated entities -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Income (loss) before minority interests, loss on
sale of assets, income taxes, discontinued
operations, and extraordinary loss 1,910 204 1,780 1,102 (1,151)
Minority interests -- -- -- -- --
Loss on sale of assets -- -- -- -- --
Income tax benefit -- -- -- -- 344
---------- ---------- ---------- ---------- ----------
(Loss) income from continuing operations 1,910 204 1,780 1,102 (807)
Discontinued operations:
(Loss) income from discontinued operations
before tax benefit -- -- -- -- 304
Income tax benefit -- -- -- -- (7)
---------- ---------- ---------- ---------- ----------
(Loss) income from discontinued operations -- -- -- -- 297
---------- ---------- ---------- ---------- ----------
Loss before extraordinary loss 1,910 204 1,780 1,102 (510)
Extraordinary loss on early extinguishment of debt,
net of tax effect of ($50) in 2001 -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net income (loss) 1,910 204 1,780 1,102 (510)
========== ========== ========== ========== ==========
GUARANTOR
SUBSIDIARIES TOTAL
TOTAL ELIMINATIONS CONSOLIDATED
------------ ------------ ------------
Revenue:
Hotel operations:
Rooms 689,215 -- $ 689,215
Food and beverage 261,482 -- 265,815
Other hotel operations 18,236 -- 80,385
Office rental, parking and other revenue 71,282 -- 16,829
Participating lease revenue 154,463 (300,585) 5,094
---------- -------- -----------
Total revenue 1,194,678 (300,585) 1,057,338
---------- -------- -----------
Hotel operating expenses:
Rooms 167,012 -- 167,265
Food and beverage 189,764 -- 191,838
Other hotel operating expenses 13,690 -- 43,032
Office rental, parking and other expenses 31,938 -- 3,057
Other operating expenses: -- --
Administrative and general 155,834 -- 166,726
Property operating costs 156,784 -- 156,350
Depreciation and amortization 56,948 -- 111,944
Property taxes, insurance and other 347,929 (300,585) 73,418
Loss on asset impairments 32,335 -- 32,335
Loss on fair value of non-hedging derivatives -- -- 6,666
Swap termination costs -- -- 9,297
Write down of investment in STS Hotel Net -- -- 2,112
FelCor merger costs -- -- 5,817
Costs to terminate leases with Prime
Hospitality Corporation -- -- 1,315
---------- -------- -----------
Total operating expenses 1,152,234 (300,585) 971,172
---------- -------- -----------
Net operating income 42,444 -- 86,166
---------- -------- -----------
Interest expense, net 5,953 -- 122,472
Equity in income from consolidated entities -- (78,751) --
---------- -------- -----------
Income (loss) before minority interests, loss on
sale of assets, income taxes, discontinued
operations, and extraordinary loss 36,491 (78,751) (36,306)
Minority interests -- -- 48
Loss on sale of assets (2,137) -- (2,176)
Income tax benefit 344 -- 975
---------- -------- -----------
(Loss) income from continuing operations 34,698 (78,751) (37,459)
Discontinued operations:
(Loss) income from discontinued operations
before tax benefit (6,722) -- (4,413)
Income tax benefit (7) -- 107
---------- -------- -----------
(Loss) income from discontinued operations (6,729) -- (4,306)
---------- -------- -----------
Loss before extraordinary loss 27,969 (78,751) (41,765)
Extraordinary loss on early extinguishment of debt,
net of tax effect of ($50) in 2001 -- -- (2,720)
---------- -------- -----------
Net income (loss) 27,969 (78,751) $ (44,485)
========== ======== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2000
(in thousands of dollars)
MERISTAR NON- MERISTAR AGH MERISTAR
HOSPITALITY GUARANTOR SUB 7C, UPREIT, SUB 5N,
OP, L.P. SUBSIDIARIES LLC LLC LLC
------------ ------------ ------------ ------------ ------------
Revenue:
Office rental, parking and other revenues $ 2,149 3,905 -- -- --
Participating lease revenue 6,544 178,201 -- -- 1,081
------------ ------------ ------------ ------------ ------------
Total revenue 8,693 182,106 -- -- 1,081
------------ ------------ ------------ ------------ ------------
Office rental, parking and other operating expenses -- 1,595 -- -- --
Other operating expenses:
Administrative and general 8,782 171 -- -- 1
Depreciation and amortization 4,588 47,186 -- -- 128
Property taxes, insurance and other 2,732 19,361 -- -- 78
------------ ------------ ------------ ------------ ------------
Total operating expenses 16,102 68,313 -- -- 207
------------ ------------ ------------ ------------ ------------
Net operating income (7,409) 113,793 -- -- 874
Interest expense, net 86,789 26,072 -- -- (4)
Equity in income from consolidated entities 210,453 -- -- -- --
------------ ------------ ------------ ------------ ------------
(Loss) income before minority interests, gain on sale of
assets, income taxes, discontinued operations, and
extraordinary gain 116,255 87,721 -- -- 878
Minority interests (3) -- -- -- --
Gain on sale of assets -- 3,495 -- -- --
Income tax expense (1,522) -- -- -- --
------------ ------------ ------------ ------------ ------------
Income from continuing operations 114,736 91,216 -- -- 878
Discontinued operations:
Income from discontinued operations before tax expense -- 7,118 -- -- --
Income tax expense (156) -- -- -- --
------------ ------------ ------------ ------------ ------------
(Loss) income from discontinued operations (156) 7,118 -- -- --
------------ ------------ ------------ ------------ ------------
Income before extraordinary gain 114,580 98,334 -- -- 878
Extraordinary gain on early extinguishment of debt,
net of tax effect of $50 in 2000 3,400 -- -- -- --
------------ ------------ ------------ ------------ ------------
Net income (loss) $ 117,980 98,334 -- -- 878
============ ============ ============ ============ ============
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 8F, SUB 8G, SUB 6H,
LLC LLC LLC LLC
------------ ------------ ------------ ------------
Revenue:
Office rental, parking and other revenues -- 9 -- --
Participating lease revenue -- 3,356 -- 1,480
------------ ------------ ------------ ------------
Total revenue -- 3,365 -- 1,480
------------ ------------ ------------ ------------
Office rental, parking and other operating expenses -- -- -- --
Other operating expenses:
Administrative and general -- -- -- --
Depreciation and amortization -- 436 -- 423
Property taxes, insurance and other -- 648 -- 101
------------ ------------ ------------ ------------
Total operating expenses -- 1,084 -- 524
------------ ------------ ------------ ------------
Net operating income -- 2,281 -- 956
Interest expense, net -- 248 -- (2)
Equity in income from consolidated entities -- -- -- --
------------ ------------ ------------ ------------
(Loss) income before minority interests, gain on sale of
assets, income taxes, discontinued operations, and
extraordinary gain -- 2,033 -- 958
Minority interests -- -- -- --
Gain on sale of assets -- -- -- --
Income tax expense -- -- -- --
------------ ------------ ------------ ------------
Income from continuing operations -- 2,033 -- 958
Discontinued operations:
Income from discontinued operations before tax expense 1,451 -- -- --
Income tax expense -- -- -- --
------------ ------------ ------------ ------------
(Loss) income from discontinued operations 1,451 -- -- --
------------ ------------ ------------ ------------
Income before extraordinary gain 1,451 2,033 -- 958
Extraordinary gain on early extinguishment of debt,
net of tax effect of $50 in 2000 -- -- -- --
------------ ------------ ------------ ------------
Net income (loss) 1,451 2,033 -- 958
============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2000
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8B, SUB 1C, SUB 8E, 7F SUB, SUB 5L,
LLC L.P. LLC LLC LLC
------------ ------------ ------------ ------------ ------------
Revenue:
Office rental, parking and other revenues -- 1 25 1 --
Participating lease revenue 10,997 1,826 2,336 1,425 1,297
------------ ------------ ------------ ------------ ------------
Total revenue 10,997 1,827 2,361 1,426 1,297
------------ ------------ ------------ ------------ ------------
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general 5 -- -- 1 1
Depreciation and amortization 2,305 1,009 521 460 119
Property taxes, insurance and other 1,394 687 90 136 145
------------ ------------ ------------ ------------ ------------
Total operating expenses 3,704 1,696 611 597 265
------------ ------------ ------------ ------------ ------------
Net operating income 7,293 131 1,750 829 1,032
Interest expense, net (106) (12) (57) (9) (6)
Equity in income from consolidated entities -- -- -- -- --
------------ ------------ ------------ ------------ ------------
(Loss) income before minority interests, gain on sale of
assets, income taxes, discontinued operations, and
extraordinary gain 7,399 143 1,807 838 1,038
Minority interests -- -- -- -- --
Gain on sale of assets -- -- -- -- --
Income tax expense -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Income from continuing operations 7,399 143 1,807 838 1,038
Discontinued operations:
Income from discontinued operations before tax expense -- -- -- -- --
Income tax expense -- -- -- -- --
------------ ------------ ------------ ------------ ------------
(Loss) income from discontinued operations -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Income before extraordinary gain 7,399 143 1,807 838 1,038
Extraordinary gain on early extinguishment of debt,
net of tax effect of $50 in 2000 -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net income (loss) 7,399 143 1,807 838 1,038
============ ============ ============ ============ ============
OLD
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 3C, SUB 5R, SUB 8A, SUB 6D,
LLC LLC LLC LLC
------------ ------------ ------------ ------------
Revenue:
Office rental, parking and other revenues 2 -- 1 7
Participating lease revenue 2,220 -- 916 2,530
------------ ------------ ------------ ------------
Total revenue 2,222 -- 917 2,537
------------ ------------ ------------ ------------
Office rental, parking and other operating expenses -- -- -- --
Other operating expenses:
Administrative and general 1 -- 1 1
Depreciation and amortization 684 -- 358 441
Property taxes, insurance and other 418 -- 198 135
------------ ------------ ------------ ------------
Total operating expenses 1,103 -- 557 577
------------ ------------ ------------ ------------
Net operating income 1,119 -- 360 1,960
Interest expense, net (26) -- (15) (92)
Equity in income from consolidated entities -- -- -- --
------------ ------------ ------------ ------------
(Loss) income before minority interests, gain on sale of
assets, income taxes, discontinued operations, and
extraordinary gain 1,145 -- 375 2,052
Minority interests -- -- -- --
Gain on sale of assets -- -- -- --
Income tax expense -- -- -- --
------------ ------------ ------------ ------------
Income from continuing operations 1,145 -- 375 2,052
Discontinued operations:
Income from discontinued operations before tax expense -- -- -- --
Income tax expense -- -- -- --
------------ ------------ ------------ ------------
(Loss) income from discontinued operations -- -- -- --
------------ ------------ ------------ ------------
Income before extraordinary gain 1,145 -- 375 2,052
Extraordinary gain on early extinguishment of debt,
net of tax effect of $50 in 2000 -- -- -- --
------------ ------------ ------------ ------------
Net income (loss) 1,145 -- 375 2,052
============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2000
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6E, SUB 4E, SUB 1B, SUB 5F, SUB 6G,
LLC LP LLC L.P. LLC
------------ ------------ ------------ ------------ ------------
Revenue:
Office rental, parking and other revenues 1 12 -- -- 1
Participating lease revenue 6,325 2,341 3,139 3,240 2,875
------------ ------------ ------------ ------------ ------------
Total revenue 6,326 2,353 3,139 3,240 2,876
------------ ------------ ------------ ------------ ------------
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general 1 2 -- -- 1
Depreciation and amortization 1,633 887 588 1,048 739
Property taxes, insurance and other 298 434 191 276 316
------------ ------------ ------------ ------------ ------------
Total operating expenses 1,932 1,323 779 1,324 1,056
------------ ------------ ------------ ------------ ------------
Net operating income 4,394 1,030 2,360 1,916 1,820
Interest expense, net (27) (33) (87) (10) (109)
Equity in income from consolidated entities -- -- -- -- --
------------ ------------ ------------ ------------ ------------
(Loss) income before minority interests, gain on sale of
assets, income taxes, discontinued operations, and
extraordinary gain 4,421 1,063 2,447 1,926 1,929
Minority interests -- -- -- -- --
Gain on sale of assets -- -- -- -- --
Income tax expense -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Income from continuing operations 4,421 1,063 2,447 1,926 1,929
Discontinued operations:
Income from discontinued operations before tax expense -- -- -- -- --
Income tax expense -- -- -- -- --
------------ ------------ ------------ ------------ ------------
(Loss) income from discontinued operations -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Income before extraordinary gain 4,421 1,063 2,447 1,926 1,929
Extraordinary gain on early extinguishment of debt,
net of tax effect of $50 in 2000 -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net income (loss) 4,421 1,063 2,447 1,926 1,929
============ ============ ============ ============ ============
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8C, SUB 4C, SUB 4H, SUB 7E,
LLC L.P. L.P. LLC
------------ ------------ ------------ ------------
Revenue:
Office rental, parking and other revenues 14 -- -- --
Participating lease revenue 3,566 -- 700 2,245
------------ ------------ ------------ ------------
Total revenue 3,580 -- 700 2,245
------------ ------------ ------------ ------------
Office rental, parking and other operating expenses -- -- -- --
Other operating expenses:
Administrative and general 1 -- 1 1
Depreciation and amortization 1,205 -- 475 597
Property taxes, insurance and other 407 -- 184 144
------------ ------------ ------------ ------------
Total operating expenses 1,613 -- 660 742
------------ ------------ ------------ ------------
Net operating income 1,967 -- 40 1,503
Interest expense, net (125) -- (57) (18)
Equity in income from consolidated entities -- -- -- --
------------ ------------ ------------ ------------
(Loss) income before minority interests, gain on sale of
assets, income taxes, discontinued operations, and
extraordinary gain 2,092 -- 97 1,521
Minority interests -- -- -- --
Gain on sale of assets -- -- -- --
Income tax expense -- -- -- --
------------ ------------ ------------ ------------
Income from continuing operations 2,092 -- 97 1,521
Discontinued operations:
Income from discontinued operations before tax expense -- 184 -- --
Income tax expense -- -- -- --
------------ ------------ ------------ ------------
(Loss) income from discontinued operations -- 184 -- --
------------ ------------ ------------ ------------
Income before extraordinary gain 2,092 184 97 1,521
Extraordinary gain on early extinguishment of debt,
net of tax effect of $50 in 2000 -- -- -- --
------------ ------------ ------------ ------------
Net income (loss) 2,092 184 97 1,521
============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2000
(in thousands of dollars)
MERISTAR
MERISTAR MERISTAR MERISTAR SUB 7A MERISTAR
SUB 3D, SUB 1A, SUB 5E, JOINT SUB 6K,
LLC LLC LLC VENTURE LLC
------------ ------------ ------------ ------------ ------------
Revenue:
Office rental, parking and other revenues 8 -- 1 -- --
Participating lease revenue 2,329 2,511 5,749 1,443 3,955
------------ ------------ ------------ ------------ ------------
Total revenue 2,337 2,511 5,750 1,443 3,955
------------ ------------ ------------ ------------ ------------
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general -- 1 17 -- 2
Depreciation and amortization 905 466 1,645 401 740
Property taxes, insurance and other 357 293 514 156 260
------------ ------------ ------------ ------------ ------------
Total operating expenses 1,262 760 2,176 557 1,002
------------ ------------ ------------ ------------ ------------
Net operating income 1,075 1,751 3,574 886 2,953
Interest expense, net (109) (24) (357) (5) (14)
Equity in income from consolidated entities -- -- -- -- --
------------ ------------ ------------ ------------ ------------
(Loss) income before minority interests, gain on sale of
assets, income taxes, discontinued operations, and
extraordinary gain 1,184 1,775 3,931 891 2,967
Minority interests -- -- -- -- --
Gain on sale of assets -- -- -- -- --
Income tax expense -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Income from continuing operations 1,184 1,775 3,931 891 2,967
Discontinued operations:
Income from discontinued operations before tax expense -- -- -- -- --
Income tax expense -- -- -- -- --
------------ ------------ ------------ ------------ ------------
(Loss) income from discontinued operations -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Income before extraordinary gain 1,184 1,775 3,931 891 2,967
Extraordinary gain on early extinguishment of debt,
net of tax effect of $50 in 2000 -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net income (loss) 1,184 1,775 3,931 891 2,967
============ ============ ============ ============ ============
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2B, SUB 3A, SUB 4A, SUB 4D,
LLC LLC LLC LLC
------------ ------------ ------------ ------------
Revenue:
Office rental, parking and other revenues -- 2 1 1
Participating lease revenue 934 1,008 1,590 723
------------ ------------ ------------ ------------
Total revenue 934 1,010 1,591 724
------------ ------------ ------------ ------------
Office rental, parking and other operating expenses -- -- -- --
Other operating expenses:
Administrative and general 5 -- 1 1
Depreciation and amortization 400 328 -- 284
Property taxes, insurance and other 148 126 223 165
------------ ------------ ------------ ------------
Total operating expenses 553 454 224 450
------------ ------------ ------------ ------------
Net operating income 381 556 1,367 274
Interest expense, net 389 (18) (28) (54)
Equity in income from consolidated entities -- -- -- --
------------ ------------ ------------ ------------
(Loss) income before minority interests, gain on sale of
assets, income taxes, discontinued operations, and
extraordinary gain (8) 574 1,395 328
Minority interests -- -- -- --
Gain on sale of assets -- -- -- --
Income tax expense -- -- -- --
------------ ------------ ------------ ------------
Income from continuing operations (8) 574 1,395 328
Discontinued operations:
Income from discontinued operations before tax expense -- -- -- --
Income tax expense -- -- -- --
------------ ------------ ------------ ------------
(Loss) income from discontinued operations -- -- -- --
------------ ------------ ------------ ------------
Income before extraordinary gain (8) 574 1,395 328
Extraordinary gain on early extinguishment of debt,
net of tax effect of $50 in 2000 -- -- -- --
------------ ------------ ------------ ------------
Net income (loss) (8) 574 1,395 328
============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2000
(in thousands of dollars)
MERISTAR MERISTAR MDV MERISTAR MERISTAR
SUB 2A, SUB 6L, LIMITED SUB 5C, SUB 6J,
LLC LLC PARTNERSHIP LLC LLC
------------ ------------ ------------ ------------ ------------
Revenue:
Office rental, parking and other revenues -- -- 1 -- 1
Participating lease revenue 950 2,208 760 1,516 2,620
------------ ------------ ------------ ------------ ------------
Total revenue 950 2,208 761 1,516 2,621
------------ ------------ ------------ ------------ ------------
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general 6 -- -- 1 1
Depreciation and amortization 319 657 120 572 596
Property taxes, insurance and other 119 182 89 234 144
------------ ------------ ------------ ------------ ------------
Total operating expenses 444 839 209 807 741
------------ ------------ ------------ ------------ ------------
Net operating income 506 1,369 552 709 1,880
Interest expense, net 718 (294) (6) (25) (41)
Equity in income from consolidated entities -- -- -- -- --
------------ ------------ ------------ ------------ ------------
(Loss) income before minority interests, gain on sale of
assets, income taxes, discontinued operations, and
extraordinary gain (212) 1,663 558 734 1,921
Minority interests -- -- -- -- --
Gain on sale of assets -- -- -- -- --
Income tax expense -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Income from continuing operations (212) 1,663 558 734 1,921
Discontinued operations:
Income from discontinued operations before tax expense -- -- -- -- --
Income tax expense -- -- -- -- --
------------ ------------ ------------ ------------ ------------
(Loss) income from discontinued operations -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Income before extraordinary gain (212) 1,663 558 734 1,921
Extraordinary gain on early extinguishment of debt,
net of tax effect of $50 in 2000 -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net income (loss) (212) 1,663 558 734 1,921
============ ============ ============ ============ ============
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1D, SUB 7B, SUB 7D, SUB 7G,
LLC L.P. LLC LLC
------------ ------------ ------------ ------------
Revenue:
Office rental, parking and other revenues 302 1 1,433 --
Participating lease revenue 7,848 1,964 8,203 1,424
------------ ------------ ------------ ------------
Total revenue 8,150 1,965 9,636 1,424
------------ ------------ ------------ ------------
Office rental, parking and other operating expenses 178 -- 412 --
Other operating expenses:
Administrative and general 40 5 251 1
Depreciation and amortization 1,993 853 1,565 722
Property taxes, insurance and other 1,175 667 2,516 188
------------ ------------ ------------ ------------
Total operating expenses 3,386 1,525 4,744 911
------------ ------------ ------------ ------------
Net operating income 4,764 440 4,892 513
Interest expense, net (220) (102) (105) (85)
Equity in income from consolidated entities -- -- -- --
------------ ------------ ------------ ------------
(Loss) income before minority interests, gain on sale of
assets, income taxes, discontinued operations, and
extraordinary gain 4,984 542 4,997 598
Minority interests -- -- -- --
Gain on sale of assets -- -- -- --
Income tax expense -- -- -- --
------------ ------------ ------------ ------------
Income from continuing operations 4,984 542 4,997 598
Discontinued operations:
Income from discontinued operations before tax expense -- -- -- --
Income tax expense -- -- -- --
------------ ------------ ------------ ------------
(Loss) income from discontinued operations -- -- -- --
------------ ------------ ------------ ------------
Income before extraordinary gain 4,984 542 4,997 598
Extraordinary gain on early extinguishment of debt,
net of tax effect of $50 in 2000 -- -- -- --
------------ ------------ ------------ ------------
Net income (loss) 4,984 542 4,997 598
============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2000
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6B, SUB 4I, SUB 5D, SUB 5H, SUB 7H,
LLC L.P. LLC LLC LLC
------------ ------------ ------------ ------------ ------------
Revenue:
Office rental, parking and other revenues -- 1 1 -- 1
Participating lease revenue 1,420 1,668 2,143 4,695 1,834
------------ ------------ ------------ ------------ ------------
Total revenue 1,420 1,669 2,144 4,695 1,835
------------ ------------ ------------ ------------ ------------
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general -- 1 18 -- 1
Depreciation and amortization 417 847 1,187 1,927 698
Property taxes, insurance and other 302 297 180 621 418
------------ ------------ ------------ ------------ ------------
Total operating expenses 719 1,145 1,385 2,548 1,117
------------ ------------ ------------ ------------ ------------
Net operating income 701 524 759 2,147 718
Interest expense, net (37) (18) 2,016 (52) (28)
Equity in income from consolidated entities -- -- -- -- --
------------ ------------ ------------ ------------ ------------
(Loss) income before minority interests, gain on sale of
assets, income taxes, discontinued operations, and
extraordinary gain 738 542 (1,257) 2,199 746
Minority interests -- -- -- -- --
Gain on sale of assets -- -- -- -- --
Income tax expense -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Income from continuing operations 738 542 (1,257) 2,199 746
Discontinued operations:
Income from discontinued operations before tax expense -- -- -- -- --
Income tax expense -- -- -- -- --
------------ ------------ ------------ ------------ ------------
(Loss) income from discontinued operations -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Income before extraordinary gain 738 542 (1,257) 2,199 746
Extraordinary gain on early extinguishment of debt,
net of tax effect of $50 in 2000 -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net income (loss) 738 542 (1,257) 2,199 746
============ ============ ============ ============ ============
AGH MERISTAR MERISTAR MERISTAR
PSS I, SUB 2D, SUB 4F, SUB 5K,
INC. LLC L.P. LLC
------------ ------------ ------------ ------------
Revenue:
Office rental, parking and other revenues 3 -- 35 --
Participating lease revenue 3,158 1,358 3,233 2,703
------------ ------------ ------------ ------------
Total revenue 3,161 1,358 3,268 2,703
------------ ------------ ------------ ------------
Office rental, parking and other operating expenses -- -- -- --
Other operating expenses:
Administrative and general -- 7 2 2
Depreciation and amortization -- 476 1,007 959
Property taxes, insurance and other 295 335 327 697
------------ ------------ ------------ ------------
Total operating expenses 295 818 1,336 1,658
------------ ------------ ------------ ------------
Net operating income 2,866 540 1,932 1,045
Interest expense, net (3) 816 (112) (82)
Equity in income from consolidated entities -- -- -- --
------------ ------------ ------------ ------------
(Loss) income before minority interests, gain on sale of
assets, income taxes, discontinued operations, and
extraordinary gain 2,869 (276) 2,044 1,127
Minority interests -- -- -- --
Gain on sale of assets -- -- -- --
Income tax expense -- -- -- --
------------ ------------ ------------ ------------
Income from continuing operations 2,869 (276) 2,044 1,127
Discontinued operations:
Income from discontinued operations before tax expense -- -- -- --
Income tax expense -- -- -- --
------------ ------------ ------------ ------------
(Loss) income from discontinued operations -- -- -- --
------------ ------------ ------------ ------------
Income before extraordinary gain 2,869 (276) 2,044 1,127
Extraordinary gain on early extinguishment of debt,
net of tax effect of $50 in 2000 -- -- -- --
------------ ------------ ------------ ------------
Net income (loss) 2,869 (276) 2,044 1,127
============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2000
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5M, SUB 1E, SUB 5O, MERISTAR SUB 4B,
LLC L.P. LLC 6M COMPANY L.P.
------------ ------------ ------------ ------------ ------------
Revenue:
Office rental, parking and other revenues -- 1 -- 1 --
Participating lease revenue 2,338 1,898 838 5,411 1,813
------------ ------------ ------------ ------------ ------------
Total revenue 2,338 1,899 838 5,412 1,813
------------ ------------ ------------ ------------ ------------
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general 1 1 1 -- 1
Depreciation and amortization 441 285 216 989 1,077
Property taxes, insurance and other 267 117 98 269 318
------------ ------------ ------------ ------------ ------------
Total operating expenses 709 403 315 1,258 1,396
------------ ------------ ------------ ------------ ------------
Net operating income 1,629 1,496 523 4,154 417
Interest expense, net (23) (27) (5) (292) (71)
Equity in income from consolidated entities -- -- -- -- --
------------ ------------ ------------ ------------ ------------
(Loss) income before minority interests, gain on sale of
assets, income taxes, discontinued operations, and
extraordinary gain 1,652 1,523 528 4,446 488
Minority interests -- -- -- -- --
Gain on sale of assets -- -- -- -- --
Income tax expense -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Income from continuing operations 1,652 1,523 528 4,446 488
Discontinued operations:
Income from discontinued operations before tax expense -- -- -- -- --
Income tax expense -- -- -- -- --
------------ ------------ ------------ ------------ ------------
(Loss) income from discontinued operations -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Income before extraordinary gain 1,652 1,523 528 4,446 488
Extraordinary gain on early extinguishment of debt,
net of tax effect of $50 in 2000 -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net income (loss) 1,652 1,523 528 4,446 488
============ ============ ============ ============ ============
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6C, SUB 2C, SUB 4G, SUB 3B,
LLC LLC L.P. LLC
------------ ------------ ------------ ------------
Revenue:
Office rental, parking and other revenues 14 77 (2) 12
Participating lease revenue 3,682 3,202 3,357 2,290
------------ ------------ ------------ ------------
Total revenue 3,696 3,279 3,355 2,302
------------ ------------ ------------ ------------
Office rental, parking and other operating expenses -- -- -- --
Other operating expenses:
Administrative and general 1 6 1 1
Depreciation and amortization 723 1,040 835 835
Property taxes, insurance and other 211 351 355 300
------------ ------------ ------------ ------------
Total operating expenses 935 1,397 1,191 1,136
------------ ------------ ------------ ------------
Net operating income 2,761 1,882 2,164 1,166
Interest expense, net (137) 1,447 (46) (53)
Equity in income from consolidated entities -- -- -- --
------------ ------------ ------------ ------------
(Loss) income before minority interests, gain on sale of
assets, income taxes, discontinued operations, and
extraordinary gain 2,898 435 2,210 1,219
Minority interests -- -- -- --
Gain on sale of assets -- -- -- --
Income tax expense -- -- -- --
------------ ------------ ------------ ------------
Income from continuing operations 2,898 435 2,210 1,219
Discontinued operations:
Income from discontinued operations before tax expense -- -- -- --
Income tax expense -- -- -- --
------------ ------------ ------------ ------------
(Loss) income from discontinued operations -- -- -- --
------------ ------------ ------------ ------------
Income before extraordinary gain 2,898 435 2,210 1,219
Extraordinary gain on early extinguishment of debt,
net of tax effect of $50 in 2000 -- -- -- --
------------ ------------ ------------ ------------
Net income (loss) 2,898 435 2,210 1,219
============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2000
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5G, SUB 5P, SUB 5J, SUB 5Q, SUB 5A,
L.P. LLC LLC LLC LLC
------------ ------------ ------------ ------------ ------------
Revenue:
Office rental, parking and other revenues 59 -- 75 -- 108
Participating lease revenue 14,980 816 12,441 2,285 6,639
------------ ------------ ------------ ------------ ------------
Total revenue 15,039 816 12,516 2,285 6,747
------------ ------------ ------------ ------------ ------------
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
Administrative and general -- -- 2 1 --
Depreciation and amortization 6,157 -- 3,287 406 1,667
Property taxes, insurance and other 1,372 -- 1,341 173 588
------------ ------------ ------------ ------------ ------------
Total operating expenses 7,529 -- 4,630 580 2,255
------------ ------------ ------------ ------------ ------------
Net operating income 7,510 816 7,886 1,705 4,492
Interest expense, net (114) -- (122) (76) 2,819
Equity in income from consolidated entities -- -- -- -- --
------------ ------------ ------------ ------------ ------------
(Loss) income before minority interests, gain on sale of
assets, income taxes, discontinued operations, and
extraordinary gain 7,624 816 8,008 1,781 1,673
Minority interests -- -- -- -- --
Gain on sale of assets -- -- -- -- --
Income tax expense -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Income from continuing operations 7,624 816 8,008 1,781 1,673
Discontinued operations:
Income from discontinued operations before tax expense -- -- -- -- --
Income tax expense -- -- -- -- --
------------ ------------ ------------ ------------ ------------
(Loss) income from discontinued operations -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Income before extraordinary gain 7,624 816 8,008 1,781 1,673
Extraordinary gain on early extinguishment of debt,
net of tax effect of $50 in 2000 -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net income (loss) 7,624 816 8,008 1,781 1,673
============ ============ ============ ============ ============
MERISTAR MERISTAR GUARANTOR
SUB 8D, SUB 4J, SUBSIDIARIES TOTAL
LLC LLC TOTAL ELIMINATIONS CONSOLIDATED
------------ ------------ ------------ ------------ ------------
Revenue:
Office rental, parking and other revenues -- 251 2,462 -- $ 8,516
Participating lease revenue 4,018 2,829 192,679 -- 377,424
------------ ------------ ------------ ------------ ------------
Total revenue 4,018 3,080 195,141 -- 385,940
------------ ------------ ------------ ------------ ------------
Office rental, parking and other operating expenses -- 338 928 -- 2,523
Other operating expenses:
Administrative and general 1 80 478 -- 9,431
Depreciation and amortization 1,186 1,237 54,521 -- 106,295
Property taxes, insurance and other 271 583 23,922 -- 46,015
------------ ------------ ------------ ------------ ------------
Total operating expenses 1,458 2,238 79,849 -- 164,264
------------ ------------ ------------ ------------ ------------
Net operating income 2,560 842 115,292 -- 221,676
Interest expense, net (28) (93) 4,752 -- 117,613
Equity in income from consolidated entities -- -- -- (210,453) --
------------ ------------ ------------ ------------ ------------
(Loss) income before minority interests, gain on sale of
assets, income taxes, discontinued operations, and
extraordinary gain 2,588 935 110,540 (210,453) 104,063
Minority interests -- -- -- -- 3
Gain on sale of assets -- -- -- -- 3,495
Income tax expense -- -- -- -- (1,522)
------------ ------------ ------------ ------------ ------------
Income from continuing operations 2,588 935 110,540 (210,453) 106,039
Discontinued operations:
Income from discontinued operations before tax expense -- -- 1,635 -- 8,753
Income tax expense -- -- -- -- (156)
------------ ------------ ------------ ------------ ------------
(Loss) income from discontinued operations -- -- 1,635 -- 8,597
------------ ------------ ------------ ------------ ------------
Income before extraordinary gain 2,588 935 112,175 (210,453) 114,636
Extraordinary gain on early extinguishment of debt,
net of tax effect of $50 in 2000 -- -- -- -- 3,400
------------ ------------ ------------ ------------ ------------
Net income (loss) 2,588 935 112,175 (210,453) 118,036
============ ============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR NON- MERISTAR AGH MERISTAR MERISTAR
HOSPITALITY GUARANTOR SUB 7C, UPREIT, SUB 5N, SUB 8A,
OP, L.P. SUBSIDIARIES LLC LLC LLC LLC
------------ ------------ ------------ ------------ ------------ ------------
Operating activities:
Net (loss) income $ (170,169) (2,843) -- -- 646 (4,107)
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 10,289 50,468 -- -- 133 112
Gain on sale of assets, before tax effect -- 14,807 -- -- -- 4,812
Extraordinary gain on early extinguishment
of debt, before tax effect 33,753 -- -- -- -- --
Loss on asset impairments -- 23,580 -- -- -- --
Write down of note receivable with
Interstate Hotels & Resorts 14,517 -- -- -- -- --
Write off of deferred financing costs 3,144 -- -- -- -- --
Loss on fair value of non-hedging
derivatives 4,735 -- -- -- -- --
Minority interests (15) -- -- -- -- --
Amortization of unearned stock-based
compensation 4,543 -- -- -- -- --
Unrealized loss on interest rate swaps
recognized in net loss (7,612) -- -- -- -- --
Deferred income taxes (1,910) -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable (7,852) (129) -- -- (16) (15)
Prepaid expenses and other assets (1,780) (589) -- -- -- --
Due from/to Interstate Hotels & Resorts 144 -- -- -- -- --
Due from subsidiaries 193,138 (96,158) -- -- (713) (2,462)
Accounts payable, accrued expenses, accrued
interest and other liabilities 546 (5,099) -- -- (7) 6
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 75,471 (15,963) -- -- 43 (1,654)
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (2,324) (17,000) -- -- (43) (4,616)
Proceeds from sales of assets -- 42,780 -- -- -- 6,270
Net (advances to) payments from Interstate
Hotels & Resorts (7,500) 775 -- -- -- --
Decrease (increase) in restricted cash (1,623) 2,562 -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (11,447) 29,117 -- -- (43) 1,654
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs (4,795) -- -- -- -- --
Proceeds from issuance of long-term debt 289,549 -- -- -- -- --
Principal payments on long-term debt (334,309) (18,157) -- -- -- --
Contributions from partners 3,153 -- -- -- -- --
Repurchase of units (1,318) -- -- -- -- --
Distributions paid to partners (3,060) -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities (50,780) (18,157) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents 205 -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in cash and cash
equivalents 13,449 (5,003) -- -- -- --
Cash and cash equivalents, beginning of year 6,798 -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year $ 20,247 (5,003) -- -- -- --
============ ============ ============ ============ ============ ============
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8F, SUB 8G, SUB 6H, SUB 8B, SUB 1C, SUB 8E,
LLC LLC L.P. LLC L.P. LLC
------------ ------------ ------------ ------------ ------------ ------------
Operating activities:
Net (loss) income 1,106 -- 942 3,356 (458) 851
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 453 -- 431 2,385 1,021 600
Gain on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- -- --
Loss on asset impairments -- -- -- -- -- --
Write down of note receivable with
Interstate Hotels & Resorts -- -- -- -- -- --
Write off of deferred financing costs -- -- -- -- -- --
Loss on fair value of non-hedging
derivatives -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- -- --
Unrealized loss on interest rate swaps
recognized in net loss -- -- -- -- -- --
Deferred income taxes (96) -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable 8 -- -- -- -- --
Prepaid expenses and other assets 19 -- -- -- -- --
Due from/to Interstate Hotels & Resorts -- -- -- -- -- --
Due from subsidiaries (1,401) -- (1,303) (5,055) (302) (1,317)
Accounts payable, accrued expenses, accrued
interest and other liabilities 47 -- (5) 214 141 (16)
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 136 -- 65 900 402 118
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (136) -- (65) (900) (402) (118)
Proceeds from sales of assets -- -- -- -- -- --
Net (advances to) payments from Interstate
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (136) -- (65) (900) (402) (118)
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Principal payments on long-term debt -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in cash and cash
equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- -- --
============ ============ ============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2002
(in thousands of dollars)
OLD
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7F, SUB 5L, SUB 3C, SUB 5R, SUB 8A, SUB 6D,
LLC LLC LLC LLC LLC LLC
------------ ------------ ------------ ------------ ------------ ------------
Operating activities:
Net (loss) income 470 733 557 -- -- 1,340
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 463 135 706 -- -- 526
Gain on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- -- --
Loss on asset impairments -- -- -- -- -- --
Write down of note receivable with
Interstate Hotels & Resorts -- -- -- -- -- --
Write off of deferred financing costs -- -- -- -- -- --
Loss on fair value of non-hedging
derivatives -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- -- --
Unrealized loss on interest rate swaps
recognized in net loss -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- (28) -- -- -- 14
Prepaid expenses and other assets -- -- -- -- 1 --
Due from/to Interstate Hotels & Resorts -- -- -- -- -- --
Due from subsidiaries (866) (585) (1,195) -- 46 (1,633)
Accounts payable, accrued expenses, accrued
interest and other liabilities (6) 32 38 -- (46) (83)
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 61 287 106 -- 1 164
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (61) (287) (106) -- (1) (164)
Proceeds from sales of assets -- -- -- -- -- --
Net (advances to) payments from Interstate
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (61) (287) (106) -- (1) (164)
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Principal payments on long-term debt -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in cash and cash
equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- -- --
============ ============ ============ ============ ============ ============
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6E, SUB 4E, SUB 1B, SUB 5F, SUB 6G, SUB 8C,
LLC L.P. LLC L.P. LLC LLC
------------ ------------ ------------ ------------ ------------ ------------
Operating activities:
Net (loss) income 3,141 83 2,213 1,235 1,327 (20,129)
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 1,692 918 602 1,058 837 1,389
Gain on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- -- --
Loss on asset impairments -- -- -- -- -- 20,111
Write down of note receivable with
Interstate Hotels & Resorts -- -- -- -- -- --
Write off of deferred financing costs -- -- -- -- -- --
Loss on fair value of non-hedging
derivatives -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- -- --
Unrealized loss on interest rate swaps
recognized in net loss -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- (96) -- -- --
Prepaid expenses and other assets -- -- (1) -- -- --
Due from/to Interstate Hotels & Resorts -- -- -- -- -- --
Due from subsidiaries (4,432) (766) (2,474) (1,778) (1,790) (1,168)
Accounts payable, accrued expenses, accrued
interest and other liabilities 163 (41) 62 76 (43) (56)
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 564 194 306 591 331 147
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (564) (194) (306) (586) (331) (147)
Proceeds from sales of assets -- -- -- -- -- --
Net (advances to) payments from Interstate
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (564) (194) (306) (586) (331) (147)
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- (5) -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Principal payments on long-term debt -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- (5) -- --
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in cash and cash
equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- -- --
============ ============ ============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4C, SUB 4H, SUB 7E, SUB 3D, SUB 1A, SUB 5E,
L.P. L.P. LLC LLC LLC LLC
------------ ------------ ------------ ------------ ------------ ------------
Operating activities:
Net (loss) income (1,407) (145) 568 1,123 938 3,232
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 283 541 634 849 453 1,943
Gain on sale of assets, before tax effect 1,578 -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- -- --
Loss on asset impairments -- -- -- -- -- --
Write down of note receivable with
Interstate Hotels & Resorts -- -- -- -- -- --
Write off of deferred financing costs -- -- -- -- -- --
Loss on fair value of non-hedging
derivatives -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- -- --
Unrealized loss on interest rate swaps
recognized in net loss -- -- -- -- -- --
Deferred income taxes (32) -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable (1) -- -- -- -- --
Prepaid expenses and other assets -- (14) -- -- -- --
Due from/to Interstate Hotels & Resorts -- -- -- -- -- --
Due from subsidiaries (11,656) (262) (1,021) (1,789) (1,277) (5,007)
Accounts payable, accrued expenses, accrued
interest and other liabilities (317) (21) (31) 61 (27) (117)
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities (11,552) 99 150 244 87 51
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (48) (99) (150) (244) (87) (51)
Proceeds from sales of assets 11,600 -- -- -- -- --
Net (advances to) payments from Interstate
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities 11,552 (99) (150) (244) (87) (51)
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Principal payments on long-term debt -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in cash and cash
equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- -- --
============ ============ ============ ============ ============ ============
MERISTAR
SUB 7A MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
JOINT SUB 6K, SUB 2B, SUB 3A, SUB 4A, SUB 4D,
VENTURE LLC LLC LLC LLC LLC
------------ ------------ ------------ ------------ ------------ ------------
Operating activities:
Net (loss) income 638 2,819 (464) 195 (2,398) (3,591)
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 416 736 417 256 -- 311
Gain on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- -- --
Loss on asset impairments -- -- -- -- 3,170 3,617
Write down of note receivable with
Interstate Hotels & Resorts -- -- -- -- -- --
Write off of deferred financing costs -- -- -- -- -- --
Loss on fair value of non-hedging
derivatives -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- -- --
Unrealized loss on interest rate swaps
recognized in net loss -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- -- -- --
Prepaid expenses and other assets -- -- -- -- -- --
Due from/to Interstate Hotels & Resorts -- -- -- -- -- --
Due from subsidiaries (767) (3,386) 192 242 (525) 90
Accounts payable, accrued expenses, accrued
interest and other liabilities (12) 44 64 65 33 49
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 275 213 209 758 280 476
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (270) (213) (248) (758) (280) (476)
Proceeds from sales of assets -- -- -- -- -- --
Net (advances to) payments from Interstate
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (270) (213) (248) (758) (280) (476)
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs (5) -- -- -- -- --
Proceeds from issuance of long-term debt -- -- 39 -- -- --
Principal payments on long-term debt -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities (5) -- 39 -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in cash and cash
equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- -- --
============ ============ ============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR MERISTAR MDV MERISTAR MERISTAR MERISTAR
SUB 2A, SUB 6L, LIMITED SUB 5C, SUB 6J, SUB 1D,
LLC LLC PARTNERSHIP LLC LLC L.P.
------------ ------------ ------------ ------------ ------------ ------------
Operating activities:
Net (loss) income (605) 658 246 267 1,564 1,875
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 320 890 137 597 647 2,286
Gain on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- -- --
Loss on asset impairments -- -- -- -- -- --
Write down of note receivable with
Interstate Hotels & Resorts -- -- -- -- -- --
Write off of deferred financing costs -- -- -- -- -- --
Loss on fair value of non-hedging
derivatives -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- -- --
Unrealized loss on interest rate swaps
recognized in net loss -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- -- -- --
Prepaid expenses and other assets -- -- 4 (53) -- --
Due from/to Interstate Hotels & Resorts -- -- -- -- -- --
Due from subsidiaries 271 (1,325) (373) (587) (1,909) (3,161)
Accounts payable, accrued expenses, accrued
interest and other liabilities 34 (16) 8 38 (59) (473)
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 20 207 22 262 243 527
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (85) (207) (22) (262) (243) (527)
Proceeds from sales of assets -- -- -- -- -- --
Net (advances to) payments from Interstate
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (85) (207) (22) (262) (243) (527)
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- -- --
Proceeds from issuance of long-term debt 65 -- -- -- -- --
Principal payments on long-term debt -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities 65 -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in cash and cash
equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- -- --
============ ============ ============ ============ ============ ============
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7B, SUB 7D, SUB 7G, SUB 6B, SUB 4I, SUB 5D,
L.P. LLC LLC LLC L.P. LLC
------------ ------------ ------------ ------------ ------------ ------------
Operating activities:
Net (loss) income (6,877) 2,208 (393) 517 (5,445) (1,257)
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 929 1,660 753 456 437 1,450
Gain on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- -- --
Loss on asset impairments 6,925 -- -- -- 4,803 --
Write down of note receivable with
Interstate Hotels & Resorts -- -- -- -- -- --
Write off of deferred financing costs -- -- -- -- -- --
Loss on fair value of non-hedging
derivatives -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- -- --
Unrealized loss on interest rate swaps
recognized in net loss -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- (114) -- -- -- --
Prepaid expenses and other assets -- -- -- -- -- --
Due from/to Interstate Hotels & Resorts -- -- -- -- -- --
Due from subsidiaries (1,069) (3,465) (78) (821) 394 236
Accounts payable, accrued expenses, accrued
interest and other liabilities 137 (136) (124) (35) 51 (36)
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 45 153 158 117 240 393
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (45) (153) (158) (117) (240) (396)
Proceeds from sales of assets -- -- -- -- -- --
Net (advances to) payments from Interstate
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (45) (153) (158) (117) (240) (396)
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- -- 3
Proceeds from issuance of long-term debt -- -- -- -- -- --
Principal payments on long-term debt -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- -- -- 3
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in cash and cash
equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- -- --
============ ============ ============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR MERISTAR AGH MERISTAR MERISTAR MERISTAR
SUB 5H, SUB 7H, PSS I, SUB 2D, SUB 4F, SUB 5K,
LLC LLC INC. LLC L.P. LLC
------------ ------------ ------------ ------------ ------------ ------------
Operating activities:
Net (loss) income 615 484 1,639 (224) 412 970
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 1,976 395 -- 474 1,122 1,187
Gain on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- -- --
Loss on asset impairments -- 22 -- -- -- --
Write down of note receivable with
Interstate Hotels & Resorts -- -- -- -- -- --
Write off of deferred financing costs -- -- -- -- -- --
Loss on fair value of non-hedging
derivatives -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- -- --
Unrealized loss on interest rate swaps
recognized in net loss -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- -- -- --
Prepaid expenses and other assets -- -- -- -- -- --
Due from/to Interstate Hotels & Resorts -- -- -- -- -- --
Due from subsidiaries (1,905) (575) (1,179) (189) (1,100) (76)
Accounts payable, accrued expenses, accrued
interest and other liabilities 261 (147) 78 20 11 (1,328)
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 947 179 538 81 445 753
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (947) (179) (538) (158) (445) (753)
Proceeds from sales of assets -- -- -- -- -- --
Net (advances to) payments from Interstate
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (947) (179) (538) (158) (445) (753)
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- 1 -- --
Proceeds from issuance of long-term debt -- -- -- 76 -- --
Principal payments on long-term debt -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- 77 -- --
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in cash and cash
equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- -- --
============ ============ ============ ============ ============ ============
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5M, SUB 1E, SUB 5O, SUB 6M SUB 4B, SUB 6C,
LLC L.P. LLC COMPANY L.P. LLC
------------ ------------ ------------ ------------ ------------ ------------
Operating activities:
Net (loss) income 881 1,216 392 2,794 (4,245) 2,011
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 454 298 219 1,211 521 777
Gain on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- -- --
Loss on asset impairments -- -- -- -- 3,780 --
Write down of note receivable with
Interstate Hotels & Resorts -- -- -- -- -- --
Write off of deferred financing costs -- -- -- -- -- --
Loss on fair value of non-hedging
derivatives -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- -- --
Unrealized loss on interest rate swaps
recognized in net loss -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- -- -- --
Prepaid expenses and other assets -- -- -- 13 -- --
Due from/to Interstate Hotels & Resorts -- -- -- -- -- --
Due from subsidiaries (1,257) (1,427) (547) (3,749) 1,226 (2,412)
Accounts payable, accrued expenses, accrued
interest and other liabilities 27 (9) (11) (18) 109 (14)
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 105 78 53 251 1,391 362
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (105) (78) (53) (251) (1,391) (362)
Proceeds from sales of assets -- -- -- -- -- --
Net (advances to) payments from Interstate
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (105) (78) (53) (251) (1,391) (362)
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Principal payments on long-term debt -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in cash and cash
equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- -- --
============ ============ ============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2002
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2C, SUB 4G, SUB 3B, SUB 5G, SUB 5P, SUB 5J,
LLC L.P. LLC L.P. LLC LLC
------------ ------------ ------------ ------------ ------------ ------------
Operating activities:
Net (loss) income (1,248) 809 (12,777) 2,429 589 3,784
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 1,035 921 921 6,201 3 3,475
Gain on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- -- --
Loss on asset impairments -- -- 12,724 -- -- --
Write down of note receivable with
Interstate Hotels & Resorts -- -- -- -- -- --
Write off of deferred financing costs -- -- -- -- -- --
Loss on fair value of non-hedging
derivatives -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- -- --
Unrealized loss on interest rate swaps
recognized in net loss -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- -- 319 --
Prepaid expenses and other assets -- -- -- -- -- 483
Due from/to Interstate Hotels & Resorts -- -- -- -- -- --
Due from subsidiaries 455 (1,606) (338) (7,331) (857) (4,787)
Accounts payable, accrued expenses, accrued
interest and other liabilities (17) (16) 58 160 (15) 135
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 225 108 588 1,459 39 3,090
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (358) (108) (588) (1,454) (39) (3,090)
Proceeds from sales of assets -- -- -- -- -- --
Net (advances to) payments from Interstate
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (358) (108) (588) (1,454) (39) (3,090)
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs 1 -- -- (5) -- --
Proceeds from issuance of long-term debt 132 -- -- -- -- --
Principal payments on long-term debt -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities 133 -- -- (5) -- --
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in cash and cash
equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- -- --
============ ============ ============ ============ ============ ============
MERISTAR
MERISTAR MERISTAR MERISTAR MERISTAR HOTEL GUARANTOR
SUB 5Q, SUB 5A, SUB 8D, SUB 4J, LESSEE, SUBSIDIARIES
LLC LLC LLC LLC INC. TOTAL
------------ ------------ ------------ ------------ ------------ ------------
Operating activities:
Net (loss) income 1,164 970 651 1,444 (23,892) (31,560)
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 494 1,434 1,267 1,343 4,874 61,460
Gain on sale of assets, before tax effect -- -- -- -- -- 6,390
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- -- --
Loss on asset impairments -- -- -- -- -- 55,152
Write down of note receivable with
Interstate Hotels & Resorts -- -- -- -- -- --
Write off of deferred financing costs -- -- -- -- -- --
Loss on fair value of non-hedging
derivatives -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- -- --
Unrealized loss on interest rate swaps
recognized in net loss -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- (128)
Changes in operating assets and liabilities:
Accounts receivable -- -- -- 45 (1,785) (1,669)
Prepaid expenses and other assets -- -- 1 -- (1,485) (1,032)
Due from/to Interstate Hotels & Resorts -- -- -- -- 6,613 6,613
Due from subsidiaries (1,192) (2,153) (1,634) (2,529) 4,429 (96,980)
Accounts payable, accrued expenses, accrued
interest and other liabilities 79 67 (46) (72) 14 (1,018)
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 545 318 239 231 (11,232) (2,772)
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (545) (318) (239) (231) (1,387) (28,023)
Proceeds from sales of assets -- -- -- -- -- 17,870
Net (advances to) payments from Interstate
Hotels & Resorts -- -- -- -- (775) (775)
Decrease (increase) in restricted cash -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (545) (318) (239) (231) (2,162) (10,928)
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- (1) (11)
Proceeds from issuance of long-term debt -- -- -- -- 15,397 15,709
Principal payments on long-term debt -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- -- 15,396 15,698
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in cash and cash
equivalents -- -- -- -- 2,002 1,998
Cash and cash equivalents, beginning of year -- -- -- -- 16,643 16,643
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- 18,645 18,641
============ ============ ============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2002
(in thousands of dollars)
TOTAL
ELIMINATIONS CONSOLIDATED
------------ ------------
Operating activities:
Net (loss) income 33,753 $ (170,819)
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization -- 122,221
Gain on sale of assets, before tax effect -- 21,197
Extraordinary gain on early extinguishment
of debt, before tax effect (33,753) --
Loss on asset impairments -- 78,732
Write down of note receivable with
Interstate Hotels & Resorts -- 14,517
Write off of deferred financing costs -- 3,144
Loss on fair value of non-hedging
derivatives -- 4,735
Minority interests -- (15)
Amortization of unearned stock-based
compensation -- 4,543
Unrealized loss on interest rate swaps
recognized in net loss -- (7,612)
Deferred income taxes -- (2,038)
Changes in operating assets and liabilities:
Accounts receivable -- (9,650)
Prepaid expenses and other assets -- (3,401)
Due from/to Interstate Hotels & Resorts -- 6,757
Due from subsidiaries -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities -- (5,571)
------------ ------------
Net cash provided by operating activities -- 56,740
------------ ------------
Investing activities:
Investments in hotel properties -- (47,347)
Proceeds from sales of assets -- 60,650
Net (advances to) payments from Interstate
Hotels & Resorts -- (7,500)
Decrease (increase) in restricted cash -- 939
------------ ------------
Net cash provided by (used in) investing
activities -- 6,742
------------ ------------
Financing activities:
Deferred financing costs -- (4,806)
Proceeds from issuance of long-term debt -- 305,258
Principal payments on long-term debt -- (352,466)
Contributions from partners -- 3,153
Repurchase of units -- (1,318)
Distributions paid to partners -- (3,060)
------------ ------------
Net cash used in financing activities -- (53,239)
------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- 205
------------ ------------
Net increase (decrease) in cash and cash
equivalents -- 10,448
Cash and cash equivalents, beginning of year -- 23,441
------------ ------------
Cash and cash equivalents, end of year -- $ 33,889
============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR NON- MERISTAR AGH MERISTAR
HOSPITALITY GUARANTOR SUB 7C, UPREIT, SUB 5N,
OP, L.P. SUBSIDIARIES LLC LLC LLC
------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income $ (44,485) 50,782 -- -- 895
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 5,988 52,547 -- -- 128
Gain on sale of assets, before tax effect -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect 2,770 -- -- -- --
Equity in earnings of affiliates (78,751) -- -- -- --
Gain on asset impairments -- 5,306 -- -- --
Gain on fair value of non-hedging
derivatives 6,666 -- -- -- --
Write down of investment in STS Hotel Net 2,112 -- -- -- --
Minority interests (48) -- -- -- --
Amortization of unearned stock-based
compensation 2,263 -- -- -- --
Deferred income taxes (1,454) -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable (3,998) 770 -- -- --
Prepaid expenses and other assets (1,419) (7,110) -- -- --
Due from subsidiaries 221,716 (116,558) -- -- (1,043)
Due from /to MeriStar Hotels & Resorts (24,522) 36,793 -- -- 111
Accounts payable, accrued expenses, accrued
interest and other liabilities 7,635 (380) -- -- (7)
------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 94,473 22,150 -- -- 84
------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (1,121) (15,383) -- -- (84)
Proceeds from sale of assets -- -- -- -- --
Hotel operating cash received in lease
conversions -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts (36,000) -- -- -- --
Decrease (increase) in restricted cash 958 (1,856) -- -- --
------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (36,163) (17,239) -- -- (84)
------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs (18,927) -- -- -- --
Proceeds from issuance of long-term debt 926,903 334 -- -- --
Principal payments on long-term debt (859,653) (5,245) -- -- --
Contributions from partners 847 -- -- -- --
Repurchase of units (4,514) -- -- -- --
Distributions paid to partners (96,714) -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash used in financing activities (52,058) (4,911) -- -- --
------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents 304 -- -- -- --
------------ ------------ ------------ ------------ ------------
Net increase in cash and cash equivalents 6,556 -- -- -- --
Cash and cash equivalents, beginning of year 242 -- -- -- --
------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year $ 6,798 -- -- -- --
============ ============ ============ ============ ============
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 8F, SUB 8G, SUB 6H, SUB 8B, SUB 1C,
LLC LLC LLC L.P. LLC L.P.
------------ ------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income 1,096 1,900 -- 953 5,119 (386)
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 291 439 -- 424 2,337 1,014
Gain on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- -- --
Gain on asset impairments -- -- -- -- -- --
Gain on fair value of non-hedging
derivatives -- -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable 16 182 -- (7) 184 (4)
Prepaid expenses and other assets -- (6) -- -- (11) 11
Due from subsidiaries (1,256) 1,979 -- (1,275) (5,887) 4,879
Due from /to MeriStar Hotels & Resorts -- -- -- -- (824) (5,002)
Accounts payable, accrued expenses, accrued
interest and other liabilities (61) 125 -- (64) (262) (41)
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 86 4,619 -- 31 656 471
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (86) (152) -- (31) (656) (471)
Proceeds from sale of assets -- -- -- -- -- --
Hotel operating cash received in lease
conversions -- -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- (488) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (86) (640) -- (31) (656) (471)
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Principal payments on long-term debt -- (3,979) -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- (3,979) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase in cash and cash equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- -- --
============ ============ ============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8E, SUB 7F, SUB 5L, SUB 3C, SUB 5R,
LLC LLC LLC LLC LLC
------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income 1,324 491 1,106 683 --
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 547 461 122 690 --
Gain on sale of assets, before tax effect -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- --
Gain on asset impairments -- -- -- -- --
Gain on fair value of non-hedging
derivatives -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable 62 (26) -- 10 --
Prepaid expenses and other assets -- -- -- (3) --
Due from subsidiaries (1,231) (1,307) (1,272) (1,149) --
Due from/to MeriStar Hotels & Resorts (508) 464 239 98 --
Accounts payable, accrued expenses, accrued
interest and other liabilities (15) 33 (59) (65) --
------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 179 116 136 264 --
------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (179) (116) (136) (264) --
Proceeds from sale of assets -- -- -- -- --
Hotel operating cash received in lease
conversions -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (179) (116) (136) (264) --
------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Principal payments on long-term debt -- -- -- -- --
Contributions from partners -- -- -- -- --
Repurchase of units -- -- -- -- --
Distributions paid to partners -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net increase in cash and cash equivalents -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- --
============ ============ ============ ============ ============
OLD
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 6D, SUB 6E, SUB 4E, SUB 1B, SUB 5F,
LLC LLC LLC L.P. LLC L.P.
------------ ------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income (822) 1,462 3,324 169 2,363 1,464
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 89 513 1,672 913 617 1,049
Gain on sale of assets, before tax effect 1,077 -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- -- --
Gain on asset impairments -- -- -- -- -- --
Gain on fair value of non-hedging
derivatives -- -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable (31) (294) 34 (19) 16 (25)
Prepaid expenses and other assets (1) (5) -- -- (13) (11)
Due from subsidiaries (6,670) (1,768) (2,905) 254 (6,311) (1,945)
Due from/to MeriStar Hotels & Resorts (962) 375 (1,000) (1,029) 3,478 --
Accounts payable, accrued expenses, accrued
interest and other liabilities 46 76 (304) 1 (18) (164)
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities (7,274) 359 821 289 132 368
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties -- (359) (821) (289) (132) (368)
Proceeds from sale of assets 7,274 -- -- -- -- --
Hotel operating cash received in lease
conversions -- -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities 7,274 (359) (821) (289) (132) (368)
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Principal payments on long-term debt -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase in cash and cash equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- -- --
============ ============ ============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6G, SUB 8C, SUB 4C, SUB 4H, SUB 7E,
LLC LLC L.P. L.P. LLC
------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income 1,270 212 (6,123) (193) 766
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 788 1,327 721 532 607
Gain on sale of assets, before tax effect -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- --
Gain on asset impairments -- -- 5,940 -- --
Gain on fair value of non-hedging
derivatives -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable 36 8 (47) -- 53
Prepaid expenses and other assets (6) -- (6) (2) 44
Due from subsidiaries 21 (1,405) 535 495 (1,510)
Due from/to MeriStar Hotels & Resorts (1,786) 305 (813) (794) 213
Accounts payable, accrued expenses, accrued
interest and other liabilities 121 24 254 33 63
------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 444 471 461 71 236
------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (444) (471) (461) (71) (236)
Proceeds from sale of assets -- -- -- -- --
Hotel operating cash received in lease
conversions -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (444) (471) (461) (71) (236)
------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Principal payments on long-term debt -- -- -- -- --
Contributions from partners -- -- -- -- --
Repurchase of units -- -- -- -- --
Distributions paid to partners -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net increase in cash and cash equivalents -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- --
============ ============ ============ ============ ============
MERISTAR MERISTAR MERISTAR SUB 7A MERISTAR MERISTAR
SUB 3D, SUB 1A, SUB 5E, JOINT SUB 6K, SUB 2B,
LLC LLC LLC VENTURE LLC LLC
------------ ------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income 719 1,120 3,155 842 2,458 (228)
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 944 475 1,866 403 741 380
Gain on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- -- --
Gain on asset impairments -- -- -- -- -- --
Gain on fair value of non-hedging
derivatives -- -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable (19) 40 18 (13) (18) 12
Prepaid expenses and other assets -- -- (15) (4) (1) --
Due from subsidiaries (3,088) (620) (5,056) (816) (6,051) 298
Due from/to MeriStar Hotels & Resorts 1,999 (659) 263 -- 3,142 389
Accounts payable, accrued expenses, accrued
interest and other liabilities (27) (121) 374 (107) 116 135
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 528 235 605 305 387 986
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (528) (235) (605) (305) (387) (688)
Proceeds from sale of assets -- -- -- -- -- --
Hotel operating cash received in lease
conversions -- -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (528) (235) (605) (305) (387) (688)
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Principal payments on long-term debt -- -- -- -- -- (298)
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- -- -- (298)
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase in cash and cash equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- -- --
============ ============ ============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 3A, SUB 4A, SUB 4D, SUB 2A, SUB 6L,
LLC LLC LLC LLC LLC
------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income (2,114) (2,616) 127 (507) 679
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 344 -- 299 315 882
Gain on sale of assets, before tax effect -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- --
Gain on asset impairments 2,278 3,433 -- -- --
Gain on fair value of non-hedging
derivatives -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable (35) (4) (7) -- (23)
Prepaid expenses and other assets -- -- -- (1) (5)
Due from subsidiaries (875) (481) 230 865 (1,321)
Due from/to MeriStar Hotels & Resorts 533 (2) (209) (154) --
Accounts payable, accrued expenses, accrued
interest and other liabilities (68) (4) 30 20 (88)
------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 63 326 470 538 124
------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (63) (326) (470) (51) (124)
Proceeds from sale of assets -- -- -- -- --
Hotel operating cash received in lease
conversions -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (63) (326) (470) (51) (124)
------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Principal payments on long-term debt -- -- -- (487) --
Contributions from partners -- -- -- -- --
Repurchase of units -- -- -- -- --
Distributions paid to partners -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- (487) --
------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net increase in cash and cash equivalents -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- --
============ ============ ============ ============ ============
MDV MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
LIMITED SUB 5C, SUB 6J, SUB 1D, SUB 7B, SUB 7D,
PARTNERSHIP LLC LLC L.P. L.P. LLC
------------ ------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income 397 447 1,635 2,983 (225) 2,600
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 123 583 611 2,186 888 1,623
Gain on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- -- --
Gain on asset impairments -- -- -- -- -- --
Gain on fair value of non-hedging
derivatives -- -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable 26 (16) 19 30 (13) 741
Prepaid expenses and other assets -- (4) (6) (20) -- --
Due from subsidiaries (470) 1,909 450 (5,076) (372) (9,079)
Due from/to MeriStar Hotels & Resorts -- (2,487) (2,152) 913 (1) 4,854
Accounts payable, accrued expenses, accrued
interest and other liabilities -- (33) (67) (7) 6 440
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 76 399 490 1,009 283 1,179
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (76) (399) (490) (1,009) (283) (1,179)
Proceeds from sale of assets -- -- -- -- -- --
Hotel operating cash received in lease
conversions -- -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (76) (399) (490) (1,009) (283) (1,179)
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Principal payments on long-term debt -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase in cash and cash equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- -- --
============ ============ ============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7G, SUB 6B, SUB 4I, SUB 5D, SUB 5H,
LLC LLC L.P. LLC LLC
------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income (123) 403 (12,720) (1,739) 1,696
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 731 451 855 1,420 1,946
Gain on sale of assets, before tax effect -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- --
Gain on asset impairments -- -- 11,594 -- --
Gain on fair value of non-hedging
derivatives -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- (24) --
Prepaid expenses and other assets (4) (1) (7) (53) --
Due from subsidiaries 1,361 (1,324) 1,601 3,366 (3,114)
Due from /to MeriStar Hotels & Resorts (1,582) 513 (861) (2,815) 444
Accounts payable, accrued expenses, accrued
interest and other liabilities (54) 23 50 314 (314)
------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 329 65 512 469 658
------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (329) (65) (512) (216) (658)
Proceeds from sale of assets -- -- -- -- --
Hotel operating cash received in lease
conversions -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (329) (65) (512) (216) (658)
------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Principal payments on long-term debt -- -- -- (253) --
Contributions from partners -- -- -- -- --
Repurchase of units -- -- -- -- --
Distributions paid to partners -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- (253) --
------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net increase in cash and cash equivalents -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- --
============ ============ ============ ============ ============
MERISTAR AGH MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7H, PSS I, SUB 2D, SUB 4F, SUB 5K, SUB 5M,
LLC INC. LLC L.P. LLC LLC
------------ ------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income (2,465) 1,470 (206) 710 1,287 1,515
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 699 -- 460 1,092 1,181 440
Gain on sale of assets, before tax effect -- 1,099 -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- -- --
Gain on asset impairments 2,705 -- -- -- -- --
Gain on fair value of non-hedging
derivatives -- -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable (39) (908) -- (4) -- --
Prepaid expenses and other assets -- (10) -- -- -- --
Due from subsidiaries (2,568) (3,757) (795) 481 841 (1,893)
Due from /to MeriStar Hotels & Resorts 1,961 -- 1,226 (2,102) (24) 233
Accounts payable, accrued expenses, accrued
interest and other liabilities (56) (22) 39 40 (2,397) (66)
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 237 (2,128) 724 217 888 229
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (250) (313) (159) (217) (888) (229)
Proceeds from sale of assets -- 2,441 -- -- -- --
Hotel operating cash received in lease
conversions -- -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (250) 2,128 (159) (217) (888) (229)
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- -- --
Proceeds from issuance of long-term debt 13 -- -- -- -- --
Principal payments on long-term debt -- -- (565) -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities 13 -- (565) -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase in cash and cash equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- -- --
============ ============ ============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1E, SUB 5O, SUB 6M SUB 4B, SUB 6C,
L.P. LLC COMPANY L.P. LLC
------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income 1,296 549 3,276 (13,552) 2,335
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 291 220 1,194 1,100 755
Gain on sale of assets, before tax effect -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- --
Gain on asset impairments -- -- -- 12,326 --
Gain on fair value of non-hedging
derivatives -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable 35 -- 72 -- 56
Prepaid expenses and other assets -- -- (62) (6) 95
Due from subsidiaries (2,347) (704) (5,435) 5,225 (767)
Due from /to MeriStar Hotels & Resorts 934 17 1,183 (2,594) (1,870)
Accounts payable, accrued expenses, accrued
interest and other liabilities -- (16) (4) (12) (128)
------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 209 66 224 2,487 476
------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (209) (66) (224) (2,487) (476)
Proceeds from sale of assets -- -- -- -- --
Hotel operating cash received in lease
conversions -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (209) (66) (224) (2,487) (476)
------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Principal payments on long-term debt -- -- -- -- --
Contributions from partners -- -- -- -- --
Repurchase of units -- -- -- -- --
Distributions paid to partners -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net increase in cash and cash equivalents -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- --
============ ============ ============ ============ ============
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2C, SUB 4G, SUB 3B, SUB 5G, SUB 5P, SUB 5J,
LLC L.P. LLC L.P. LLC LLC
------------ ------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income (1,028) 1,552 (20) 3,878 601 6,223
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 1,026 870 890 6,165 -- 3,364
Gain on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- -- --
Gain on asset impairments -- -- -- -- -- --
Gain on fair value of non-hedging
derivatives -- -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- 67 8 383 (319) --
Prepaid expenses and other assets -- -- (7) (14) -- --
Due from subsidiaries (1,738) (1,170) (964) (9,303) (343) (7,305)
Due from /to MeriStar Hotels & Resorts 3,278 (1,208) 551 (1) 42 480
Accounts payable, accrued expenses, accrued
interest and other liabilities 101 226 (102) (132) 19 (692)
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 1,639 337 356 976 -- 2,070
------------ ------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (652) (337) (356) (976) -- (2,070)
Proceeds from sale of assets -- -- -- -- -- --
Hotel operating cash received in lease
conversions -- -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (652) (337) (356) (976) -- (2,070)
------------ ------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Principal payments on long-term debt (987) -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net cash used in financing activities (987) -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase in cash and cash equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- -- --
============ ============ ============ ============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2001
(in thousands of dollars)
MERISTAR
MERISTAR MERISTAR MERISTAR MERISTAR HOTEL
SUB 5Q, SUB 5A, SUB 8D, SUB 4J, LESSEE,
LLC LLC LLC LLC INC.
------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income 1,910 204 1,780 1,102 (510)
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 410 1,673 1,251 1,279 253
Gain on sale of assets, before tax effect -- -- -- -- --
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- --
Gain on asset impairments -- -- -- -- --
Gain on fair value of non-hedging
derivatives -- -- -- -- --
Write down of investment in STS Hotel Net -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based
compensation -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- 11 119 23 5,717
Prepaid expenses and other assets -- (11) -- -- 6,635
Due from subsidiaries (319) (2,444) (2,618) (601) (10,200)
Due from /to MeriStar Hotels & Resorts (514) 2,269 (184) (1,012) 3,715
Accounts payable, accrued expenses, accrued
interest and other liabilities (416) (115) (83) (198) 2,323
------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 1,071 1,587 265 593 7,933
------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (1,071) (762) (265) (593) (547)
Proceeds from sale of assets -- -- -- -- --
Hotel operating cash received in lease
conversions -- -- -- -- 3,257
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing (1,071) (762) (265) (593) 2,710
activities ------------ ------------ ------------ ------------ ------------
Financing activities:
-- -- -- -- --
Deferred financing costs -- -- -- -- 6,000
Proceeds from issuance of long-term debt -- -- -- -- --
Principal payments on long-term debt -- -- -- -- --
Contributions from partners -- -- -- -- --
Repurchase of units -- (825) -- -- --
Distributions paid to partners ------------ ------------ ------------ ------------ ------------
-- (825) -- -- 6,000
Net cash used in financing activities ------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and -- -- -- -- --
cash equivalents ------------ ------------ ------------ ------------ ------------
-- -- -- -- 16,643
Net increase in cash and cash equivalents
-- -- -- -- --
Cash and cash equivalents, beginning of year ------------ ------------ ------------ ------------ ------------
-- -- -- -- 16,643
Cash and cash equivalents, end of year ============ ============ ============ ============ ============
GUARANTOR
SUBSIDIARIES TOTAL
TOTAL ELIMINATIONS CONSOLIDATED
------------ ------------ ------------
Operating Activities:
Net (loss) income 27,969 (78,751) $ (44,485)
Adjustments to reconcile net (loss) income to
net cash provided by operating activities:
Depreciation and amortization 57,960 -- 116,495
Gain on sale of assets, before tax effect 2,176 -- 2,176
Extraordinary gain on early extinguishment
of debt, before tax effect -- -- 2,770
Equity in earnings of affiliates -- 78,751 --
Gain on asset impairments 38,276 -- 43,582
Gain on fair value of non-hedging
derivatives -- -- 6,666
Write down of investment in STS Hotel Net -- -- 2,112
Minority interests -- -- (48)
Amortization of unearned stock-based
compensation -- -- 2,263
Deferred income taxes -- -- (1,454)
Changes in operating assets and liabilities:
Accounts receivable 6,083 -- 2,855
Prepaid expenses and other assets 6,490 -- (2,039)
Due from subsidiaries (105,158) -- --
Due from /to MeriStar Hotels & Resorts 1,073 -- 13,344
Accounts payable, accrued expenses, accrued
interest and other liabilities (1,357) -- 5,898
------------ ------------ ------------
Net cash provided by operating activities 33,512 -- 150,135
------------ ------------ ------------
Investing activities:
Investments in hotel properties (27,972) -- (44,476)
Proceeds from sale of assets 9,715 -- 9,715
Hotel operating cash received in lease
conversions 3,257 -- 3,257
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- (36,000)
Decrease (increase) in restricted cash (488) -- (1,386)
------------ ------------ ------------
Net cash provided by (used in) investing
activities (15,488) -- (68,890)
------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- (18,927)
Proceeds from issuance of long-term debt 6,013 -- 933,250
Principal payments on long-term debt (6,569) -- (871,467)
Contributions from partners -- -- 847
Repurchase of units -- -- (4,514)
Distributions paid to partners (825) -- (97,539)
------------ ------------ ------------
Net cash used in financing activities (1,381) -- (58,350)
------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- 304
------------ ------------ ------------
Net increase in cash and cash equivalents 16,643 -- 23,199
Cash and cash equivalents, beginning of year -- -- 242
------------ ------------ ------------
Cash and cash equivalents, end of year 16,643 -- $ 23,441
============ ============ ============
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2000
(in thousands of dollars)
MERISTAR NON- MERISTAR AGH MERISTAR
HOSPITALITY GUARANTOR SUB 7C, UPREIT, SUB 5N,
OP, L.P. SUBSIDIARIES LLC LLC LLC
------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income $ 118,036 98,278 -- -- 878
Adjustments to reconcile net (loss) income to net
cash provided by operating activities:
Depreciation and amortization 4,588 50,591 -- -- 128
Loss on sale of assets, before tax effect -- (3,495) -- -- --
Extraordinary loss on early extinguishment of debt,
before tax effect (3,450) -- -- -- --
Equity in earnings of affiliates (210,453) -- -- -- --
Minority interests (3) -- -- -- --
Amortization of unearned stock-based compensation 3,070 -- -- -- --
Deferred income taxes 636 -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable (94) (1,263) -- -- --
Prepaid expenses and other assets 3,313 724 -- -- (5)
Due from subsidiaries 233,993 (104,876) -- -- (979)
Due from/to MeriStar Hotels & Resorts (8,453) (1,141) -- -- 3
Accounts payable, accrued expenses, accrued
interest and other liabilities (3,081) 1,524 -- -- 21
------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 138,102 40,342 -- -- 46
------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (6,537) (40,799) -- -- (46)
Proceeds from sale of assets -- 24,148 -- -- --
Investments in and advances to affiliates, net (2,704) 215 -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts 57,110 -- -- -- --
Decrease (increase) in restricted cash (1,609) (1,370) -- -- --
------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities 46,260 (17,806) -- -- (46)
------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs (1,590) (25) -- -- --
Proceeds from issuance of long-term debt 179,388 -- -- -- --
Principal payments on long-term debt (175,026) (22,511) -- -- --
Repayments to MeriStar Hospitality Corporation (14,362) -- -- -- --
Contributions from partners 1,356 -- -- -- --
Repurchase of units (73,638) -- -- -- --
Distributions paid to partners (102,861) -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash used in financing activities (186,733) (22,536) -- -- --
------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents 64 -- -- -- --
------------ ------------ ------------ ------------ ------------
Net decrease in cash and cash equivalents (2,307) -- -- -- --
Cash and cash equivalents, beginning of year 2,549 -- -- -- --
------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year $ 242 -- -- -- --
============ ============ ============ ============ ============
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 8F, SUB 8G, SUB 6H, SUB 8B, SUB 1C,
LLC LLC LLC LLC LLC L.P.
----------- ----------- ---------- ----------- ----------- -----------
Operating Activities:
Net (loss) income 1,451 2,033 -- 958 7,399 143
Adjustments to reconcile net (loss) income to net
cash provided by operating activities:
Depreciation and amortization 285 436 -- 423 2,305 1,009
Loss on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary loss on early extinguishment of debt,
before tax effect -- -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable 57 10 -- 7 (184) 4
Prepaid expenses and other assets -- 1 -- 2 25 5
Due from subsidiaries (1,697) (2,559) -- (1,329) (5,559) (908)
Due from/to MeriStar Hotels & Resorts -- -- -- (21) 359 (24)
Accounts payable, accrued expenses, accrued
interest and other liabilities 17 5 -- 23 (3,626) 18
----------- ----------- ---------- ----------- ----------- -----------
Net cash provided by operating activities 113 (74) -- 63 719 247
----------- ----------- ---------- ----------- ----------- -----------
Investing activities:
Investments in hotel properties (113) (132) -- (63) (719) (247)
Proceeds from sale of assets -- -- -- -- -- --
Investments in and advances to affiliates, net -- -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- 206 -- -- -- --
----------- ----------- ---------- ----------- ----------- -----------
Net cash provided by (used in) investing
activities (113) 74 -- (63) (719) (247)
----------- ----------- ---------- ----------- ----------- -----------
Financing activities:
Deferred financing costs -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Principal payments on long-term debt -- -- -- -- -- --
Repayments to MeriStar Hospitality Corporation -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
----------- ----------- ---------- ----------- ----------- -----------
Net cash 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 year -- -- -- -- -- --
----------- ----------- ---------- ----------- ----------- -----------
Cash and cash equivalents, end of year -- -- -- -- -- --
=========== =========== ========== =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2000
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8E, 7F SUB, SUB 5L, SUB 3C, SUB 5R,
LLC LLC LLC LLC LLC
------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income 1,807 838 1,038 1,145 --
Adjustments to reconcile net (loss) income to net
cash provided by operating activities:
Depreciation and amortization 521 460 119 684 --
Loss on sale of assets, before tax effect -- -- -- -- --
Extraordinary loss on early extinguishment of debt,
before tax effect -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable (62) 26 -- (10) --
Prepaid expenses and other assets 3 2 15 4 --
Due from subsidiaries (2,024) (1,166) (1,160) (1,526) --
Due from/to MeriStar Hotels & Resorts 50 (1) 22 17 --
Accounts payable, accrued expenses, accrued
interest and other liabilities (35) 5 61 9 (4)
------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 260 164 95 323 (4)
------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (260) (164) (95) (323) --
Proceeds from sale of assets -- -- -- -- --
Investments in and advances to affiliates, net -- -- -- -- 4
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (260) (164) (95) (323) 4
------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Principal payments on long-term debt -- -- -- -- --
Repayments to MeriStar Hospitality Corporation -- -- -- -- --
Contributions from partners -- -- -- -- --
Repurchase of units -- -- -- -- --
Distributions paid to partners -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash 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 year -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- --
============ ============ ============ ============ ============
OLD
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 6D, SUB 6E, SUB 4E, SUB 1B, SUB 5F,
LLC LLC LLC LP LLC L.P.
----------- ----------- ----------- ----------- ----------- ---------
Operating Activities:
Net (loss) income 375 2,052 4,421 1,063 2,447 1,926
Adjustments to reconcile net (loss) income to net
cash provided by operating activities:
Depreciation and amortization 358 441 1,633 887 588 1,048
Loss on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary loss on early extinguishment of debt,
before tax effect -- -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable 33 179 (34) 19 (16) 25
Prepaid expenses and other assets 2 21 10 5 16 18
Due from subsidiaries (450) (2,185) (5,592) (1,776) (2,239) (2,865)
Due from/to MeriStar Hotels & Resorts (42) (104) 1 31 215 (9)
Accounts payable, accrued expenses, accrued
interest and other liabilities (9) (11) 21 (7) (176) 3
----------- ----------- ----------- ----------- ----------- ---------
Net cash provided by operating activities 267 393 460 222 835 146
----------- ----------- ----------- ----------- ----------- ---------
Investing activities:
Investments in hotel properties (267) (393) (460) (222) (835) (146)
Proceeds from sale of assets -- -- -- -- -- --
Investments in and advances to affiliates, net -- -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ---------
Net cash provided by (used in) investing
activities (267) (393) (460) (222) (835) (146)
----------- ----------- ----------- ----------- ----------- ---------
Financing activities:
Deferred financing costs -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Principal payments on long-term debt -- -- -- -- -- --
Repayments to MeriStar Hospitality Corporation -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ---------
Net cash 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 year -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ---------
Cash and cash equivalents, end of year -- -- -- -- -- --
=========== =========== =========== =========== =========== =========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2000
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6G, SUB 8C, SUB 4C, SUB 4H, SUB 7E,
LLC LLC L.P. L.P. LLC
------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income 1,929 2,092 184 97 1,521
Adjustments to reconcile net (loss) income to net
cash provided by operating activities:
Depreciation and amortization 739 1,205 703 475 597
Loss on sale of assets, before tax effect -- -- -- -- --
Extraordinary loss on early extinguishment of debt,
before tax effect -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable (36) 365 47 -- (53)
Prepaid expenses and other assets 61 31 10 5 4
Due from subsidiaries (1,942) (2,439) (238) (413) (1,852)
Due from/to MeriStar Hotels & Resorts 43 (94) (21) (15) 22
Accounts payable, accrued expenses, accrued
interest and other liabilities (8) (130) (22) (3) 37
------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 786 1,030 663 146 276
------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (786) (1,030) (663) (146) (276)
Proceeds from sale of assets -- -- -- -- --
Investments in and advances to affiliates, net -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (786) (1,030) (663) (146) (276)
------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Principal payments on long-term debt -- -- -- -- --
Repayments to MeriStar Hospitality Corporation -- -- -- -- --
Contributions from partners -- -- -- -- --
Repurchase of units -- -- -- -- --
Distributions paid to partners -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash 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 year -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- --
============ ============ ============ ============ ============
MERISTAR
MERISTAR MERISTAR MERISTAR SUB 7A MERISTAR MERISTAR
SUB 3D, SUB 1A, SUB 5E, JOINT SUB 6K, SUB 2B,
LLC LLC LLC VENTURE LLC LLC
----------- ----------- ----------- ----------- ---------- -----------
Operating Activities:
Net (loss) income 1,184 1,775 3,931 891 2,967 (8)
Adjustments to reconcile net (loss) income to net
cash provided by operating activities:
Depreciation and amortization 905 466 1,645 401 740 400
Loss on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary loss on early extinguishment of debt,
before tax effect -- -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable 19 (40) (18) 13 18 --
Prepaid expenses and other assets 4 3 25 13 18 1
Due from subsidiaries (953) (2,021) (3,090) (1,230) (3,313) 398
Due from/to MeriStar Hotels & Resorts 29 45 43 19 17 35
Accounts payable, accrued expenses, accrued
interest and other liabilities 18 (120) (31) 19 (43) (344)
----------- ----------- ----------- ----------- ---------- -----------
Net cash provided by operating activities 1,206 108 2,505 126 404 482
----------- ----------- ----------- ----------- ---------- -----------
Investing activities:
Investments in hotel properties (1,206) (108) (2,505) (126) (404) (279)
Proceeds from sale of assets -- -- -- -- -- --
Investments in and advances to affiliates, net -- -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
----------- ----------- ----------- ----------- ---------- -----------
Net cash provided by (used in) investing
activities (1,206) (108) (2,505) (126) (404) (279)
----------- ----------- ----------- ----------- ---------- -----------
Financing activities:
Deferred financing costs -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Principal payments on long-term debt -- -- -- -- -- (203)
Repayments to MeriStar Hospitality Corporation -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
----------- ----------- ----------- ----------- ---------- -----------
Net cash used in financing activities -- -- -- -- -- (203)
----------- ----------- ----------- ----------- ---------- -----------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
----------- ----------- ----------- ----------- ---------- -----------
Net decrease in cash and cash equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
----------- ----------- ----------- ----------- ---------- -----------
Cash and cash equivalents, end of year -- -- -- -- -- --
=========== =========== =========== =========== ========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2000
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 3A, MERISTAR SUB 4D, SUB 2A, SUB 6L,
LLC SUB 4A LLC LLC LLC
------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income 574 1,395 328 (212) 1,663
Adjustments to reconcile net (loss) income to net
cash provided by operating activities:
Depreciation and amortization 328 -- 284 319 657
Loss on sale of assets, before tax effect -- -- -- -- --
Extraordinary loss on early extinguishment of debt,
before tax effect -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable 35 4 7 -- 23
Prepaid expenses and other assets 1 2 2 2 8
Due from subsidiaries (719) (974) (365) (88) (1,234)
Due from/to MeriStar Hotels & Resorts (20) 30 (35) (7) (5)
Accounts payable, accrued expenses, accrued
interest and other liabilities 33 6 10 23 116
------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 232 463 231 37 1,228
------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (232) (463) (231) 294 (1,228)
Proceeds from sale of assets -- -- -- -- --
Investments in and advances to affiliates, net -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- --
Decrease (increase) in restricted cash
-- -- -- -- --
Net cash provided by (used in) investing ------------ ------------ ------------ ------------ ------------
activities
(232) (463) (231) 294 (1,228)
------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Principal payments on long-term debt -- -- -- (331) --
Repayments to MeriStar Hospitality Corporation -- -- -- -- --
Contributions from partners -- -- -- -- --
Repurchase of units -- -- -- -- --
Distributions paid to partners -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- (331) --
------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net decrease in cash and cash equivalents -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- --
============ ============ ============ ============ ============
MDV MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
LIMITED SUB 5C, SUB 6J, SUB 1D, SUB 7B, SUB 7D,
PARTNERSHIP LLC LLC LLC L.P. LLC
----------- ----------- ----------- ----------- ----------- ----------
Operating Activities:
Net (loss) income 558 734 1,921 4,984 542 4,997
Adjustments to reconcile net (loss) income to net
cash provided by operating activities:
Depreciation and amortization 120 572 596 1,993 853 1,565
Loss on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary loss on early extinguishment of debt,
before tax effect -- -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable (26) 16 (19) (30) 13 (751)
Prepaid expenses and other assets 1 7 31 34 4 11
Due from subsidiaries (579) (940) (1,958) (6,063) 2,555 (4,566)
Due from/to MeriStar Hotels & Resorts 46 (19) 4 219 (64) 24
Accounts payable, accrued expenses, accrued
interest and other liabilities (9) 859 (28) 17 (6) 206
----------- ----------- ----------- ----------- ----------- --------
Net cash provided by operating activities 111 1,229 547 1,154 3,897 1,486
----------- ----------- ----------- ----------- ----------- --------
Investing activities:
Investments in hotel properties (111) (379) (547) (1,154) (3,897) (1,486)
Proceeds from sale of assets -- -- -- -- -- --
Investments in and advances to affiliates, net -- -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- --------
Net cash provided by (used in) investing
activities (111) (379) (547) (1,154) (3,897) (1,486)
----------- ----------- ----------- ----------- ----------- --------
Financing activities:
Deferred financing costs -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Principal payments on long-term debt -- (850) -- -- -- --
Repayments to MeriStar Hospitality Corporation -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- --------
Net cash used in financing activities -- (850) -- -- -- --
----------- ----------- ----------- ----------- ----------- --------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- --------
Net decrease in cash and cash equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- --------
Cash and cash equivalents, end of year -- -- -- -- -- --
=========== =========== =========== =========== =========== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2000
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7G, SUB 6B, SUB 4I, SUB 5D, SUB 5H,
LLC LLC L.P. LLC LLC
------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income 598 738 542 (1,257) 2,199
Adjustments to reconcile net (loss) income to net
cash provided by operating activities:
Depreciation and amortization 722 417 847 1,187 1,927
Loss on sale of assets, before tax effect -- -- -- -- --
Extraordinary loss on early extinguishment of debt,
before tax effect -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- -- -- 24 --
Prepaid expenses and other assets 7 2 12 119 66
Due from subsidiaries (941) (1,159) (982) 780 (3,844)
Due from/to MeriStar Hotels & Resorts (92) 19 (100) 37 (23)
Accounts payable, accrued expenses, accrued
interest and other liabilities 35 199 4 (264) 187
------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 329 216 323 626 512
------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (329) (216) (323) (616) (512)
Proceeds from sale of assets -- -- -- -- --
Investments in and advances to affiliates, net -- -- -- 3 --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing activities (329) (216) (323) (613) (512)
------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Principal payments on long-term debt -- -- -- (13) --
Repayments to MeriStar Hospitality Corporation -- -- -- -- --
Contributions from partners -- -- -- -- --
Repurchase of units -- -- -- -- --
Distributions paid to partners -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- -- -- (13) --
------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net decrease in cash and cash equivalents -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- --
============ ============ ============ ============ ============
MERISTAR AGH MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7H, PSS I, SUB 2D, SUB 4F, SUB 5K, SUB 5M,
LLC INC. LLC L.P. LLC LLC
----------- ----------- ----------- ----------- ----------- ----------
Operating Activities:
Net (loss) income 746 2,763 (170) 2,044 1,127 1,652
Adjustments to reconcile net (loss) income to net
cash provided by operating activities:
Depreciation and amortization 698 -- 476 1,007 959 441
Loss on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary loss on early extinguishment of
debt, before tax effect -- -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable 39 908 -- 4 13 21
Prepaid expenses and other assets 2 19 2 7 1,728 28
Due from subsidiaries (1,137) (3,560) (377) (2,580) 374 (2,058)
Due from/to MeriStar Hotels & Resorts 28 (13) 59 10 (225) (68)
Accounts payable, accrued expenses, accrued
interest and other liabilities 48 (17) (2) 72 8,008 84
----------- ----------- ----------- ----------- ----------- ----------
Net cash provided by operating activities 424 100 (12) 564 11,984 100
----------- ----------- ----------- ----------- ----------- ----------
Investing activities:
Investments in hotel properties (424) (100) 436 (564) (12,027) (100)
Proceeds from sale of assets -- -- -- -- -- --
Investments in and advances to affiliates, net -- -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- 43 --
----------- ----------- ----------- ----------- ----------- ----------
Net cash provided by (used in) investing
activities (424) (100) 436 (564) (11,984) (100)
----------- ----------- ----------- ----------- ----------- ----------
Financing activities:
Deferred financing costs -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Principal payments on long-term debt -- -- (424) -- -- --
Repayments to MeriStar Hospitality Corporation -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------
Net cash used in financing activities -- -- (424) -- -- --
----------- ----------- ----------- ----------- ----------- ----------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------
Net decrease in cash and cash equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------
Cash and cash equivalents, end of year -- -- -- -- -- --
=========== =========== =========== =========== =========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2000
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1E, SUB 5O, SUB 6M SUB 4B, SUB 6C,
L.P. LLC COMPANY L.P. LLC
------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income 1,523 528 4,446 488 2,898
Adjustments to reconcile net (loss) income to net
cash provided by operating activities:
Depreciation and amortization 285 216 989 1,077 723
Loss on sale of assets, before tax effect -- -- -- -- --
Extraordinary loss on early extinguishment of debt,
before tax effect -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable (35) -- (72) -- (56)
Prepaid expenses and other assets 2 11 173 11 (18)
Due from subsidiaries (1,518) (760) (4,652) (1,290) (3,343)
Due from/to MeriStar Hotels & Resorts 63 10 33 (123) 87
Accounts payable, accrued expenses, accrued
interest and other liabilities (35) 33 (115) 67 (1)
------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 285 38 802 230 290
------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (285) (38) (802) (230) (290)
Proceeds from sale of assets -- -- -- -- --
Investments in and advances to affiliates, net -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (285) (38) (802) (230) (290)
------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Principal payments on long-term debt -- -- -- -- --
Repayments to MeriStar Hospitality Corporation -- -- -- -- --
Contributions from partners -- -- -- -- --
Repurchase of units -- -- -- -- --
Distributions paid to partners -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net cash 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 year -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- --
============ ============ ============ ============ ============
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2C, SUB 4G, SUB 3B, SUB 5G, SUB 5P, SUB 5J,
LLC L.P. LLC L.P. LLC LLC
----------- ----------- ----------- ----------- ----------- ----------
Operating Activities:
Net (loss) income 435 2,210 1,219 7,624 816 8,008
Adjustments to reconcile net (loss) income to net
cash provided by operating activities:
Depreciation and amortization 1,040 835 835 6,157 -- 3,287
Loss on sale of assets, before tax effect -- -- -- -- -- --
Extraordinary loss on early extinguishment of debt,
before tax effect -- -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable -- (67) (8) (383) -- --
Prepaid expenses and other assets 4 5 11 48 -- (356)
Due from subsidiaries (1,735) (2,786) (1,517) (12,365) (774) (7,670)
Due from/to MeriStar Hotels & Resorts 102 46 12 (189) (42) (1,776)
Accounts payable, accrued expenses, accrued
interest and other liabilities 76 (23) 31 (18) -- 639
----------- ----------- ----------- ----------- ----------- ----------
Net cash provided by operating activities (78) 220 583 874 -- 2,132
----------- ----------- ----------- ----------- ----------- ----------
Investing activities:
Investments in hotel properties 748 (220) (583) (874) -- (2,132)
Proceeds from sale of assets -- -- -- -- -- --
Investments in and advances to affiliates, net -- -- -- -- -- --
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------
Net cash provided by (used in) investing
activities 748 (220) (583) (874) -- (2,132)
----------- ----------- ----------- ----------- ----------- ----------
Financing activities:
Deferred financing costs -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Principal payments on long-term debt (670) -- -- -- -- --
Repayments to MeriStar Hospitality Corporation -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Repurchase of units -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------
Net cash used in financing activities (670) -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------
Net decrease in cash and cash equivalents -- -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- ----------
Cash and cash equivalents, end of year -- -- -- -- -- --
=========== =========== =========== =========== =========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2000
(in thousands of dollars)
MERISTAR MERISTAR MERISTAR MERISTAR GUARANTOR
SUB 5Q, SUB 5A, SUB 8D, SUB 4J, SUBSIDIARIES
LLC LLC LLC LLC TOTAL
------------ ------------ ------------ ------------ ------------
Operating Activities:
Net (loss) income 1,781 1,673 2,588 935 112,175
Adjustments to reconcile net (loss) income to net
cash provided by operating activities:
Depreciation and amortization 406 1,667 1,186 1,237 55,509
Loss on sale of assets, before tax effect -- -- -- -- --
Extraordinary loss on early extinguishment of debt,
before tax effect -- -- -- -- --
Equity in earnings of affiliates -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities: --
Accounts receivable -- (11) (119) (47) (148)
Prepaid expenses and other assets 18 18 4 8 2,333
Due from subsidiaries (1,676) (2,627) (3,266) (1,616) (129,117)
Due from/to MeriStar Hotels & Resorts 29 28 118 26 (1,151)
Accounts payable, accrued expenses, accrued
interest and other liabilities 211 (338) 13 234 6,043
------------ ------------ ------------ ------------ ------------
Net cash provided by operating activities 769 410 524 777 45,644
------------ ------------ ------------ ------------ ------------
Investing activities:
Investments in hotel properties (769) (368) (524) (777) (43,367)
Proceeds from sale of assets -- -- -- -- --
Investments in and advances to affiliates, net -- (371) -- -- 378
Net (advances to) payments from MeriStar
Hotels & Resorts -- -- -- -- --
Decrease (increase) in restricted cash -- -- -- -- 249
------------ ------------ ------------ ------------ ------------
Net cash provided by (used in) investing
activities (769) 3 (524) (777) (42,740)
------------ ------------ ------------ ------------ ------------
Financing activities:
Deferred financing costs -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Principal payments on long-term debt -- -- -- -- (2,491)
Repayments to MeriStar Hospitality Corporation -- -- -- -- --
Contributions from partners -- -- -- -- --
Repurchase of units -- -- -- -- --
Distributions paid to partners -- (413) -- -- (413)
------------ ------------ ------------ ------------ ------------
Net cash used in financing activities -- (413) -- -- (2,904)
------------ ------------ ------------ ------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Net decrease in cash and cash equivalents -- -- -- -- --
Cash and cash equivalents, beginning of year -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Cash and cash equivalents, end of year -- -- -- -- --
============ ============ ============ ============ ============
TOTAL
ELIMINATIONS CONSOLIDATED
------------ ------------
Operating Activities:
Net (loss) income (210,453) $ 118,036
Adjustments to reconcile net (loss) income to net
cash provided by operating activities:
Depreciation and amortization -- 110,688
Loss on sale of assets, before tax effect -- (3,495)
Extraordinary loss on early extinguishment of debt,
before tax effect -- (3,450)
Equity in earnings of affiliates 210,453 --
Minority interests -- (3)
Amortization of unearned stock-based compensation -- 3,070
Deferred income taxes -- 636
Changes in operating assets and liabilities: --
Accounts receivable -- (1,505)
Prepaid expenses and other assets -- 6,370
Due from subsidiaries -- --
Due from/to MeriStar Hotels & Resorts -- (10,745)
Accounts payable, accrued expenses, accrued
interest and other liabilities -- 4,486
------------ ------------
Net cash provided by operating activities -- 224,088
------------ ------------
Investing activities:
Investments in hotel properties -- (90,703)
Proceeds from sale of assets -- 24,148
Investments in and advances to affiliates, net -- (2,111)
Net (advances to) payments from MeriStar
Hotels & Resorts -- 57,110
Decrease (increase) in restricted cash -- (2,730)
------------ ------------
Net cash provided by (used in) investing
activities -- (14,286)
------------ ------------
Financing activities:
Deferred financing costs -- (1,615)
Proceeds from issuance of long-term debt -- 179,388
Principal payments on long-term debt -- (200,028)
Repayments to MeriStar Hospitality Corporation -- (14,362)
Contributions from partners -- 1,356
Repurchase of units -- (73,638)
Distributions paid to partners -- (103,274)
------------ ------------
Net cash used in financing activities -- (212,173)
------------ ------------
Effect of exchange rate changes on cash and
cash equivalents -- 64
------------ ------------
Net decrease in cash and cash equivalents -- (2,307)
Cash and cash equivalents, beginning of year -- 2,549
------------ ------------
Cash and cash equivalents, end of year -- $ 242
============ ============