.
.
.
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR NON- MERISTAR AGH MERISTAR
HOSPITALITY GUARANTOR SUB 7C, UPREIT, SUB 5N,
OP, L.P. SUBSIDIARIES LLC LLC LLC
----------- ------------ ---------- ---------- ----------
ASSETS
Property and equipment 18,132 1,418,980 -- -- 4,137
Accumulated depreciation (12,063) (234,185) -- -- (644)
---------- --------- ---------- ---------- ----------
6,069 1,184,795 -- -- 3,493
Restricted cash 33,088 5,200 -- -- --
Investments in affiliates 2,273,079 8,200 32 2,989 --
Due from subsidiaries (706,261) 282,441 -- 74 4,144
Note receivable from Interstate Hotels & Resorts 120,855 -- -- -- --
Prepaid expenses and other assets 27,550 (942) -- -- (10)
Accounts receivable, net 16,392 1,109 -- -- --
Marketable securities 1,000 -- -- -- --
Cash and cash equivalents 251,448 -- -- -- --
---------- --------- ---------- ---------- ----------
2,023,220 1,480,803 32 3,063 7,627
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 1,006,708 346,441 -- -- --
Notes payable to MeriStar Hospitality Corporation 337,093 -- -- -- --
Accounts payable and accrued expenses 20,406 8,052 -- -- 38
Accrued interest 36,600 3,271 -- -- --
Due to Interstate Hotels & Resorts 796 -- -- -- --
Other liabilities 4,186 (304) -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 1,405,789 357,460 -- -- 38
---------- --------- ---------- ---------- ----------
Minority interests 2,565 -- -- -- --
Redeemable OP units at redemption value 33,535 -- -- -- --
Partners' capital - Common OP Units 581,331 1,123,343 32 3,063 7,589
---------- --------- ---------- ---------- ----------
2,023,220 1,480,803 32 3,063 7,627
========== ========= ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 8F, SUB 8G, SUB 6H, SUB 8B,
LLC L.P. LLC L.P. LLC
----------- --------- ---------- ---------- ----------
ASSETS
Property and equipment -- 11,501 -- 10,862 82,693
Accumulated depreciation -- (2,356) -- -- (11,680)
---------- --------- ---------- ---------- ----------
-- 9,145 -- 10,862 71,013
Restricted cash -- 115 -- -- --
Investments in affiliates -- -- 72 -- --
Due from subsidiaries -- 6,568 9 6,619 30,008
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- (15) -- 1 13
Accounts receivable, net -- -- -- -- --
Marketable securities -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
-- 15,813 81 17,482 101,034
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses -- 72 -- 230 2,535
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities -- 72 -- 230 2,535
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units -- 15,741 81 17,252 98,499
---------- --------- ---------- ---------- ----------
-- 15,813 81 17,482 101,034
========== ========= ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1C, SUB 8E, SUB 7F, SUB 5L, SUB 3C,
L.P. LLC LLC LLC LLC
----------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 25,534 15,356 7,263 11,684 17,436
Accumulated depreciation (5,647) (2,875) -- (607) (3,522)
---------- --------- ---------- ---------- ----------
19,887 12,481 7,263 11,077 13,914
Restricted cash -- -- -- -- --
Investments in affiliates -- -- -- -- --
Due from subsidiaries (2,846) 6,432 4,982 4,327 4,920
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets (43) (6) 1 (14) 35
Accounts receivable, net -- -- -- -- --
Marketable securities -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
16,998 18,907 12,246 15,390 18,869
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 46 (81) 219 50 239
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 46 (81) 219 50 239
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 16,952 18,988 12,027 15,340 18,630
---------- --------- ---------- ---------- ----------
16,998 18,907 12,246 15,390 18,869
========== ========= ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5R, SUB 6D, SUB 6E, SUB 4E, SUB 1B,
LLC LLC LLC L.P. LLC
----------- --------- ---------- ---------- ----------
ASSETS
Property and equipment -- 17,439 44,763 5,044 18,557
Accumulated depreciation -- (2,757) (9,554) -- (3,935)
---------- --------- ---------- ---------- ----------
-- 14,682 35,209 5,044 14,622
Restricted cash -- -- -- -- --
Investments in affiliates 43 -- -- -- --
Due from subsidiaries (43) 7,938 21,079 3,194 15,026
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- (5) (20) (15) (19)
Accounts receivable, net -- 115 -- -- 96
Marketable securities -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
-- 22,730 56,268 8,223 29,725
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- 37
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses -- (38) (367) 253 68
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities -- (38) (367) 253 105
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units -- 22,768 56,635 7,970 29,620
---------- --------- ---------- ---------- ----------
-- 22,730 56,268 8,223 29,725
========== ========= ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5F, SUB 6G, SUB 8C, SUB 4C, SUB 4H,
L.P. LLC LLC L.P L.P.
----------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 17,292 22,527 5,821 -- 4,870
Accumulated depreciation -- (4,800) (158) -- (66)
---------- --------- ---------- ---------- ----------
17,292 17,727 5,663 -- 4,804
Restricted cash -- -- -- -- --
Investments in affiliates -- -- -- -- --
Due from subsidiaries 12,324 6,389 5,189 -- (761)
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets (37) (7) 35 -- (4)
Accounts receivable, net -- -- -- -- --
Marketable securities -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
29,579 24,109 10,887 -- 4,039
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 278 (138) (409) -- 144
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 278 (138) (409) -- 144
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 29,301 24,247 11,296 -- 3,895
---------- --------- ---------- ---------- ----------
29,579 24,109 10,887 -- 4,039
========== ========= ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7E, SUB 3D, SUB 1A, SUB 7A SUB 2B,
LLC LLC LLC JOINT VENTURE LLC
---------- --------- ---------- ------------- ----------
ASSETS
Property and equipment 18,211 22,674 11,499 5,845 3,854
Accumulated depreciation (3,171) (6,844) (2,815) (61) (75)
---------- --------- ---------- ---------- ----------
15,040 15,830 8,684 5,784 3,779
Restricted cash -- -- -- -- --
Investments in affiliates -- -- -- -- --
Due from subsidiaries 6,389 8,343 7,088 4,836 (1,139)
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets (4) (10) (31) (1) 4
Accounts receivable, net -- -- -- -- (14)
Marketable securities -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
21,425 24,163 15,741 10,619 2,630
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- 5,721
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 30 164 30 108 (17)
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 30 164 30 108 5,704
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 21,395 23,999 15,711 10,511 (3,074)
---------- --------- ---------- ---------- ----------
21,425 24,163 15,741 10,619 2,630
========== ========= ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 3A, SUB 4A, SUB 4D, SUB 2A, SUB 6L,
LLC L.P. L.P. LLC LLC
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 3,193 3,419 -- 4,831 12,619
Accumulated depreciation -- (31) -- (64) (116)
---------- --------- ---------- ---------- ----------
3,193 3,388 -- 4,767 12,503
Restricted cash -- -- -- -- --
Investments in affiliates -- -- -- -- --
Due from subsidiaries 1,777 4,321 2,922 (1,423) 5,933
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets (3) (7) 3 26 (5)
Accounts receivable, net -- -- -- -- --
Marketable securities -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
4,967 7,702 2,925 3,370 18,431
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- 9,331 --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 140 285 -- 24 (22)
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 140 285 -- 9,355 (22)
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 4,827 7,417 2,925 (5,985) 18,453
---------- --------- ---------- ---------- ----------
4,967 7,702 2,925 3,370 18,431
========== ========= ========== ========== ==========
MDV MERISTAR MERISTAR MERISTAR MERISTAR
LIMITED SUB 5C, SUB 6J, SUB 1D, SUB 7B,
PARTNERSHIP LLC LLC LLC L.P.
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 3,849 3,903 19,454 68,621 4,759
Accumulated depreciation (651) (60) (3,638) (11,467) (57)
---------- --------- ---------- ---------- ----------
3,198 3,843 15,816 57,154 4,702
Restricted cash -- -- -- -- --
Investments in affiliates -- -- -- -- --
Due from subsidiaries 2,423 818 7,183 18,787 (3,371)
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets 1 (19) 30 (122) (8)
Accounts receivable, net -- -- -- -- --
Marketable securities -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
5,622 4,642 23,029 75,819 1,323
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 80 836 (276) 84 906
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 80 836 (276) 84 906
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 5,542 3,806 23,305 75,735 417
---------- --------- ---------- ---------- ----------
5,622 4,642 23,029 75,819 1,323
========== ========= ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7D, SUB 7G, SUB 6B, SUB 4I, SUB 5D,
LLC LLC LLC L.P. LLC
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 52,241 4,878 10,781 2,440 42,047
Accumulated depreciation (9,362) (104) (2,076) (78) (7,738)
---------- --------- ---------- ---------- ----------
42,879 4,774 8,705 2,362 34,309
Restricted cash -- -- -- -- --
Investments in affiliates -- -- -- -- 51,368
Due from subsidiaries 24,174 233 2,888 639 (6,576)
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets 226 (6) (1) 5 (3)
Accounts receivable, net 1,030 -- -- -- --
Marketable securities -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
68,309 5,001 11,592 3,006 79,098
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- 24,000
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 3,642 (54) (156) 332 247
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts (200) -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 3,442 (54) (156) 332 24,247
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 64,867 5,055 11,748 2,674 54,851
---------- --------- ---------- ---------- ----------
68,309 5,001 11,592 3,006 79,098
========== ========= ========== ========== ==========
MERISTAR MERISTAR AGH MERISTAR MERISTAR
SUB 5H, SUB 7H, PSS I, SUB 2D, SUB 4F,
LLC LLC INC. LLC L.P.
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment -- 4,247 -- 5,799 32,387
Accumulated depreciation -- (43) -- (81) (5,530)
---------- --------- ---------- ---------- ----------
-- 4,204 -- 5,718 26,857
Restricted cash -- -- -- -- --
Investments in affiliates -- -- -- -- --
Due from subsidiaries 35,086 6,225 25,570 602 4,996
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- 2 -- 2 (6)
Accounts receivable, net -- -- -- -- --
Marketable securities -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
35,086 10,431 25,570 6,322 31,847
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- 13 -- 10,812 --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses (2) 198 -- (34) 290
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities (2) 211 -- 10,778 290
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 35,088 10,220 25,570 (4,456) 31,557
---------- --------- ---------- ---------- ----------
35,086 10,431 25,570 6,322 31,847
========== ========= ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5K, SUB 5M, SUB 1E, SUB 5O, SUB 4B,
LLC LLC L.P. LLC L.P.
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 28,238 22,041 10,477 8,735 7,273
Accumulated depreciation (4,882) (2,237) (1,886) (1,087) --
---------- --------- ---------- ---------- ----------
23,356 19,804 8,591 7,648 7,273
Restricted cash -- -- -- -- --
Investments in affiliates -- -- -- -- --
Due from subsidiaries (530) 7,769 8,370 3,021 (4,810)
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets (43) (29) (13) (9) (5)
Accounts receivable, net -- -- -- -- --
Marketable securities -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
22,783 27,544 16,948 10,660 2,458
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 3,201 130 (126) 44 353
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 3,201 130 (126) 44 353
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 19,582 27,414 17,074 10,616 2,105
---------- --------- ---------- ---------- ----------
22,783 27,544 16,948 10,660 2,458
========== ========= ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2C, SUB 4G, SUB 3B, SUB 5G, SUB 5P,
LLC L.P. LLC L.P. LLC
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 10,523 12,566 -- 163,814 39
Accumulated depreciation (175) -- -- (28,929) (22)
---------- --------- ---------- ---------- ----------
10,348 12,566 -- 134,885 17
Restricted cash -- -- -- -- --
Investments in affiliates -- -- -- -- --
Due from subsidiaries 5,206 8,295 8,540 42,027 2,934
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets (19) (52) (3) (146) (2)
Accounts receivable, net -- -- -- -- --
Marketable securities -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
15,535 20,809 8,537 176,766 2,949
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 18,883 -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 141 380 -- 1,537 --
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 19,024 380 -- 1,537 --
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units (3,489) 20,429 8,537 175,229 2,949
---------- --------- ---------- ---------- ----------
15,535 20,809 8,537 176,766 2,949
========== ========= ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5J, SUB 5Q, SUB 5A, SUB 8D, SUB 4J,
LLC LLC LLC LLC LLC
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 109,816 16,682 35,380 9,237 38,231
Accumulated depreciation (15,946) (2,129) (10,422) (120) (6,812)
---------- --------- ---------- ---------- ----------
93,870 14,553 24,958 9,117 31,419
Restricted cash -- -- -- -- --
Investments in affiliates -- -- 4,627 -- --
Due from subsidiaries 21,791 4,550 6,751 7,958 7,217
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets (227) (31) (18) (6) (12)
Accounts receivable, net -- -- -- -- (16)
Marketable securities -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
115,434 19,072 36,318 17,069 38,608
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- 23,609 -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 673 (97) 356 (166) 193
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 673 (97) 23,965 (166) 193
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 114,761 19,169 12,353 17,235 38,415
---------- --------- ---------- ---------- ----------
115,434 19,072 36,318 17,069 38,608
========== ========= ========== ========== ==========
MERISTAR GUARANTOR
HOTEL SUBSIDIARIES TOTAL
LESSEE, INC. TOTAL ELIMINATIONS CONSOLIDATED
------------ ------------ ------------ ------------
ASSETS
Property and equipment 3,146 1,140,528 -- 2,577,640
Accumulated depreciation (3,018) (180,328) -- (426,576)
---------- ------------ ------------ ------------
128 960,200 -- 2,151,064
Restricted cash -- 115 -- 38,403
Investments in affiliates -- 59,131 (2,300,410) 40,000
Due from subsidiaries 435 423,820 -- --
Note receivable from Interstate Hotels & Resorts -- -- (120,855) --
Prepaid expenses and other assets 16,481 15,829 -- 42,437
Accounts receivable, net 45,757 46,968 -- 64,469
Marketable securities -- -- -- 1,000
Cash and cash equivalents 18,826 18,826 -- 270,274
---------- --------- ---------- ----------
81,627 1,524,889 (2,421,265) 2,607,647
========== ========= ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 67,332 159,738 (120,855) 1,392,032
Notes payable to MeriStar Hospitality Corporation -- -- -- 337,093
Accounts payable and accrued expenses 55,273 71,866 -- 100,324
Accrued interest 314 314 -- 40,185
Due to Interstate Hotels & Resorts 5,373 5,173 -- 5,969
Other liabilities 8,852 8,852 -- 12,734
---------- --------- ---------- ----------
Total liabilities 137,144 245,943 (120,855) 1,888,337
---------- --------- ---------- ----------
Minority interests -- -- -- 2,565
Redeemable OP units at redemption value -- -- -- 33,535
Partners' capital - Common OP Units (55,517) 1,278,946 (2,300,410) 683,210
---------- --------- ---------- ----------
81,627 1,524,889 (2,421,265) 2,607,647
========== ========= ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)
MERISTAR NON- MERISTAR AGH MERISTAR
HOSPITALITY GUARANTOR SUB 7C, UPREIT, SUB 5N,
OP, L.P. SUBSIDIARIES LLC LLC LLC
---------- --------- ---------- ---------- ----------
ASSET
Property and equipment 16,986 1,467,405 -- -- 4,117
Accumulated depreciation (8,686) (220,927) -- -- (541)
---------- --------- ---------- ---------- ----------
8,300 1,246,478 -- -- 3,576
Restricted cash 15,374 4,876 -- -- --
Investments in and advances to affiliates 2,590,345 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 22,541 304 -- -- --
Accounts receivable, net of allowance for doubtful accounts 11,944 1,313 -- -- --
Cash and cash equivalents 21,372 -- -- -- --
---------- --------- ---------- ---------- ----------
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
---------- --------- ---------- ---------- ----------
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 L.P. LLC L.P. LLC
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment -- 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 -- -- -- -- --
---------- --------- ---------- ---------- ----------
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
---------- --------- ---------- ---------- ----------
4,862 15,012 82 17,528 98,583
========== ========= ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1C, SUB 8E, SUB 7F, SUB 5L, SUB 3C,
L.P. LLC LLC LLC LLC
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 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 -- -- -- -- --
---------- --------- ---------- ---------- ----------
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
---------- --------- ---------- ---------- ----------
17,448 18,474 13,959 14,779 18,365
========== ========= ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5R, SUB 6D, SUB 6E, SUB 4E, SUB 1B,
LLC LLC LLC L.P. LLC
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment -- 17,430 44,495 24,741 18,416
Accumulated depreciation -- (2,347) (8,334) (3,986) (3,529)
---------- --------- ---------- ---------- ----------
-- 15,083 36,161 20,755 14,887
Restricted cash -- -- -- -- --
Investments in and advances to affiliates 43 -- -- -- --
Due from subsidiaries (43) 6,781 18,092 2,772 12,954
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- -- -- 2 1
Accounts receivable, net of allowance for doubtful accounts -- 101 -- -- 96
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
-- 21,965 54,253 23,529 27,938
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- 48
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses -- 18 (132) 415 51
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities -- 18 (132) 415 99
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units -- 21,947 54,385 23,114 27,839
---------- --------- ---------- ---------- ----------
-- 21,965 54,253 23,529 27,938
========== ========= ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5F, SUB 6G, SUB 8C, SUB 4C, SUB 4H,
L.P. LLC LLC L.P. L.P.
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 31,539 22,381 11,400 -- 12,462
Accumulated depreciation (4,421) (4,166) -- -- (2,253)
---------- --------- ---------- ---------- ----------
27,118 18,215 11,400 -- 10,209
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries 10,473 5,200 4,587 11,521 (738)
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets 5 -- 1 -- 14
Accounts receivable, net of allowance for doubtful accounts -- -- -- 1 --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
37,596 23,415 15,988 11,522 9,485
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 170 108 (77) 98 172
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 170 108 (77) 98 172
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 37,426 23,307 16,065 11,424 9,313
---------- --------- ---------- ---------- ----------
37,596 23,415 15,988 11,522 9,485
========== ========= ========== ========== ==========
MERISTAR
MERISTAR MERISTAR MERISTAR MERISTAR SUB 7A
SUB 7E, SUB 3D, SUB 1A, SUB 5E, JOINT
LLC LLC LLC LLC VENTURE
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 17,972 22,549 11,318 52,868 13,161
Accumulated depreciation (2,711) (6,261) (2,478) (8,155) (1,761)
---------- --------- ---------- ---------- ----------
15,261 16,288 8,840 44,713 11,400
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries 5,820 7,409 6,231 14,226 4,352
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets 3 -- -- 1 5
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
21,084 23,697 15,071 58,940 15,757
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 86 61 121 184 218
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 86 61 121 184 218
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 20,998 23,636 14,950 58,756 15,539
---------- --------- ---------- ---------- ----------
21,084 23,697 15,071 58,940 15,757
========== ========= ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6K, SUB 2B, SUB 3A, SUB 4A, SUB 4D,
LLC LLC LLC L.P. L.P.
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 22,855 9,672 5,740 4,617 4,037
Accumulated depreciation (4,296) (1,985) (254) -- --
---------- --------- ---------- ---------- ----------
18,559 7,687 5,486 4,617 4,037
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries 16,890 (804) 1,500 4,097 (74)
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- 1 -- -- 21
Accounts receivable, net of allowance for doubtful accounts -- (12) -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
35,449 6,872 6,986 8,714 3,984
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- 4,890 -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 122 75 163 346 112
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 122 4,965 163 346 112
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 35,327 1,907 6,823 8,368 3,872
---------- --------- ---------- ---------- ----------
35,449 6,872 6,986 8,714 3,984
========== ========= ========== ========== ==========
MERISTAR MERISTAR MDV MERISTAR MERISTAR
SUB 2A, SUB 6L, LIMITED SUB 5C, SUB 6J,
LLC LLC PARTNERSHIP LC LLC
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 8,294 29,650 3,838 14,088 19,412
Accumulated depreciation (1,464) (3,354) (547) (2,812) (3,208)
---------- --------- ---------- ---------- ----------
6,830 26,296 3,291 11,276 16,204
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries (884) 4,928 2,169 242 5,957
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets 21 -- 9 70 45
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
5,967 31,224 5,469 11,588 22,206
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 7,977 -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 65 51 95 866 (116)
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 8,042 51 95 866 (116)
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units (2,075) 31,173 5,374 10,722 22,322
---------- --------- ---------- ---------- ----------
5,967 31,224 5,469 11,588 22,206
========== ========= ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1D, SUB 7B, SUB 7D, SUB 7G, SUB 6B,
LLC L.P. LLC LLC LLC
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 68,456 15,314 52,184 16,620 10,645
Accumulated depreciation (9,754) -- (8,132) (4,107) (1,742)
---------- --------- ---------- ---------- ----------
58,702 15,314 44,052 12,513 8,903
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries 16,638 (3,681) 21,885 122 2,423
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets 11 -- 309 1 3
Accounts receivable, net of allowance for doubtful accounts -- -- 1,026 -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
75,351 11,633 67,272 12,636 11,329
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 20 1,148 4,552 37 (95)
Accrued interest 117 -- -- -- --
Due to Interstate Hotels & Resorts -- -- (200) -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 137 1,148 4,352 37 (95)
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 75,214 10,485 62,920 12,599 11,424
---------- --------- ---------- ---------- ----------
75,351 11,633 67,272 12,636 11,329
========== ========= ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR AGH
SUB 4I, SUB 5D, SUB 5H, SUB 7H, PSS I,
L.P. LLC LLC LLC INC.
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 3,800 42,013 53,422 5,700 17,855
Accumulated depreciation -- (6,645) (7,989) -- (2,049)
---------- --------- ---------- ---------- ----------
3,800 35,368 45,433 5,700 15,806
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- 51,368 -- -- --
Due from subsidiaries 895 (7,027) 8,773 5,754 10,810
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- 18 -- -- --
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
4,695 79,727 54,206 11,454 26,616
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- 24,000 -- 13 --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 411 206 146 267 107
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 411 24,206 146 280 107
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 4,284 55,521 54,060 11,174 26,509
---------- --------- ---------- ---------- ----------
4,695 79,727 54,206 11,454 26,616
========== ========= ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2D, SUB 4F, SUB 5K, SUB 5M, SUB 1E,
LLC L.P. LLC LLC L.P.
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 15,465 31,912 28,057 22,022 10,457
Accumulated depreciation (2,435) (4,714) (3,916) (1,883) (1,649)
---------- --------- ---------- ---------- ----------
13,030 27,198 24,141 20,139 8,808
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries 416 4,392 (705) 6,601 7,355
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 -- -- -- -- --
---------- --------- ---------- ---------- ----------
13,447 31,602 23,436 26,740 16,163
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 9,243 -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 63 399 4,316 48 13
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 9,306 399 4,316 48 13
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 4,141 31,203 19,120 26,692 16,150
---------- --------- ---------- ---------- ----------
13,447 31,602 23,436 26,740 16,163
========== ========= ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5O, SUB 6M SUB 4B, SUB 6C, SUB 2C,
LLC COMPANY L.P. LLC LLC
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 8,727 32,975 8,265 20,855 28,658
Accumulated depreciation (916) (4,779) -- (3,592) (5,385)
---------- --------- ---------- ---------- ----------
7,811 28,196 8,265 17,263 23,273
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries 2,486 15,876 (4,592) 10,175 4,873
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- 21 -- -- 1
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
10,297 44,093 3,673 27,438 28,147
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- 16,143
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 7 (117) 443 (142) 238
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 7 (117) 443 (142) 16,381
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 10,290 44,210 3,230 27,580 11,766
---------- --------- ---------- ---------- ----------
10,297 44,093 3,673 27,438 28,147
========== ========= ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4G, SUB 3B, SUB 5G, SUB 5P, SUB 5J,
L.P. LLC L.P. LLC LLC
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 25,601 8,550 163,237 39 107,471
Accumulated depreciation (4,015) -- (24,213) (18) (13,334)
---------- --------- ---------- ---------- ----------
21,586 8,550 139,024 21 94,137
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- -- -- -- --
Due from subsidiaries 7,456 2,201 35,538 1,989 17,649
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets 9 -- 5 -- --
Accounts receivable, net of allowance for doubtful accounts -- -- -- -- --
Cash and cash equivalents -- -- -- -- --
---------- --------- ---------- ---------- ----------
29,051 10,751 174,567 2,010 111,786
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- -- -- -- --
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses 558 173 838 4 453
Accrued interest -- -- -- -- --
Due to Interstate Hotels & Resorts -- -- -- -- --
Other liabilities -- -- -- -- --
---------- --------- ---------- ---------- ----------
Total liabilities 558 173 838 4 453
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 28,493 10,578 173,729 2,006 111,333
---------- --------- ---------- ---------- ----------
29,051 10,751 174,567 2,010 111,786
========== ========= ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5Q, SUB 5A, SUB 8D, SUB 4J, HOTEL
LLC LLC LLC LLC LESSEE, INC.
---------- --------- ---------- ---------- ----------
ASSETS
Property and equipment 16,509 34,981 30,687 38,154 2,252
Accumulated depreciation (1,709) (9,395) (5,080) (5,862) (2,219)
---------- --------- ---------- ---------- ----------
14,800 25,586 25,607 32,292 33
Restricted cash -- -- -- -- --
Investments in and advances to affiliates -- 4,627 -- -- --
Due from subsidiaries 3,274 5,147 6,942 5,438 5,245
Note receivable from Interstate Hotels & Resorts -- -- -- -- --
Prepaid expenses and other assets -- -- -- 5 17,389
Accounts receivable, net of allowance for doubtful accounts -- -- -- (24) 42,400
Cash and cash equivalents -- -- -- -- 12,517
---------- --------- ---------- ---------- ----------
18,074 35,360 32,549 37,711 77,584
========== ========= ========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt -- 23,609 -- -- 21,397
Notes payable to MeriStar Hospitality Corporation -- -- -- -- --
Accounts payable and accrued expenses (122) (3) (117) 171 58,595
Accrued interest -- -- -- -- 107
Due to Interstate Hotels & Resorts -- -- -- -- 10,328
Other liabilities -- -- -- -- 11,376
---------- --------- ---------- ---------- ----------
Total liabilities (122) 23,606 (117) 171 101,803
---------- --------- ---------- ---------- ----------
Minority interests -- -- -- -- --
Redeemable OP units at redemption value -- -- -- -- --
Partners' capital - Common OP Units 18,196 11,754 32,666 37,540 (24,219)
---------- --------- ---------- ---------- ----------
18,074 35,360 32,549 37,711 77,584
========== ========= ========== ========== ==========
6
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2002
(DOLLARS IN THOUSANDS)
GUARANTOR
SUBSIDIARIES TOTAL
TOTAL ELIMINATIONS CONSOLIDATED
------------ ------------ ------------
Assets
Property and equipment 1,536,518 -- 3,020,909
Accumulated depreciation (231,359) -- (460,972)
---------- ---------- ----------
1,305,159 -- 2,559,937
Restricted cash 115 -- 20,365
Investments in and advances to affiliates 59,198 (2,617,743) 40,000
Due from subsidiaries 398,815 -- --
Note receivable from Interstate Hotels & Resorts -- (108,605) 42,052
Prepaid expenses and other assets 18,066 -- 40,911
Accounts receivable, net of allowance for doubtful accounts 43,571 -- 56,828
Cash and cash equivalents 12,517 -- 33,889
---------- ---------- ----------
1,837,441 (2,726,348) 2,793,982
========== ========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Long-term debt 107,320 (108,605) 1,296,597
Notes payable to MeriStar Hospitality Corporation -- -- 357,505
Accounts payable and accrued expenses 79,359 -- 104,677
Accrued interest 224 -- 52,907
Due to Interstate Hotels & Resorts 10,128 -- 10,500
Other liabilities 11,376 -- 15,967
---------- ---------- ----------
Total liabilities 208,407 (108,605) 1,838,153
---------- ---------- ----------
Minority interests -- -- 2,624
Redeemable OP units at redemption value -- -- 38,205
Partners' capital - Common OP Units 1,629,034 (2,617,743) 915,000
---------- ---------- ----------
1,837,441 (2,726,348) 2,793,982
========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR NON- MERISTAR AGH MERISTAR
HOSPITALITY GUARANTOR SUB 7C, UPREIT, SUB 5N,
OP, L.P. SUBSIDIARIES LLC LLC LLC
----------- ------------- ----------- ----------- -----------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues 1,620 (241) -- -- --
Participating lease revenue -- 30,382 -- -- 165
----------- ------------ ----------- ----------- -----------
Total revenue 1,620 30,141 -- -- 165
----------- ------------ ----------- ----------- -----------
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- 78 -- -- --
Other operating expenses:
General and administrative 1,774 258 -- -- --
Property operating costs (359) (1) -- -- --
Depreciation and amortization 2,162 12,022 -- -- 34
Loss on asset impairments -- (278) -- -- --
Property taxes, insurance and other (397) 3,998 -- -- 27
----------- ------------ ----------- ----------- -----------
Operating expenses 3,180 16,077 -- -- 61
----------- ------------ ----------- ----------- -----------
Operating income (loss) (1,560) 14,064 -- -- 104
Gain on early extinguishment of debt 4,574 -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net (26,806) (6,870) -- -- --
Equity in loss from consolidated entities (27,554) -- -- -- --
----------- ------------ ----------- ----------- -----------
(Loss) gain before income taxes and discontinued
operations (51,346) 7,194 -- -- 104
Income tax benefit 305 -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from continuing operations (51,041) 7,194 -- -- 104
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before
tax (expense) benefit -- 683 -- -- --
Income tax (expense) benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from discontinued operations -- 683 -- -- --
----------- ------------ ----------- ----------- -----------
Net (loss) income (51,041) 7,877 -- -- 104
=========== ============ =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 8F, SUB 8G, SUB 6H, SUB 8B,
LLC L.P. LLC L.P. LLC
----------- ------------- ----------- ----------- -----------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- -- --
Participating lease revenue -- 587 -- 317 1,818
----------- ------------ ----------- ----------- -----------
Total revenue -- 587 -- 317 1,818
----------- ------------ ----------- ----------- -----------
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 162 -- 160 601
Loss on asset impairments -- -- -- 500 --
Property taxes, insurance and other -- 156 -- 24 346
----------- ------------ ----------- ----------- -----------
Operating expenses -- 318 -- 684 947
----------- ------------ ----------- ----------- -----------
Operating income (loss) -- 269 -- (367) 871
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
----------- ------------ ----------- ----------- -----------
(Loss) gain before income taxes and discontinued
operations -- 269 -- (367) 871
Income tax benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from continuing operations -- 269 -- (367) 871
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before
tax (expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from discontinued operations -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Net (loss) income -- 269 -- (367) 871
=========== ============ =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1C, SUB 8E, SUB 7F, SUB 5L, SUB 3C,
L.P. LLC LLC LLC LLC
----------- ------------- ----------- ----------- -----------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- 6 -- -- --
Participating lease revenue 178 362 269 254 347
----------- ------------ ----------- ----------- -----------
Total revenue 178 368 269 254 347
----------- ------------ ----------- ----------- -----------
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 254 143 99 34 176
Loss on asset impairments -- -- 400 -- --
Property taxes, insurance and other 180 55 41 38 99
----------- ------------ ----------- ----------- -----------
Operating expenses 434 198 540 72 275
----------- ------------ ----------- ----------- -----------
Operating income (loss) (256) 170 (271) 182 72
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
----------- ------------ ----------- ----------- -----------
(Loss) gain before income taxes and discontinued
operations (256) 170 (271) 182 72
Income tax benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from continuing operations (256) 170 (271) 182 72
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before
tax (expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from discontinued operations -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Net (loss) income (256) 170 (271) 182 72
=========== ============ =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5R, SUB 6D, SUB 6E, SUB 4E, SUB 1B,
LLC LLC LLC L.P. LLC
----------- ------------- ----------- ----------- -----------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- 15 -- 1 340
Participating lease revenue -- 497 1,193 351 695
----------- ------------ ----------- ----------- -----------
Total revenue -- 512 1,193 352 1,035
----------- ------------ ----------- ----------- -----------
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 137 397 81 122
Loss on asset impairments -- -- -- 736 --
Property taxes, insurance and other -- 92 194 113 17
----------- ------------ ----------- ----------- -----------
Operating expenses -- 229 591 930 139
----------- ------------ ----------- ----------- -----------
Operating income (loss) -- 283 602 (578) 896
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
----------- ------------ ----------- ----------- -----------
(Loss) gain before income taxes and discontinued
operations -- 283 602 (578) 896
Income tax benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from continuing operations -- 283 602 (578) 896
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before
tax (expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from discontinued operations -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Net (loss) income -- 283 602 (578) 896
=========== ============ =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5F, SUB 6G, SUB 8C, SUB 4C, SUB 4H,
L.P. LLC LLC L.P. L.P.
----------- ------------- ----------- ----------- -----------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- 1 -- --
Participating lease revenue 669 615 500 -- 95
----------- ------------ ----------- ----------- -----------
Total revenue 669 615 501 -- 95
----------- ------------ ----------- ----------- -----------
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 209 204 158 -- 66
Loss on asset impairments 2,000 -- -- -- --
Property taxes, insurance and other 107 95 167 -- 44
----------- ------------ ----------- ----------- -----------
Operating expenses 2,316 299 325 -- 110
----------- ------------ ----------- ----------- -----------
Operating income (loss) (1,647) 316 176 -- (15)
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
----------- ------------ ----------- ----------- -----------
(Loss) gain before income taxes and discontinued
operations (1,647) 316 176 -- (15)
Income tax benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from continuing operations (1,647) 316 176 -- (15)
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before
tax (expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from discontinued operations -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Net (loss) income (1,647) 316 176 -- (15)
=========== ============ =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7E, SUB 3D, SUB 1A, SUB 5E, SUB 7A JOINT
LLC LLC LLC LLC VENTURE
----------- ------------- ----------- ----------- -----------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- -- --
Participating lease revenue 336 407 526 994 305
----------- ------------ ----------- ----------- -----------
Total revenue 336 407 526 994 305
----------- ------------ ----------- ----------- -----------
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 153 191 113 476 60
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 49 60 111 101 56
----------- ------------ ----------- ----------- -----------
Operating expenses 202 251 224 577 116
----------- ------------ ----------- ----------- -----------
Operating income (loss) 134 156 302 417 189
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
----------- ------------ ----------- ----------- -----------
(Loss) gain before income taxes and discontinued
operations 134 156 302 417 189
Income tax benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from continuing operations 134 156 302 417 189
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before
tax (expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from discontinued operations -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Net (loss) income 134 156 302 417 189
=========== ============ =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6K, SUB 2B, SUB 3A, SUB 4A, SUB 4D,
LLC LLC LLC L.P. L.P.
----------- ------------- ----------- ----------- -----------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- 3 -- -- --
Participating lease revenue 940 164 127 255 --
----------- ------------ ----------- ----------- -----------
Total revenue 940 167 127 255 --
----------- ------------ ----------- ----------- -----------
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 168 79 55 31 --
Loss on asset impairments -- -- 640 -- --
Property taxes, insurance and other 97 39 27 65 --
----------- ------------ ----------- ----------- -----------
Operating expenses 265 118 722 96 --
----------- ------------ ----------- ----------- -----------
Operating income (loss) 675 49 (595) 159 --
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- (119) -- -- --
Equity in loss from consolidated entities -- -- -- -- --
----------- ------------ ----------- ----------- -----------
(Loss) gain before income taxes and discontinued
operations 675 (70) (595) 159 --
Income tax benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from continuing operations 675 (70) (595) 159 --
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before
tax (expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from discontinued operations -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Net (loss) income 675 (70) (595) 159 --
=========== ============ =========== =========== ===========
MERISTAR MERISTAR MDV MERISTAR MERISTAR
SUB 2A, SUB 6L, LIMITED SUB 5C, SUB 6J,
LLC LLC PARTNERSHIP LLC LLC
----------- ------------- ----------- ----------- -----------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- -- --
Participating lease revenue 173 532 126 376 569
----------- ------------ ----------- ----------- -----------
Total revenue 173 532 126 376 569
----------- ------------ ----------- ----------- -----------
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 69 116 35 60 138
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 50 55 35 165 68
----------- ------------ ----------- ----------- -----------
Operating expenses 119 171 70 225 206
----------- ------------ ----------- ----------- -----------
Operating income (loss) 54 361 56 151 363
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net (194) -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
----------- ------------ ----------- ----------- -----------
(Loss) gain before income taxes and discontinued
operations (140) 361 56 151 363
Income tax benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from continuing operations (140) 361 56 151 363
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before
tax (expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from discontinued operations -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Net (loss) income (140) 361 56 151 363
=========== ============ =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1D, SUB 7B, SUB 7D, SUB 7G, SUB 6B,
LLC L.P. LLC LLC LLC
----------- ------------- ----------- ----------- -----------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues 191 -- 1,403 -- --
Participating lease revenue 973 401 610 150 275
----------- ------------ ----------- ----------- -----------
Total revenue 1,164 401 2,013 150 275
----------- ------------ ----------- ----------- -----------
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses 31 -- 586 -- --
Other operating expenses:
General and administrative (25) -- (177) -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 559 56 430 104 105
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 412 187 538 54 50
----------- ------------ ----------- ----------- -----------
Operating expenses 977 243 1,377 158 155
----------- ------------ ----------- ----------- -----------
Operating income (loss) 187 158 636 (8) 120
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
----------- ------------ ----------- ----------- -----------
(Loss) gain before income taxes and discontinued
operations 187 158 636 (8) 120
Income tax benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from continuing operations 187 158 636 (8) 120
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before
tax (expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from discontinued operations -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Net (loss) income 187 158 636 (8) 120
=========== ============ =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR AGH
SUB 4I, SUB 5D, SUB 5H, SUB 7H, PSS I,
L.P. LLC LLC LLC INC.
----------- ------------- ----------- ----------- -----------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- -- --
Participating lease revenue 20 510 -- 323 --
----------- ------------ ----------- ----------- -----------
Total revenue 20 510 -- 323 --
----------- ------------ ----------- ----------- -----------
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 78 365 -- 43 --
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 58 57 -- 127 --
----------- ------------ ----------- ----------- -----------
Operating expenses 136 422 -- 170 --
----------- ------------ ----------- ----------- -----------
Operating income (loss) (116) 88 -- 153 --
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- (267) -- -- --
Equity in loss from consolidated entities -- -- -- -- --
----------- ------------ ----------- ----------- -----------
(Loss) gain before income taxes and discontinued
operations (116) (179) -- 153 --
Income tax benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from continuing operations (116) (179) -- 153 --
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before
tax (expense) benefit -- -- (1,599) -- (32)
Income tax (expense) benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from discontinued operations -- -- (1,599) -- (32)
----------- ------------ ----------- ----------- -----------
Net (loss) income (116) (179) (1,599) 153 (32)
=========== ============ =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2D, SUB 4F, SUB 5K, SUB 5M, SUB 1E,
LLC L.P. LLC LLC L.P.
----------- ------------- ----------- ----------- -----------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- 4 -- -- --
Participating lease revenue 491 459 471 304 --
----------- ------------ ----------- ----------- -----------
Total revenue 491 463 471 304 --
----------- ------------ ----------- ----------- -----------
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 85 272 322 118 --
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 76 88 98 70 --
----------- ------------ ----------- ----------- -----------
Operating expenses 161 360 420 188 --
----------- ------------ ----------- ----------- -----------
Operating income (loss) 330 103 51 116 --
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net (224) -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
----------- ------------ ----------- ----------- -----------
(Loss) gain before income taxes and discontinued
operations 106 103 51 116 --
Income tax benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from continuing operations 106 103 51 116 --
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before
tax (expense) benefit -- -- -- -- 388
Income tax (expense) benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from discontinued operations -- -- -- -- 388
----------- ------------ ----------- ----------- -----------
Net (loss) income 106 103 51 116 388
=========== ============ =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5O, SUB 6M SUB 4B, SUB 6C, SUB 2C,
LLC COMPANY L.P. LLC LLC
----------- ------------- ----------- ----------- -----------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- 1 18
Participating lease revenue 136 1,200 44 790 422
----------- ------------ ----------- ----------- -----------
Total revenue 136 1,200 44 791 440
----------- ------------ ----------- ----------- -----------
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 57 274 145 193 185
Loss on asset impairments -- -- 374 -- --
Property taxes, insurance and other 26 66 67 57 150
----------- ------------ ----------- ----------- -----------
Operating expenses 83 340 586 250 335
----------- ------------ ----------- ----------- -----------
Operating income (loss) 53 860 (542) 541 105
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- -- -- -- (391)
Equity in loss from consolidated entities -- -- -- -- --
----------- ------------ ----------- ----------- -----------
(Loss) gain before income taxes and discontinued
operations 53 860 (542) 541 (286)
Income tax benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from continuing operations 53 860 (542) 541 (286)
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before
tax (expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from discontinued operations -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Net (loss) income 53 860 (542) 541 (286)
=========== ============ =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4G, SUB 3B, SUB 5G, SUB 5P, SUB 5J,
L.P. LLC L.P. LLC LLC
----------- ------------- ----------- ----------- -----------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- 11 -- --
Participating lease revenue 483 -- 2,313 267 1,822
----------- ------------ ----------- ----------- -----------
Total revenue 483 -- 2,324 267 1,822
----------- ------------ ----------- ----------- -----------
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 136 -- 1,571 1 871
Loss on asset impairments 500 -- -- -- --
Property taxes, insurance and other 159 -- 486 2 391
----------- ------------ ----------- ----------- -----------
Operating expenses 795 -- 2,057 3 1,262
----------- ------------ ----------- ----------- -----------
Operating income (loss) (312) -- 267 264 560
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
----------- ------------ ----------- ----------- -----------
(Loss) gain before income taxes and discontinued
operations (312) -- 267 264 560
Income tax benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from continuing operations (312) -- 267 264 560
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before
tax (expense) benefit -- (1,150) -- -- --
Income tax (expense) benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from discontinued operations -- (1,150) -- -- --
----------- ------------ ----------- ----------- -----------
Net (loss) income (312) (1,150) 267 264 560
=========== ============ =========== =========== ===========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5Q, SUB 5A, SUB 8D, SUB 4J, HOTEL
LLC LLC LLC LLC LESSEE, INC.
----------- ------------- ----------- ----------- -----------
Hotel operations:
Rooms -- -- -- -- 146,057
Food and beverage -- -- -- -- 53,660
Other operating departments -- -- -- -- 17,570
Office rental and other revenues -- 32 -- 174 --
Participating lease revenue 363 1,351 595 683 --
----------- ------------ ----------- ----------- -----------
Total revenue 363 1,383 595 857 217,287
----------- ------------ ----------- ----------- -----------
Hotel operating expenses by department:
Rooms -- -- -- -- 40,360
Food and beverage -- -- -- -- 43,268
Other operating departments -- -- -- -- 11,080
Office rental, parking and other operating expenses -- -- -- 238 --
Other operating expenses:
General and administrative -- -- -- (48) 37,644
Property operating costs -- -- -- -- 38,090
Depreciation and amortization 140 257 120 312 268
Loss on asset impairments -- -- 16,128 -- --
Property taxes, insurance and other 57 179 114 74 68,379
----------- ------------ ----------- ----------- -----------
Operating expenses 197 436 16,362 576 239,089
----------- ------------ ----------- ----------- -----------
Operating income (loss) 166 947 (15,767) 281 (21,802)
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- (708) -- -- (825)
Equity in loss from consolidated entities -- -- -- -- --
----------- ------------ ----------- ----------- -----------
(Loss) gain before income taxes and discontinued
operations 166 239 (15,767) 281 (22,627)
Income tax benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from continuing operations 166 239 (15,767) 281 (22,627)
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before
tax (expense) benefit -- -- -- -- (1,027)
Income tax (expense) benefit -- -- -- -- --
----------- ------------ ----------- ----------- -----------
Loss from discontinued operations -- -- -- -- (1,027)
----------- ------------ ----------- ----------- -----------
Net (loss) income 166 239 (15,767) 281 (23,654)
=========== ============ =========== =========== ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
GUARANTOR
SUBSIDIARIES TOTAL
TOTAL ELIMINATIONS CONSOLIDATED
------------ ------------- ------------
Hotel operations:
Rooms 146,057 -- 146,057
Food and beverage 53,660 -- 53,660
Other operating departments 17,570 -- 17,570
Office rental and other revenues 2,200 -- 3,579
Participating lease revenue 30,198 (60,580) --
----------- ------------ -----------
Total revenue 249,685 (60,580) 220,866
----------- ------------ -----------
Hotel operating expenses by department:
Rooms 40,360 -- 40,360
Food and beverage 43,268 -- 43,268
Other operating departments 11,080 -- 11,080
Office rental, parking and other operating expenses 855 -- 933
Other operating expenses: -- --
General and administrative 37,394 -- 39,426
Property operating costs 38,090 -- 37,730
Depreciation and amortization 11,848 -- 26,032
Loss on asset impairments 21,278 -- 21,000
Property taxes, insurance and other 74,795 (60,580) 17,816
----------- ------------ -----------
Operating expenses 278,968 (60,580) 237,645
----------- ------------ -----------
Operating income (loss) (29,283) -- (16,779)
Gain on early extinguishment of debt -- -- 4,574
Minority interest expense -- -- --
Interest expense, net (2,728) -- (36,404)
Equity in loss from consolidated entities -- 27,554 --
----------- ------------ -----------
(Loss) gain before income taxes and discontinued
operations (32,011) 27,554 (48,609)
Income tax benefit -- -- 305
----------- ------------ -----------
Loss from continuing operations (32,011) 27,554 (48,304)
Discontinued operations: -- -- --
Income (loss) from discontinued operations before
tax (expense) benefit (3,420) -- (2,737)
Income tax (expense) benefit -- -- --
----------- ------------ -----------
Loss from discontinued operations (3,420) -- (2,737)
----------- ------------ -----------
Net (loss) income (35,431) 27,554 (51,041)
=========== ============ ===========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR NON- MERISTAR AGH MERISTAR
HOSPITALITY GUARANTOR SUB 7C, UPREIT, SUB 5N,
OP, L.P. SUBSIDIARIES LLC LLC LLC
----------- ------------ -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues 2,073 1,267 -- -- --
Participating lease revenue -- 33,126 -- -- 153
-------- -------- -------- -------- --------
Total revenue 2,073 34,393 -- -- 153
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- 400 -- -- --
Other operating expenses:
General and administrative 2,247 75 -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 2,506 12,549 -- -- 33
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other (2,378) 5,374 -- -- 25
-------- -------- -------- -------- --------
Operating expenses 2,375 18,398 -- -- 58
-------- -------- -------- -------- --------
Operating (loss) income (302) 15,995 -- -- 95
Change in fair value of non-hedging derivatives, net of
swap payments (1,132) -- -- -- --
Minority interest expense 18 -- -- -- --
Interest expense, net (26,249) (6,436) -- -- 2
Equity in income from consolidated entities 3,797 -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations (31,462) 9,559 -- -- 97
Income tax benefit 591 -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations (30,871) 9,559 -- -- 97
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before tax
(expense) benefit -- 880 -- -- --
Income tax (expense) benefit 132 -- -- -- --
-------- -------- -------- -------- --------
Income (loss) from discontinued operations 132 880 -- -- --
-------- -------- -------- -------- --------
Net income (loss) (30,739) 10,439 -- -- 97
======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 8F, SUB 8G, SUB 6H, SUB 8B,
LLC L.P. LLC L.P. LLC
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- -- --
Participating lease revenue -- 571 -- 371 1,435
-------- -------- -------- -------- --------
Total revenue -- 571 -- 371 1,435
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- 1
Property operating costs -- -- -- -- --
Depreciation and amortization -- 113 -- 108 595
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other -- 169 -- 27 348
-------- -------- -------- -------- --------
Operating expenses -- 282 -- 135 944
-------- -------- -------- -------- --------
Operating (loss) income -- 289 -- 236 491
Change in fair value of non-hedging derivatives, net of
swap payments -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- 3 -- 1 27
Equity in income from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations -- 292 -- 237 518
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations -- 292 -- 237 518
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before tax
(expense) benefit (4,710) -- -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
Income (loss) from discontinued operations (4,710) -- -- -- --
-------- -------- -------- -------- --------
Net income (loss) (4,710) 292 -- 237 518
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1C, SUB 8E, SUB 7F, SUB 5L, SUB 3C,
L.P. LLC LLC LLC LLC
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- 5 -- -- --
Participating lease revenue 175 397 283 172 340
-------- -------- -------- -------- --------
Total revenue 175 402 283 172 340
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative 3 1 1 1 1
Property operating costs -- -- -- -- --
Depreciation and amortization 254 152 115 34 176
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 179 48 37 37 117
-------- -------- -------- -------- --------
Operating expenses 436 201 153 72 294
-------- -------- -------- -------- --------
Operating (loss) income (261) 201 130 100 46
Change in fair value of non-hedging derivatives, net of
swap payments -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net 14 1 3 2 6
Equity in income from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations (247) 202 133 102 52
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations (247) 202 133 102 52
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
Income (loss) from discontinued operations -- -- -- -- --
-------- -------- -------- -------- --------
Net income (loss) (247) 202 133 102 52
======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5R, SUB 6D, SUB 6E, SUB 4E, SUB 1B,
LLC LLC LLC L.P. LLC
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- 4 -- 5 1
Participating lease revenue -- 480 1,354 327 664
-------- -------- -------- -------- --------
Total revenue -- 484 1,354 332 665
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- 1 1
Property operating costs -- -- -- -- --
Depreciation and amortization -- 127 422 230 146
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other -- 64 195 107 52
-------- -------- -------- -------- --------
Operating expenses -- 191 617 338 199
-------- -------- -------- -------- --------
Operating (loss) income -- 293 737 (6) 466
Change in fair value of non-hedging derivatives, net of
swap payments -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- 7 17 8 6
Equity in income from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations -- 300 754 2 472
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations -- 300 754 2 472
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
Income (loss) from discontinued operations -- -- -- -- --
-------- -------- -------- -------- --------
Net income (loss) -- 300 754 2 472
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5F, SUB 6G, SUB 8C, SUB 4C, SUB 4H,
L.P. LLC LLC L.P L.P.
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- -- --
Participating lease revenue 615 591 487 -- 101
-------- -------- -------- -------- --------
Total revenue 615 591 487 -- 101
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- 1 -- 1
Property operating costs -- -- -- -- --
Depreciation and amortization 264 209 346 -- 135
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 102 104 157 -- 52
-------- -------- -------- -------- --------
Operating expenses 366 313 504 -- 188
-------- -------- -------- -------- --------
Operating (loss) income 249 278 (17) -- (87)
Change in fair value of non-hedging derivatives, net of
swap payments -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net 13 13 11 -- 3
Equity in income from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations 262 291 (6) -- (84)
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations 262 291 (6) -- (84)
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- (1,531) --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
Income (loss) from discontinued operations -- -- -- (1,531) --
-------- -------- -------- -------- --------
Net income (loss) 262 291 (6) (1,531) (84)
======== ======== ======== ======== ========
MERISTAR
MERISTAR MERISTAR MERISTAR MERISTAR SUB 7A
SUB 7E, SUB 3D, SUB 1A, SUB 5E, JOINT
LLC LLC LLC LLC
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues 1 -- -- -- --
Participating lease revenue 313 518 481 1,353 354
-------- -------- -------- -------- --------
Total revenue 314 518 481 1,353 354
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative 1 1 1 1 --
Property operating costs -- -- -- -- --
Depreciation and amortization 158 202 111 485 104
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 41 76 123 97 60
-------- -------- -------- -------- --------
Operating expenses 200 279 235 583 164
-------- -------- -------- -------- --------
Operating (loss) income 114 239 246 770 190
Change in fair value of non-hedging derivatives, net of
swap payments -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net 5 12 5 8 10
Equity in income from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations 119 251 251 778 200
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations 119 251 251 778 200
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
Income (loss) from discontinued operations -- -- -- -- --
-------- -------- -------- -------- --------
Net income (loss) 119 251 251 778 200
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6K, SUB 2B, SUB 3A, SUB 4A, SUB 4D,
LLC LLC LLC L.P. L.P.
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- -- --
Participating lease revenue 1,011 152 133 248 --
-------- -------- -------- -------- --------
Total revenue 1,011 152 133 248 --
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- 1 1 1 --
Property operating costs -- -- -- -- --
Depreciation and amortization 182 102 61 -- --
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 106 48 31 65 --
-------- -------- -------- -------- --------
Operating expenses 288 151 93 66 --
-------- -------- -------- -------- --------
Operating (loss) income 723 1 40 182 --
Change in fair value of non-hedging derivatives, net of
swap payments -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net 10 (95) 15 11 --
Equity in income from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations 733 (94) 55 193 --
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations 733 (94) 55 193 --
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- 39
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
Income (loss) from discontinued operations -- -- -- -- 39
-------- -------- -------- -------- --------
Net income (loss) 733 (94) 55 193 39
======== ======== ======== ======== ========
MERISTAR MERISTAR MDV MERISTAR MERISTAR
SUB 2A, SUB 6L, LIMITED SUB 5C, SUB 6J,
LLC LLC PARTNERSHIP LLC LLC
-------- -------- ----------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- -- --
Participating lease revenue 163 541 71 395 477
-------- -------- -------- -------- --------
Total revenue 163 541 71 395 477
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative (1) -- -- 1 --
Property operating costs -- -- -- -- --
Depreciation and amortization 80 222 35 149 160
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 49 52 29 145 67
-------- -------- -------- -------- --------
Operating expenses 128 274 64 295 227
-------- -------- -------- -------- --------
Operating (loss) income 35 267 7 100 250
Change in fair value of non-hedging derivatives, net of
swap payments -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net (170) 5 -- 11 12
Equity in income from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations (135) 272 7 111 262
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations (135) 272 7 111 262
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
Income (loss) from discontinued operations -- -- -- -- --
-------- -------- -------- -------- --------
Net income (loss) (135) 272 7 111 262
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1D, SUB 7B, SUB 7D, SUB 7G, SUB 6B,
LLC L.P. LLC LLC LLC
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues 114 -- 374 -- --
Participating lease revenue 1,279 391 1,387 146 293
-------- -------- -------- -------- --------
Total revenue 1,393 391 1,761 146 293
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses 33 -- 187 -- --
Other operating expenses:
General and administrative -- -- -- 1 1
Property operating costs -- -- -- -- --
Depreciation and amortization 584 231 412 188 114
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 361 (34) 544 61 55
-------- -------- -------- -------- --------
Operating expenses 978 197 1,143 250 170
-------- -------- -------- -------- --------
Operating (loss) income 415 194 618 (104) 123
Change in fair value of non-hedging derivatives, net of
swap payments -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net 3 41 12 7 3
Equity in income from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations 418 235 630 (97) 126
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations 418 235 630 (97) 126
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
Income (loss) from discontinued operations -- -- -- -- --
-------- -------- -------- -------- --------
Net income (loss) 418 235 630 (97) 126
======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR AGH
SUB 4I, SUB 5D, SUB 5H, SUB 7H, PSSI,
L.P. LLC LLC LLC INC.
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- -- --
Participating lease revenue 19 454 -- 315 --
-------- -------- -------- -------- --------
Total revenue 19 454 -- 315 --
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- 1 -- 1 --
Property operating costs -- -- -- -- --
Depreciation and amortization 98 361 -- 51 --
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 87 90 -- 99 --
-------- -------- -------- -------- --------
Operating expenses 185 452 -- 151 --
-------- -------- -------- -------- --------
Operating (loss) income (166) 2 -- 164 --
Change in fair value of non-hedging derivatives, net of
swap payments -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net 12 (354) -- 7 --
Equity in income from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations (154) (352) -- 171 --
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations (154) (352) -- 171 --
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before tax
(expense) benefit -- -- (65) -- 316
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
Income (loss) from discontinued operations -- -- (65) -- 316
-------- -------- -------- -------- --------
Net income (loss) (154) (352) (65) 171 316
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2D, SUB 4F, SUB 5K, SUB 5M, SUB 1E,
LLC L.P. LLC LLC L.P.
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- 4 -- -- --
Participating lease revenue 458 467 525 303 --
-------- -------- -------- -------- --------
Total revenue 458 471 525 303 --
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative 1 -- 1 1 --
Property operating costs -- -- -- -- --
Depreciation and amortization 118 280 297 113 --
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 70 100 95 70 --
-------- -------- -------- -------- --------
Operating expenses 189 380 393 184 --
-------- -------- -------- -------- --------
Operating (loss) income 269 91 132 119 --
Change in fair value of non-hedging derivatives, net of
swap payments -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net (194) 11 30 6 --
Equity in income from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations 75 102 162 125 --
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations 75 102 162 125 --
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- 431
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
Income (loss) from discontinued operations -- -- -- -- 431
-------- -------- -------- -------- --------
Net income (loss) 75 102 162 125 431
======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5O, SUB 6M SUB 4B, SUB 6C, SUB 2C,
LLC COMPANY L.P. LLC LLC
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- 5 10
Participating lease revenue 124 1,146 32 671 483
-------- -------- -------- -------- --------
Total revenue 124 1,146 32 676 493
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative 1 1 -- 1 1
Property operating costs -- -- -- -- --
Depreciation and amortization 55 302 118 191 258
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 24 74 102 56 254
-------- -------- -------- -------- --------
Operating expenses 80 377 220 248 513
-------- -------- -------- -------- --------
Operating (loss) income 44 769 (188) 428 (20)
Change in fair value of non-hedging derivatives, net of
swap payments -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net 2 8 72 13 (336)
Equity in income from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations 46 777 (116) 441 (356)
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations 46 777 (116) 441 (356)
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
Income (loss) from discontinued operations -- -- -- -- --
-------- -------- -------- -------- --------
Net income (loss) 46 777 (116) 441 (356)
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4G, SUB 3B, SUB 5G, SUB 5P, SUB 5J,
L.P. LLC L.P. LLC LLC
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues 9 -- 17 -- --
Participating lease revenue 456 -- 2,193 148 1,781
-------- -------- -------- -------- --------
Total revenue 465 -- 2,210 148 1,781
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative 1 -- -- -- 1
Property operating costs -- -- -- -- --
Depreciation and amortization 229 -- 1,548 1 871
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 161 -- 460 (6) 259
-------- -------- -------- -------- --------
Operating expenses 391 -- 2,008 (5) 1,131
-------- -------- -------- -------- --------
Operating (loss) income 74 -- 202 153 650
Change in fair value of non-hedging derivatives, net of
swap payments -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net 7 -- 41 -- 42
Equity in income from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations 81 -- 243 153 692
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations 81 -- 243 153 692
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before tax
(expense) benefit -- (24) -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
Income (loss) from discontinued operations -- (24) -- -- --
-------- -------- -------- -------- --------
Net income (loss) 81 (24) 243 153 692
======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5Q, SUB 5A, SUB 8D, SUB 4J, HOTEL
LLC LLC LLC LLC LESSEE, INC.
-------- -------- -------- -------- ------------
Hotel operations:
Rooms -- -- -- -- 147,548
Food and beverage -- -- -- -- 54,089
Other operating departments -- -- -- -- 17,469
Office rental and other revenues -- 29 -- 41 (650)
Participating lease revenue 359 1,418 579 718 --
-------- -------- -------- -------- --------
Total revenue 359 1,447 579 759 218,456
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- 38,259
Food and beverage -- -- -- -- 41,998
Other operating departments -- -- -- -- 10,424
Office rental, parking and other operating expenses -- -- -- 120 --
Other operating expenses:
General and administrative 1 1 1 1 37,423
Property operating costs -- -- -- -- 37,287
Depreciation and amortization 120 364 317 336 134
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 57 172 109 153 70,197
-------- -------- -------- -------- --------
Operating expenses 178 537 427 610 235,722
-------- -------- -------- -------- --------
Operating (loss) income 181 910 152 149 (17,266)
Change in fair value of non-hedging derivatives, net of
swap payments -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net 25 (690) 7 24 (39)
Equity in income from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations 206 220 159 173 (17,305)
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations 206 220 159 173 (17,305)
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- (1,927)
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
Income (loss) from discontinued operations -- -- -- -- (1,927)
-------- -------- -------- -------- --------
Net income (loss) 206 220 159 173 (19,232)
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
GUARANTOR
SUBSIDIARIES TOTAL
TOTAL ELIMINATIONS CONSOLIDATED
------------ ------------ ------------
Hotel operations:
Rooms 147,548 -- 147,548
Food and beverage 54,089 -- 54,089
Other operating departments 17,469 -- 17,469
Office rental and other revenues (31) -- 3,309
Participating lease revenue 30,871 (63,997) --
-------- -------- --------
Total revenue 249,946 (63,997) 222,415
Hotel operating expenses by department: -- -- --
Rooms 38,259 -- 38,259
Food and beverage 41,998 -- 41,998
Other operating departments 10,424 -- 10,424
Office rental, parking and other operating expenses 340 -- 740
Other operating expenses: -- --
General and administrative 37,459 -- 39,781
Property operating costs 37,287 -- 37,287
Depreciation and amortization 13,201 -- 28,256
Loss on asset impairments -- -- --
Property taxes, insurance and other 76,479 (63,997) 15,478
-------- -------- --------
Operating expenses 255,447 (63,997) 212,223
-------- -------- --------
Operating (loss) income (5,501) -- 10,192
Change in fair value of non-hedging derivatives, net of
swap payments -- -- (1,132)
Minority interest expense -- -- 18
Interest expense, net (1,264) -- (33,949)
Equity in income from consolidated entities -- (3,797) --
-------- -------- --------
(Loss) income before income taxes and discontinued
operations (6,765) 3,797 (24,871)
Income tax benefit -- -- 591
-------- -------- --------
Loss from continuing operations (6,765) 3,797 (24,280)
Discontinued operations: -- -- --
Income (loss) from discontinued operations before tax
(expense) benefit (7,471) -- (6,591)
Income tax (expense) benefit -- -- 132
-------- -------- --------
Income (loss) from discontinued operations (7,471) -- (6,459)
-------- -------- --------
Net income (loss) (14,236) 3,797 (30,739)
======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR NON- MERISTAR AGH MERISTAR
HOSPITALITY GUARANTOR SUB 7C, UPREIT, SUB 5N,
OP, L.P. SUBSIDIARIES LLC LLC LLC
----------- ------------ -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues 5,831 2,147 -- -- --
Participating lease revenue -- 94,162 -- -- 680
-------- -------- -------- -------- --------
Total revenue 5,831 96,309 -- -- 680
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- 893 -- -- --
Other operating expenses:
General and administrative 7,878 -- -- -- --
Property operating costs (359) -- -- -- --
Depreciation and amortization 7,234 37,401 -- -- 103
Loss on asset impairments -- 119,269 -- -- --
Property taxes, insurance and other 1,632 16,475 -- -- 79
-------- -------- -------- -------- --------
Operating expenses 16,385 174,038 -- -- 182
-------- -------- -------- -------- --------
Operating income (loss) (10,554) (77,729) -- -- 498
Gain on early extinguishment of debt 4,574 -- -- -- --
Minority interest expense (6) -- -- -- --
Interest expense, net (77,586) (20,862) -- -- --
Equity in loss from consolidated entities (257,756) -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations (341,328) (98,591) -- -- 498
Income tax benefit 462 -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations (340,866) (98,591) -- -- 498
Discontinued operations:
Income (loss) from discontinued operations before tax
(expense) benefit -- 657 -- -- --
Income tax (expense) benefit (32) -- -- -- --
-------- -------- -------- -------- --------
(Loss) income from discontinued operations (32) 657 -- -- --
-------- -------- -------- -------- --------
Net (loss) income (340,898) (97,934) -- -- 498
======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 8F, SUB 8G, SUB 6H, SUB 8B,
LLC L.P. LLC L.P. LLC
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- -- --
Participating lease revenue -- 1,759 -- 886 5,454
-------- -------- -------- -------- --------
Total revenue -- 1,759 -- 886 5,454
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 423 -- 412 1,821
Loss on asset impairments -- -- -- 500 --
Property taxes, insurance and other -- 401 -- 71 1,038
-------- -------- -------- -------- --------
Operating expenses -- 824 -- 983 2,859
-------- -------- -------- -------- --------
Operating income (loss) -- 935 -- (97) 2,595
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations -- 935 -- (97) 2,595
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations -- 935 -- (97) 2,595
Discontinued operations:
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income from discontinued operations -- -- -- -- --
-------- -------- -------- -------- --------
Net (loss) income -- 935 -- (97) 2,595
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1C, SUB 8E, SUB 7F, SUB 5L, SUB 3C,
L.P. LLC LLC LLC LLC
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- 16 -- -- --
Participating lease revenue 1,012 1,086 721 801 1,316
-------- -------- -------- -------- --------
Total revenue 1,012 1,102 721 801 1,316
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 762 434 328 103 532
Loss on asset impairments -- -- 2,037 -- --
Property taxes, insurance and other 554 163 122 99 296
-------- -------- -------- -------- --------
Operating expenses 1,316 597 2,487 202 828
-------- -------- -------- -------- --------
Operating income (loss) (304) 505 (1,766) 599 488
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- -- -- (2) --
Equity in loss from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations (304) 505 (1,766) 597 488
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations (304) 505 (1,766) 597 488
Discontinued operations:
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income from discontinued operations -- -- -- -- --
-------- -------- -------- -------- --------
Net (loss) income (304) 505 (1,766) 597 488
======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5R, SUB 6D, SUB 6E, SUB 4E, SUB 1B,
LLC LLC LLC L.P. LLC
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- 23 -- 4 341
Participating lease revenue -- 1,460 3,984 1,054 1,969
-------- -------- -------- -------- --------
Total revenue -- 1,483 3,984 1,058 2,310
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization -- 410 1,219 502 406
Loss on asset impairments -- -- -- 15,347 --
Property taxes, insurance and other -- 251 516 336 111
-------- -------- -------- -------- --------
Operating expenses -- 661 1,735 16,185 517
-------- -------- -------- -------- --------
Operating income (loss) -- 822 2,249 (15,127) 1,793
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- -- -- -- (10)
Equity in loss from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations -- 822 2,249 (15,127) 1,783
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations -- 822 2,249 (15,127) 1,783
Discontinued operations:
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income from discontinued operations -- -- -- -- --
-------- -------- -------- -------- --------
Net (loss) income -- 822 2,249 (15,127) 1,783
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5F, SUB 6G, SUB 8C, SUB 4C, SUB 4H,
L.P. LLC LLC L.P L.P.
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- 3 -- --
Participating lease revenue 2,156 1,863 1,500 -- 244
-------- -------- -------- -------- --------
Total revenue 2,156 1,863 1,503 -- 244
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 743 634 535 -- 330
Loss on asset impairments 9,231 -- 5,213 -- 5,187
Property taxes, insurance and other 305 284 513 -- 141
-------- -------- -------- -------- --------
Operating expenses 10,279 918 6,261 -- 5,658
-------- -------- -------- -------- --------
Operating income (loss) (8,123) 945 (4,758) -- (5,414)
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations (8,123) 945 (4,758) -- (5,414)
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations (8,123) 945 (4,758) -- (5,414)
Discontinued operations:
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income from discontinued operations -- -- -- -- --
-------- -------- -------- -------- --------
Net (loss) income (8,123) 945 (4,758) -- (5,414)
======== ======== ======== ======== ========
MERISTAR
MERISTAR MERISTAR MERISTAR MERISTAR SUB 7A
SUB 7E, SUB 3D, SUB 1A, SUB 5E, JOINT
LLC LLC LLC LLC VENTURE
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- 1 -- -- --
Participating lease revenue 1,009 1,133 1,421 3,934 876
-------- -------- -------- -------- --------
Total revenue 1,009 1,134 1,421 3,934 876
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 462 583 338 1,438 275
Loss on asset impairments -- -- -- -- 5,478
Property taxes, insurance and other 148 177 321 302 149
-------- -------- -------- -------- --------
Operating expenses 610 760 659 1,740 5,902
-------- -------- -------- -------- --------
Operating income (loss) 399 374 762 2,194 (5,026)
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations 399 374 762 2,194 (5,026)
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations 399 374 762 2,194 (5,026)
Discontinued operations:
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income from discontinued operations -- -- -- -- --
-------- -------- -------- -------- --------
Net (loss) income 399 374 762 2,194 (5,026)
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6K, SUB 2B, SUB 3A, SUB 4A, SUB 4D,
LLC LLC LLC L.P. L.P.
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- 3 -- -- --
Participating lease revenue 2,980 378 409 766 --
-------- -------- -------- -------- --------
Total revenue 2,980 381 409 766 --
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 538 292 186 31 --
Loss on asset impairments -- 4,670 2,137 1,455 --
Property taxes, insurance and other 288 113 80 222 --
-------- -------- -------- -------- --------
Operating expenses 826 5,075 2,403 1,708 --
-------- -------- -------- -------- --------
Operating income (loss) 2,154 (4,694) (1,994) (942) --
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- (347) -- -- --
Equity in loss from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations 2,154 (5,041) (1,994) (942) --
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations 2,154 (5,041) (1,994) (942) --
Discontinued operations:
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- (939)
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income from discontinued operations -- -- -- -- (939)
-------- -------- -------- -------- --------
Net (loss) income 2,154 (5,041) (1,994) (942) (939)
======== ======== ======== ======== ========
MERISTAR MERISTAR MDV MERISTAR MERISTAR
SUB 2A, SUB 6L, LIMITED SUB 5C, SUB 6J,
LLC LLC PARTNERSHIP LLC LLC
-------- -------- ----------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- -- --
Participating lease revenue 410 1,291 379 990 1,620
-------- -------- -------- -------- --------
Total revenue 410 1,291 379 990 1,620
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 233 561 104 349 440
Loss on asset impairments 2,828 13,286 -- 7,187 --
Property taxes, insurance and other 144 164 105 372 198
-------- -------- -------- -------- --------
Operating expenses 3,205 14,011 209 7,908 638
-------- -------- -------- -------- --------
Operating income (loss) (2,795) (12,720) 170 (6,918) 982
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net (566) -- -- -- 2
Equity in loss from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations (3,361) (12,720) 170 (6,918) 984
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations (3,361) (12,720) 170 (6,918) 984
Discontinued operations:
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income from discontinued operations -- -- -- -- --
-------- -------- -------- -------- --------
Net (loss) income (3,361) (12,720) 170 (6,918) 984
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1D, SUB 7B, SUB 7D, SUB 7G, SUB 6B,
LLC L.P. LLC LLC LLC
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues 197 -- 1,403 -- --
Participating lease revenue 3,402 1,204 4,275 450 825
-------- -------- -------- -------- --------
Total revenue 3,599 1,204 5,678 450 825
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses 78 -- 776 -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 1,707 398 1,292 412 337
Loss on asset impairments -- 10,288 -- 7,416 --
Property taxes, insurance and other 1,247 551 1,663 161 150
-------- -------- -------- -------- --------
Operating expenses 3,032 11,237 3,731 7,989 487
-------- -------- -------- -------- --------
Operating income (loss) 567 (10,033) 1,947 (7,539) 338
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations 567 (10,033) 1,947 (7,539) 338
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations 567 (10,033) 1,947 (7,539) 338
Discontinued operations:
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income from discontinued operations -- -- -- -- --
-------- -------- -------- -------- --------
Net (loss) income 567 (10,033) 1,947 (7,539) 338
======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR AGH
SUB 4I, SUB 5D, SUB 5H, SUB 7H, PSS I,
L.P. LLC LLC LLC INC.
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- -- --
Participating lease revenue 60 1,534 -- 970 --
-------- -------- -------- -------- --------
Total revenue 60 1,534 -- 970 --
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 223 1,095 -- 140 --
Loss on asset impairments 1,259 -- -- 1,383 --
Property taxes, insurance and other 178 169 -- 380 --
-------- -------- -------- -------- --------
Operating expenses 1,660 1,264 -- 1,903 --
-------- -------- -------- -------- --------
Operating income (loss) (1,600) 270 -- (933) --
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- (911) -- -- --
Equity in loss from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations (1,600) (641) -- (933) --
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations (1,600) (641) -- (933) --
Discontinued operations:
Income (loss) from discontinued operations before tax
(expense) benefit -- -- (18,966) -- (929)
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income from discontinued operations -- -- (18,966) -- (929)
-------- -------- -------- -------- --------
Net (loss) income (1,600) (641) (18,966) (933) (929)
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2D, SUB 4F, SUB 5K, SUB 5M, SUB 1E,
LLC L.P. LLC LLC L.P.
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- 11 -- -- --
Participating lease revenue 1,068 1,440 1,730 1,280 --
-------- -------- -------- -------- --------
Total revenue 1,068 1,451 1,730 1,280 --
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 319 828 966 354 --
Loss on asset impairments 8,685 -- -- -- --
Property taxes, insurance and other 216 261 285 201 --
-------- -------- -------- -------- --------
Operating expenses 9,220 1,089 1,251 555 --
-------- -------- -------- -------- --------
Operating income (loss) (8,152) 362 479 725 --
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net (655) -- -- -- --
Equity in loss from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations (8,807) 362 479 725 --
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations (8,807) 362 479 725 --
Discontinued operations:
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- 927
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income from discontinued operations -- -- -- -- 927
-------- -------- -------- -------- --------
Net (loss) income (8,807) 362 479 725 927
======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5O, SUB 6M SUB 4B, SUB 6C, SUB 2C,
LLC COMPANY L.P. LLC LLC
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- 6 50
Participating lease revenue 576 3,277 136 2,192 1,171
-------- -------- -------- -------- --------
Total revenue 576 3,277 136 2,198 1,221
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 171 890 413 580 697
Loss on asset impairments -- -- 638 -- 15,255
Property taxes, insurance and other 78 231 199 169 416
-------- -------- -------- -------- --------
Operating expenses 249 1,121 1,250 749 16,368
-------- -------- -------- -------- --------
Operating income (loss) 327 2,156 (1,114) 1,449 (15,147)
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- -- -- -- (1,145)
Equity in loss from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations 327 2,156 (1,114) 1,449 (16,292)
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations 327 2,156 (1,114) 1,449 (16,292)
Discontinued operations:
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income from discontinued operations -- -- -- -- --
-------- -------- -------- -------- --------
Net (loss) income 327 2,156 (1,114) 1,449 (16,292)
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4G, SUB 3B, SUB 5G, SUB 5P, SUB 5J,
L.P. LLC L.P. LLC LLC
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- 36 -- --
Participating lease revenue 1,509 -- 7,636 953 7,191
-------- -------- -------- -------- --------
Total revenue 1,509 -- 7,672 953 7,191
Hotel operating expenses by department:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 584 -- 4,716 3 2,612
Loss on asset impairments 8,500 -- -- -- --
Property taxes, insurance and other 478 -- 1,441 6 1,130
-------- -------- -------- -------- --------
Operating expenses 9,562 -- 6,157 9 3,742
-------- -------- -------- -------- --------
Operating income (loss) (8,053) -- 1,515 944 3,449
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- -- -- -- (3)
Equity in loss from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations (8,053) -- 1,515 944 3,446
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations (8,053) -- 1,515 944 3,446
Discontinued operations:
Income (loss) from discontinued operations before tax
(expense) benefit -- (2,034) -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income from discontinued operations -- (2,034) -- -- --
-------- -------- -------- -------- --------
Net (loss) income (8,053) (2,034) 1,515 944 3,446
======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5Q, SUB 5A, SUB 8D, SUB 4J, HOTEL
LLC LLC LLC LLC LESSEE, INC.
-------- -------- -------- -------- ------------
Hotel operations:
Rooms -- -- -- -- 455,590
Food and beverage -- -- -- -- 181,230
Other operating departments -- -- -- -- 56,736
Office rental and other revenues -- 88 -- 177 --
Participating lease revenue 1,561 4,232 1,785 2,313 --
-------- -------- -------- -------- --------
Total revenue 1,561 4,320 1,785 2,490 693,556
Hotel operating expenses by department:
Rooms -- -- -- -- 116,040
Food and beverage -- -- -- -- 134,257
Other operating departments -- -- -- -- 34,119
Office rental, parking and other operating expenses -- -- -- 400 --
Other operating expenses:
General and administrative -- -- 6 -- 113,795
Property operating costs -- -- -- -- 110,203
Depreciation and amortization 420 1,028 747 955 800
Loss on asset impairments -- -- 16,128 -- --
Property taxes, insurance and other 166 534 333 234 212,718
-------- -------- -------- -------- --------
Operating expenses 586 1,562 17,214 1,589 721,932
-------- -------- -------- -------- --------
Operating income (loss) 975 2,758 (15,429) 901 (28,376)
Gain on early extinguishment of debt -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- (2,125) -- -- (1,807)
Equity in loss from consolidated entities -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income before income taxes and discontinued
operations 975 633 (15,429) 901 (30,183)
Income tax benefit -- -- -- -- --
-------- -------- -------- -------- --------
Loss from continuing operations 975 633 (15,429) 901 (30,183)
Discontinued operations:
Income (loss) from discontinued operations before tax
(expense) benefit -- -- -- -- (884)
Income tax (expense) benefit -- -- -- -- --
-------- -------- -------- -------- --------
(Loss) income from discontinued operations -- -- -- -- (884)
-------- -------- -------- -------- --------
Net (loss) income 975 633 (15,429) 901 (31,067)
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
GUARANTOR
SUBSIDIARIES TOTAL
TOTAL ELIMINATIONS CONSOLIDATED
------------ ------------ ------------
Hotel operations:
Rooms 455,590 -- 455,590
Food and beverage 181,230 -- 181,230
Other operating departments 56,736 -- 56,736
Office rental and other revenues 2,359 -- 10,337
Participating lease revenue 98,311 (192,473) --
-------- -------- --------
Total revenue 794,226 (192,473) 703,893
Hotel operating expenses by department:
Rooms 116,040 -- 116,040
Food and beverage 134,257 -- 134,257
Other operating departments 34,119 -- 34,119
Office rental, parking and other operating expenses 1,254 -- 2,147
Other operating expenses:
General and administrative 113,801 -- 121,679
Property operating costs 110,203 -- 109,844
Depreciation and amortization 38,214 -- 82,849
Loss on asset impairments 144,108 -- 263,377
Property taxes, insurance and other 231,658 (192,473) 57,292
-------- -------- --------
Operating expenses 923,654 (192,473) 921,604
-------- -------- --------
Operating income (loss) (129,428) -- (217,711)
Gain on early extinguishment of debt -- -- 4,574
Minority interest expense -- -- (6)
Interest expense, net (7,569) -- (106,017)
Equity in loss from consolidated entities -- 257,756 --
-------- -------- --------
(Loss) income before income taxes and discontinued
operations (136,997) 257,756 (319,160)
Income tax benefit -- -- 462
-------- -------- --------
Loss from continuing operations (136,997) 257,756 (318,698)
Discontinued operations:
Income (loss) from discontinued operations before tax
(expense) benefit (22,825) -- (22,168)
Income tax (expense) benefit -- -- (32)
-------- -------- --------
--
(Loss) income from discontinued operations (22,825) -- (22,200)
-------- -------- --------
--
Net (loss) income (159,822) 257,756 (340,898)
======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR NON- MERISTAR AGH MERISTAR
HOSPITALITY GUARANTOR Sub 7C, UPREIT, SUB 5N,
OP, L.P. SUBSIDIARIES LLC LLC LLC
-------------- ------------ -------- ------ --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues 5,611 4,463 -- -- --
Participating lease revenue -- 99,020 -- -- 716
-------- -------- ------ ------ --------
Total revenue 5,611 103,483 -- -- 716
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- 961 -- -- --
Other operating expenses:
General and administrative 7,397 31 -- -- --
Property operating costs (454) -- -- -- --
Depreciation and amortization 9,196 37,355 -- -- 99
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other (4,310) 14,631 -- -- 78
-------- -------- ------ ------ --------
Operating expenses 11,829 52,978 -- -- 177
-------- -------- ------ ------ --------
Operating (loss) income (6,218) 50,505 -- -- 539
Change in fair value of non-hedging
derivatives, net of swap payments (4,211) -- -- -- --
Loss on fair value of non-hedging derivatives (4,735) -- -- -- --
Minority interest expense 10 -- -- -- --
Interest expense, net (78,325) (20,415) -- -- 5
Equity in income from consolidated entities (55,165) -- -- -- --
-------- -------- ------ ------ --------
(Loss) income before income taxes
and discontinued operations (38,314) 30,090 -- -- 544
Income tax benefit 748 -- -- -- --
-------- -------- ------ ------ --------
Loss from continuing operations (37,566) 30,090 -- -- 544
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations
before tax (expense) benefit -- 2,961 -- -- --
Income tax (expense) benefit 6 -- -- -- --
-------- -------- ------ ------ --------
Loss from discontinued operations 6 2,961 -- -- --
-------- -------- ------ ------ --------
Net income (loss) (37,560) 33,051 -- -- 544
======== ======== ====== ====== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 8F, 8G, SUB 6H, SUB 8B,
LLC L.P. LLC L.P. LLC
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- -- --
Participating lease revenue -- 1,712 -- 1,162 5,309
-------- -------- ------ ------ --------
Total revenue -- 1,712 -- 1,162 5,309
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- 1 -- 1 1
Property operating costs -- -- -- -- --
Depreciation and amortization -- 339 -- 323 1,785
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other -- 545 -- 74 1,066
-------- -------- ------ ------ --------
Operating expenses -- 885 -- 398 2,852
-------- -------- ------ ------ --------
Operating (loss) income -- 827 -- 764 2,457
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- 7 -- 2 67
Equity in income from consolidated entities -- -- -- -- --
-------- -------- ------ ------ --------
(Loss) income before income taxes
and discontinued operations -- 834 -- 766 2,524
Income tax benefit -- -- -- -- --
-------- -------- ------ ------ --------
Loss from continuing operations -- 834 -- 766 2,524
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations
before tax (expense) benefit (4,203) -- -- -- --
Income tax (expense) benefit -- -- -- -- --
-------- -------- ------ ------ --------
Loss from discontinued operations (4,203) -- -- -- --
-------- -------- ------ ------ --------
Net income (loss) (4,203) 834 -- 766 2,524
======== ======== ====== ====== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1C, SUB 8E, SUB 7F, SUB 5L, SUB 3C,
L.P. LLC LLC LLC LLC
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- 21 -- -- --
Participating lease revenue 989 1,205 878 783 1,329
------ ------ ------ ------ ------
Total revenue 989 1,226 878 783 1,329
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative 7 1 1 1 1
Property operating costs -- -- -- -- --
Depreciation and amortization 767 448 348 101 529
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 578 140 106 96 342
------ ------ ------ ------ ------
Operating expenses 1,352 589 455 198 872
------ ------ ------ ------ ------
Operating (loss) income (363) 637 423 585 457
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net 35 6 8 6 15
Equity in income from consolidated entities -- -- -- -- --
------ ------ ------ ------ ------
(Loss) income before income taxes
and discontinued operations (328) 643 431 591 472
Income tax benefit -- -- -- -- --
------ ------ ------ ------ ------
Loss from continuing operations (328) 643 431 591 472
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations
before tax (expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
------ ------ ------ ------ ------
Loss from discontinued operations -- -- -- -- --
------ ------ ------ ------ ------
Net income (loss) (328) 643 431 591 472
====== ====== ====== ====== ======
MERISTAR OLD MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5R, SUB 8A, SUB 6D, SUB 6E, SUB 4E,
LLC LLC LLC LLC L.P.
-------- ----------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- 14 -- 12
Participating lease revenue -- -- 1,633 4,280 1,026
---- ---- ----- ----- -----
Total revenue -- -- 1,647 4,280 1,038
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- -- -- -- 1
Property operating costs -- -- -- -- --
Depreciation and amortization -- -- 393 1,272 689
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other -- -- 155 610 303
---- ---- ----- ----- -----
Operating expenses -- -- 548 1,882 993
---- ---- ----- ----- -----
Operating (loss) income -- -- 1,099 2,398 45
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- -- 20 45 20
Equity in income from consolidated entities -- -- -- -- --
---- ---- ----- ----- -----
(Loss) income before income taxes
and discontinued operations -- -- 1,119 2,443 65
Income tax benefit -- -- -- -- --
---- ---- ----- ----- -----
Loss from continuing operations -- -- 1,119 2,443 65
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations
before tax (expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
---- ---- ----- ----- -----
Loss from discontinued operations -- -- -- -- --
---- ---- ----- ----- -----
Net income (loss) -- -- 1,119 2,443 65
==== ==== ===== ===== =====
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1B, SUB 5F, SUB 6G, SUB 8C, SUB 4C,
LLC L.P. LLC LLC L.P.
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues 570 -- -- 2 --
Participating lease revenue 1,849 2,146 1,966 1,460 --
------ ------ ------ ------ ------
Total revenue 2,419 2,146 1,966 1,462 --
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative 1 1 -- -- --
Property operating costs -- -- -- -- --
Depreciation and amortization 462 792 627 1,037 --
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 131 271 256 457 --
------ ------ ------ ------ ------
Operating expenses 594 1,064 883 1,494 --
------ ------ ------ ------ ------
Operating (loss) income 1,825 1,082 1,083 (32) --
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net 14 30 35 32 --
Equity in income from consolidated entities -- -- -- -- --
------ ------ ------ ------ ------
(Loss) income before income taxes
and discontinued operations 1,839 1,112 1,118 -- --
Income tax benefit -- -- -- -- --
------ ------ ------ ------ ------
Loss from continuing operations 1,839 1,112 1,118 -- --
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations
before tax (expense) benefit -- -- -- -- (1,439)
Income tax (expense) benefit -- -- -- -- --
------ ------ ------ ------ ------
Loss from discontinued operations -- -- -- -- (1,439)
------ ------ ------ ------ ------
Net income (loss) 1,839 1,112 1,118 -- (1,439)
====== ====== ====== ====== ======
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4H, SUB 7E, SUB 3D, SUB 1A, SUB 5E,
L.P. LLC LLC LLC LLC
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- 1 -- -- --
Participating lease revenue 450 1,030 1,745 1,353 4,258
----- ----- ----- ----- -----
Total revenue 450 1,031 1,745 1,353 4,258
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative 1 1 1 1 1
Property operating costs -- -- -- -- --
Depreciation and amortization 405 473 653 343 1,454
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 146 121 157 287 294
----- ----- ----- ----- -----
Operating expenses 552 595 811 631 1,749
----- ----- ----- ----- -----
Operating (loss) income (102) 436 934 722 2,509
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net 7 15 32 14 25
Equity in income from consolidated entities -- -- -- -- --
----- ----- ----- ----- -----
(Loss) income before income taxes
and discontinued operations (95) 451 966 736 2,534
Income tax benefit -- -- -- -- --
----- ----- ----- ----- -----
Loss from continuing operations (95) 451 966 736 2,534
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations
before tax (expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
----- ----- ----- ----- -----
Loss from discontinued operations -- -- -- -- --
----- ----- ----- ----- -----
Net income (loss) (95) 451 966 736 2,534
===== ===== ===== ===== =====
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR
SUB 7A MERISTAR MERISTAR MERISTAR MERISTAR
JOINT SUB 6K, SUB 2B, SUB 3A, SUB 4A,
VENTURE LLC LLC LLC L.P.
-------- -------- -------- -------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- -- --
Participating lease revenue 979 3,055 423 398 745
----- ----- ----- ----- -----
Total revenue 979 3,055 423 398 745
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative 1 -- 1 1 1
Property operating costs -- -- -- -- --
Depreciation and amortization 312 554 314 194 --
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 172 346 118 85 187
----- ----- ----- ----- -----
Operating expenses 485 900 433 280 188
----- ----- ----- ----- -----
Operating (loss) income 494 2,155 (10) 118 557
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net 26 28 (289) 33 28
Equity in income from consolidated entities -- -- -- -- --
----- ----- ----- ----- -----
(Loss) income before income taxes
and discontinued operations 520 2,183 (299) 151 585
Income tax benefit -- -- -- -- --
----- ----- ----- ----- -----
Loss from continuing operations 520 2,183 (299) 151 585
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations
before tax (expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
----- ----- ----- ----- -----
Loss from discontinued operations -- -- -- -- --
----- ----- ----- ----- -----
Net income (loss) 520 2,183 (299) 151 585
===== ===== ===== ===== =====
MERISTAR MERISTAR MERISTAR MDV MERISTAR
SUB 4D, SUB 2A, SUB 6L, LIMITED SUB 5C,
L.P. LLC LLC PARTNERSHIP LLC
-------- -------- -------- ----------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- -- --
Participating lease revenue -- 458 1,383 402 1,133
----- ----- ----- ----- -----
Total revenue -- 458 1,383 402 1,133
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- 1 1 -- 1
Property operating costs -- -- -- -- --
Depreciation and amortization -- 240 667 102 447
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other -- 126 150 94 354
----- ----- ----- ----- -----
Operating expenses -- 367 818 196 802
----- ----- ----- ----- -----
Operating (loss) income -- 91 565 206 331
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- (510) 10 2 28
Equity in income from consolidated entities -- -- -- -- --
----- ----- ----- ----- -----
(Loss) income before income taxes
and discontinued operations -- (419) 575 208 359
Income tax benefit -- -- -- -- --
----- ----- ----- ----- -----
Loss from continuing operations -- (419) 575 208 359
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations
before tax (expense) benefit 49 -- -- -- --
Income tax (expense) benefit -- -- -- -- --
----- ----- ----- ----- -----
Loss from discontinued operations 49 -- -- -- --
----- ----- ----- ----- -----
Net income (loss) 49 (419) 575 208 359
===== ===== ===== ===== =====
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6J, SUB 1D, SUB 7B, SUB 7D, SUB 7G,
LLC LLC L.P. LLC LLC
-------- -------- -------- --------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- 329 -- 1,046 --
Participating lease revenue 1,915 3,938 1,172 4,161 438
----- ----- ----- ----- -----
Total revenue 1,915 4,267 1,172 5,207 438
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- 97 -- 869 --
Other operating expenses:
General and administrative -- -- 1 -- 1
Property operating costs -- -- -- -- --
Depreciation and amortization 482 1,702 694 1,244 566
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 160 906 409 1,610 181
----- ----- ----- ----- -----
Operating expenses 642 2,705 1,104 3,723 748
----- ----- ----- ----- -----
Operating (loss) income 1,273 1,562 68 1,484 (310)
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net 31 33 49 35 20
Equity in income from consolidated entities -- -- -- -- --
----- ----- ----- ----- -----
(Loss) income before income taxes
and discontinued operations 1,304 1,595 117 1,519 (290)
Income tax benefit -- -- -- -- --
----- ----- ----- ----- -----
Loss from continuing operations 1,304 1,595 117 1,519 (290)
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations
before tax (expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
----- ----- ----- ----- -----
Loss from discontinued operations -- -- -- -- --
----- ----- ----- ----- -----
Net income (loss) 1,304 1,595 117 1,519 (290)
===== ===== ===== ===== =====
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6B, SUB 4I, SUB 5D, SUB 5H, SUB 7H,
LLC L.P. LLC LLC LLC
-------- -------- -------- --------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- -- --
Participating lease revenue 942 58 1,446 -- 944
------ ------ ------ ------ ------
Total revenue 942 58 1,446 -- 944
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative 1 -- 1 -- 1
Property operating costs -- -- -- -- --
Depreciation and amortization 341 341 1,086 -- 341
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 171 240 253 -- 283
------ ------ ------ ------ ------
Operating expenses 513 581 1,340 -- 625
------ ------ ------ ------ ------
Operating (loss) income 429 (523) 106 -- 319
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net 7 32 (1,132) -- 18
Equity in income from consolidated entities -- -- -- -- --
------ ------ ------ ------ ------
(Loss) income before income taxes
and discontinued operations 436 (491) (1,026) -- 337
Income tax benefit -- -- -- -- --
------ ------ ------ ------ ------
Loss from continuing operations 436 (491) (1,026) -- 337
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations
before tax (expense) benefit -- -- -- 627 --
Income tax (expense) benefit -- -- -- -- --
------ ------ ------ ------ ------
Loss from discontinued operations -- -- -- 627 --
------ ------ ------ ------ ------
Net income (loss) 436 (491) (1,026) 627 337
====== ====== ====== ====== ======
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
AGH MERISTAR MERISTAR MERISTAR MERISTAR
PSSI, SUB 2D, SUB 4F, SUB 5K, SUB 5M,
INC. LLC L.P. LLC LLC
-------- -------- -------- --------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- 8 -- --
Participating lease revenue -- 1,055 1,401 1,904 1,393
------ ------ ------ ------ ------
Total revenue -- 1,055 1,409 1,904 1,393
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- 1 -- 1 1
Property operating costs -- -- -- -- --
Depreciation and amortization -- 355 840 891 339
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other -- 185 287 246 221
------ ------ ------ ------ ------
Operating expenses -- 541 1,127 1,138 561
------ ------ ------ ------ ------
Operating (loss) income -- 514 282 766 832
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- (586) 29 80 16
Equity in income from consolidated entities -- -- -- -- --
------ ------ ------ ------ ------
(Loss) income before income taxes
and discontinued operations -- (72) 311 846 848
Income tax benefit -- -- -- -- --
------ ------ ------ ------ ------
Loss from continuing operations -- (72) 311 846 848
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations
before tax (expense) benefit 1,531 -- -- -- --
Income tax (expense) benefit -- -- -- -- --
------ ------ ------ ------ ------
Loss from discontinued operations 1,531 -- -- -- --
------ ------ ------ ------ ------
Net income (loss) 1,531 (72) 311 846 848
====== ====== ====== ====== ======
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1E, SUB 5O, SUB 6M SUB 4B, SUB 6C,
L.P. LLC COMPANY L.P. LLC
-------- -------- -------- --------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- -- -- 12
Participating lease revenue -- 606 3,363 138 2,217
----- ----- ----- ----- -----
Total revenue -- 606 3,363 138 2,229
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative -- 1 1 -- 1
Property operating costs -- -- -- -- --
Depreciation and amortization -- 164 905 414 585
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other -- 94 218 274 155
----- ----- ----- ----- -----
Operating expenses -- 259 1,124 688 741
----- ----- ----- ----- -----
Operating (loss) income -- 347 2,239 (550) 1,488
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net -- 6 18 194 31
Equity in income from consolidated entities -- -- -- -- --
----- ----- ----- ----- -----
(Loss) income before income taxes
and discontinued operations -- 353 2,257 (356) 1,519
Income tax benefit -- -- -- -- --
----- ----- ----- ----- -----
Loss from continuing operations -- 353 2,257 (356) 1,519
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations
before tax (expense) benefit 994 -- -- -- --
Income tax (expense) benefit -- -- -- -- --
----- ----- ----- ----- -----
Loss from discontinued operations 994 -- -- -- --
----- ----- ----- ----- -----
Net income (loss) 994 353 2,257 (356) 1,519
===== ===== ===== ===== =====
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2C, SUB 4G, SUB 3B, SUB 5G, SUB 5P,
LLC L.P. LLC L.P. LLC
-------- -------- -------- --------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues 37 18 -- 47 --
Participating lease revenue 1,245 1,803 -- 8,446 450
------ ------ ------ ------ ------
Total revenue 1,282 1,821 -- 8,493 450
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- --
Other operating expenses:
General and administrative 1 1 -- 2 --
Property operating costs -- -- -- -- --
Depreciation and amortization 777 687 -- 4,643 2
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 430 409 -- 1,380 12
------ ------ ------ ------ ------
Operating expenses 1,208 1,097 -- 6,025 14
------ ------ ------ ------ ------
Operating (loss) income 74 724 -- 2,468 436
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net (1,012) 20 -- 107 --
Equity in income from consolidated entities -- -- -- -- --
------ ------ ------ ------ ------
(Loss) income before income taxes
and discontinued operations (938) 744 -- 2,575 436
Income tax benefit -- -- -- -- --
------ ------ ------ ------ ------
Loss from continuing operations (938) 744 -- 2,575 436
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations
before tax (expense) benefit -- -- (42) -- --
Income tax (expense) benefit -- -- -- -- --
------ ------ ------ ------ ------
Loss from discontinued operations -- -- (42) -- --
------ ------ ------ ------ ------
Net income (loss) (938) 744 (42) 2,575 436
====== ====== ====== ====== ======
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5J, SUB 5Q, SUB 5A, SUB 8D, SUB 4J,
LLC LLC LLC LLC LLC
-------- -------- -------- --------- --------
Hotel operations:
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental and other revenues -- -- 90 -- 175
Participating lease revenue 7,157 1,555 4,418 1,737 2,310
------ ------ ------ ------ ------
Total revenue 7,157 1,555 4,508 1,737 2,485
Hotel operating expenses by department: -- -- -- -- --
Rooms -- -- -- -- --
Food and beverage -- -- -- -- --
Other operating departments -- -- -- -- --
Office rental, parking and other operating expenses -- -- -- -- 309
Other operating expenses:
General and administrative 1 1 1 1 5
Property operating costs -- -- -- -- --
Depreciation and amortization 2,604 360 1,055 951 1,007
Loss on asset impairments -- -- -- -- --
Property taxes, insurance and other 1,169 198 473 316 170
------ ------ ------ ------ ------
Operating expenses 3,774 559 1,529 1,268 1,491
------ ------ ------ ------ ------
Operating (loss) income 3,383 996 2,979 469 994
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interest expense -- -- -- -- --
Interest expense, net 99 72 (2,074) 16 46
Equity in income from consolidated entities -- -- -- -- --
------ ------ ------ ------ ------
(Loss) income before income taxes
and discontinued operations 3,482 1,068 905 485 1,040
Income tax benefit -- -- -- -- --
------ ------ ------ ------ ------
Loss from continuing operations 3,482 1,068 905 485 1,040
Discontinued operations: -- -- -- -- --
Income (loss) from discontinued operations
before tax (expense) benefit -- -- -- -- --
Income tax (expense) benefit -- -- -- -- --
------ ------ ------ ------ ------
Loss from discontinued operations -- -- -- -- --
------ ------ ------ ------ ------
Net income (loss) 3,482 1,068 905 485 1,040
====== ====== ====== ====== ======
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR
HOTEL GUARANTOR
LESSEE, SUBSIDIARIES TOTAL
INC. TOTAL ELIMINATIONS CONSOLIDATED
-------- ------------ ------------ ------------
Hotel operations:
Rooms 474,540 474,540 -- 474,540
Food and beverage 181,174 181,174 -- 181,174
Other operating departments 55,174 55,174 -- 55,174
Office rental and other revenues (125) 2,257 -- 12,331
Participating lease revenue -- 102,464 (201,484) --
-------- -------- -------- --------
Total revenue 710,763 815,609 (201,484) 723,219
Hotel operating expenses by department: -- -- -- --
Rooms 114,197 114,197 -- 114,197
Food and beverage 131,552 131,551 -- 131,551
Other operating departments 31,624 31,621 -- 31,621
Office rental, parking and other operating expenses -- 1,276 -- 2,237
Other operating expenses:
General and administrative 114,465 114,508 -- 121,936
Property operating costs 109,729 109,729 -- 109,275
Depreciation and amortization 1,220 40,766 -- 87,316
Loss on asset impairments -- -- -- --
Property taxes, insurance and other 223,135 241,432 (201,484) 50,268
-------- -------- -------- --------
Operating expenses 725,922 785,080 (201,484) 648,401
-------- -------- -------- --------
Operating (loss) income (15,159) 30,529 -- 74,818
Change in fair value of non-hedging derivatives,
net of swap payments -- -- -- (4,211)
Loss on fair value of non-hedging derivatives -- -- -- (4,735)
Minority interest expense -- -- -- 10
Interest expense, net 1 (4,046) -- (102,786)
Equity in income from consolidated entities -- -- 55,165 --
-------- -------- -------- --------
(Loss) income before income taxes
and discontinued operations (15,158) 26,483 (55,165) (36,904)
Income tax benefit -- -- -- 748
-------- -------- -------- --------
Loss from continuing operations (15,158) 26,483 (55,165) (36,156)
Discontinued operations: -- -- -- --
Income (loss) from discontinued operations
before tax (expense) benefit (1,888) (4,371) -- (1,410)
Income tax (expense) benefit -- -- -- 6
-------- -------- -------- --------
Loss from discontinued operations (1,888) (4,371) -- (1,404)
-------- -------- -------- --------
Net income (loss) (17,046) 22,112 (55,165) (37,560)
======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR NON- MERISTAR AGH MERISTAR
HOSPITALITY GUARANTOR SUB 7C, UPREIT, SUB 5N,
OP, L.P. SUBSIDIARIES LLC LLC LLC
---------- ------------ ---------- ---------- ----------
Operating activities:
Net (loss) income (340,898) (97,934) -- -- 498
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 6,573 37,579 -- -- 103
Loss on asset impairment -- 119,639 -- -- --
Equity in earnings 257,756 -- -- -- --
Loss on sale of assets, before tax effect -- (577) -- -- --
Gain on early extinguishment of debt (4,574) -- -- -- --
Minority interests 6 -- -- -- --
Amortization of unearned stock-based compensation 2,380 -- -- -- --
Unrealized gain on interest rate swaps recognized
in net loss (3,977) -- -- -- --
Deferred income taxes (1,848) -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net (4,448) 204 -- -- --
Prepaid expenses and other (575) 1,289 -- -- 10
Due from/to Interstate Hotels & Resorts 424 -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (2,062) (7,368) -- -- 31
Due from subsidiaries 173,158 (61,471) -- -- (622)
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
operating activities 81,915 (8,639) -- -- 20
---------- ---------- ---------- ---------- ----------
Investing activities:
Capital expenditures for property and equipment (1,146) (7,029) -- -- (20)
Proceeds from sales of assets -- 21,900 -- -- --
Purchases of marketable securities (18,040) -- -- -- --
Sales of marketable securities 17,040 -- -- -- --
Net payments from (advances to) Interstate
Hotels & Resorts 42,052 -- -- -- --
(Increase) decrease in restricted cash (17,714) (324) -- -- --
Other, net -- (299) -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
investing activities 22,192 14,248 -- -- (20)
---------- ---------- ---------- ---------- ----------
Financing activities:
Principal payments on long-term debt (219,650) (5,609) -- -- --
Proceeds from issuance of long-term debt 271,000 -- -- -- --
Deferred financing fees (7,509) -- -- -- --
Contributions from partners 82,920 -- -- -- --
Distributions to partners (424) -- -- -- --
Purchase of limited partnership unit (65) -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
financing activities 126,272 (5,609) -- -- --
---------- ---------- ---------- ---------- ----------
Effect of exchange rate changes on cash (304) -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 230,075 -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 21,372 -- -- -- --
---------- ---------- ---------- ---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD 251,447 -- -- -- --
========== ========== ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8A, SUB 8F, SUB 8G, SUB 6H, SUB 8B,
LLC L.P. LLC L.P. LLC
---------- ------------ ---------- ---------- ----------
Operating activities:
Net (loss) income -- 935 -- (97) 2,595
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization -- 423 -- 412 1,821
Loss on asset impairment -- -- -- 500 --
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Gain on early extinguishment of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized
in net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net (17) (28) -- -- --
Prepaid expenses and other -- 17 -- (1) 4
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities 36 (135) -- 51 (91)
Due from subsidiaries (19) (1,182) -- (849) (3,508)
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
operating activities -- 30 -- 16 821
---------- ---------- ---------- ---------- ----------
Investing activities:
Capital expenditures for property and equipment -- (30) -- (16) (821)
Proceeds from sales of assets -- -- -- -- --
Purchases of marketable securities -- -- -- -- --
Sales of marketable securities -- -- -- -- --
Net payments from (advances to) Interstate
Hotels & Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
investing activities -- (30) -- (16) (821)
---------- ---------- ---------- ---------- ----------
Financing activities:
Principal payments on long-term debt -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions to partners -- -- -- -- --
Purchase of limited partnership unit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
financing activities -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Effect of exchange rate changes on cash -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
---------- ---------- ---------- ---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
========== ========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1C, SUB 8E, SUB 7F, SUB 5L, SUB 3C,
L.P LLC LLC LLC LLC
---------- ------------ ---------- ---------- ----------
Operating activities:
Net (loss) income (304) 505 (1,766) 597 488
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 762 434 328 103 532
Loss on asset impairment -- -- 2,037 -- --
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Gain on early extinguishment of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized
in net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- -- 28 --
Prepaid expenses and other 43 6 (1) 14 6
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (140) (73) 57 15 31
Due from subsidiaries (154) (790) (621) (652) (1,001)
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
operating activities 207 82 34 105 56
---------- ---------- ---------- ---------- ----------
Investing activities:
Capital expenditures for property and equipment (207) (82) (34) (105) (56)
Proceeds from sales of assets -- -- -- -- --
Purchases of marketable securities -- -- -- -- --
Sales of marketable securities -- -- -- -- --
Net payments from (advances to) Interstate
Hotels & Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
investing activities (207) (82) (34) (105) (56)
---------- ---------- ---------- ---------- ----------
Financing activities:
Principal payments on long-term debt -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions to partners -- -- -- -- --
Purchase of limited partnership unit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
financing activities -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Effect of exchange rate changes on cash -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
---------- ---------- ---------- ---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
========== ========== ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5R, SUB 6D, SUB 6E, SUB 4E, SUB 1B,
LLC LLC LLC L.P. LLC
---------- ------------ ---------- ---------- ----------
Operating activities:
Net (loss) income -- 822 2,249 (15,127) 1,783
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization -- 410 1,219 502 406
Loss on asset impairment -- -- -- 15,347 --
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Gain on early extinguishment of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized
in net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- (14) -- -- --
Prepaid expenses and other -- 5 20 15 20
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities -- (56) (235) (162) 17
Due from subsidiaries -- (1,158) (2,985) (441) (2,074)
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
operating activities -- 9 268 134 152
---------- ---------- ---------- ---------- ----------
Investing activities:
Capital expenditures for property and equipment -- (9) (268) (134) (141)
Proceeds from sales of assets -- -- -- -- --
Purchases of marketable securities -- -- -- -- --
Sales of marketable securities -- -- -- -- --
Net payments from (advances to) Interstate
Hotels & Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
investing activities -- (9) (268) (134) (141)
---------- ---------- ---------- ---------- ----------
Financing activities:
Principal payments on long-term debt -- -- -- -- (11)
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions to partners -- -- -- -- --
Purchase of limited partnership unit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
financing activities -- -- -- -- (11)
---------- ---------- ---------- ---------- ----------
Effect of exchange rate changes on cash -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
---------- ---------- ---------- ---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
========== ========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5F, SUB 6G, SUB 8C, SUB 4C, SUB 4H,
L.P LLC LLC L.P L.P.
---------- ------------ ---------- ---------- ----------
Operating activities:
Net (loss) income (8,123) 945 (4,758) -- (5,414)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 743 634 535 -- 330
Loss on asset impairment 9,231 -- 5,213 -- 5,187
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Gain on early extinguishment of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized
in net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- -- 1 14
Prepaid expenses and other 42 7 (35) -- 4
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities 108 (246) (332) (130) (28)
Due from subsidiaries (1,853) (1,194) (613) 129 19
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
operating activities 148 146 10 -- 112
---------- ---------- ---------- ---------- ----------
Investing activities:
Capital expenditures for property and equipment (148) (146) (10) -- (112)
Proceeds from sales of assets -- -- -- -- --
Purchases of marketable securities -- -- -- -- --
Sales of marketable securities -- -- -- -- --
Net payments from (advances to) Interstate
Hotels & Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
investing activities (148) (146) (10) -- (112)
---------- ---------- ---------- ---------- ----------
Financing activities:
Principal payments on long-term debt -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions to partners -- -- -- -- --
Purchase of limited partnership unit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
financing activities -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Effect of exchange rate changes on cash -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
---------- ---------- ---------- ---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
========== ========== ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7E, SUB 3D, SUB 1A, SUB 5E, SUB 7A JOINT
LLC LLC LLC LLC VENTURE
---------- ------------ ---------- ---------- ------------
Operating activities:
Net (loss) income 399 374 762 2,194 (5,026)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 462 583 338 1,438 275
Loss on asset impairment -- -- -- -- 5,478
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Gain on early extinguishment of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized
in net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- -- -- --
Prepaid expenses and other 5 10 31 12 6
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (56) 103 (91) 246 (110)
Due from subsidiaries (571) (945) (859) (3,833) (485)
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
operating activities 239 125 181 57 138
---------- ---------- ---------- ---------- ----------
Investing activities:
Capital expenditures for property and equipment (239) (125) (181) (57) (138)
Proceeds from sales of assets -- -- -- -- --
Purchases of marketable securities -- -- -- -- --
Sales of marketable securities -- -- -- -- --
Net payments from (advances to) Interstate
Hotels & Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
investing activities (239) (125) (181) (57) (138)
---------- ---------- ---------- ---------- ----------
Financing activities:
Principal payments on long-term debt -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions to partners -- -- -- -- --
Purchase of limited partnership unit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
financing activities -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Effect of exchange rate changes on cash -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
---------- ---------- ---------- ---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
========== ========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6K, SUB 2B, SUB 3A, SUB 4A, SUB 4D,
LLC LLC LLC L.P. L.P.
---------- ------------ ---------- ---------- ----------
Operating activities:
Net (loss) income 2,154 (5,041) (1,994) (942) (939)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 538 292 186 31 55
Loss on asset impairment -- 4,670 2,137 1,455 1,004
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Gain on early extinguishment of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized
in net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- 2 -- -- --
Prepaid expenses and other 2 (4) 3 7 (3)
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (215) -- (23) (61) (112)
Due from subsidiaries (2,374) 85 (279) (232) (2,984)
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
operating activities 105 4 30 258 (2,979)
---------- ---------- ---------- ---------- ----------
Investing activities:
Capital expenditures for property and equipment (105) (25) (30) (258) (91)
Proceeds from sales of assets -- -- -- -- 3,070
Purchases of marketable securities -- -- -- -- --
Sales of marketable securities -- -- -- -- --
Net payments from (advances to) Interstate
Hotels & Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
investing activities (105) (25) (30) (258) 2,979
---------- ---------- ---------- ---------- ----------
Financing activities:
Principal payments on long-term debt -- 21 -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions to partners -- -- -- -- --
Purchase of limited partnership unit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
financing activities -- 21 -- -- --
---------- ---------- ---------- ---------- ----------
Effect of exchange rate changes on cash -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
---------- ---------- ---------- ---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
========== ========== ========== ========== ==========
MERISTAR MERISTAR MDV MERISTAR MERISTAR
SUB 2A, SUB 6L, LIMITED SUB 5C, SUB 6J,
LLC LLC PARTNERSHIP LLC LLC
---------- ------------ ----------- ---------- ----------
Operating activities:
Net (loss) income (3,361) (12,720) 170 (6,918) 984
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 233 561 104 349 440
Loss on asset impairment 2,828 13,286 -- 7,187 --
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Gain on early extinguishment of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized
in net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- -- -- --
Prepaid expenses and other (6) 5 8 89 5
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (41) (73) (15) (30) (160)
Due from subsidiaries 317 (1,005) (256) (574) (1,227)
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
operating activities (30) 54 11 103 42
---------- ---------- ---------- ---------- ----------
Investing activities:
Capital expenditures for property and equipment (4) (54) (11) (103) (42)
Proceeds from sales of assets -- -- -- -- --
Purchases of marketable securities -- -- -- -- --
Sales of marketable securities -- -- -- -- --
Net payments from (advances to) Interstate
Hotels & Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
investing activities (4) (54) (11) (103) (42)
---------- ---------- ---------- ---------- ----------
Financing activities:
Principal payments on long-term debt 34 -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions to partners -- -- -- -- --
Purchase of limited partnership unit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
financing activities 34 -- -- -- --
---------- ---------- ---------- ---------- ----------
Effect of exchange rate changes on cash -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
---------- ---------- ---------- ---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
========== ========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1D, SUB 7B, SUB 7D, SUB 7G, SUB 6B,
LLC L.P. LLC LLC LLC
---------- ------------ ---------- ---------- ----------
Operating activities:
Net (loss) income 567 (10,033) 1,947 (7,539) 338
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 1,707 398 1,292 412 337
Loss on asset impairment -- 10,288 -- 7,416 --
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Gain on early extinguishment of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized
in net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- (4) -- --
Prepaid expenses and other 122 8 20 6 1
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (53) (242) (910) (91) (61)
Due from subsidiaries (2,178) (344) (2,288) (117) (479)
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
operating activities 165 75 57 87 136
---------- ---------- ---------- ---------- ----------
Investing activities:
Capital expenditures for property and equipment (165) (75) (57) (87) (136)
Proceeds from sales of assets -- -- -- -- --
Purchases of marketable securities -- -- -- -- --
Sales of marketable securities -- -- -- -- --
Net payments from (advances to) Interstate
Hotels & Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
investing activities (165) (75) (57) (87) (136)
---------- ---------- ---------- ---------- ----------
Financing activities:
Principal payments on long-term debt -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions to partners -- -- -- -- --
Purchase of limited partnership unit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
financing activities -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Effect of exchange rate changes on cash -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
---------- ---------- ---------- ---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
========== ========== ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR AGH
SUB 4I, SUB 5D, SUB 5H, SUB 7H, PSS I,
L.P LLC LLC LLC INC.
---------- ------------ ---------- ---------- ----------
Operating activities:
Net (loss) income (1,600) (641) (18,966) (933) (929)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 223 1,095 1,178 140 --
Loss on asset impairment 1,259 -- 18,075 1,383 1,787
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- 1,827 -- 318
Gain on early extinguishment of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized
in net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- -- -- --
Prepaid expenses and other (5) 19 -- (2) --
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (79) 41 (148) (69) (107)
Due from subsidiaries 247 (480) (28,315) (492) (14,769)
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
operating activities 45 34 (26,349) 27 (13,700)
---------- ---------- ---------- ---------- ----------
Investing activities:
Capital expenditures for property and equipment (45) (34) (901) (27) (800)
Proceeds from sales of assets -- -- 27,250 -- 14,500
Purchases of marketable securities -- -- -- -- --
Sales of marketable securities -- -- -- -- --
Net payments from (advances to) Interstate
Hotels & Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
investing activities (45) (34) 26,349 (27) 13,700
---------- ---------- ---------- ---------- ----------
Financing activities:
Principal payments on long-term debt -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions to partners -- -- -- -- --
Purchase of limited partnership unit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
financing activities -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Effect of exchange rate changes on cash -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
---------- ---------- ---------- ---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
========== ========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 2D, SUB 4F, SUB 5K, SUB 5M, SUB 1E,
LLC L.P. LLC LLC L.P.
---------- ------------ ---------- ---------- ----------
Operating activities:
Net (loss) income (8,807) 362 479 725 927
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 319 828 966 354 237
Loss on asset impairment 8,685 -- -- -- --
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Gain on early extinguishment of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized
in net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- -- -- --
Prepaid expenses and other (2) 6 43 29 13
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (97) (109) (1,115) 82 (139)
Due from subsidiaries (124) (612) (192) (1,171) (1,018)
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
operating activities (26) 475 181 19 20
---------- ---------- ---------- ---------- ----------
Investing activities:
Capital expenditures for property and equipment (14) (475) (181) (19) (20)
Proceeds from sales of assets -- -- -- -- --
Purchases of marketable securities -- -- -- -- --
Sales of marketable securities -- -- -- -- --
Net payments from (advances to) Interstate
Hotels & Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
investing activities (14) (475) (181) (19) (20)
---------- ---------- ---------- ---------- ----------
Financing activities:
Principal payments on long-term debt 40 -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions to partners -- -- -- -- --
Purchase of limited partnership unit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
financing activities 40 -- -- -- --
---------- ---------- ---------- ---------- ----------
Effect of exchange rate changes on cash -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
---------- ---------- ---------- ---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
========== ========== ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5O, SUB 6M SUB 4B, SUB 6C, SUB 2C,
LLC COMPANY L.P. LLC LLC
---------- ------------ ---------- ---------- ----------
Operating activities:
Net (loss) income 327 2,156 (1,114) 1,449 (16,292)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 171 890 413 580 697
Loss on asset impairment -- -- 638 -- 15,255
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Gain on early extinguishment of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized
in net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- -- -- --
Prepaid expenses and other 9 (9) 5 8 19
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities 37 (100) (90) (91) (97)
Due from subsidiaries (536) (2,843) 261 (1,860) 497
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
operating activities 8 94 113 86 79
---------- ---------- ---------- ---------- ----------
Investing activities:
Capital expenditures for property and equipment (8) (94) (113) (86) (11)
Proceeds from sales of assets -- -- -- -- --
Purchases of marketable securities -- -- -- -- --
Sales of marketable securities -- -- -- -- --
Net payments from (advances to) Interstate
Hotels & Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
investing activities (8) (94) (113) (86) (11)
---------- ---------- ---------- ---------- ----------
Financing activities:
Principal payments on long-term debt -- -- -- -- (68)
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions to partners -- -- -- -- --
Purchase of limited partnership unit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
financing activities -- -- -- -- (68)
---------- ---------- ---------- ---------- ----------
Effect of exchange rate changes on cash -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
---------- ---------- ---------- ---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
========== ========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4G, SUB 3B, SUB 5G, SUB 5P, SUB 5J,
L.P LLC L.P. LLC LLC
---------- ------------ ---------- ---------- ----------
Operating activities:
Net (loss) income (8,053) (2,034) 1,515 944 3,446
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 584 259 4,716 3 2,612
Loss on asset impairment 8,500 1,064 -- -- --
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- 1,204 -- -- --
Gain on early extinguishment of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized
in net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- -- -- --
Prepaid expenses and other 52 3 151 2 227
Due from/to Interstate Hotels & Resorts -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (178) (173) 699 (4) 220
Due from subsidiaries (851) (6,475) (6,504) (945) (4,160)
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
operating activities 54 (6,152) 577 -- 2,345
---------- ---------- ---------- ---------- ----------
Investing activities:
Capital expenditures for property and equipment (54) (1,598) (577) -- (2,345)
Proceeds from sales of assets -- 7,750 -- -- --
Purchases of marketable securities -- -- -- -- --
Sales of marketable securities -- -- -- -- --
Net payments from (advances to) Interstate
Hotels & Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
investing activities (54) 6,152 (577) -- (2,345)
---------- ---------- ---------- ---------- ----------
Financing activities:
Principal payments on long-term debt -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions to partners -- -- -- -- --
Purchase of limited partnership unit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
financing activities -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Effect of exchange rate changes on cash -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
---------- ---------- ---------- ---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
========== ========== ========== ========== ==========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5Q, SUB 5A, SUB 8D, SUB 4J, HOTEL
LLC LLC LLC LLC LESSEE, INC.
---------- ------------ ---------- ---------- ------------
Operating activities:
Net (loss) income 975 633 (15,429) 901 (31,067)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 420 1,028 747 955 800
Loss on asset impairment -- -- 16,128 -- --
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Gain on early extinguishment of debt -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock-based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized
in net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- -- (8) (3,371)
Prepaid expenses and other 31 18 6 12 911
Due from/to Interstate Hotels & Resorts -- -- -- -- (4,955)
Accounts payable, accrued expenses, accrued
interest and other liabilities 25 359 (49) 22 (5,636)
Due from subsidiaries (1,278) (1,639) (1,019) (1,805) 4,592
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
operating activities 173 399 384 77 (38,726)
---------- ---------- ---------- ---------- ----------
Investing activities:
Capital expenditures for property and equipment (173) (399) (384) (77) (894)
Proceeds from sales of assets -- -- -- -- --
Purchases of marketable securities -- -- -- -- --
Sales of marketable securities -- -- -- -- --
Net payments from (advances to) Interstate
Hotels & Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
investing activities (173) (399) (384) (77) (894)
---------- ---------- ---------- ---------- ----------
Financing activities:
Principal payments on long-term debt -- -- -- -- 45,934
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- (4)
Contributions from partners -- -- -- -- --
Distributions to partners -- -- -- -- --
Purchase of limited partnership unit -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net cash provided by (used in)
financing activities -- -- -- -- 45,930
---------- ---------- ---------- ---------- ----------
Effect of exchange rate changes on cash -- -- -- -- --
---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- 6,310
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- 12,517
---------- ---------- ---------- ---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- 18,827
========== ========== ========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(DOLLARS IN THOUSANDS)
GUARANTOR
SUBSIDIARIES TOTAL
TOTAL ELIMINATIONS CONSOLIDATED
---------- ------------ ------------
Operating activities:
Net (loss) income (159,822) 257,756 (340,898)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 39,943 -- 84,095
Loss on asset impairment 166,038 -- 285,677
Equity in earnings -- (257,756) --
Loss on sale of assets, before tax effect 3,349 -- 2,772
Gain on early extinguishment of debt -- -- (4,574)
Minority interests -- -- 6
Amortization of unearned stock-based compensation -- -- 2,380
Unrealized gain on interest rate swaps recognized
in net loss -- -- (3,977)
Deferred income taxes -- -- (1,848)
Changes in operating assets and liabilities:
Accounts receivable, net (3,397) -- (7,641)
Prepaid expenses and other 2,049 -- 2,763
Due from/to Interstate Hotels & Resorts (4,955) -- (4,531)
Accounts payable, accrued expenses, accrued
interest and other liabilities (10,073) -- (19,503)
Due from subsidiaries (111,687) -- --
---------- ---------- ----------
Net cash provided by (used in)
operating activities (78,555) -- (5,279)
---------- ---------- ----------
Investing activities:
Capital expenditures for property and equipment (13,651) -- (21,826)
Proceeds from sales of assets 52,570 -- 74,470
Purchases of marketable securities -- -- (18,040)
Sales of marketable securities -- -- 17,040
Net payments from (advances to) Interstate
Hotels & Resorts -- -- 42,052
(Increase) decrease in restricted cash -- -- (18,038)
Other, net -- -- (299)
---------- ---------- ----------
Net cash provided by (used in)
investing activities 38,919 -- 75,359
---------- ---------- ----------
Financing activities:
Principal payments on long-term debt 45,950 -- (179,309)
Proceeds from issuance of long-term debt -- -- 271,000
Deferred financing fees (4) -- (7,513)
Contributions from partners -- -- 82,920
Distributions to partners -- -- (424)
Purchase of limited partnership unit -- -- (65)
---------- ---------- ----------
Net cash provided by (used in)
financing activities 45,946 -- 166,609
---------- ---------- ----------
Effect of exchange rate changes on cash -- -- (304)
---------- ---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 6,310 -- 236,385
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 12,517 -- 33,889
---------- ---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD 18,827 -- 270,274
========== ========== ==========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
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 (37,560) 32,934 -- -- 544 (4,106)
Adjustments to reconcile net income (loss) to net -- -- -- -- -- --
cash provided by (used in) operating activities: -- -- -- -- -- --
Depreciation and amortization 9,196 40,316 -- -- 99 112
Equity in earnings (55,165) -- -- -- -- --
Loss on sale of assets, before tax effect -- 13 -- -- -- 4,812
Loss on fair value of non-hedging derivatives 4,735 -- -- -- -- --
Minority interests (10) -- -- -- -- --
Amortization of unearned stock based compensation 3,538 -- -- -- -- --
Unrealized gain on interest rate swaps recognized in
net loss (4,787) -- -- -- -- --
Deferred income taxes (644) -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net (5,770) (57) -- -- (16) (15)
Prepaid expenses and other (4,272) (477) -- -- -- --
Due from/to Interstate Hotels 4,378 -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (10,254) (2,190) -- -- 35 6
Due from subsidiaries 131,389 (53,113) -- -- (631) (2,463)
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 34,774 17,426 -- -- 31 (1,654)
-------- -------- -------- -------- -------- --------
Investing activities:
Capital expenditures for property and equipment (837) (11,424) -- -- (31) (4,616)
Proceeds from sales of assets -- 7,280 -- -- -- 6,270
Net payments from (advances to) Interstate Hotels &
Resorts (7,000) 678 -- -- -- --
(Increase) decrease in restricted cash 2,513 2,348 -- -- -- --
Other, net -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (5,324) (1,118) -- -- (31) 1,654
-------- -------- -------- -------- -------- --------
Financing activities:
Principal payments on long-term debt (297,310) (16,308) -- -- -- --
Proceeds from issuance of long-term debt 269,638 -- -- -- -- --
Deferred financing fees (3,416) -- -- -- -- --
Contributions from partners 3,156 -- -- -- -- --
Distributions paid to partners (2,467) -- -- -- -- --
-- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) financing activities (30,399) (16,308) -- -- -- --
-------- -------- -------- -------- -------- --------
Effect of exchange rate changes on cash (9) -- -- -- -- --
-------- -------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (958) -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 6,798 -- -- -- -- --
-------- -------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD 5,840 -- -- -- -- --
======== ======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8F, 8G, SUB 6H, SUB 8B, SUB 1C,
L.P. LLC L.P. LLC L.P.
-------- -------- -------- -------- --------
Operating activities:
Net (loss) income 834 -- 766 2,524 (328)
Adjustments to reconcile net income (loss) to net -- -- -- -- --
cash provided by (used in) operating activities: -- -- -- -- --
Depreciation and amortization 339 -- 323 1,785 767
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized in
net loss -- -- -- -- --
Deferred income taxes (96) -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net 8 -- -- -- --
Prepaid expenses and other 19 -- -- -- (8)
Due from/to Interstate Hotels -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities 8 -- 50 228 80
Due from subsidiaries (994) -- (1,079) (3,721) (210)
-------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 118 -- 60 816 301
-------- -------- -------- -------- --------
Investing activities:
Capital expenditures for property and equipment (118) -- (60) (816) (301)
Proceeds from sales of assets -- -- -- -- --
Net payments from (advances to) Interstate Hotels &
Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (118) -- (60) (816) (301)
-------- -------- -------- -------- --------
Financing activities:
Principal payments on long-term debt -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions paid to partners -- -- -- -- --
-- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- --
-------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- --
-------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
-------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
OLD
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 8E, SUB 7F, SUB 5L, SUB 3C, SUB 5R, SUB 8A,
LLC LLC LLC LLC LLC LLC
-------- -------- -------- -------- -------- --------
Operating activities:
Net (loss) income 643 431 591 472 -- --
Adjustments to reconcile net income (loss) to net -- -- -- -- -- --
cash provided by (used in) operating activities: -- -- -- -- -- --
Depreciation and amortization 448 348 101 529 -- --
Equity in earnings -- -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- -- --
Unrealized gain on interest rate swaps recognized in
net loss -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- -- -- -- --
Prepaid expenses and other -- -- -- -- -- 1
Due from/to Interstate Hotels -- -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (65) 24 73 160 -- (46)
Due from subsidiaries (921) (769) (580) (1,090) -- 46
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 105 34 185 71 -- 1
-------- -------- -------- -------- -------- --------
Investing activities:
Capital expenditures for property and equipment (105) (34) (185) (71) -- (1)
Proceeds from sales of assets -- -- -- -- -- --
Net payments from (advances to) Interstate Hotels &
Resorts -- -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- -- --
Other, net -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (105) (34) (185) (71) -- (1)
-------- -------- -------- -------- -------- --------
Financing activities:
Principal payments on long-term debt -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Deferred financing fees -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
-- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- -- --
======== ======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6D, SUB 6E, SUB 4E, SUB 1B, SUB 5F,
LLC LLC L.P. LLC L.P.
-------- -------- -------- -------- --------
Operating activities:
Net (loss) income 1,119 2,443 65 1,839 1,112
Adjustments to reconcile net income (loss) to net -- -- -- -- --
cash provided by (used in) operating activities: -- -- -- -- --
Depreciation and amortization 393 1,272 689 462 792
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized in
net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net (10) -- -- -- --
Prepaid expenses and other -- -- -- -- --
Due from/to Interstate Hotels -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (130) 165 (148) 83 248
Due from subsidiaries (1,209) (3,503) (467) (2,120) (1,708)
-------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 163 377 139 264 444
-------- -------- -------- -------- --------
Investing activities:
Capital expenditures for property and equipment (163) (377) (139) (264) (444)
Proceeds from sales of assets -- -- -- -- --
Net payments from (advances to) Interstate Hotels &
Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (163) (377) (139) (264) (444)
-------- -------- -------- -------- --------
Financing activities:
Principal payments on long-term debt -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions paid to partners -- -- -- -- --
-- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- --
-------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- --
-------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
-------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 6G, SUB 8C, SUB 4C, SUB 4H, SUB 7E, SUB 3D,
LLC LLC L.P. L.P. LLC LLC
-------- -------- -------- -------- -------- --------
Operating activities:
Net (loss) income 1,118 -- (1,407) (95) 451 966
Adjustments to reconcile net income (loss) to net -- -- -- -- -- --
cash provided by (used in) operating activities: -- -- -- -- -- --
Depreciation and amortization 627 1,037 283 405 473 653
Equity in earnings -- -- -- -- -- --
Loss on sale of assets, before tax effect -- -- 1,578 -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- -- --
Unrealized gain on interest rate swaps recognized in
net loss -- -- -- -- -- --
Deferred income taxes -- -- (32) -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- (1) -- -- --
Prepaid expenses and other -- -- -- (3) -- --
Due from/to Interstate Hotels -- -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (103) (201) (317) (67) (73) 169
Due from subsidiaries (1,348) (716) (11,656) (158) (769) (1,588)
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 294 120 (11,552) 82 82 200
-------- -------- -------- -------- -------- --------
Investing activities:
Capital expenditures for property and equipment (294) (120) (48) (82) (82) (200)
Proceeds from sales of assets -- -- 11,600 -- -- --
Net payments from (advances to) Interstate Hotels &
Resorts -- -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- -- --
Other, net -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (294) (120) 11,552 (82) (82) (200)
-------- -------- -------- -------- -------- --------
Financing activities:
Principal payments on long-term debt -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Deferred financing fees -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
-- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- -- --
======== ======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1A, SUB 5E, 7A JOINT SUB 6K, SUB 2B,
LLC LLC VENTURE LLC LLC
-------- -------- -------- -------- --------
Operating activities:
Net (loss) income 736 2,534 520 2,183 (299)
Adjustments to reconcile net income (loss) to net -- -- -- -- --
cash provided by (used in) operating activities: -- -- -- -- --
Depreciation and amortization 343 1,454 312 554 314
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized in
net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- -- -- --
Prepaid expenses and other -- -- -- -- --
Due from/to Interstate Hotels -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (19) 157 (67) 80 --
Due from subsidiaries (1,001) (4,098) (546) (2,619) 139
-------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 59 47 219 198 154
-------- -------- -------- -------- --------
Investing activities:
Capital expenditures for property and equipment (59) (47) (219) (198) (154)
Proceeds from sales of assets -- -- -- -- --
Net payments from (advances to) Interstate Hotels &
Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (59) (47) (219) (198) (154)
-------- -------- -------- -------- --------
Financing activities:
Principal payments on long-term debt -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions paid to partners -- -- -- -- --
-- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- --
-------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- --
-------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
-------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 3A, SUB 4A, SUB 4D, SUB 2A, SUB 6L,
LLC L.P. L.P. LLC LLC
-------- -------- -------- -------- --------
Operating activities:
Net (loss) income 151 585 49 (419) 575
Adjustments to reconcile net income (loss) to net -- -- -- -- --
cash provided by (used in) operating activities: -- -- -- -- --
Depreciation and amortization 194 -- 233 240 667
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized in
net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- -- -- --
Prepaid expenses and other -- -- -- -- --
Due from/to Interstate Hotels -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities 33 (33) 115 (12) (69)
Due from subsidiaries 355 (288) (124) 244 (986)
-------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 733 264 273 53 187
-------- -------- -------- -------- --------
Investing activities:
Capital expenditures for property and equipment (733) (264) (273) (53) (187)
Proceeds from sales of assets -- -- -- -- --
Net payments from (advances to) Interstate Hotels &
Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (733) (264) (273) (53) (187)
-------- -------- -------- -------- --------
Financing activities:
Principal payments on long-term debt -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions paid to partners -- -- -- -- --
-- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- --
-------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- --
-------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
-------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======== ======== ======== ======== ========
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 208 359 1,304 1,594 117 1,519
Adjustments to reconcile net income (loss) to net -- -- -- -- -- --
cash provided by (used in) operating activities: -- -- -- -- -- --
Depreciation and amortization 102 447 482 1,702 694 1,244
Equity in earnings -- -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- -- --
Unrealized gain on interest rate swaps recognized in
net loss -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- (81) -- -- 40
Prepaid expenses and other 4 (14) -- -- -- --
Due from/to Interstate Hotels -- -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (10) 41 (108) (360) 199 471
Due from subsidiaries (291) (616) (1,369) (2,403) (975) (3,136)
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 13 217 228 533 35 138
-------- -------- -------- -------- -------- --------
Investing activities:
Capital expenditures for property and equipment (13) (217) (228) (533) (35) (138)
Proceeds from sales of assets -- -- -- -- -- --
Net payments from (advances to) Interstate Hotels &
Resorts -- -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- -- --
Other, net -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (13) (217) (228) (533) (35) (138)
-------- -------- -------- -------- -------- --------
Financing activities:
Principal payments on long-term debt -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Deferred financing fees -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
-- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- -- --
======== ======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 7G, SUB 6B, SUB 4I, SUB 5D, SUB 5H, SUB 7H,
LLC LLC L.P. LLC LLC LLC
-------- -------- -------- -------- -------- --------
Operating activities:
Net (loss) income (290) 436 (491) (1,026) 627 337
Adjustments to reconcile net income (loss) to net -- -- -- -- -- --
cash provided by (used in) operating activities: -- -- -- -- -- --
Depreciation and amortization 566 341 341 1,086 1,479 341
Equity in earnings -- -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- -- --
Unrealized gain on interest rate swaps recognized in
net loss -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- -- -- -- --
Prepaid expenses and other -- -- -- -- -- --
Due from/to Interstate Hotels -- -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (187) (90) (28) 124 516 83
Due from subsidiaries 24 (590) 365 110 (1,770) (571)
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 113 97 187 294 852 190
-------- -------- -------- -------- -------- --------
Investing activities:
Capital expenditures for property and equipment (113) (97) (187) (294) (852) (190)
Proceeds from sales of assets -- -- -- -- -- --
Net payments from (advances to) Interstate Hotels &
Resorts -- -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- -- --
Other, net -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (113) (97) (187) (294) (852) (190)
-------- -------- -------- -------- -------- --------
Financing activities:
Principal payments on long-term debt -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Deferred financing fees -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
-- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- -- --
======== ======== ======== ======== ======== ========
AGH MERISTAR MERISTAR MERISTAR MERISTAR
PSS I, SUB 2D, SUB 4F, SUB 5K, SUB 5M,
INC. LLC L.P. LLC LLC
-------- -------- -------- -------- --------
Operating activities:
Net (loss) income 1,531 (72) 311 846 848
Adjustments to reconcile net income (loss) to net -- -- -- -- --
cash provided by (used in) operating activities: -- -- -- -- --
Depreciation and amortization -- 355 840 891 339
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized in
net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- -- -- --
Prepaid expenses and other -- -- -- -- --
Due from/to Interstate Hotels -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities 311 (46) (85) (1,199) 136
Due from subsidiaries (1,341) (150) (691) 162 (1,224)
-------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 501 87 375 700 99
-------- -------- -------- -------- --------
Investing activities:
Capital expenditures for property and equipment (501) (87) (375) (700) (99)
Proceeds from sales of assets -- -- -- -- --
Net payments from (advances to) Interstate Hotels &
Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (501) (87) (375) (700) (99)
-------- -------- -------- -------- --------
Financing activities:
Principal payments on long-term debt -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions paid to partners -- -- -- -- --
-- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- --
-------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- --
-------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
-------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 1E, SUB 5O, SUB 6M SUB 4B, SUB 6C, SUB 2C,
L.P. LLC COMPANY L.P. LLC LLC
-------- -------- -------- -------- -------- --------
Operating activities:
Net (loss) income 994 353 2,257 (356) 1,519 (938)
Adjustments to reconcile net income (loss) to net -- -- -- -- -- --
cash provided by (used in) operating activities: -- -- -- -- -- --
Depreciation and amortization 223 164 905 414 585 777
Equity in earnings -- -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- -- --
Minority interests -- -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- -- --
Unrealized gain on interest rate swaps recognized
in net loss -- -- -- -- -- --
Deferred income taxes -- -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- -- -- -- --
Prepaid expenses and other -- -- 13 -- -- --
Due from/to Interstate Hotels -- -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities 12 36 (93) 19 (66) (131)
Due from subsidiaries (1,157) (501) (2,879) 1,215 (1,715) 455
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 72 52 203 1,292 323 163
-------- -------- -------- -------- -------- --------
Investing activities:
Capital expenditures for property and equipment (72) (52) (203) (1,292) (323) (163)
Proceeds from sales of assets -- -- -- -- -- --
Net payments from (advances to) Interstate Hotels &
Resorts -- -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- -- --
Other, net -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (72) (52) (203) (1,292) (323) (163)
-------- -------- -------- -------- -------- --------
Financing activities:
Principal payments on long-term debt -- -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- -- --
Deferred financing fees -- -- -- -- -- --
Contributions from partners -- -- -- -- -- --
Distributions paid to partners -- -- -- -- -- --
-- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- -- --
======== ======== ======== ======== ======== ========
MERISTAR MERISTAR MERISTAR MERISTAR MERISTAR
SUB 4G, SUB 3B, SUB 5G, SUB 5P, SUB 5J,
L.P. LLC L.P. LLC LLC
-------- -------- -------- -------- --------
Operating activities:
Net (loss) income 744 (42) 2,575 436 3,482
Adjustments to reconcile net income (loss) to net -- -- -- -- --
cash provided by (used in) operating activities: -- -- -- -- --
Depreciation and amortization 687 691 4,643 2 2,604
Equity in earnings -- -- -- -- --
Loss on sale of assets, before tax effect -- -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- -- --
Minority interests -- -- -- -- --
Amortization of unearned stock based compensation -- -- -- -- --
Unrealized gain on interest rate swaps recognized
in net loss -- -- -- -- --
Deferred income taxes -- -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- -- 319 --
Prepaid expenses and other -- -- -- -- 483
Due from/to Interstate Hotels -- -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities (172) 134 921 8 521
Due from subsidiaries (1,163) (297) (6,957) (726) (4,781)
-------- -------- -------- -------- --------
Net cash provided by (used in) operating activities 96 486 1,182 39 2,309
-------- -------- -------- -------- --------
Investing activities:
Capital expenditures for property and equipment (96) (486) (1,182) (39) (2,309)
Proceeds from sales of assets -- -- -- -- --
Net payments from (advances to) Interstate Hotels &
Resorts -- -- -- -- --
(Increase) decrease in restricted cash -- -- -- -- --
Other, net -- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) investing activities (96) (486) (1,182) (39) (2,309)
-------- -------- -------- -------- --------
Financing activities:
Principal payments on long-term debt -- -- -- -- --
Proceeds from issuance of long-term debt -- -- -- -- --
Deferred financing fees -- -- -- -- --
Contributions from partners -- -- -- -- --
Distributions paid to partners -- -- -- -- --
-- -- -- -- --
-------- -------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- -- --
-------- -------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- -- --
-------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- -- --
-------- -------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- -- --
======== ======== ======== ======== ========
MERISTAR HOSPITALITY OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
(DOLLARS IN THOUSANDS)
MERISTAR MERISTAR MERISTAR MERISTAR
SUB 5Q, SUB 5A, SUB 8D, SUB 4J,
LLC LLC LLC LLC
-------- -------- -------- --------
Operating activities:
Net (loss) income 1,068 905 485 1,040
Adjustments to reconcile net income (loss) to net -- -- -- --
cash provided by (used in) operating activities: -- -- -- --
Depreciation and amortization 360 1,055 951 1,007
Equity in earnings -- -- -- --
Loss on sale of assets, before tax effect -- -- -- --
Loss on fair value of non-hedging derivatives -- -- -- --
Minority interests -- -- -- --
Amortization of unearned stock based compensation -- -- -- --
Unrealized gain on interest rate swaps recognized in
net loss -- -- -- --
Deferred income taxes -- -- -- --
Changes in operating assets and liabilities:
Accounts receivable, net -- -- -- 40
Prepaid expenses and other -- -- 1 --
Due from/to Interstate Hotels -- -- -- --
Accounts payable, accrued expenses, accrued
interest and other liabilities 137 497 (41) 15
Due from subsidiaries (1,079) (2,209) (1,240) (1,924)
-------- -------- -------- --------
Net cash provided by (used in) operating activities 486 248 156 178
-------- -------- -------- --------
Investing activities:
Capital expenditures for property and equipment (486) (248) (156) (178)
Proceeds from sales of assets -- -- -- --
Net payments from (advances to) Interstate Hotels &
Resorts -- -- -- --
(Increase) decrease in restricted cash -- -- -- --
Other, net -- -- -- --
-------- -------- -------- --------
Net cash provided by (used in) investing activities (486) (248) (156) (178)
-------- -------- -------- --------
Financing activities:
Principal payments on long-term debt -- -- -- --
Proceeds from issuance of long-term debt -- -- -- --
Deferred financing fees -- -- -- --
Contributions from partners -- -- -- --
Distributions paid to partners -- -- -- --
-- -- -- --
-------- -------- -------- --------
Net cash provided by (used in) financing activities -- -- -- --
-------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- --
-------- -------- -------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS -- -- -- --
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD -- -- -- --
-------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD -- -- -- --
======== ======== ======== ========
MERISTAR GUARANTOR
HOTEL SUBSIDIARIES TOTAL
LESSEE, INC. TOTAL ELIMINATIONS CONSOLIDATED
------------ ------------ ------------ ------------
Operating activities:
Net (loss) income (17,046) 22,231 (55,165) (37,560)
Adjustments to reconcile net income (loss) to net -- -- -- --
cash provided by (used in) operating activities: -- -- -- --
Depreciation and amortization 1,221 43,787 -- 93,299
Equity in earnings -- -- 55,165 --
Loss on sale of assets, before tax effect -- 6,390 -- 6,403
Loss on fair value of non-hedging derivatives -- -- -- 4,735
Minority interests -- -- -- (10)
Amortization of unearned stock based compensation -- -- -- 3,538
Unrealized gain on interest rate swaps recognized in
net loss -- -- -- (4,787)
Deferred income taxes -- (128) -- (772)
Changes in operating assets and liabilities:
Accounts receivable, net (70) 215 -- (5,613)
Prepaid expenses and other (798) (302) -- (5,051)
Due from/to Interstate Hotels 1,384 1,384 -- 5,762
Accounts payable, accrued expenses, accrued
interest and other liabilities (2,113) (184) -- (12,628)
Due from subsidiaries 7,727 (78,277) -- --
-------- -------- -------- --------
Net cash provided by (used in) operating activities (9,695) (4,884) -- 47,316
-------- -------- -------- --------
Investing activities:
Capital expenditures for property and equipment (881) (23,563) -- (35,824)
Proceeds from sales of assets -- 17,870 -- 25,150
Net payments from (advances to) Interstate Hotels &
Resorts (678) (678) -- (7,000)
(Increase) decrease in restricted cash -- -- -- 4,861
Other, net -- -- -- --
-------- -------- -------- --------
Net cash provided by (used in) investing activities (1,559) (6,371) -- (12,813)
-------- -------- -------- --------
Financing activities:
Principal payments on long-term debt -- -- -- (313,618)
Proceeds from issuance of long-term debt 13,500 13,500 -- 283,138
Deferred financing fees -- -- -- (3,416)
Contributions from partners -- -- -- 3,156
Distributions paid to partners -- -- -- (2,467)
-- -- -- --
-------- -------- -------- --------
Net cash provided by (used in) financing activities 13,500 13,500 -- (33,207)
-------- -------- -------- --------
Effect of exchange rate changes on cash -- -- -- (9)
-------- -------- -------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2,246 2,245 -- 1,287
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 16,643 16,643 -- 23,441
-------- -------- -------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD 18,889 18,888 -- 24,728
======== ======== ======== ========